Income Tax Compliance Guide FY 2025-26 (AY 2026-27) | Returns, Slabs & Deadlines
21 Aug 2025
Income Tax Compliance Guide FY 2025-26 (AY 2026-27) | Returns, Slabs & Deadlines
Understanding and complying with income tax requirements is essential for every taxpayer, whether you're a salaried individual, self-employed professional, or business entity. This guide provides a focused overview of income tax compliance for the Financial Year 2025–26 (Assessment Year 2026–27), covering the latest income tax slab rates, key ITR filing deadlines, and related provisions.
Designed to help you plan ahead and avoid last-minute hassles, this reference will support accurate and timely tax return filing while keeping you updated on the essentials.
INCOME TAX RETURN DUE DATE
| Tax Payer | Original | Revised/Belated | Updated |
| A Company | 31/10/2025 | 31/12/2025 | 31/03/2029 |
| Other than Company to whom audit applicable | 31/10/2025 | 31/12/2025 | 31/03/2029 |
| Partner of Firm to whom audit applicable | 31/10/2025 | 31/12/2025 | 31/03/2029 |
| Transfer Pricing S.92E | 31/11/2025 | 31/12/2025 | 31/03/2029 |
| Other than A/B/C/D (Individual+Non Tax Audit Assessee) | 31/07/2025 | 31/12/2025 | 31/03/2029 |
Note: ITR refund can be claimed in all cases except in case of updated return. Late fee under S.234F would not be applicable unless the gross total income in belated return exceeds ₹2,50,000 and in case of Updated return. Loss set off is allowed in all cases. Loss carry forward is allowed only in case of Original return and Revised return (if original return filed on or before the due date under S. 139(1)). Further, additional tax u/s 140B is only applicable where an Updated return has been filed.
INCOME TAX SLAB RATES FOR INDIVIDUALS
OLD REGIME (AY 2021-22, 2022-23, 2023-24)
| Income Tax Slab | Tax rate |
| Upto 2,50,000 | 0 |
| 2,50,000- 5,00,000 | 5% |
| 5,00,001- 7,50,000 | 10% |
| 7,50,001- 10,00,000 | 15% |
| 10,00,001- 12,50,000 | 20% |
| 12,50,001- 15,00,000 | 25% |
| Above 15,00,000 | 30% |
- Section 87A Rebate: ₹12,500 for income up to ₹5,00,000
- Additional Benefits for Senior Citizens
- 60-79 yrs: Basic Exemption ₹3,00,000
- 80+ yrs: ₹5,00,000
NEW REGIME:
(AY 2024-25)
(AY 2025-26)
CASH TRANSACTION LIMITS & PENALTIES(AY 2024-25)
| Income Tax Slab | Tax rate |
| Upto 3,00,000 | 0 |
| 3,00,001-6,00,000 | 5% |
| 6,00,001- 9,00,000 | 10% |
| 9,00,001- 12,00,000 | 15% |
| 12,00,001- 15,00,000 | 20% |
| Above 15,00,000 | 30% |
| Income Tax Slab | Tax rate |
| Upto 3,00,000 | 0 |
| 3,00,001-7,00,000 | 5% |
| 7,00,001- 10,00,000 | 10% |
| 10,00,001- 12,00,000 | 15% |
| 12,00,001- 15,00,000 | 20% |
| Above 15,00,000 | 30% |
- Section 87A Rebate: Tax rebate up to ₹25,000 for income up to ₹7,00,000
(AY 2026-27)
| Income Tax Slab | Tax rate |
| Upto 4,00,000 | 0 |
| 4,00,001- 8,00,000 | 5% |
| 8,00,001- 12,00,000 | 10% |
| 12,00,001- 16,00,000 | 15% |
| 16,00,001- 20,00,000 | 20% |
| 20,00,001- 24,00,000 | 25% |
| Above 24,00,000 | 30% |
- Section 87A Rebate: Tax rebate up to ₹60,000 for income up to ₹12,00,000
| Section | Particular | Limit (Rs.) | If Exceeded |
| 13A(d) | Donation received by political parties | 2,000 | Exemption Disallowed |
| 35AD | Deduction in case of expenditure on specified business | 10,000 | Deduction Disallowed |
| 40A(3) | - Expenses/payments not deductible in certain circumstances - Payment made for plying, hiring or leasing goods carriages (Rule 6DD- exception) | 10,000 35,000 | Deduction Disallowed |
| 43(1) | Expenditure for Acquisition of any Asset | 10,000 | Not to be Included in Actual Cost (No Depreciation) |
| 80D(2B) | Deduction in respect of Health Insurance Premium (Exception Preventive Health Check-up) | NIL | Deduction Disallowed |
| 80G(5D) | Deduction in respect of donations to certain funds, charitable institutions | 2,000 | Deduction Disallowed |
| 80GGA(2A) | Deduction in respect of certain donations for scientific research or rural development | 2,000 | Deduction Disallowed |
| 80GGB | Deduction in respect of contributions given by companies to political parties | NIL | Deduction Disallowed |
| 80GGC | Deduction in respect of contributions given by any person to political parties | NIL | Deduction Disallowed |
| 269SS | Mode of taking or accepting certain loans, deposits and specified sum (Specified sum means any sum of money receivable in relation to transfer of an immovable property) (Exception if both are having agricultural income & neither of them has any taxable income) | 20,000 | 100 % Penalty As per S.271D |
| 269T | Mode of repayment of certain loans or deposits. | 20,000 | 100 % Penalty As per S.271E |
| 269ST | Mode of undertaking transactions (Other Cash Transations) (Not applicable if transaction covered u/s 269SS | 2,00,000 | 100 % Penalty As per S.271DA |
| 269SU | Acceptance of payment through prescribed electronic modes (if Previous year Turnover is exceeding Rs.50 Crore) | NIL | Per Day 5,000 till such failure continuous S.271DB |
| 44AB(a) | Threshold Limit for Audit of Accounts increased to Rs.10 Crore if cash transactions do not exceed 5 % | 10 Crore | Liable for Audit u/s 44AB |
In case of cash withdrawal from Banks/ Post offices- (Section 194N)
- TDS at the rate of 2% would be applicable where the amount exceeds 1 crore, provided that ITR has been filed for the 3 preceeding years.
- TDS at the rate of 2% would be applicable where the amount exceeds 20 Lakh, provided that ITR has not been filed for the 3 preceeding years..
- TDS at the rate of 5% would be applicable where the amount exceeds 1 crore, provided that ITR has not been filed for the 3 preceeding years.
For FY 2025–26 (AY 2026–27), timely and accurate ITR filing is essential to avoid penalties and claim full tax benefits such as rebates, refunds, and loss carry-forwards. With evolving tax slabs, higher rebate limits, and stricter rules on cash transactions, choosing the right tax regime and staying compliant has never been more important.
Let TaxoSmart be your trusted partner in tax—because smart tax planning starts here.
Want to plan ahead? Check out the full FY 2025-26 Compliance Calender for a month-by-month overview.
DISCLAIMER
The information contained in this document is prepared by R.J. Soni & Associates and TaxOSmart LLP (hereinafter referred to as RJSA) for information purpose only. It does not constitute any legal advice or tax advice. In no way, this document should be treated as a marketing material or efforts to solicit a client. While we have made every attempt to ensure that the information contained in this document is true, RJSA, its partners and/or any of its employees make no claims / guarantee about its accuracy, completeness, or up-to-date character, or warranty, express or implied, including the warranty of opinions expressed for a particular purpose, or assume any liability or responsibility for the accuracy, completeness, or usefulness of any information available from this document.