ITR Filing Due Dates for FY 2025-26: Check Deadlines to Avoid Late Fees!

Updated Return (ITR-U) — AY 2026–27

The Updated Return (ITR-U) facility for AY 2026-27 is a critical compliance tool under the income tax framework designed to promote voluntary tax disclosure and minimise litigation. The filing window for ITR-U spans an extended 48 months (4 years) from the end of the relevant assessment year, giving taxpayers substantial time to rectify errors, report omitted income, choose correct heads of income, or fix a wrong rate of tax.

1 How do I know which ITR form applied to me?

It depends on your income source. If you're salaried or a pensioner with no business income, you'll use ITR-1 or ITR-2. If you have business or professional income, ITR-3 or ITR-4 applies. When in doubt, consult a tax professional.

2 What is my filing deadline as a first-time salaried employee?

31st July 2026 for FY 2025–26. This applies to salaried individuals and pensioners filing ITR-1 or ITR-2.

3 What happens if I miss the July 31st deadline — can I still file?

Yes. You can still file a belated return under Section 139(4) up to 31st December 2026, though penalties and interest will apply.

4 How much will I be penalised for filing late?

Under Section 234F, the late filing fee is ₹1,000 if your income is up to ₹5 lakh, and ₹5,000 if it exceeds ₹5 lakh.

5 Is there any interest charged on top of the late filing fee?

Yes. Under Section 234A, 1% interest per month is charged on any unpaid tax amount, calculated from the day after the due date until you actually file.

6 What is the "default regime" penalty mentioned in the article?

If you miss the deadline, you lose the option to choose the Old Tax Regime for that year and are automatically pushed into the New Tax Regime, which may not be beneficial depending on your deductions.

7 Can I still claim deductions and carry forward losses if I file late?

Largely no. A belated return disallows carrying forward most losses — except losses from house property. This can have long-term financial consequences, so filing on time matters.

8 What if I filed on time but made a mistake — can I correct it?

Yes. You can file a revised return under Section 139(5) up to 31st March 2027 to correct any errors or omissions from your original filing.

9 What is an Updated Return (ITR-U) and do I need it?

ITR-U allows you to voluntarily disclose missed income, fix errors, or correct the tax rate used — even years after the original filing. This window stays open for 48 months (4 years) from the end of the assessment year.

10 As a new taxpayer, what's the single most important thing I should do right now?

Identify which ITR form applies to you, gather your documents (Form 16, bank statements, investment proofs), and file before 31st July 2026. Acting early avoids penalties, preserves your tax regime choices, and keeps your financial records clean from the start.

Q1 Is there any "missing year" or overlap due to the shift from Assessment Year to Tax Year?

No, there is no missing year or overlap. Income earned during FY 2025-26 will be governed by the Income-tax Act, 1961 and assessed in AY 2026-27. Income earned from 01 April 2026 onwards will be governed by the Income Tax Act, 2025 and assessed for Tax Year 2026-27 and onwards.

Q2 For how long will the old and new Acts run in parallel? What does this mean for taxpayers practically?

Effective 1 April 2026, the 1961 Act will be repealed. However, its provisions will continue to govern all tax years beginning before 1 April 2026. Accordingly:

• The Income-tax Department's e-filing portal will facilitate compliance under both the old and the new Acts concurrently.
• Taxpayers filing returns for AY 2026–27 in July 2026 will do so using forms prescribed under the old Act. At the same time, advance tax payments for Tax Year 2026–27, commencing from June 2026, will be made in accordance with the new Act.
• All assessments, appeals, and other proceedings relating to earlier years will continue to be conducted under the old Act until their final resolution.

Q3 What is the concept of "Tax Year" and how will income be assessed in view of removal of "Assessment Year"?

A 'tax year' is a period of twelve months contained in a financial year. It replaces the term 'previous year' used in the Income-tax Act, 1961.

Q4 Can a 'tax year' be a period which is less than a 'financial year'?

Yes. This will happen when a business is newly set up during any financial year, or a source of income comes into existence during a financial year. In such cases, the tax year will begin from the date of setting up of the business or the source of income coming into existence, and end on the last day of that financial year. For example, if a business is set up on 1 December 2026, the Tax Year for that business will commence from 1 December 2026 to 31 March 2027.