ITR Filing 2026 (AY 2026-27): Income Tax Slabs, Deadlines, Rebate & Full Guide
For AY 2026-27 (income earned in FY 2025-26), the ITR filing last date is 31 July 2026 for salaried filers using ITR-1 or ITR-2, and 31 August 2026 for non-audit business filers using ITR-3 or ITR-4. Under the new tax regime, income up to Rs 12 lakh is effectively tax-free thanks to the Section 87A rebate.
Key Highlights
Here is the essential information for this filing season, at a glance.
| Item | Detail (AY 2026-27) |
|---|---|
| Applies to income earned in | FY 2025-26 (1 Apr 2025 to 31 Mar 2026) |
| Last date (ITR-1, ITR-2) | 31 July 2026 |
| Last date (ITR-3, ITR-4, non-audit) | 31 August 2026 |
| Tax audit cases | 31 October 2026 |
| Tax-free income (new regime) | Up to Rs 12 lakh (Rs 12.75 lakh for salaried) |
| Standard deduction (new regime) | Rs 75,000 |
What Is ITR and Income Tax?
Income tax is the tax you pay on what you earn in a year. An Income Tax Return, or ITR, is the form you file with the Income Tax Department to declare that income, claim deductions, report tax already paid through TDS or advance tax, and settle any balance or claim a refund.
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For income earned in FY 2025-26, you file your return in the assessment year AY 2026-27. Filing is done online on the official portal at incometax.gov.in.
Latest Updates for This Filing Season
A few genuinely new changes make this year different, and many quick guides miss them.
- Two deadlines, not one: Salaried filers (ITR-1, ITR-2) have until 31 July 2026, but non-audit business and professional filers (ITR-3, ITR-4) now get until 31 August 2026. This extra month is a permanent change, not a one-off.
- ITR-1 now allows two house properties: Earlier, a second house pushed you to ITR-2. This simplifies filing for many salaried owners.
- Longer revised-return window: You can now revise a return up to 31 March 2027, instead of the old 31 December cut-off.
- The last year under the old law: This is the final filing season under the Income Tax Act, 1961. The new Income Tax Act, 2025 applies to income from 1 April 2026 onward, which you will file in 2027.
Why This Matters
Filing correctly and on time is not just about avoiding a penalty. A timely, accurate return means faster refunds, smoother loan and visa approvals, and the ability to carry forward losses. Filing late can cost you a fee, interest, and, importantly, the right to choose the old tax regime for that year.
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Income Tax Slabs FY 2025-26: New Regime
The new tax regime is the default. Its slabs for FY 2025-26 are below. A 4% health and education cess applies on the final tax.
| Income Slab | Tax Rate |
|---|---|
| Up to Rs 4 lakh | Nil |
| Rs 4 lakh to Rs 8 lakh | 5% |
| Rs 8 lakh to Rs 12 lakh | 10% |
| Rs 12 lakh to Rs 16 lakh | 15% |
| Rs 16 lakh to Rs 20 lakh | 20% |
| Rs 20 lakh to Rs 24 lakh | 25% |
| Above Rs 24 lakh | 30% |
The magic number is Rs 12 lakh. A Section 87A rebate of up to Rs 60,000 wipes out the tax on taxable income up to that level. For salaried people, the Rs 75,000 standard deduction pushes the tax-free ceiling to about Rs 12.75 lakh.
Old Regime vs New Regime
The old regime has lower exemption limits but allows many deductions. The new regime has higher slabs and the big rebate but few deductions. This table compares them.
| Feature | New Regime | Old Regime |
|---|---|---|
| Basic exemption | Rs 4 lakh | Rs 2.5 lakh |
| Tax-free with rebate | Up to Rs 12 lakh | Up to Rs 5 lakh |
| Standard deduction | Rs 75,000 | Rs 50,000 |
| Deductions (80C, HRA, etc.) | Mostly not allowed | Allowed |
| Best for | Those with few deductions | Those with high deductions |
Real-Life Examples
Example 1: The Rs 8 lakh earner
A salaried person earning Rs 8 lakh, after the Rs 75,000 standard deduction, has taxable income of Rs 7.25 lakh. The slab tax works out to Rs 16,250, but the 87A rebate cancels it. Final tax: zero.
Example 2: The Rs 12 lakh earner
Someone with Rs 12 lakh taxable income has a slab tax of Rs 60,000. The full rebate of Rs 60,000 applies, so the tax is again zero. This is exactly why Rs 12 lakh is the talking point this year.
Example 3: The Rs 15 lakh earner
A salaried person earning Rs 15 lakh, after standard deduction, has taxable income of Rs 14.25 lakh. This is above the rebate limit, so tax is payable. It comes to about Rs 97,500, including cess.
| Salary | Taxable (after std deduction) | Tax (new regime, incl. cess) |
|---|---|---|
| Rs 8 lakh | Rs 7.25 lakh | Rs 0 (rebate applies) |
| Rs 12 lakh | Rs 12 lakh (taxable) | Rs 0 (rebate applies) |
| Rs 15 lakh | Rs 14.25 lakh | About Rs 97,500 |
| Rs 20 lakh | Rs 19.25 lakh | About Rs 1.92 lakh |
Calculations Section
Calculation 1: Rs 12 lakh, new regime.
Tax = 5% of (8 to 4 lakh) + 10% of (12 to 8 lakh) = Rs 20,000 + Rs 40,000 = Rs 60,000.
Section 87A rebate = Rs 60,000. Net tax = Rs 0.
Calculation 2: Rs 15 lakh salary, new regime.
Taxable income after Rs 75,000 standard deduction = Rs 14.25 lakh.
Tax = Rs 20,000 + Rs 40,000 + 15% of Rs 2.25 lakh (Rs 33,750) = Rs 93,750.
Add 4% cess (Rs 3,750). Total tax = about Rs 97,500.
Calculation 3: Late filing cost.
A belated return attracts a fee of Rs 5,000 (Rs 1,000 if income is up to Rs 5 lakh), plus 1% interest per month on unpaid tax under Section 234A. Filing late can also lock you out of the old regime.
Expert Analysis
Here is the insight most guides skip. The headline is the Rs 12 lakh tax-free figure, but the more important practical point is the link between your deadline and your regime choice. If you want the old regime, you must file on time. Miss the deadline, file a belated return, and you are pushed into the new regime by default, losing every deduction you planned around. For anyone with a home loan, high 80C investments, or HRA, that can cost far more than the late fee itself. Understanding how income, investments, and taxes fit together is a skill worth building, and our stock market classes cover these basics.
A contrarian note: the new regime is not automatically better for everyone. If your deductions are large, the old regime can still win. Run both before you decide, rather than assuming the default is best.
Benefits of Filing on Time
- Faster refunds: Early, accurate returns are processed sooner.
- Loan and visa ease: ITR receipts are widely accepted as income proof.
- Loss carry-forward: You can carry losses to future years only if you file on time.
- Regime freedom: On-time filing keeps the old-regime option open.
Risks and Limitations of Filing Late
- Late fee: Up to Rs 5,000 under Section 234F.
- Interest: 1% per month on unpaid tax.
- Lost old regime: Belated filers are locked into the new regime.
- Lost benefits: Certain losses cannot be carried forward.
Deadlines and Penalties at a Glance
| Situation | Date / Cost |
|---|---|
| ITR-1, ITR-2 (salaried) | 31 July 2026 |
| ITR-3, ITR-4 (non-audit) | 31 August 2026 |
| Audit cases | 31 October 2026 |
| Belated return | By 31 December 2026, fee up to Rs 5,000 |
| Revised return | By 31 March 2027 |
Future Outlook
The big shift is coming next year. The new Income Tax Act, 2025 replaces the six-decade-old 1961 Act for income earned from 1 April 2026, bringing new terms like “Tax Year” and revised forms. Traders and investors should also note that trading income has its own rules, explained in our guides on how trading profits are taxed and crypto tax in India.
Action Steps: What To Do Next
- Pick the right form: Confirm whether you need ITR-1, 2, 3, or 4.
- Reconcile your data: Match Form 16, Form 26AS, and your AIS before filing.
- Compare both regimes: Calculate tax under old and new to pick the lower one. Tax-saving tools like EPF versus FD and your EPF balance matter here.
- File early and e-verify: Submit before the rush and complete e-verification within 30 days, or the return is treated as not filed.
Frequently Asked Questions
What is the last date to file ITR for AY 2026-27?
31 July 2026 for salaried filers using ITR-1 or ITR-2, and 31 August 2026 for non-audit business filers using ITR-3 or ITR-4.
Is income up to Rs 12 lakh tax-free?
Yes, under the new tax regime. A Section 87A rebate of up to Rs 60,000 makes taxable income up to Rs 12 lakh effectively tax-free.
What is the tax-free limit for salaried people?
About Rs 12.75 lakh under the new regime, because of the Rs 75,000 standard deduction on top of the Rs 12 lakh rebate limit.
Which regime is better, old or new?
It depends on your deductions. The new regime suits those with few deductions; the old regime can win if you have large deductions like 80C, HRA, or home loan interest.
What are the new regime slabs for FY 2025-26?
Nil up to Rs 4 lakh, then 5%, 10%, 15%, 20%, 25%, and 30% above Rs 24 lakh, across seven slabs.
How much tax on Rs 15 lakh salary?
About Rs 97,500 under the new regime, after the standard deduction and including cess.
What happens if I file ITR late?
You pay a late fee up to Rs 5,000, interest on unpaid tax, and you lose the option to choose the old regime for that year.
Can I still file after the deadline?
Yes, a belated return can be filed by 31 December 2026, with a late fee. Certain benefits are lost.
Can I revise my return?
Yes. The revised return window now extends to 31 March 2027, giving more time to correct genuine errors.
Which ITR form should I use?
ITR-1 for simple salary and up to two house properties, ITR-2 for capital gains, and ITR-3 or ITR-4 for business or professional income.
Is e-verification necessary?
Yes. You must e-verify within 30 days, or the return is treated as never filed.
Do I still file under the old or new Income Tax Act?
For AY 2026-27, you file under the old Income Tax Act, 1961. The new Act, 2025 applies from next year.
Final Verdict
This filing season is simpler for many, with Rs 12 lakh income effectively tax-free under the new regime, but it carries traps for the unwary. Know your deadline, because it now depends on your form, and file on time to keep your regime choice. Compare both regimes before deciding. This article is for information and education only and is not tax advice; for your specific case, consult a qualified chartered accountant or the official portal.
Authority references:
1. Income Tax Department, official e-filing portal: incometax.gov.in
2. Central Board of Direct Taxes (CBDT), notifications on ITR forms and slabs.
3. Budget 2025 provisions on the new tax regime and Section 87A rebate.
Disclaimer: This article is for general information only and is not tax or legal advice. Tax rules, slabs, and deadlines can change and vary by individual situation. Always confirm details on the official Income Tax portal or with a qualified tax professional before filing.