Income Tax E-Filing Services in India – ITR Filing, Tax Planning & Compliance for FY 2025-26
Filing your Income Tax Return (ITR) accurately and on time is one of the most consequential financial obligations for individuals, businesses, and professionals in India. An error in form selection, an unclaimed deduction, or a missed deadline can mean the difference between a refund and a notice — between a penalty-free year and compounded interest demands. The stakes have risen significantly: the Income Tax Department’s AI-driven compliance system now cross-references Form 26AS, AIS (Annual Information Statement), TIS (Tax Information Summary), GST returns, and third-party data — making inconsistencies visible almost immediately.
N D Savla & Associates provides professional income tax e-filing services for salaried individuals, self-employed professionals, business owners, HUFs, LLPs, companies, and NRIs across India. Our team of qualified chartered accountants handles the complete filing cycle — income calculation, deduction optimisation, ITR form selection, old vs new regime analysis, e-filing, and e-verification. We also manage income tax notices, scrutiny assessments, and income tax audits — ensuring complete coverage beyond the annual return.
New vs Old Tax Regime – FY 2025-26 (AY 2026-27)
One of the most important decisions every taxpayer must make before filing is: New Tax Regime or Old Tax Regime? The Union Budget 2025 made the new regime the default, with a significantly enhanced rebate under Section 87A, raising the effective tax-free income to Rs. 12 lakh for most individuals. However, the old regime continues to offer valuable deductions that can make it more beneficial for taxpayers with high investments, home loans, or HRA. Here is the complete comparison:
TABLE 1 — New Tax Regime Slabs: FY 2025-26 / AY 2026-27 (Default Regime)
Annual Income Slab | Tax Rate | Tax on Slab | Cumulative Tax |
Up to Rs. 4,00,000 | NIL | — | Nil |
Rs. 4,00,001 – Rs. 8,00,000 | 5% | Rs. 20,000 | Rs. 20,000 |
Rs. 8,00,001 – Rs. 12,00,000 | 10% | Rs. 40,000 | Rs. 60,000 |
Rs. 12,00,001 – Rs. 16,00,000 | 15% | Rs. 60,000 | Rs. 1,20,000 |
Rs. 16,00,001 – Rs. 20,00,000 | 20% | Rs. 80,000 | Rs. 2,00,000 |
Rs. 20,00,001 – Rs. 24,00,000 | 25% | Rs. 1,00,000 | Rs. 3,00,000 |
Above Rs. 24,00,000 | 30% | On balance | Progressive |
Section 87A Rebate: Under the new regime, a full tax rebate of up to Rs. 60,000 applies for taxpayers with total income up to Rs. 12 lakh, making effective tax liability NIL up to Rs. 12 lakh (before surcharge and cess). Budget 2025 also introduced a marginal relief provision for incomes just above Rs. 12 lakh. | |||
TABLE 2 — Old Tax Regime Slabs: FY 2025-26 / AY 2026-27 (With Deductions)
Annual Income Slab | Tax Rate (Below 60) | Tax Rate (60-79 yrs) | Tax Rate (80+ yrs) |
Up to Rs. 2,50,000 | NIL | NIL | NIL |
Rs. 2,50,001 – Rs. 3,00,000 | 5% | NIL | NIL |
Rs. 3,00,001 – Rs. 5,00,000 | 5% | 5% | NIL |
Rs. 5,00,001 – Rs. 10,00,000 | 20% | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% | 30% |
Old Regime Advantage: Allows deductions under Sections 80C up to Rs. 1.5L, 80D health insurance, 80E education loan interest, HRA, LTA, Section 24b home loan interest up to Rs. 2L, NPS 80CCD, donations 80G, and many more, significantly reducing taxable income. | |||
Note: Surcharge applies on tax (10% for income Rs. 50L-1Cr; 15% for Rs. 1Cr-2Cr; 25% for Rs. 2Cr-5Cr; 37% for above Rs. 5Cr under old regime). Health & Education Cess of 4% applies on (tax + surcharge) under both regimes.
TABLE 3 — Old vs New Regime: Which Is Better for You?
Criteria | New Regime | Old Regime |
Default regime from FY 2024-25 | ✅ Yes (Default) | ❌ Must opt-in |
Tax-free income (with rebate) | Up to Rs. 12 Lakh | Up to Rs. 5 Lakh |
Standard Deduction (Salaried) | Rs. 75,000 | Rs. 50,000 |
80C / 80D / 80E Deductions | ❌ Not available | ✅ Available |
HRA Exemption | ❌ Not available | ✅ Available |
Home Loan Interest (Sec 24b) | ❌ Not available | Up to Rs. 2 Lakh |
LTA / Professional Tax Deduction | ❌ Not available | ✅ Available |
NPS (Employer contribution 80CCD(2)) | ✅ Available | ✅ Available |
Best suited for | Income < Rs. 12L; minimal investments/loans | High 80C, home loan, HRA, NPS taxpayers |
ITR Form Selection Guide – FY 2025-26
Selecting the wrong ITR form leads to a defective return notice under Section 139(9). Here is the complete guide to which form applies to your situation, with direct links to our form-specific filing services:
TABLE 4 — ITR Form Selector: Who Files Which Form?
Form | Who Files | Applicable Income Types | Not Applicable If |
ITR-1 | ITR-1 (Sahaj) – Resident individuals only | Salary/pension + one house property + other sources (interest). Total income ≤ Rs. 50 lakh. | Director in company, foreign assets, capital gains, business income |
ITR-2 | ITR-2 Filing – Individuals/HUF (no business) | Capital gains (stocks, property, mutual funds), >1 house property, foreign income, director in unlisted company, foreign assets | Any business/professional income (use ITR-3) |
ITR-3 | ITR-3 Filing – Individuals/HUF with business | Business income (non-presumptive), professional income, partnership firm income, all sources in ITR-2 also | Presumptive income under 44AD/44ADA/44AE (use ITR-4) |
ITR-4 | ITR-4 (Sugam) – Individuals/HUF/Firms (Presumptive) | Presumptive income under Sec 44AD (traders ≤ Rs. 2Cr), 44ADA (professionals ≤ Rs. 75L), 44AE (transporters). Salary + one house + other sources allowed. | If total income >Rs. 50L, or company director, or foreign assets |
ITR-5 | ITR-5 Filing – Firms/LLPs/AOPs/BOIs | Partnership firms, LLPs, Association of Persons (AOP), Body of Individuals (BOI), co-operative societies, investment funds | Individuals, HUFs, or companies (use ITR-3 or ITR-6) |
ITR-6 | ITR-6 Filing – Companies | All companies registered under Companies Act except companies claiming exemption under Section 11 (trust) | Section 11 exempt companies (use ITR-7) |
ITR-7 | ITR-7 Filing – Trusts/Political Parties/Institutions | Persons required to file under Sections 139(4A) to 139(4F): trusts, charitable institutions, political parties, research associations, universities, mutual funds | Individuals, companies, or LLPs |
ITR Filing Due Dates – FY 2025-26 (AY 2026-27)
TABLE 5 — Income Tax Return Due Dates: FY 2025-26 / AY 2026-27
Category of Taxpayer | Applicable ITR | Due Date | Audit Due Date |
Individuals (non-audit): Salaried, HUF, freelancers, small businesses | ITR-1/2/3/4 | 31 July 2026 | N/A |
Businesses/Professionals requiring Tax Audit u/s 44AB | ITR-3/5/6 | 31 Oct 2026 | 30 Sep 2026 |
Companies (all, including those with fiscal year ending 31 March) | ITR-6 | 31 Oct 2026 | 30 Sep 2026 |
Transfer Pricing cases: businesses with international/specified domestic transactions | ITR-3/5/6 | 30 Nov 2026 | 31 Oct 2026 |
Trusts / Institutions (Section 139(4A)-(4F)) | ITR-7 | 31 Oct 2026 | 30 Sep 2026 |
Revised Return (if error in original return) | Same as original | 31 Dec 2026 | N/A |
Belated Return (late filing after due date) | Same as original | 31 Dec 2026 | N/A |
⚠️ Note: Due dates shown are standard statutory dates. The government may extend deadlines by notification. Always confirm closer to the date. Carrying forward of business losses is allowed only if the return is filed on or before the original due date. | |||
Penalties & Interest for Late Filing and Non-Compliance
Filing late or missing the deadline triggers a cascade of financial consequences. Here is the complete penalty and interest schedule:
TABLE 6 — Penalty, Interest & Consequences for ITR Non-Compliance
Violation / Default | Penalty / Charge | Reference / Impact |
Late filing of ITR (income above exemption limit) | Rs. 5,000 (Rs. 1,000 if income ≤ Rs. 5L) | Section 234F. Payable even if no tax is due. |
Non-payment / short-payment of advance tax | 1% per month interest | Section 234B. Applies from April 1 of AY till date of payment. |
Deferment of advance tax instalments | 1% per month interest | Section 234C. Applies for each quarterly shortfall (June, Sep, Dec, March). |
Interest on unpaid tax (self-assessment tax) | 1% per month simple interest | Section 234A. Calculated from due date of filing to actual date of payment. |
Non-disclosure / under-reporting of income | 50% – 200% of tax | Sections 270A/271(1)(c). 50% for under-reporting; 200% for misreporting. |
Failure to carry forward business/capital losses | Loss disallowed permanently | Losses not filed by original due date cannot be carried forward (Section 80 proviso). |
Non-filing despite notice from department | Up to Rs. 10,000 | Section 271F. Plus potential prosecution under Section 276CC for wilful defaults. |
Key Income Tax Deductions Available Under Old Regime
TABLE 7 — Popular Deductions: Old Regime (FY 2025-26)
Section | Deduction Type | Maximum Limit | Who Can Claim |
80C | PPF, EPF, ELSS, LIC premium, NSC, home loan principal, tuition fees, SSY, NPS | Rs. 1,50,000 | Individual / HUF |
80CCD(1B) | Additional NPS contribution (self) | Rs. 50,000 (over 80C) | Individual |
80D | Health insurance premium (self, spouse, children, parents) | Rs. 25,000 + Rs. 25,000 (Rs. 50,000 if parents are senior citizens) | Individual / HUF |
80E | Interest on education loan (higher education) | Entire interest paid (no cap) – 8 years | Individual (for self/spouse/children) |
Sec 24(b) | Interest on housing loan (self-occupied property) | Rs. 2,00,000 | Individual / HUF |
80TTA | Interest on savings bank account | Rs. 10,000 | Individual (not senior citizens) |
80TTB | Interest on deposits (savings, FD, etc.) for senior citizens | Rs. 50,000 | Resident senior citizens only (60+) |
80G | Donations to notified charitable funds/institutions | 50%–100% of donation (subject to 10% of AGI for most) | All taxpayers |
80GG | Rent paid (if HRA not received from employer) | Least of: Rs. 5,000/month; 25% of total income; or actual rent minus 10% of income | Individuals not receiving HRA |
Our Income Tax E-Filing Services
We provide a fully managed ITR filing experience — from document collection to e-verification:
- ITR-1 and ITR-2 filing for salaried individuals: Salary reconciliation with Form 16, AIS review, HRA/LTA calculation, capital gains from stocks/mutual funds, home loan deduction optimisation.
- ITR-3 filing for professionals and business owners: P&L preparation, depreciation calculation, advance tax reconciliation, GST-income tax consistency check, regime comparison.
- ITR-4 filing under presumptive taxation: 44AD/44ADA/44AE scheme eligibility assessment, maintenance of minimum required profit threshold, consistent year-on-year regime management.
- ITR-5 for LLPs and firms: Partnership income allocation, capital account maintenance, interest on capital compliance, Form 16 for partners.
- ITR-6 for companies: Board-level tax liability planning, MAT/AMT computation, deferred tax, advance tax schedule management.
- NRI tax filing: Residential status determination, DTAA application, foreign tax credit, repatriation compliance, Section 195 TDS advisory.
- Revised and belated returns: Correcting errors in original returns, filing belated returns to claim refunds, managing Section 234F and 234A interest minimisation.
We also manage income tax notices across all types — Section 143(1) intimations, Section 148 reassessment notices, and scrutiny assessment proceedings.
F.A.Q.
Under the new tax regime (now the default), a full rebate under Section 87A makes income up to Rs. 12 lakh effectively tax-free for most individual taxpayers (before surcharge and cess). Under the old tax regime, the basic exemption limit is Rs. 2.5 lakh for individuals below 60, Rs. 3 lakh for senior citizens (60-79 years), and Rs. 5 lakh for super senior citizens (80 years and above).
The new regime is beneficial if you have limited investments or deductions, or if your total income is at or below Rs. 12 lakh. The old regime is better if you have significant deductions — such as a home loan interest of Rs. 2 lakh, 80C investments of Rs. 1.5 lakh, NPS contributions of Rs. 50,000, and substantial HRA — which together can reduce taxable income by Rs. 4 lakh or more. At Rs. 15 lakh income, old regime deductions of Rs. 4.5 lakh+ (80C + 24b + 80D + NPS) typically make it more tax-efficient. We prepare a personalised comparison for every client before recommending a regime.
Filing after the standard due date (July 31 for most individuals) attracts a late filing fee of Rs. 5,000 under Section 234F (Rs. 1,000 if total income does not exceed Rs. 5 lakh). Additionally, interest under Section 234A at 1% per month simple interest applies on any outstanding tax liability from the due date to the actual payment date. More significantly, any business losses or capital losses that are to be carried forward to future years are permanently disallowed if the return is filed after the original due date.
Yes, in many cases. Even if TDS has been fully deducted and your tax liability is NIL, filing is mandatory if: your income exceeds the basic exemption limit; you have deposits of Rs. 1 crore or more in current accounts; foreign travel expenses exceed Rs. 2 lakh; or electricity consumption exceeds Rs. 1 lakh. Filing is also necessary to claim refunds for excess TDS, to carry forward losses, to maintain a proof of income for visa applications and financial products, and to avoid notice triggers from the AIS system.
Form 26AS is a consolidated tax credit statement showing TDS deducted by employers and others, TCS collected, advance tax and self-assessment tax paid, and high-value transactions reported by banks and financial institutions. The Annual Information Statement (AIS) is a more comprehensive document that additionally includes mutual fund transactions, share purchases and sales, dividend income, interest income, and foreign remittances. The Income Tax Department uses both to pre-fill returns and to identify discrepancies. Any income appearing in AIS that is not declared in the ITR triggers an automated notice. We reconcile AIS and Form 26AS before filing every return to ensure consistency.
