ITR Filing · s.139 · Old vs New Regime · s.115BAC · Due Dates · s.234F
Income tax return filing: which form applies to you, old or new regime, and what it costs to get it wrong.
The wrong ITR form, a regime chosen without computing both options, and a late fee that did not need to happen — these are the three preventable losses in every filing season. The statute is clear on all three; the defaults are not always in your favour.
The four issues
Where this area actually goes wrong.
Each of the four pillars below is statute-cited — the section, the form, and the consequence. No vague claims.
Which ITR form — the four forms and who must use which
ITR-1 (Sahaj) is for resident individuals only: salary or pension income, one house property (not a loss), other sources such as FD interest or savings interest, and total income below ₹50 lakh. It cannot be used by a director in any company, anyone holding unlisted equity, anyone with VDA (crypto) income, or anyone with capital gains. ITR-2 covers individuals and HUFs who cannot use ITR-1 but do not have income from business or profession — it handles capital gains, foreign assets, multiple house properties, and NRI income. ITR-3 is required if you have income from business or profession: F&O trading, speculative income, professional practice (doctor, lawyer, architect, CA), or a partnership income. ITR-4 (Sugam) is for individuals, HUFs, and firms under presumptive taxation (s.44AD, 44ADA, or 44AE) with income below ₹50 lakh; it cannot be used by a director, unlisted equity holder, or VDA earner.
ITR-1 ≤₹50L no gains · ITR-2 capital gains/NRI · ITR-3 business/profession · ITR-4 presumptive s.44AD/44ADA/44AE
Old regime vs new regime — s.115BAC and when each wins
The new tax regime under Section 115BAC is the default for FY 2025-26. Its benefit is a higher tax-free threshold: the 87A rebate wipes out tax for total income up to ₹12 lakh under the new regime (Finance Act 2025 extended this to ₹12 lakh with a rebate of ₹60,000). Standard deduction is ₹75,000. Slabs: ₹0–4L nil, ₹4–8L 5%, ₹8–12L 10%, ₹12–16L 15%, ₹16–20L 20%, ₹20–24L 25%, above ₹24L 30%. The new regime does not allow deductions under Chapter VI-A (80C, 80D, 80G), no HRA exemption, no home loan interest deduction. The old regime — standard deduction ₹50,000, 80C ₹1.5L, 80D ₹25K/₹50K, NPS ₹50K under 80CCD(1B), HRA, loss from house property — typically wins once gross deductions exceed roughly ₹3.75 lakh, but the exact breakeven depends on income level and deduction mix. Non-salaried individuals and HUFs can switch between regimes on filing each year; those with business income can exercise the option only once.
s.115BAC · new regime default · ₹12L nil via 87A rebate (FA 2025) · old regime wins at high deductions
Filing deadlines — s.139 and the cost of missing them
Section 139(1) fixes the primary due date: 31 July for individuals and HUFs not required to have their accounts audited, and 31 October for companies, firms, and individuals whose accounts are subject to audit. Missing 31 July allows a belated return under s.139(4) until 31 December — but a belated return cannot carry forward capital losses (s.74), speculation losses (s.73), or business losses (s.72). Section 234F imposes a late fee of ₹5,000 for filing after the due date; if total income does not exceed ₹5 lakh, the fee is ₹1,000. Section 139(8A) allows an updated return (ITR-U) within 24 months from the end of the relevant assessment year — but ITR-U can only be filed where additional tax is payable, it carries an additional tax of 25% of tax and interest (within 12 months) or 50% (between 12 and 24 months), and it cannot be filed for reduced tax claims or refunds.
s.139(1) 31 Jul · s.139(4) belated 31 Dec (no loss carry-forward) · s.234F ₹5K late fee · s.139(8A) ITR-U +25%/50% tax
Deductions that only the old regime allows
The old regime's edge is in the deduction stack. Section 80C: ₹1.5 lakh annually — ELSS, PPF, LIC premium, tuition fees, principal on home loan, NSC, fixed deposits (5-year). Section 80D: health insurance premium — ₹25,000 for self/spouse/children, ₹25,000 additional for parents (₹50,000 if parents are senior citizens). Section 80CCD(1B): additional ₹50,000 for NPS contribution. HRA exemption under s.10(13A): least of actual HRA received, 50%/40% of basic salary (metro/non-metro), or rent paid minus 10% of salary. Section 24(b): home loan interest deduction up to ₹2 lakh for self-occupied property. These deductions, stacked, can reduce taxable income by ₹5–6 lakh for a typical salaried employee with a home loan — making the old regime superior for incomes where the lower slabs overlap with the new regime's 5% and 10% bands.
s.80C ₹1.5L · s.80D ₹25K/₹50K · s.80CCD(1B) ₹50K NPS · s.10(13A) HRA · s.24(b) home loan ₹2L
Free tools
Calculate before you decide.
Which ITR Form? →
Answer 4 questions — ITR-1, 2, 3, or 4 with the disqualifiers explained.
Old vs New Regime Calculator →
Full regime comparison with 80C, 80D, HRA, NPS, and home loan interest.
Income Tax Calculator →
Compute tax under both regimes with slab-by-slab breakdown.
Regime Breakeven Calculator →
The exact deduction level at which old regime becomes better than new.
Residential Status Checker →
Resident, RNOR, or Non-Resident — s.6 day-count test for the ITR.
HRA Exemption Calculator →
Least of three — actual HRA, 50%/40% of salary, rent minus 10%.
80C Deduction Planner →
Optimise your ₹1.5L 80C basket across ELSS, PPF, LIC, and home loan principal.
Rent Receipt Generator →
Generate stamped rent receipts for HRA claim documentation.
Rent to Parents Checker →
Check the s.10(13A) + s.60 + s.64 rules before claiming HRA via parent-owned property.
Document Generator →
Generate ITR-related declarations and letters.
The honest angle
Four ITR mistakes that cost more than the refund
Most ITR errors are not computation mistakes — they are structure decisions made without running the numbers. These four are the most common.
"My employer filed my taxes"
Your employer deducts TDS and issues Form 16. That does not file your ITR. If your income was below the threshold, you may not have a mandatory obligation — but if you have a refund, capital losses to carry forward, or foreign assets to disclose, filing is the only way to access those. The obligation threshold is not the same as the usefulness threshold.
"I will stick with the default new regime"
The new regime is the default — and for incomes below ₹12 lakh, the 87A rebate makes it clearly better. For incomes above ₹15–20 lakh with substantial 80C investments, a home loan, HRA, and NPS, the old regime wins by a margin that typically justifies the computation. The decision is made once at the start of the year for salaried employees; comparing both in April requires about 20 minutes but the choice affects the entire year.
"I can claim carry-forward of losses even if I file late"
You cannot. Section 74 allows capital loss carry-forward only on timely returns under s.139(1). A belated return under s.139(4) does not carry forward any capital, speculation, or business loss. If you sold equity at a loss this year, filing late costs you 8 years of future set-off benefit — not just this year's.
"I used ITR-1 because I am salaried"
ITR-1 cannot be used if you redeemed equity MFs (capital gain), have two house properties, hold unlisted equity, are a director in any company, have a foreign asset, or earned VDA income. All of these require ITR-2 at minimum. Filing the wrong form results in a defective return notice under s.139(9) which must be responded to within 15 days or the return is treated as never filed.
Our engagement
Five tracks for a smooth filing.
Regime comparison and selection
Old vs new regime comparison run with projected full-year income, TDS, deductions, and regime-specific slab outcomes — decided before salary restructuring in April.
Annual (April)
ITR form selection and document collection
Form 16, 26AS/AIS/TIS reconciliation, broker statement for capital gains, foreign asset inventory, and all deduction proofs — collected and checked before the last week of July.
Annual
Return preparation and e-filing
Computation, Schedule CG / Schedule FA / Schedule AL population where required, e-verification within 30 days, and the intimation under s.143(1) monitored.
Annual
Refund and demand resolution
Outstanding demand reconciliation against 26AS before filing; post-filing refund tracking and bank account verification; response to s.143(1)(a) adjustments where needed.
As needed
ITR-U (updated return) where applicable
If income was under-reported in a prior year, ITR-U under s.139(8A) with additional tax computation — within the 24-month window and only for additional tax payable, not refund claims.
Event-driven
FAQs
Five questions asked before every filing deadline.
What is the ITR filing due date for FY 2025-26 (AY 2026-27) for individuals?
31 July 2026 under Section 139(1) for individuals and HUFs whose accounts are not required to be audited. If your accounts are required to be audited (turnover exceeds the threshold under s.44AB), the due date is 31 October 2026. A belated return under s.139(4) can be filed until 31 December 2026 — but it attracts a late fee under s.234F (₹5,000 if total income exceeds ₹5 lakh; ₹1,000 otherwise) and forfeits the right to carry forward capital and business losses.
Should I choose the old or new tax regime for FY 2025-26?
The answer depends on your deduction profile. If your total deductions under the old regime (80C + 80D + HRA + home loan interest + 80CCD(1B) etc.) are substantial — say ₹4–5 lakh or more — the old regime typically produces lower tax at incomes above ₹15 lakh. At incomes below ₹12 lakh, the new regime's 87A rebate (₹60,000 under Finance Act 2025) effectively makes the tax nil, which no deduction under the old regime can match. The breakeven point shifts with income level. The correct answer is to compute both and compare; the regime decision for salaried employees is best made in April, as the employer requires a declaration to determine the TDS schedule.
Can I use ITR-1 if I have redeemed mutual funds this year?
Only if the MF redemption does not generate a capital gain or loss. If any capital gain arises — even ₹100 — ITR-1 cannot be used. You must file ITR-2. ITR-2 handles Schedule CG where you disclose the redemption, FIFO lot-level computation, and the applicable rate (s.111A STCG at 20% or s.112A LTCG at 12.5% with ₹1.25L exemption). Filing ITR-1 despite a capital gain results in a defective return notice under s.139(9) and a 15-day response window.
What is the penalty for not filing an ITR at all?
Section 234F imposes a late fee of ₹5,000 for returns filed after the due date; ₹1,000 if total income does not exceed ₹5 lakh. Beyond the fee, Section 271F allows a penalty of up to ₹1,000 for failure to file — though in practice 271F is applied selectively. If the shortfall in tax results in a demand, Section 220 interest at 1% per month applies from the due date. Non-filing also means you cannot carry forward capital or business losses, cannot claim refunds, and may be selected for compliance notices under s.142(1) or scrutiny under s.143(2).
I filed the wrong ITR form. What do I do?
If you receive a notice under Section 139(9) flagging the return as defective, you have 15 days to respond and refile with the correct form. The original defective return is treated as not filed if not corrected. If you discover the error yourself before the due date, you can file a revised return under Section 139(5) — a revised return supersedes the original and must be filed before 31 December of the assessment year. If you discover the error after 31 December and additional tax is payable, ITR-U under Section 139(8A) is the only remaining route within 24 months — but ITR-U cannot be filed for a reduced tax claim or a refund.
File with confidence
Old regime vs new regime computed, correct ITR form selected, filed before July 31.
Share your Form 16, investment declarations, and any capital transaction details. We return the regime comparison, the ITR form that applies, and the complete return — e-verified and monitored through the s.143(1) intimation.
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