E-Filing of Income Tax Return FY 2025-26 (AY 2026-27): A Complete Guide for Individuals, Businesses & NRIs

• Taxation
• ||
• April 28, 2026

KEY DEADLINE REMINDER: ITR filing for FY 2025-26 (AY 2026-27) is OPEN from 1st April 2026, with forms available on the e-filing portal.

Last date for salaried individuals: 31st July 2026.

Overview

Are you a business owner, individual, NRI, or expat in India earning above the basic exemption limit and unsure how to file your taxes?

Tax season is here, and if you are wondering how to file your Income Tax Return (ITR) for the Financial Year 2025-26 (Assessment Year 2026-27), you have landed on the right place.

In this guide, we walk you through everything in simple, plain language — from what ITR actually is, to the deadlines, which form you should fill out, what happens if you miss the date, and how Mercurius can take the entire burden off your shoulders.

What is ITR, and why should you file it?

An Income Tax Return (ITR) is a form that you submit to the Income Tax Department of India.

It tells the government how much money you earned during the year, how much tax you already paid (through TDS, advance tax, etc.), and whether you are owed a refund or need to pay more tax.

The Financial Year (FY) refers to the year in which you earned the income — 1st April 2025 to 31st March 2026. The Assessment Year (AY) is the following year when you report and pay tax — i.e., AY 2026-27. Simply put: If you earned income between April 2025 and March 2026, you will file your ITR in AY 2026-27 — anytime after 1st April 2026 up to the due date.

New update – Tax Year concept:

From 1 April 2026, a simplified “Tax Year” concept will be introduced. This means the same year will be used for both earning and filing. For example, Tax Year 2026–27 will refer to income earned from 1 April 2026 to 31 March 2027, and the return for this will be filed in 2027.

Who must file an ITR in 206-27?

Section 139(1) of the Income Tax Act specifies who is required to file an ITR and outlines the following eligibility criteria-

Pro Tip: Even if your income is below the taxable limit, filing an ITR voluntarily is smart — it helps you get loans faster, process visas easily, and maintain a clean financial record.

Last Date to File ITR in AY 2026-27

The ITR filing due dates differ depending on the type of taxpayer you are.

Here is a clear breakdown of all important ITR filing deadlines for FY 2025-26 (AY 2026-27):

Budget 2026 Update: The revised return deadline has been extended from 31st December to 31st March. Also, ITR-3 and ITR-4 (non-audit) deadline extended from 31st July to 31st August, effective from FY 2025-26.

Filing ITR After the Due Date — What are your options?

Missed the deadline? Do not panic. The Income Tax Department gives you multiple options even after the due date:

Option 1: Belated Return (Section 139(4))

If you miss the original deadline, you can still file a Belated Return up to 31st December 2026. A late filing fee under Section 234F will apply:

• Rs. 1,000 — if your total income does not exceed Rs. 5 lakh
• Rs. 5,000 — if your total income exceeds Rs. 5 lakh
• Interest at 1% per month under Section 234A — on any unpaid tax.

Option 2: Revised Return (Section 139(5))

If you already filed your ITR on time but made a mistake, you can file a Revised Return up to 31st March 2027 (extended under Budget 2026 from the earlier 31st December deadline).

Option 3: Updated Return — ITR-U (Section 139(8A))

Even if you missed both original and belated deadlines, you can file an Updated Return (ITR-U) up to 48 months from the end of the assessment year — i.e., up to 31st March 2031 for AY 2026-27.

How to file ITR online? E- Filing Process of ITR in India

What is e-filing?

E-filing, or electronic filing, is submitting your income tax returns online. There are two ways to file your income tax returns. The traditional way is the offline way, where you go to the Income Tax Department’s office to physically file your returns. The other way is when you e-file through the internet. Over the past few years, e-filing has become popular because it is easier, doesn’t require prints of documents, and can be done for free.

Here is the step-by-step process:

1. Go to the e-filing portal: Visit incometax.gov.in and log in with your PAN and password.
2. Select File Income Tax Return: Under the ‘e-File’ menu, click ‘Income Tax Returns’ then ‘File Income Tax Return.’
3. Choose AY 2026-27: Select Assessment Year 2026-27 for income earned in FY 2025-26.
4. Select the correct ITR form: Based on your income sources (see Section 4 below).
5. Fill in your income details: Salary, capital gains, deductions, rental income, etc.
6. Verify pre-filled data: Cross-check against Form 26AS and Annual Information Statement (AIS).
7. Pay any remaining tax dues before submitting the return.
8. e-Verify and submit: Use Aadhaar OTP, Net Banking, or Digital Signature Certificate (DSC).

Which ITR form should you file?

The correct ITR form depends on who you are and where your income comes from. The CBDT has notified all 7 ITR forms (ITR-1 to ITR-7) for AY 2026-27. To know more about these forms in detail, you can click here- https://masllp.com/itr-filing-in-2026-27-latest-updates-forms-due-dates-tax-slabs/

Consequences of Not Filing ITR

Skipping your ITR is not just a small oversight — it can have serious financial and legal consequences:

Practical Impact on Your Life :

• Loan applications (home loan, car loan, personal loan) may be rejected — banks use ITR as income proof
• Visa processing (US, UK, Canada, Schengen) gets complicated — embassies ask for 2-3 years of ITR
• Your financial credibility suffers, and lenders may charge higher interest rates
• You may receive tax scrutiny notices and demands from the Income Tax Department
• Delayed refund — if TDS was deducted from your income, you cannot get it back without filing

Bottom Line: Filing your ITR on time costs you nothing extra and protects you from penalties, legal trouble, and financial roadblocks. Always file before the deadline.

ITR Filing Services in India

India has a growing ecosystem of ITR filing services. Here is a quick overview of your options:

Option 1: Self-Filing (DIY)

You can file your ITR directly at incometax.gov.in for free. This works well for simple cases like salaried individuals with only salary income, one house property, and standard investments. The portal has a pre-filled option where Form 26AS and TDS details are auto-populated.

Option 2: CA or Tax Professional

For complex situations — business income, capital gains, multiple income sources, foreign income, NRI status — hiring a Chartered Accountant (CA) or tax professional is the wisest choice. They ensure accuracy, full compliance, and optimize your tax liability within legal bounds.

Specialized tax and compliance firms like Mercurius combine professional expertise with technology to offer end-to-end ITR filing services. Ideal for businesses, expats, NRIs, and individuals with complex tax profiles. For more details regarding this you can contact us!

ITR Filing for Your Business in India

If you run a business — sole proprietorship, partnership, LLP, or private limited company — your ITR filing requirements are more detailed than a salaried employee’s.

Note: The tax audit report (Form 3CA/3CB/3CD) must be filed at least one month before the ITR due date — i.e., by 30th September 2026 for businesses with a 31st October 2026 ITR deadline.

What do business owners need to keep ready?

• Profit & Loss Account and Balance Sheet for FY 2025-26.
• Books of accounts (mandatory if turnover exceeds Rs.1 crore for business / Rs.50 lakh for professionals).
• GST returns (GSTR-1, GSTR-3B) — to reconcile income declared in GST vs ITR.
• TDS certificates (Form 16A) received from clients.
• Advance tax payment challans.
• Tax audit report if applicable (Form 3CA/3CB/3CD).

ITR Filing for Expats and NRIs in India

If you are a Non-Resident Indian (NRI) or an expat living abroad but earning income in India, you are still required to file an ITR in India.

When does an NRI need to file ITR? 

• You have income in India — rental income, salary from an Indian employer, capital gains from Indian stocks or property
• Your taxable income in India exceeds the basic exemption limit
• TDS has been deducted from your Indian income and you want a refund
• You want to carry forward capital losses from Indian investments to future years

Which ITR Form for NRIs?

NRIs cannot use ITR-1 or ITR-4. They must file using:

• ITR-2 — if no business or professional income in India
• ITR-3 — if they have business or professional income in India

Key Things NRIs Must Know:

1. Determine your residential status: Your residential status (Resident, NRI, or RNOR) under the Income Tax Act determines which income is taxable in India.
2. Check DTAA benefits: India has Double Taxation Avoidance Agreements (DTAA) with 90+ countries. You may not have to pay tax in both countries on the same income.
3. Foreign asset disclosure: If you are a Resident (not NRI), you must disclose all foreign assets and accounts in your ITR. Non-disclosure attracts heavy penalties under the Black Money Act.
4. e-Verification from abroad: NRIs can e-verify using Net Banking (Indian banks) or Digital Signature Certificate (DSC). Physical posting of ITR-V to CPC Bengaluru is also an option.

Expat Alert: NRI taxation in India is complex — especially with income in multiple countries, property in India, or repatriated funds. Getting professional help from Mercurius is strongly recommended.

Conclusion

Filing your Income Tax Return for FY 2025-26 (AY 2026-27) is not just a legal obligation — it is an important step in managing your finances responsibly. Whether you are a salaried employee, a freelancer, a business owner, or an NRI, the ITR due dates and rules apply equally to you.

Quick Recap — Key Points to Remember

• ITR  AY 2026-27 start date  1st April 2026
• Salaried individuals (ITR-1, ITR-2) must file by 31st July 2026
• Belated returns can be filed until 31st December 2026 (with penalty)
• Revised returns can be filed until 31st March 2027 (Budget 2026 extension)
• ITR-U (updated return) can be filed up to 31st March 2031
• Non-filing leads to penalties, interest, lost refunds, and possible legal action

The rules governing AY 2026-27 filings are still under the Income Tax Act, 1961 — even though the new Income Tax Act 2025 has come into force from April 2026. The new Act applies only for Tax Year 2026-27 (returns due in 2027).

How does Mercurius help you in filing your ITR in India?

At Mercurius, we have been helping businesses, salaried individuals, HUFs, startups, and NRIs file their Income Tax Returns accurately and on time.

Our team of experienced Chartered Accountants and tax professionals handles tax filings for over 2,000 taxpayers every year in India. We understand that every client’s situation is unique, and we approach each case with personalized attention and care.

Need help with ITR Filing for AY 2026-27?

Contact Mercurius today for a free consultation. Our tax team is ready to handle your ITR filing — accurately, on time, and stress-free.

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