Income tax filing in India is a legal obligation for every individual, business, and entity whose income crosses the basic exemption limit. This comprehensive guide covers everything about ITR filing for AY 2026-27 — who must file, which ITR form to use, what deductions you can claim, how to maximise your refund, and how to avoid penalties. Expert CA assistance from SetupFiling.in makes the entire process seamless, accurate, and stress-free.
What Is Income Tax Return (ITR) Filing and Why Does It Matter?
An Income Tax Return (ITR) is a form filed with the Income Tax Department of India declaring your total income earned during a financial year, the taxes paid or deducted at source (TDS), and the net tax liability or refund due. For Assessment Year 2026-27, the return covers income earned during Financial Year 2025-26 (1 April 2025 to 31 March 2026).
Income tax filing is not merely a compliance requirement — it is a powerful financial tool. It establishes your income proof for loans and visa applications, enables you to carry forward losses, and allows you to claim refunds on excess TDS deducted by your employer or bank. Furthermore, a clean ITR history strengthens your credibility with banks, NBFCs, and government agencies.
India's income tax framework now offers two regimes: the Old Tax Regime with higher deductions and the New Tax Regime with lower slabs and fewer deductions. Choosing the correct regime can save you thousands of rupees in tax every year. setupfiling.in's CA experts analyse both options and file your ITR under the regime most beneficial to you.
Who Must File an Income Tax Return in India?
ITR filing is mandatory for the following categories of taxpayers across India:
Salaried Individuals Above Exemption Limit
Any salaried employee whose gross total income exceeds ₹3 lakh (new regime) or ₹2.5 lakh (old regime) must file an ITR. This applies to employees in Delhi NCR, Mumbai, Bangalore, Chennai, Hyderabad, Pune, and every city across India.
Business Owners and Professionals
Proprietors, partners, doctors, lawyers, consultants, architects, and all professionals with business or professional income must file ITR every year, regardless of whether profit is made. ITR for sole proprietorships is a common need.
Freelancers and Self-Employed Individuals
Freelancers, content creators, YouTubers, designers, and gig workers earning above ₹3 lakh annually must file ITR. Many also qualify for GST registration if their turnover exceeds ₹20 lakh.
NRIs with Indian Income
Non-Resident Indians (NRIs) earning rent, interest, capital gains, or any other income from India exceeding the basic exemption limit must file an ITR in India. NRI ITR filing requires special attention to DTAA provisions and TDS rates.
Investors with Capital Gains
Anyone who sold shares, mutual funds, property, bonds, or any capital asset during FY 2025-26 must report capital gains in their ITR, even if the gain is below the exemption limit. Use ITR-2 for capital gains reporting.
Companies, LLPs and Firms
All companies, LLPs, partnership firms, and other entities are required to file ITR every year, irrespective of profit or loss. Annual compliance also includes ROC filings.
- Bank deposits exceeding ₹1 crore in a financial year
- Electricity bill Payments exceeding ₹1 lakh in a year
- Foreign travel expenditure exceeding ₹2 lakh in a year
- Ownership of foreign assets or foreign bank accounts
- TDS deducted from your income (even if income is below exemption limit)
- Any person who wants to carry forward a loss to future years
Our Income Tax Filing Services
SetupFiling.in offers comprehensive Income Tax Return Filing services for every category of taxpayer across India. From simple salaried ITR filing to complex business tax returns, our team of expert CAs handles everything — accurately and on time. Moreover, we ensure you never miss a deduction or pay more tax than required.
ITR-1 Filing for Salaried Employees (Sahaj)
ITR-1 is the simplest Income Tax Return form for salaried individuals with income from salary, one house property, and interest income up to ₹50 lakh. Our CA experts prepare and file ITR-1 (Sahaj) within 24 hours after you share your Form 16. We claim all eligible deductions including 80C investments, 80D health insurance, HRA exemption, and standard deduction of ₹75,000 under the new regime. Consequently, many salaried taxpayers receive a substantial refund after filing.
We serve salaried employees in Delhi, Gurgaon, Noida, Faridabad, Ghaziabad, Mumbai, Pune, Bangalore, Hyderabad, Chennai, Kolkata, Ahmedabad, and every other city across India. Furthermore, our online process means you never have to visit our office — simply WhatsApp your documents and receive your ITR-V acknowledgement within hours.
ITR-2 Filing for Capital Gains and Multiple Income Sources
ITR-2 filing is required for individuals and HUFs with income from salary, capital gains (stocks, mutual funds, property), more than one house property, or income from foreign sources. Capital gains taxation is complex — short-term gains on equity are taxed at 20%, while long-term gains above ₹1.25 lakh are taxed at 12.5% after Budget 2024. Our CAs compute gains accurately using FIFO method and ISIN-wise calculation.
Additionally, ITR-2 is used for reporting income from Esops, RSUs, and stock options received from employers. NRIs with Indian rental income or capital gains also use ITR-2. SetupFiling.in's experts ensure DTAA benefits are correctly claimed and TDS refunds are maximised.
ITR-3 Filing for Business and Professional Income
Individuals and HUFs earning income from a proprietary business, profession (doctors, lawyers, architects, CAs), or partnership firms must file ITR-3. This form requires preparation of a profit and loss account and balance sheet. Our CAs handle complete book preparation, depreciation calculation, and business deduction optimisation before filing. Tax audit under Section 44AB is also required if turnover exceeds prescribed limits.
Business owners in manufacturing, trading, services, e-commerce, restaurants, clinics, and all other sectors can rely on SetupFiling.in for accurate ITR-3 filing. We serve business owners in Delhi NCR, Mumbai, Bangalore, Surat, Jaipur, Lucknow, Chandigarh, Kochi, and all other cities.
ITR-4 (Sugam) Filing Under Presumptive Taxation
Freelancers, small businesses, transporters, and professionals with turnover up to ₹3 crore (business) or ₹75 lakh (professionals) can use the simpler presumptive taxation scheme under Section 44AD or 44ADA. Under this scheme, you pay tax on 8% of turnover (6% for digital receipts) for businesses and 50% of gross receipts for professionals, without needing detailed books of accounts. This simplifies ITR-4 filing significantly.
SetupFiling.in guides eligible taxpayers on whether presumptive taxation is beneficial compared to regular accounting and files ITR-4 (Sugam) accordingly. This service is particularly popular among freelancers, consultants, and small shop owners across India.
ITR Filing for Companies and LLPs
Companies registered under the Companies Act must file ITR-6, while LLPs file ITR-5. Both require computation of book profit, MAT applicability check, and compliance with company-specific deductions. Our team also handles annual compliance for private limited companies and LLP ROC return filing along with ITR, ensuring complete tax and regulatory compliance in one place.
For start-ups registered under DPIIT, we also assist with Section 80-IAC tax holiday claims, which can result in 100% tax exemption for three consecutive years. This is a significant benefit that many eligible start-ups overlook.
ITR Filing for NGOs, Trusts and Section 8 Companies
Non-profit organisations including registered trusts, Section 8 companies, and societies must file ITR-7. These entities also need to maintain 12A registration and 80G certification for income tax exemption. SetupFiling.in handles ITR filing for NGOs along with compliance renewals, ensuring uninterrupted tax-exempt status.
Advance Tax Payment and TDS Compliance
Taxpayers with income other than salary (business, freelancing, capital gains, rent) are required to pay advance tax in four instalments during the financial year. Failure to pay advance tax results in interest under Sections 234B and 234C. SetupFiling.in computes your advance tax liability and provides payment schedules. We also assist with TDS on sale of property (Form 26QB) compliance for property buyers and sellers.
Old Tax Regime vs New Tax Regime — Which Is Better for You in AY 2026-27?
One of the most important decisions in income tax filing is choosing between the old and new tax regimes. The new regime is the default for AY 2026-27, but taxpayers can opt for the old regime to claim deductions. Therefore, comparing both before filing is essential.
| Income Slab | New Regime Tax Rate | Old Regime Tax Rate |
|---|---|---|
| Up to ₹3 lakh | Nil | Nil |
| ₹3 lakh – ₹7 lakh | 5% (rebate u/s 87A) | 5% |
| ₹7 lakh – ₹10 lakh | 10% | 20% |
| ₹10 lakh – ₹12 lakh | 15% | 30% |
| ₹12 lakh – ₹15 lakh | 20% | 30% |
| Above ₹15 lakh | 30% | 30% |
Key Insight: When Is the Old Regime Better?
If your total deductions (80C + 80D + HRA + home loan interest + others) exceed approximately ₹4.75 lakh, the old regime typically saves more tax. SetupFiling.in's CAs calculate this precisely for every client before filing.
The new tax regime offers a standard deduction of ₹75,000 and a rebate under Section 87A up to ₹60,000, making income up to ₹12.75 lakh effectively tax-free in FY 2025-26. However, if you have a home loan, significant 80C investments, and health insurance, the old regime may yield greater savings. Our experts always compute tax under both regimes before filing.
How to File Income Tax Return Online — Step-by-Step Process
Filing an ITR online in India involves several steps. With SetupFiling.in, you simply share your documents and our CA team handles everything from document review to e-verification. Here is how the process works:
Share Your Documents with Our CA Team
WhatsApp or email your Form 16 (salaried), bank statements, investment proofs (ELSS, PPF, LIC, NPS), capital gains statements, and rental income details. A dedicated CA reviews your complete income profile and selects the correct ITR form for your situation.
Income Computation and Deduction Optimisation
Our CA computes your gross total income, applies all applicable deductions (80C up to ₹1.5 lakh, 80D health insurance, 80G donations, HRA, LTA, home loan interest under Section 24), compares old and new regime, and calculates net tax payable after TDS credit.
ITR Filing on the Income Tax Portal
Our expert logs into the Income Tax e-filing portal (incometax.gov.in) using your PAN credentials and files the ITR with complete and accurate data. The AIS (Annual Information Statement) and Form 26AS are cross-checked to ensure consistency and avoid notices.
e-Verification Within 30 Days
After filing, the ITR must be e-verified within 30 days to be considered valid. We assist with instant e-verification via Aadhaar OTP — the fastest and easiest method. Without verification, your ITR is treated as if it was never filed, and the due date benefit is lost.
Receive ITR-V and Track Your Refund
You receive an ITR-V acknowledgement on your registered email as proof of successful filing. If a refund is due, we track it for you and assist with any Income Tax Department queries, intimations under Section 143(1), or notices that may arise after filing.
File Your ITR Today — Avoid ₹5,000 Late Fee
Due date for AY 2026-27 ITR filing is 31 July 2026. CA experts available 24×7 across India.
Penalties for Late or Non-Filing of Income Tax Return
Missing the ITR filing due date has serious financial consequences. The Income Tax Act prescribes penalties and interest charges that can significantly increase your tax burden. Therefore, timely filing with expert help is always the smarter choice.
⚠️ Section 234F Penalty: ₹5,000 for ITR filed after 31 July 2026 (₹1,000 if total income is below ₹5 lakh). This is a flat penalty irrespective of tax payable.
Interest Under Section 234A — 1% Per Month
If you have unpaid tax and file late, interest at 1% per month is charged from the due date until the actual filing date. This compounds quickly and can exceed the original tax payable.
Loss of Carry Forward Benefits
Capital losses, business losses, and speculative losses can only be carried forward to offset future income if the ITR is filed on or before the due date. Late filing permanently forfeits this benefit.
Delayed Refunds and Loss of Interest
Late filers receive refunds later, and the Department may not pay interest on refunds that arise from belated returns. Moreover, belated returns cannot be revised if errors are discovered afterward.
Prosecution for Wilful Non-Filing
Deliberate non-filing or suppression of income can lead to prosecution under Section 276CC with imprisonment from 3 months to 7 years, in addition to penalties. Filing accurately every year is the only safe course.
Why Choose SetupFiling.in for Income Tax Filing in India?
SetupFiling.in is a trusted online tax and compliance platform serving over 50,000 entrepreneurs, salaried professionals, businesses, and NRIs across India. Our team of qualified CAs and tax experts brings together deep technical knowledge and practical experience to deliver accurate, on-time income tax filing at unbeatable prices.
We believe that every taxpayer deserves personalised attention, not just a software-generated return. Consequently, every ITR filed by SetupFiling.in is reviewed by a human CA who understands your income profile, applies all eligible deductions, chooses the optimal tax regime, and ensures zero errors that could trigger notices from the Income Tax Department. Our 24×7 availability and India-wide reach — from Delhi NCR to Kochi, from Surat to Guwahati — means you always have expert support when you need it.
Additionally, we maintain complete confidentiality of your financial data and use secure, encrypted channels for document transfer. Our pricing is transparent with no hidden charges, and our post-filing support includes handling of any Department queries, rectification requests, and refund tracking — all included in your package. This is why thousands of taxpayers trust SetupFiling.in year after year for their income tax filing needs.
Income Tax Filing Services Across India — Cities We Serve
SetupFiling.in provides expert income tax return filing services across every state, union territory, and city in India. Our 100% online process means your location does not matter — whether you are in a metro or a Tier-3 city, you receive the same expert CA support.
Income Tax Filing in Delhi NCR (Delhi, Gurgaon, Noida, Faridabad, Ghaziabad)
Delhi NCR is home to India's largest concentration of salaried professionals, government employees, and corporate businesses. SetupFiling.in, headquartered at 775, Sector 5, Vaishali, Ghaziabad, Delhi NCR — 201010, serves thousands of taxpayers across South Delhi, Central Delhi, North Delhi, Gurgaon (Gurugram), Noida, Greater Noida, Faridabad, and Ghaziabad. Our ITR filing service covers IT professionals in Cyber City, government employees in Lutyens' Delhi, and small business owners in Karol Bagh and Chandni Chowk. You can also explore our GST registration services in Delhi and trade license services in Delhi if you run a business.
Call +91 9818209246 or email help@setupfiling.in for same-day ITR filing service in Delhi NCR.
Income Tax Filing in Mumbai, Pune and Maharashtra
Maharashtra is India's commercial capital. From Nariman Point to Bandra Kurla Complex, from Andheri to Thane, Mumbai's diverse taxpayer base — finance professionals, Bollywood workers, traders, and exporters — requires expert ITR filing. SetupFiling.in serves Mumbai, Pune, Nagpur, Nashik, Aurangabad, and all other Maharashtra cities online. Freelancers and creative professionals in Mumbai particularly benefit from our guidance on presumptive taxation and correct income classification. Shop and establishment registration in Maharashtra is also available.
Income Tax Filing in Bangalore and Karnataka
Bangalore, India's Silicon Valley, has India's highest concentration of IT professionals with complex income profiles — stock options, RSUs, Esops, multiple employers, and foreign income. SetupFiling.in provides specialised ITR-2 and ITR-3 filing for Bangalore's tech workforce. We also serve Mysore, Hubli, Mangalore, and all of Karnataka. Trademark registration in Karnataka and GST services are available for businesses.
Income Tax Filing in Hyderabad and Telangana
Hyderabad is the HITEC City of India — home to pharmaceutical giants, technology companies, and a massive salaried workforce. SetupFiling.in handles ITR filing for Hyderabad professionals with Esops, multiple Form 16s, rental income from Banjara Hills and Jubilee Hills properties, and capital gains from the booming Hyderabad real estate market. Shop and establishment registration in Telangana is also available for business owners.
Income Tax Filing in Chennai and Tamil Nadu
Chennai's manufacturing, automotive, and IT sectors create a large, diverse taxpayer base. SetupFiling.in files ITR for salaried employees in companies along the Old Mahabalipuram Road, business owners in T. Nagar and Sowcarpet, and NRIs with properties in Chennai. Trademark registration in Tamil Nadu is also available for businesses across the state.
Income Tax Filing in Other Major Cities
Furthermore, SetupFiling.in serves taxpayers in Kolkata (West Bengal), Ahmedabad (Gujarat), Surat (textile traders and diamond merchants), Jaipur (Rajasthan), Lucknow (Uttar Pradesh), Chandigarh, Kochi (Kerala), Indore (Madhya Pradesh), Bhopal, Patna (Bihar), Ranchi (Jharkhand), Bhubaneswar (Odisha), Guwahati (Assam), and every other city, town, and district across India. Our digital-first process ensures consistent, high-quality service irrespective of geography.
Explore Related Tax and Business Services
SetupFiling.in is your one-stop platform for all tax, compliance, registration, and legal services. Beyond income tax filing, we offer a comprehensive range of services to help your business stay fully compliant and focus on growth. Here are some services our income tax clients frequently need:
Frequently Asked Questions — Income Tax Filing in India
The due date for filing ITR for AY 2026-27 (FY 2025-26) for individuals and HUFs not requiring audit is 31 July 2026. Businesses requiring tax audit have a due date of 31 October 2026. Filing before the due date avoids interest under Section 234A (1% per month) and the ₹5,000 penalty under Section 234F. SetupFiling.in ensures your ITR is filed well before the deadline.
ITR filing is mandatory if your gross income exceeds ₹3 lakh (new regime) or ₹2.5 lakh (old regime). It is also mandatory if you have foreign assets, deposited over ₹1 crore in a bank, paid electricity bills above ₹1 lakh, spent over ₹2 lakh on foreign travel, or want to claim a tax refund. Companies, LLPs, and firms must file ITR regardless of income level. Call +91 9818209246 to check your filing requirement.
If you have only salary income and interest income below ₹50 lakh, use ITR-1 (Sahaj). If you also have capital gains from shares, mutual funds, or property, you need ITR-2. Business or professional income requires ITR-3 or ITR-4 (presumptive). Our CA team identifies the right form for your specific income profile — simply WhatsApp your Form 16 and investment details.
Under Section 234F, a late filing penalty of ₹5,000 applies for returns filed after 31 July (₹1,000 if total income is below ₹5 lakh). Additionally, Section 234A charges interest at 1% per month on unpaid tax. Late filers also lose the ability to carry forward capital losses and speculative losses to future years. Moreover, belated returns cannot be revised if errors are found later. Filing on time with SetupFiling.in avoids all these consequences.
Yes, absolutely. If TDS deducted by your employer (Form 16) or bank (on FDs) is more than your actual tax liability, you are entitled to a refund. The Income Tax Department processes refunds to your pre-validated bank account linked with PAN. Refunds are typically credited within 15 to 45 days of ITR verification. SetupFiling.in ensures all eligible deductions are claimed and your refund is maximised. Contact us at help@setupfiling.in or +91 9818209246 to get started.