ITR filing FY 2025-26: With the income tax return filing deadline drawing closer, salaried taxpayers have now entered into a crucial phase. It is pertinent
to note that the last date to file ITR this year is July 31. While the Income-tax Act, 2025 came into force on April 1, 2026, the old Income-tax Act, 1961 will continue to apply for income earned during the financial year 2025-26 (assessment year 2026-27). According to the Income Tax Department, over 1.7 crore ITRs have been filed as of July 10, 2026. Last year, over 7.28 crore returns were filed. For taxpayers filing their returns for the first time, it is important that they keep a checklist of all the required documents before making the final submission. Although the e-filing process has become much quicker now, it is still better to avoid a last-minute rush as sometimes the income tax site experiences a slowdown and lag.
Things to check before filing returns for first time
- Form 16 (from current employer and former employer if you changed jobs mid-year)
- PAN Card, Aadhaar Card (PAN-Aadhaar must be linked), and investment proofs (including bank deposits, PPF deposits, etc.), home loan interest certificate, and insurance premium payment receipts.
Which form should you choose?
- An individual with income from salary, one house property, and other sources should choose ITR-1 form.
- An individual or Hindu Undivided Family (HUF) without business income should choose ITR-2 form.
- An individual or HUF with income from business or profession should choose ITR-3 form.
- An individual with presumptive income from business or profession should choose ITR-4 form.
Online filing for ITR-1, ITR-4 for AY 2026-27 enabled on May 15
The e-filing portal of the Income Tax Department on May 15 opened the window for filing ITR-1 and ITR-4 forms for the current assessment year 2026-27.
This move allows taxpayers to use either the online mode or the Excel-based utility to complete their tax obligations for 2026-27.
The official Account of the Income Tax Department, Government of India, posted on X, " Attention taxpayers, the Excel utility and Online filing for ITR-1 and ITR-4 for AY 2026-27 has been enabled and is now available for taxpayers on the e-Filing portal."
New Income-tax Act, 2025
Meanwhile, the new Income-tax Act, 2025, which came into effect from April 1, 2026, marks a comprehensive overhaul of India's six-decade-old tax framework, with a focus on simplifying compliance, enhancing transparency, and rationalising exemptions for salaried taxpayers.
While tax slabs and rates remain unchanged, the new regime significantly altered the way income, deductions, and disclosures are reported and verified, shifting emphasis towards more accurate and detailed reporting.
Multiple income tax exemption limits are set to be increased under the new rules, particularly benefiting individuals opting for the old tax regime.
What are the key changes?
One of the key changes pertains to House Rent Allowance (HRA). Currently, taxpayers residing in metro cities such as Mumbai, Delhi, Kolkata, and Chennai can claim an exemption of up to 50 per cent of their basic salary, while those in other cities are eligible for 40 per cent.Under the revised framework, cities like Bengaluru, Hyderabad, Pune, and Ahmedabad have also been included in the higher 50 per cent exemption category, thereby expanding relief to a wider urban population.
The new act also provides for a substantial increase in exemptions related to children's education. The existing allowance of Rs 100 per child per month is set to be raised to Rs 3,000 per child per month.
In addition, salaried employees are set to benefit from enhanced meal-related tax exemptions. Under the new Income Tax Rules, 2026, the tax-exempt limit for employer-provided meals has been increased from Rs 50 per meal to Rs 200 per meal.
Additionally, expanded use of PAN and tighter reporting norms will require taxpayers to disclose financial information more comprehensively.
It is believed that these revisions are designed to align exemption limits with current cost structures and inflationary trends, which have rendered many existing thresholds outdated. The broader objective is to ease the tax burden on salaried individuals while modernising the tax administration system.
(With ANI inputs)
