ITR Filing in 2026- 27: Latest Updates, Forms, Due Dates & Tax Slabs

• Taxation
• ||
• April 20, 2026

It’s that time of the year again — ITR filing season for AY 2026-27 is here! Whether you are a salaried employee, freelancer, business owner, or a company in India, filing your Income Tax Return (ITR) on time is not just a legal requirement — it also helps you claim refunds faster, build a strong financial record, and stay compliant with Indian tax laws. This year brings some significant changes, including a brand-new “Tax Year” concept, updated ITR forms, revised deadlines, and simplified filing options.

If you are someone who doesn’t know anything about ITR or filing for the first time, this blog is for you. In this guide, we will cover all the essential parts of filing an ITR in India for 2026–27

 Overview of ITR

An Income Tax Return (ITR) is a form that you file with the Income Tax Department of India to declare your total income earned during a financial year, the taxes you have already paid (via TDS, advance tax, etc.), and to calculate whether you owe more tax or are eligible for a refund.

In simple words — ITR is like telling the government: “Here is how much money I made, and here is how much tax I’ve paid. Let’s settle the difference.”

There are various types of ITR forms designed for different categories of people based on their eligibility, income type, and specific situations. You need to file the form that applies to your category. In total, there are 7 forms, which we will understand later.

The New ‘Tax Year’ Concept — Introduced in 2026

One of the biggest changes in Indian taxation in over six decades is here. From April 1, 2026, a new Income Tax Act, 2025, and Income Tax Rules, 2026 have come into force, replacing the old Income-tax Act, 1961.

What is the ‘Tax Year’ Concept?

Under the old system, India used two different terms — Financial Year (FY) for earning income and Assessment Year (AY) for filing taxes.

Financial Year (FY): The year in which you earn income (April 1 to March 31).

Assessment Year (AY): The year in which you report and file tax on that income (the year after FY).

Example: Income earned in FY 2025-26 → Filed as ITR in AY 2026-27 (by July 31, 2026).

This often confuses taxpayers.

Under the new system, both earning and filing will be referred to as the Tax Year. So ‘Tax Year 2026-27’ means income earned from April 1, 2026 to March 31, 2027. The return for this will be due in 2027.

Old Act vs New Act — Which Applies to You?

 If you are filing your ITR in mid-2026 (for income earned April 2025 to March 2026), you are still using the old ITR forms and old Act. The new Tax Year framework kicks in from income earned in FY 2026-27 onwards, with returns due in 2027.

ITR Forms for AY 2026-27 — Which One Applies to You?

The CBDT notified all ITR forms (ITR-1 to ITR-7) on March 30, 2026. Choosing the correct form is critical — filing the wrong form can lead to a defective return notice.

Other Important Tax Forms

Apart from the ITR forms, here are other forms relevant during the ITR filing process :

Pro Tip from Mercurius: Always cross-check your Form 26AS and AIS before filing your ITR. Any mismatch in TDS figures between Form 16/16A and Form 26AS can trigger notices from the Income Tax Department. Our team always verifies these documents before filing.

ITR Filing Due Dates for AY 2026-27

Missing the ITR filing deadline means paying penalties and interest. Here are all the key dates you need to mark on your calendar for FY 2025-26 (AY 2026-27):

⚠️ What Happens If You Miss the Deadline?

Penalty under Section 234F: Rs. 1,000 if total income is Rs. 5 lakh or less; Rs. 5,000 in all other cases.

Interest under Section 234A: 1% per month on unpaid tax from the due date.

Loss carry-forward: You cannot carry forward losses from stocks, business, or property (except house property losses) if ITR is filed late.

Revised return now extended: The due date to file a revised ITR has been extended to March 31, 2027 (from the earlier December 31, 2026). Note — if you revise after 9 months (after December 31), a fee of Rs. 1,000–Rs. 5,000 applies.

Tax Slabs & Regimes for AY 2026-27

India has two tax regimes — the New Tax Regime (default from AY 2024-25) and the Old Tax Regime. You choose while filing your ITR. The new regime has lower rates but fewer deductions; the old regime has more deductions but higher rates.

New Tax Regime (Default)

🎁 Big Benefit under New Regime:

Resident individuals with taxable income up to Rs. 12,00,000 pay ZERO TAX thanks to the rebate under Section 87A (rebate of up to Rs. 60,000). This is a major relief introduced in Budget 2025!

Old Tax Regime

Note: Rebate under old regime — up to Rs. 12,500 for income not exceeding Rs. 5,00,000. Health & Education Cess of 4% is applicable on income tax + surcharge in both regimes.

Which Regime Is Better for You?

📌 Important:

Non-business taxpayers (salaried, retired) can switch between old and new regime every year directly while filing the ITR. Business / professional taxpayers need to file Form 10-IEA if they wish to switch.

How to File ITR Online — Step-by-Step Guide

Filing your Income Tax Return online is now easier than ever on the government’s e-filing portal. Here’s how to do it:

1. Register / Login to the e-Filing Portal
Go to incometax.gov.in. If you’re a new user, register using your PAN number. Existing users can log in directly with PAN + password.

2. Collect Your Documents
Keep ready: Form 16 (from employer), Form 26AS & AIS (from portal), bank statements, investment proofs (for 80C, 80D), home loan certificate, and capital gains statements if any.

3. Select the Right ITR Form
Based on your income sources, choose the correct ITR form (ITR-1 to ITR-7). The portal may also suggest a pre-filled form based on your data.

4. Choose Your Tax Regime
Decide between the New Tax Regime and Old Tax Regime. Use the tax calculator on the portal to compare which saves you more tax.

5. Fill in Your Income & Deduction Details
Enter salary, house property income, capital gains, other sources. Claim eligible deductions under 80C, 80D, 80G, HRA, LTA, etc. under the old regime.

6. Review Tax Computation & Pay Any Tax Due
Check whether you owe additional tax or are due a refund. Pay any remaining tax (Self-Assessment Tax) via Challan 280 before submitting.

7. Submit & Verify Your Return
Submit the ITR online and complete e-verification within 30 days using Aadhaar OTP, net banking, DSC, or bank account validation. Without verification, the ITR is treated as not filed.

💡 Helpful Tip:

The Income Tax Portal now offers a pre-filled ITR — it automatically fetches your salary details, TDS data, and investment information from government records. Always verify this pre-filled data against your actual documents before submitting.

Why Choose Mercurius for Your ITR Filing?

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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