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Income Tax Returns

ITR-1 to ITR-7 for individuals and companies, tax audit reports, advance tax, and notice handling, all filed by a dedicated CA. AY 2026-27 returns under the Income Tax Act 1961; new Act framework from AY 2027-28.

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The Recurring Rhythm.

Year-end close in April-May. Advance tax through the year. Tax audit by 30 September (if applicable). ITR by 31 July or 31 October depending on category.

June–March
Advance tax (4 instalments)
Advance tax paid by 15 June (15%), 15 September (45%), 15 December (75%), 15 March (100%). Missed instalments attract interest under Section 234C until the next due date.
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April–June
Books, Form 16 / 26AS
Books finalised after year-end. Form 16 / 16A received from employer / deductors by 15 June. Form 26AS and AIS verified for TDS credit. Capital gains, foreign income, and crypto/VDA transactions reconciled.
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By 31 Jul / 31 Aug
ITR filed (non-audit)
ITR-1, ITR-2 filed by 31 July. ITR-3, ITR-4 (non-audit business income) by 31 August. E-verified within 30 days. Acknowledgement (ITR-V) shared with you.
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By 31 Oct / 30 Nov
Audit cases & companies
Tax audit report (Form 3CA/3CB/3CD) filed by 30 September. ITR-5, ITR-6, ITR-7 for partnerships, LLPs, companies, and trusts by 31 October. Transfer pricing cases (Form 3CEB) by 30 November.
↺ Annual cycle repeats every financial year. Belated returns until 31 December; revised returns until 31 March of the following year; ITR-U up to 4 years later.

What Is Income Tax Return Filing?

Income Tax Return (ITR) filing is the annual declaration of your income, tax liability, and tax paid (via TDS, advance tax, self-assessment tax) to the Income Tax Department. Every individual, HUF, partnership, LLP, company, and trust earning above the basic exemption limit, or meeting certain transaction triggers, must file an ITR. The form depends on the taxpayer category and income profile.

For AY 2026-27 (income earned in FY 2025-26), returns are filed under the Income Tax Act 1961, despite the Income Tax Act 2025 having taken effect from 1 April 2026. This is because AY 2026-27 relates to a tax year beginning before the new Act came into force. New Act ITR forms apply only to Tax Year 2026-27 returns, due in July 2027. The CBDT has confirmed this transition explicitly through the Income Tax Rules 2026.

Which ITR form applies

The form depends on your income profile. ITR-1 (Sahaj) for resident individuals with salary, one or two house properties, and interest income up to ₹50 lakh (the 2-house-property option is a new expansion for AY 2026-27). ITR-2 for individuals with capital gains, multiple properties, or foreign income. ITR-3 for business or professional income, F&O traders, intraday traders. ITR-4 (Sugam) for presumptive taxation under Sections 44AD, 44ADA, 44AE. ITR-5 for partnership firms and LLPs. ITR-6 for companies. ITR-7 for trusts and political parties.

Why outsource vs do it in-house

Salaried individuals with simple returns can file ITR-1 themselves, but anyone with capital gains, business income, foreign assets, or multi-source income benefits from a CA review. Wrong form selection results in defective return notices. Missed advance tax instalments attract interest under Section 234B and 234C. Mismatched TDS credit (26AS vs ITR) triggers scrutiny notices. Tax audit cases (turnover above ₹1 crore for business, ₹50 lakh for profession, with limited exceptions) require Form 3CA/3CB/3CD filing by 30 September, a deadline most in-house teams miss. Having a CA handle the cycle end-to-end converts ITR from an annual scramble to a predictable handoff.

What Gets Done Each Cycle.

Six activities across the year, four are during the year, two are at year-end. Single point of CA accountability throughout.

Advance tax planning
Quarterly
Estimate annual taxable income each quarter. Compute and pay advance tax by 15 June (15%), 15 Sep (45%), 15 Dec (75%), 15 Mar (100%). Avoid Section 234B and 234C interest.
Form 16 / 26AS verification
Annual
Collect Form 16 from employer by 15 June. Verify 26AS (TDS credit) and AIS (Annual Information Statement) for completeness. Reconcile against your records to spot omissions or mismatches.
ITR form selection & filing
Annual
Correct form picked based on income profile (ITR-1 through ITR-7). Old vs new regime computed. Return e-filed, ITR-V generated. E-verification completed within 30 days via Aadhaar OTP or net banking.
Tax audit (Form 3CA/3CB/3CD)
If applicable
Tax audit triggered when business turnover exceeds ₹1 crore (with exceptions) or professional receipts exceed ₹50 lakh. Report filed by 30 September; ITR follows by 31 October.
Notice & scrutiny response
As needed
Section 143(1), 143(2), 142(1), 148 notices addressed within the response window. Documentation prepared and submitted via the e-proceedings module. Compounding and rectification (Section 154) where appropriate.
Revised & updated returns
As needed
Revised return under Section 139(5) until 31 March of the AY (extended for AY 2026-27). ITR-U (Section 139(8A)) for older years, within 4 years from the end of the relevant AY, with additional tax.

When You Need Us to Handle This.

Getting professional help on income tax compliance is a service decision, not a legal one. Here's when it makes sense and when it doesn't.

Get help if
  • You have capital gains, foreign income, or multiple income sources. ITR-2 onwards has multiple schedules that need correct mapping. Wrong reporting triggers Section 143(2) scrutiny notices that compound from a small error.
  • You run a business or profession (proprietor, partnership, LLP, company). ITR-3, ITR-5, or ITR-6 with complete profit & loss, balance sheet schedules. Tax audit if applicable. Professional handling avoids audit qualifications and defective return notices.
  • Your turnover crosses the tax audit threshold. ₹1 crore for business (limited exceptions for digital transactions) or ₹50 lakh for profession. Audit report under Form 3CA/3CB/3CD is mandatory and CA-signed.
  • You've received a notice or have a pending scrutiny. Response timelines are tight (15-30 days typically). Professional handling from the first notice prevents escalation to Section 147 reassessment or Section 271 penalties.
  • You've missed past filings or have ITR-U corrections. Updated return (ITR-U) under Section 139(8A) is available for up to 4 years from end of AY, with additional tax. Correct sequencing and disclosure matter.
Skip if
  • You're a salaried individual with only Form 16 income and basic interest. ITR-1 (Sahaj) is genuinely DIY-able. The portal pre-fills most data; you check and submit.
  • Your income is below the basic exemption limit. Below ₹2.5 lakh (old regime) or ₹3 lakh (new regime), ITR is not legally required unless triggered by specific transactions (foreign travel, large deposits, etc.).
  • You have a finance team with CA review. Companies with in-house CFOs and qualified accountants typically handle routine ITRs in-house and use external CAs only for audits and complex cases.
  • You've already passed all deadlines including ITR-U window. If 4 years have elapsed from end of AY, the return cannot be filed. Direct CA consultation needed to assess Section 148 / scrutiny exposure.

How We Work.

Six commitments. Same dedicated CA, every month, with response times you can plan around.

Dedicated CA on your account
Not a ticket queue. The same chartered accountant handles your filings every month. Personal accountability, not a hand-off chain.
WhatsApp & email access
Business-hours response. Urgent issues escalated within 2 hours. No more chasing emails into a void.
Filed 5-7 days before deadline
ITR-1/2 filed by 25 July, ITR-3/4 by 25 August, company ITRs by 25 October. Built-in buffer for portal slowdowns, last-minute corrections, and e-verification.
Document upload via portal or Drive
Pick your tool. We adapt to your workflow, not the other way around. CSV, Tally exports, Excel, all supported.
IT notice response within 48 hrs
Section 143(1) intimation, 143(2) scrutiny, 142(1) inquiry, 148 reassessment notices addressed within 48 hours. Most resolved at first response without escalation.
Annual tax dashboard
Advance tax schedule, projected liability, TDS credit status, deductions claimed, and refund tracker. Read in 5 minutes monthly, signed off in 2.

IT Penalties & Defaults at a Glance.

Reference table for every IT default scenario. Current as per Income Tax Act 1961 provisions for AY 2026-27.

Default scenario
Late fee / Penalty
Interest
Downstream impact
Belated return (after due date)
₹1K-₹5K (Sec 234F)
1% per month (Sec 234A)
Loss carry-forward forfeited
Advance tax shortfall
N/A (auto-computed)
1% pm (Sec 234B + 234C)
Cash flow drag, refund delay
Tax audit not done / late
0.5% turnover or ₹1.5L
N/A
ITR defective, scrutiny risk
Filed after due date, lost old regime
Higher tax under new regime
N/A
Forced into new regime, lose 80C, HRA, 24(b)
Mismatched 26AS / AIS
N/A directly
N/A directly
Sec 143(2) scrutiny, refund hold
Income under-reported
50%-200% penalty (Sec 270A)
1% per month
Possible prosecution under Sec 276C
Income mis-reported (intent)
200% penalty (Sec 270A)
1% per month
Prosecution 3-7 years (Sec 276C)
Updated return (ITR-U)
25%-50% additional tax
Already accrued
Available for 4 yrs from end of AY
Penalty figures current as per Income Tax Act 1961 provisions for AY 2026-27. The new Income Tax Act 2025 (effective Tax Year 2026-27) carries equivalent provisions under renumbered sections.

Frequently Asked Questions.

It depends on your income profile. ITR-1 (Sahaj): resident individuals with salary, up to 2 house properties, and interest income up to ₹50 lakh (the 2-property option is new for AY 2026-27). ITR-2: individuals with capital gains, multiple properties, or foreign income. ITR-3: business or professional income, F&O traders, intraday traders. ITR-4 (Sugam): presumptive taxation (Sections 44AD, 44ADA, 44AE). ITR-5: partnership firms, LLPs. ITR-6: companies. ITR-7: trusts, political parties, certain Section 25 institutions. Picking the wrong form makes the return defective.
ITR-1, ITR-2: 31 July 2026. ITR-3, ITR-4: 31 August 2026 (extended from 31 July under Finance Act 2026 for non-audit business income). Tax audit cases (ITR-3, ITR-5, ITR-6): 31 October 2026, with tax audit report due 30 September 2026. Transfer pricing cases (Form 3CEB applicable): 30 November 2026. Belated return: until 31 December 2026. Revised return: until 31 March 2027 (extended under Finance Act 2026). ITR-U updated return: within 4 years from end of AY (i.e., until 31 March 2031 for AY 2026-27).
No. AY 2026-27 returns are filed under the Income Tax Act 1961, even though the Income Tax Act 2025 came into force on 1 April 2026. This is because AY 2026-27 relates to income earned in FY 2025-26, a tax year that began before the new Act took effect. The CBDT has confirmed this transition explicitly through Income Tax Rules 2026. Returns for income earned from 1 April 2026 onwards (Tax Year 2026-27) will be filed in July 2027 under the new Act, using renumbered forms (which will be notified before that filing season).
Under Section 234F, the late filing fee for filing a belated return after the due date is ₹1,000 if total income does not exceed ₹5 lakh, and ₹5,000 in any other case. This is in addition to interest under Section 234A (1% per month on unpaid tax). Filing after the due date also forfeits the ability to carry forward business losses, capital losses, and certain other losses to subsequent years, a real cost beyond the fee.
Belated return (Section 139(4)): filed after the original due date but before 31 December of the AY. Carries Section 234F fee and Section 234A interest. Revised return (Section 139(5)): correction of an originally filed return; for AY 2026-27 the deadline is 31 March 2027 (extended under Finance Act 2026). Updated return / ITR-U (Section 139(8A)): an entirely separate mechanism, available for up to 4 years from end of AY, but requires payment of additional tax of 25%-50% on top of the regular tax.
Advance tax applies if estimated tax liability exceeds ₹10,000 for the year. Paid in four instalments: 15 June (15%), 15 September (45%), 15 December (75%), 15 March (100%). Section 234B interest applies if total advance tax paid is less than 90% of assessed tax. Section 234C interest applies for shortfall in each instalment. Salaried individuals usually don't need to pay advance tax separately as TDS covers it, but anyone with capital gains, rental income, or business income should.
Tax audit under Section 44AB is required when: business turnover exceeds ₹1 crore (extended to ₹10 crore if 95% of receipts and payments are digital), or professional gross receipts exceed ₹50 lakh, or specific presumptive taxation scenarios. Audit report (Form 3CA/3CB and Form 3CD) is signed by a Chartered Accountant and filed online by 30 September of the AY. ITR then follows by 31 October.
For AY 2026-27, the new tax regime is the default. Old regime is still available but must be opted in (using Form 10IEA for business income; salaried can switch directly while filing). New regime offers lower rates and a ₹60,000 rebate under Section 87A for income up to ₹12 lakh (effectively zero tax), but disallows most deductions (80C, 80D, HRA, Section 24(b) home loan interest). Old regime allows all deductions but at higher rates. Critical: filing after the due date locks you into the new regime, forfeiting deduction-based old regime savings.
All IT notices, Section 143(1) intimations, Section 143(2) scrutiny, Section 142(1) inquiry, Section 148 reassessment, are addressed within 48 hours of receipt. For factual mismatches (TDS, deductions), we file rectification under Section 154. For scrutiny assessments, we prepare documentation and represent through the e-proceedings module on the IT portal. Most notices resolve at the first response. Penalties under Section 270A (under-reporting / mis-reporting) and prosecution under Section 276C are reserved for severe cases.
Yes. NRI returns require careful filing under ITR-2 (or ITR-3 for business income), reporting Indian-source income only. Schedule FA (Foreign Assets) and Schedule FSI (Foreign Source Income) apply for residents with foreign holdings. Double Taxation Avoidance Agreement (DTAA) benefits are claimed where applicable. FBAR and FATCA-equivalent disclosures handled. Specialist work, not generalist.
Pricing depends on the form (ITR-1 vs ITR-6), income complexity (single salary vs multi-source with capital gains and foreign assets), whether tax audit is involved, and ongoing advisory needs. Reach out and we'll give an exact quote. Most early-stage clients on annual engagements are in a predictable range; corporate clients with audit included are higher.
For Tax Year 2026-27 (returns due July 2027) and beyond, ITR forms will be filed under the new Act framework. Most key provisions carry over from the 1961 Act with renumbered sections (e.g., return filing under Section 263 instead of Section 139, late fee under Section 428 instead of Section 234F). Form names will change (Form 16 becomes Form 130, Form 26AS becomes Form 168, etc.). The compliance calendar (due dates, audit deadlines, regime defaults) is largely preserved. We track every cutover for our clients during the FY 2026-27 transition.

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