ITR Filing FY 2025-26 — everything that changed this year
Budget 2025 brought meaningful tweaks to the new regime, ITR-U window, and TDS thresholds. This page is your tactical cheat sheet — slab comparison, form decision tree, deadline calendar, and direct links to the calculators you actually need. For the full master walkthrough, see how to file ITR.
What's actually different for AY 2026-27
Budget 2025 was an incremental year — no rate cut bonanza, but several rationalisations that change the math for specific groups. Here's what to know before you open the portal.
Rebate u/s 87A raised
Rebate ceiling increased so total income up to ₹7 lakh effectively pays zero tax under the new regime (₹7.75L with standard deduction). Old regime rebate ceiling unchanged at ₹5 lakh.
New regime cap at 25%
Surcharge under the new regime continues to be capped at 25% (versus 37% in old regime) for income above ₹2 crore. This is now permanent in Section 115BAC.
STCG 20%, LTCG 12.5%
Short-term capital gains on listed equity (STT-paid) taxed at 20% (up from 15%). LTCG on equity at 12.5% with ₹1.25L exemption (up from ₹1L). LTCG on property/other assets harmonised to 12.5% without indexation.
Updated return window: 48 months
You can now file an updated return within 48 months from the end of the AY (was 24). Tiered additional tax: 25% (Y1), 50% (Y2), 60% (Y3), 70% (Y4).
Section 194I rent threshold ₹6L
TDS on rent paid by individuals/HUFs (non-audit) kicks in at ₹6 lakh per annum. Section 194J professional fee threshold revised to ₹50K. Verify against final Finance Act 2025.
Employer NPS deduction up to 14%
Under the new regime, employer NPS contribution deductible up to 14% of basic salary (was 10%). Old regime stays at 10%. Boosts the new regime's appeal for higher earners with structured NPS.
Reality check. Pricing/rules above reflect Budget 2025 announcements. Always cross-check the final Finance Act and any post-Budget circulars from CBDT before submitting your return.
Are you ITR-1, ITR-2, or ITR-3?
90% of salaried individuals end up on ITR-1 or ITR-2. Pick the wrong form and the portal rejects it after submission — costing you the deadline. Walk this tree top to bottom.
Step 1 — Total income above ₹50 lakh?
If yes, you cannot use ITR-1. Skip to Step 3.
Step 2 — Income only from salary, one house property, or other sources (interest)?
And no capital gains, no foreign assets, no business?
Step 3 — Do you have business or professional income?
Step 4 — Capital gains, foreign assets, multiple house properties, or income above ₹50L?
Insider tip. Even ₹1 of long-term capital gain from selling a mutual fund unit forces you to ITR-2. The portal will not let you correct the form after submission — you must file a revised return. Check your Form 26AS / AIS for "Sale of securities and units of mutual fund" entries before picking ITR-1.
Old vs new regime — FY 2025-26 actuals
The new regime is the default — you must opt out via Form 10-IEA if you want the old regime (and even then, business taxpayers can only switch back once in their lifetime). Numbers below are the rates you'll actually pay.
New Regime (default)
| Income slab | Rate |
|---|---|
| Up to ₹3,00,000 | 0% |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Standard deduction: ₹75,000. Rebate u/s 87A: up to ₹7L income (zero tax). Surcharge cap: 25%.
Old Regime (opt-in)
| Income slab | Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard deduction: ₹50,000. Deductions allowed: 80C, 80D, HRA, home loan interest, NPS — full menu. Surcharge cap: 37%.
Quick rule. Old regime wins only if your aggregate deductions (80C ₹1.5L + 80D ₹25K + HRA + home-loan interest ₹2L + NPS ₹50K + others) exceed roughly ₹3.75–4 lakh. Below that, new regime almost always saves more. Run both in our Income Tax Calculator to be sure.
The four dates that actually matter
Miss the first one and you pay a late fee. Miss the second and you lose the ability to carry forward losses. Miss the third and you've lost the year permanently — only ITR-U remains, which costs 25%+ extra tax.
Original deadline
Non-audit individuals & HUFs. File before midnight IST. After this, late fee under Section 234F applies.
Audit cases
Business turnover > ₹1 crore, profession > ₹50 lakh, or audit required under any other Act.
Belated / revised
Last day to file a belated return or revise an already-filed one. After this, only ITR-U is possible.
ITR-U window
Updated return window (extended to 48 months in Budget 2025). Comes with 25%–70% additional tax.
Late-fee math. Section 234F: ₹1,000 if total income ≤ ₹5 lakh, ₹5,000 otherwise. Plus interest under Section 234A at 1% per month on unpaid tax. See our ITR last date page for a live countdown and penalty calculator.
Start filing — open the right tool
Three calculators cover 95% of what you'll need before logging into the e-filing portal. All free, all in-browser, no signup.
Six questions specific to AY 2026-27
What is the last date for ITR filing for AY 2026-27?
31 July 2026 for individuals and HUFs not requiring audit. 31 October 2026 for taxpayers whose accounts must be audited. Belated and revised returns: up to 31 December 2026.
Which is better — old or new regime for AY 2026-27?
New regime wins by default for most salaried earners thanks to the ₹75,000 standard deduction and rebate up to ₹7 lakh income. Old regime makes sense only if your total deductions (80C, 80D, HRA, home-loan interest, NPS) exceed roughly ₹3.75–4 lakh. Always run both in our tax calculator.
Has the standard deduction changed in Budget 2025?
No change in Budget 2025. Standard deduction stays at ₹75,000 (new regime) and ₹50,000 (old regime). The ₹75K figure was raised in Budget 2024 from ₹50K and continues for FY 2025-26.
What is the new ITR-U updated return window?
Budget 2025 extended the ITR-U window from 24 months to 48 months from the end of the assessment year. So for AY 2026-27, the last date to file ITR-U is 31 March 2030, with progressive additional tax: 25% (Y1), 50% (Y2), 60% (Y3), 70% (Y4) of tax + interest.
Do I need to file ITR if my income is below the exemption limit?
Mandatory if you have foreign assets, electricity bill above ₹1 lakh, foreign travel over ₹2 lakh, deposits over ₹50 lakh in savings, ₹1 crore in current account, business turnover over ₹60 lakh, professional receipts over ₹10 lakh, or aggregate TDS/TCS of ₹25K (₹50K seniors). Otherwise voluntary but recommended for refund claims.
Can I switch between old and new regime every year?
Salaried individuals can switch every year by filing before the due date. Taxpayers with business or professional income can opt out of the new regime once via Form 10-IEA, and re-entry is allowed only once in a lifetime. Choose carefully if you're a freelancer with fluctuating income.