Filing your Income Tax Return (ITR) online may seem confusing at first, especially if you are doing it for the first time. From selecting the correct ITR form to entering your income details and submitting the return, each step plays an important role in ensuring your return is filed correctly.
Moreover, if you have traded in cryptocurrencies, how will you report it in your ITR form? Even a small mistake can lead to delays, notices, or the need to file a revised return.
Fortunately, the Income Tax Department’s e-filing portal has made the process much simpler. Once you have the required documents ready, you can complete your return online by following the right sequence of steps.
This guide explains how to file your ITR online for FY 2025-26 (AY 2026-27), covering everything from logging into the portal and choosing the correct ITR form to submitting and e-verifying your return.
Key Takeaways
- Filing ITR online for FY 2025-26 requires selecting the correct form based on your income, with ITR-1 and ITR-2 due by 31 July 2026 and business or professional filers getting until 31 August 2026.
- Choosing between the old and new tax regimes affects which deductions you can claim, so compare both before filing, since the new regime removes most exemptions in exchange for lower rates.
- Missing the ITR deadline or filing under the wrong form can lead to penalties ranging from a flat late fee to prosecution under sections like 276C and 277 for deliberate evasion.
- Gathering documents like PAN, Aadhaar, bank statements, and Form 16 in advance, along with completing e-verification within 30 days, keeps the filing process smooth and avoids your return being treated as invalid.
- KoinX simplifies crypto tax filing for investors by syncing exchange and wallet data automatically, classifying every transaction, generating Schedule VDA and derivatives reports, and connecting them with CA assistance for filing support.
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How Can You File Income Tax Return in FY 2025-26?
For FY 2025-26 (AY 2026-27), the Income Tax Department allows two ways to file your return, i.e., directly on the e-filing portal, or offline using a downloadable utility. You can use either method:
Online Filing Through the e-Filing Portal
This is the method most taxpayers use. You log in with your PAN, fill in your details directly on the website, and submit the return without downloading any software.
Offline Filing Using the JSON Utility
This method suits filers with unstable internet or large data sets. You download the offline utility from the portal, fill in your return, generate a JSON (JavaScript Object Notation) file, and then upload it once you’re back online.
New vs Old Tax Regimes for FY 2025-26
The New Tax Regime was introduced in the Finance Bill of 2020 as an optional, lower-rate system for individual taxpayers. Since then, every taxpayer must actively choose between two systems each financial year: the Old Regime, which retains most exemptions and deductions, and the New Regime, which offers lower rates but removes the majority of those benefits. The right choice depends entirely on how many deductions you actually claim.
Feature | Old Regime | New Regime |
Deductions under Section 80C (PPF, ELSS, life insurance) | Available | Not available |
Deductions under Section 80D (health insurance premium) | Available | Not available |
House Rent Allowance (HRA) exemption | Available | Not available |
Standard deduction on salary | Available | Available |
Home loan interest deduction (Section 24) | Available | Not available for self-occupied property |
Filing complexity | Higher, requires proof of investments and expenses | Lower, no documentation for exemptions needed |
Default regime for filing | Requires opting in | Applied automatically unless Old Regime is chosen |
Choosing the wrong regime usually costs taxpayers more in forfeited deductions than they save in lower rates, particularly for anyone with active investments, a home loan, or dependents. For a full breakdown of which regime works better for crypto investors specifically, check out our guide on old vs. new tax regime for crypto investors.
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What Steps To Follow To File ITR Online For FY 2025-26 (AY 2026-27)?
Here’s how you can e-file your IT return on the income tax website:
Step 1: Log in to Your Account
Head to the official Income Tax e-filing website and select ‘Login.’ Enter your PAN in the User ID section and click ‘Continue.’ Enter your password and click ‘Continue‘ again to access your account.
Step 2: Select “File Income Tax Return” Option
After logging in, navigate to the ‘e-File‘ tab on the website and select ‘Income Tax Returns.’ From there, choose the option ‘File Income Tax Return’. This will direct you to the section where you can file your income tax return electronically.
Step 3: Choose The Correct “Assessment Year”
If you’re filing for the financial year 2025-26, choose ‘AY 2026-27 (Current)’. Opt for the ‘Online‘ mode of filing and accurately designate whether it’s an original or a revised return. This step is crucial for the accurate submission of your income tax return. Once done, hit “Continue.”
Step 4: Start A Fresh Filing
The portal checks for any saved drafts of a pending return. If none exists, it will show ‘No Saved Draft.’ Click ‘Start New Filing‘ under the ‘To file a fresh Income Tax Return’ section to begin.
Step 5: Choose Your Status
Choose your relevant filing status: Individual, Hindu Undivided Family (HUF), or Others. If you are an individual, select “Individual” and click “Continue.”
Step 5: Select The Type Of ITR You Want To File
Next, choose the appropriate ITR type. Taxpayers must determine the correct ITR form before proceeding with their returns. Seven ITR forms are available, among which ITR 1 to 4 are applicable for Individuals and HUFs. ITR 2 and ITR 3 are two forms that should be filled by individuals investing in cryptocurrency based on their income type.
For instance, individuals and HUFs who don’t have income from business or profession but have capital gains must file ITR 2.
Step 6: Select The Reason For ITR Filing
In the next step, you must specify the reason for filing your returns. Choose the relevant option based on your situation:
- Taxable income exceeds the basic exemption limit.
- Mandatory filing is demanded as specific criteria are met.
- Other reasons.
Step 7: Verify The Pre-Filled Information
Most of your details will be automatically filled in, including your Name, Date of Birth, Aadhaar, PAN, contact number, and bank details.
However, it is crucial to carefully validate these details before proceeding further. Additionally, please provide your bank account information if it still needs to be provided, ensuring it is pre-validated.
As you progress through each step, you must comprehensively disclose all your relevant income, exemptions, and deduction details. Remember, most of your information will be pre-filled based on data from your employer, bank, etc.
Review this information meticulously to ensure its accuracy.
Finally, confirm the summary of your returns, validate the details, and make payment of any outstanding taxes, if applicable.
Step 8: Electronically Verify Your Income Tax Return
The final step is to verify the return within the specified time frame of 30 days. This verification needs to be revised to ensure your filing is completed. You can electronically verify your return through various methods, including Aadhaar OTP, electronic verification code (EVC), Net Banking, or by dispatching a physical copy of ITR-V to the Central Processing Center (CPC) in Bengaluru.
Which ITR Form To File in FY 2025-26 (AY 2026-27)?
The Income Tax Department offers seven ITR forms, each designed for a specific type of income and taxpayer category. Filing the wrong form leads to a defective return notice, so identifying the correct one before you begin is essential.
- ITR-1 (Sahaj): This form suits resident individuals with total income up to INR 50 lakh from salary, one or two house properties, and other sources like interest income. Agricultural income is allowed up to INR 5,000. You cannot use ITR-1 if you have capital gains, foreign assets, or a company directorship.
- ITR-2: Individuals and HUFs without business or professional income use this form when they have capital gains, own more than two house properties, hold foreign assets, or serve as a company director. It also applies to unlisted equity share transactions and income above INR 50 lakh.
- ITR-3: This form applies to individuals and HUFs earning income from business or profession, whether under the regular scheme or opting out of presumptive taxation. It also accommodates salary, house property, and capital gains reported alongside business income.
- ITR-4 (Sugam): Resident individuals, HUFs, and firms other than LLPs use this form when their income falls under the presumptive taxation scheme, specifically Sections 44AD, Section 44ADA, or Section 44AE, and total income does not exceed INR 50 lakh.
- ITR-5: Firms, Limited Liability Partnerships, Associations of Persons, and Bodies of Individuals file this form for their entity-level income, separate from any individual returns their partners or members may file.
- ITR-6: Companies that do not claim exemption under Section 11 (income from property held for charitable or religious purposes) file this form to report their business income and tax liability.
- ITR-7: This form applies to entities required to file under Sections 139(4A) to 139(4D), including trusts, political parties, research associations, and other institutions claiming specific exemptions.
What are the Deadlines to File ITR for FY 2025-26?
The ITR filing deadline for FY 2025-26 (AY 2026-27) is not a single date. It depends on your ITR form, whether your accounts require an audit, and which filing method you use. The table below breaks down every deadline that applies.
Taxpayer Category | Applicable ITR Form | Filing Method | Due Date |
Salaried individuals, pensioners, capital gains filers (non-audit) | ITR-1, ITR-2 | Online | 31 July 2026 |
Business or professional income (non-audit cases) | ITR-3, ITR-4 | Online or offline utility | 31 August 2026 |
Businesses and professionals requiring a tax audit | ITR-3, ITR-4 (with audit report) | Online or offline utility | 31 October 2026 |
Taxpayers required to furnish a transfer pricing report | ITR-3, ITR-5, ITR-6 | Online | 30 November 2026 |
Belated return (missed the original deadline) | Any applicable ITR form | Online | 31 December 2026 |
Revised return (correcting an already-filed return) | Any applicable ITR form | Online | 31 March 2027 (Updated: Budget 2026) |
Updated return (ITR-U) | Any applicable ITR form | Online | Within 48 months from the end of AY 2026-27 |
What Documents Do You Need To E-File Your Income Tax Return?
To effectively e-file your ITR, it’s crucial to have the following information and documents readily available:
- Bank Statements
- Permanent Account Number (PAN)
- Aadhaar
- Donation receipts, if you have made any donations
- Stock trading statements from the broker platform
- Aadhaar-registered mobile number for e-verifying the return
- Insurance policy paid receipts related to life and health
- Bank account information linked to PAN
- Interest certificates from banks
- For crypto users, exchange-wise transaction statements or trade history exports, needed to compute capital gains on crypto disposals.
- Form 16A for TDS deducted under Section 194S on crypto transfers exceeding the applicable threshold
- Wallet transaction history for any on-chain or DeFi activity conducted outside a centralised exchange
- Records of airdrops, staking rewards, or mining income received during the financial year
Once you have all the above information handy, you can move on to e-filing your ITR on the income tax portal.
Major Changes in ITR Filing in FY 2025-26 (AY 2026-27)
The Income Tax Department notified ITR-1, ITR-2, ITR-3, and ITR-4 for AY 2026-27 on 31st March 2026, introducing several changes to eligibility, disclosures, and reporting fields. Here’s what changed for each form.
Latest Updates for ITR-1 (Sahaj)
Here is what changed for ITR-1 in FY 2025-26:
- Taxpayers can now report income from up to two house properties, where previously more than one property required filing ITR-2 instead.
- Long-term capital gains under Section 112A up to INR 1.25 lakh are now permitted, provided there is no capital loss to carry forward or set off.
- The “Others” option for claiming Section 10 allowance exemptions has been removed; only allowances specifically listed in the form can now be claimed.
- Reporting of foreign retirement benefit accounts under Section 89A has been removed from ITR-1; taxpayers with such accounts must now file ITR-2 or ITR-3 instead.
- Claiming a deduction under Section 80GGC for political donations now requires disclosing the name and PAN of the political party.
Latest Updates for ITR-2
Here is what changed for ITR-2 in FY 2025-26:
- Capital gains reporting has been simplified: the separate fields for transactions before and after 23 July 2024 have been removed, leaving only the current rate structure.
- A new field has been added to report capital losses on share buybacks, which are allowable only if the corresponding dividend income is disclosed under “Income from Other Sources.”
- Representative filing has been simplified to require only the representative’s name, contact number, and email, dropping the earlier requirement for address and PAN.
- Reporting foreign retirement accounts under Section 89A now happens exclusively through ITR-2 or ITR-3, since this field was removed from ITR-1.
Latest Updates for ITR-3
Here is what changed for ITR-3 in FY 2025-26:
- A separate schedule now captures Futures & Options (F&O) and intraday trading turnover and income, distinct from other business income reporting.
- The dropdown for the standard filing due date has been updated from 31st July to 31st August, reflecting the revised deadline under the Finance Act, 2026.
- Cash transaction disclosure has been expanded beyond a simple Yes/No indicator into a more detailed reporting framework.
- Capital gains reporting has been streamlined the same way as ITR-2, removing the pre- and post-23 July 2024 split.
Latest Updates for ITR-4 (Sugam)
Here is what changed for ITR-4 in FY 2025-26:
- Taxpayers can now report income from up to two house properties and long-term capital gains under Section 112A up to INR 1.25 lakh, matching the ITR-1 relaxation.
- A new field for investment details has been added under Schedule BP’s Financial Particulars section; while currently optional, reporting bank balances is now mandatory.
- Reporting of foreign retirement accounts under Section 89A has been removed, consistent with the same change made to ITR-1.
What Penalties Can You Face For Tax Evasion in India?
Tax evasion penalties in India scale with the tax amount involved rather than a fixed fee, since the law treats deliberate concealment far more seriously than a missed deadline. Depending on the offence, a taxpayer can face a monetary penalty, prosecution with imprisonment, or both. The table below covers the main provisions.
Section | What It Covers | Penalty | When It Applies? |
Under-reporting or misreporting of income | 50% of the tax on under-reported income; 200% of the tax where under-reporting results from misreporting | When assessed income exceeds declared income, or income particulars are deliberately misrepresented | |
Unexplained cash credits or investments (Sections 68 to Section 69D) | 10% of the tax payable under Section 115BBE, in addition to the 60% tax plus 25% surcharge and 4% cess under that section | When unexplained money, investments, or assets are added to income during assessment and not already disclosed and taxed voluntarily | |
Failure to deduct or deposit TDS | Penalty equal to the amount of tax not deducted or not deposited | When a person or entity required to deduct TDS, including exchanges under Section 194S, fails to deduct or pay it | |
Failure to furnish a return of income at all | Rigorous imprisonment of 6 months to 7 years plus a fine, where the tax evaded exceeds INR 25 lakh; 3 months to 2 years plus a fine in other cases | When a taxpayer does not file a return even after the belated return window closes, and tax remains unpaid beyond INR 10,000 after TDS and advance tax credit | |
Filing a defective or incorrect ITR form | No monetary penalty at this stage, but the return is treated as invalid, meaning as not filed at all, if the defect is not corrected within the time allowed in the notice, typically 15 days | When the wrong ITR form is used for your income type, mandatory schedules are left blank, or tax computation details are missing or inconsistent | |
Willful attempt to evade tax | Rigorous imprisonment of 6 months to 7 years plus a fine, where the tax sought to be evaded exceeds INR 25 lakh; 3 months to 2 years plus a fine in other cases | When a taxpayer deliberately conceals income, falsifies records, or claims ineligible deductions to reduce tax payable | |
False statement in verification or false accounts | Same imprisonment terms as Section 276C, depending on the amount of tax sought to be evaded | When a false statement or declaration is knowingly made in any return, account, or document filed under the Act |
Filing your ITR accurately the first time is the best way to avoid penalties, notices, and unnecessary delays. However, reporting crypto transactions can be more challenging because the TDS reported by exchanges and the information reflected in your AIS may not always match your own calculations. As a result, these mismatches can increase the chances of scrutiny by the Income Tax Department. KoinX automatically reconciles your transaction data with exchange records, helping you identify discrepancies early and reduce the risk of reporting errors in your tax return.
How Can KoinX Help With Crypto Tax Filing in India?
Crypto investors don’t just have one account to report; they often have transactions spread across three or four exchanges, a couple of DeFi wallets, and maybe a staking platform, each formatting data differently and calculating cost basis on its own terms. Consolidating all of that into a single Schedule VDA figure by hand means hundreds of individual entries, each one a chance for an error to creep in. KoinX pulls every transaction into one dashboard, applies the correct cost basis method automatically, and outputs a report matched to what the ITR actually asks for.
Syncs 800+ Exchanges and Wallets Automatically
KoinX connects to over 800 exchanges, wallets, and blockchains through API, CSV, or direct sync, pulling in your complete transaction history in seconds rather than requiring manual downloads from each platform separately.
Auto-Classifies Every Transaction Type
Every buy, sell, swap, staking reward, airdrop, and DeFi transaction gets automatically labeled and calculated, removing the need to manually sort thousands of transactions before you can compute your gains.
Generates Schedule VDA and ITR-Ready Reports
KoinX produces a Complete Tax Report structured around Section 115BBH, covering capital gains, derivatives income, other crypto income, and TDS summaries, along with a Schedule VDA report formatted for direct entry into your ITR.
Provides a Separate Report for Derivatives Trading
If you trade crypto futures, options, or perpetual contracts on platforms like Binance, Bybit, or Delta Exchange, KoinX produces a dedicated Schedule VDA Derivatives Report, since these settlement-based trades are calculated differently from spot buys and sells.
Connects You With a CA for ITR Filing
Beyond generating reports, KoinX offers access to a CA who can file your ITR for you, so investors who’d rather not handle Schedule VDA and Section 194S entries themselves have a professional filing option built into the same platform.
Getting your crypto tax report right the first time saves you from Schedule VDA errors, TDS mismatches, and the notices that follow both. KoinX turns weeks of manual reconciliation into a report ready in minutes. Get started with KoinX today and file with confidence this season.
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Conclusion
Filing your ITR correctly for FY 2025-26 comes down to a few decisions made early: choosing the right ITR form, picking the tax regime that suits your income sources, and gathering your documents, including Form 26AS and AIS, before you start. Missing a deadline or filing the wrong form doesn’t just delay your refund; it can cost you carry-forward benefits or trigger a defective return notice. Therefore, getting these choices right from the outset saves both time and money.
Crypto income adds another layer to this process, since exchange data and TDS credits need careful reconciliation before they reach Schedule VDA. Hence, if your filing involves crypto transactions, KoinX can generate the reports and reconciliations this article has walked through, so you can file without second-guessing the numbers.
Frequently Asked Questions
I have small amounts of interest income I never reported. Will this trigger a tax notice?
Interest income above INR 40,000 (INR 50,000 for senior citizens) is subject to TDS and reflected in your AIS, so even small unreported amounts show up as a mismatch once your return is processed. The department’s system routinely flags such discrepancies through automated notices under Section 143(1). Including all interest income now is safer than waiting for a notice, since voluntary correction rarely draws further scrutiny.
Can the Income Tax Department see my bank transactions even before I file?
Yes, banks report specified high-value transactions to the department under the Statement of Financial Transactions (SFT) framework, and this data appears in your AIS well before you file. This includes large cash deposits, big fixed deposits, and significant credit card payments. Cross-checking your AIS against your own records before filing is the most reliable way to avoid a mismatch-triggered notice.
I worked for two different employers in the same financial year. Which ITR form applies to me?
Multiple Form 16s from different employers don’t change your ITR form, you still use ITR-1 or ITR-2 depending on your other income sources, since salary from more than one employer remains salary income. You’ll need to consolidate figures from both Form 16s manually, since pre-filled data may reflect only one employer correctly. Confirm that TDS from both employers appears in your Form 26AS before submitting.
I am a Non-Resident Indian (NRI). Can I still use ITR-1?
No, NRIs cannot file ITR-1 regardless of income level or source, this form is reserved exclusively for resident individuals. NRIs with salary, house property, or capital gains income must use ITR-2, and those with business income must use ITR-3. Filing ITR-1 as an NRI results in a defective return notice under Section 139(9).
What happens to my TDS refund if I file a belated return?
You can still claim a TDS refund even with a belated return, filing late doesn’t forfeit refund eligibility. However, refund processing typically starts only after your return is filed and verified, so a belated return delays when you actually receive the money. You’ll also lose the option to switch to the old tax regime for that assessment year once you file after the original due date.
I already filed my return but used the wrong ITR form. What should I do now?
If the department hasn’t yet flagged it, file a revised return under Section 139(5) using the correct form before 31 March 2027 for AY 2026-27. If you’ve already received a defect notice under Section 139(9), respond within the time mentioned in the notice, typically 15 days, using the correct form instead. Filing late in response to a 139(9) notice risks the return being treated as never filed.
What is the Section 87A rebate, and does it apply to everyone?
Section 87A rebate is a tax rebate that reduces your tax liability to zero if your total taxable income falls within a specified limit. Under the new regime for FY 2025-26, the rebate goes up to INR 60,000, making income up to INR 12 lakh tax-free (INR 12.75 lakh for salaried taxpayers after the standard deduction). Under the old regime, the rebate is capped at INR 12,500 and applies only up to INR 5 lakh of taxable income, and it doesn’t reduce the 4% Health and Education Cess on any remaining liability.
