Income Tax Filing Guide (FY 2025-26 / AY 2026-27)
Filing your Income Tax Return (ITR) is a crucial annual obligation for every earning Indian citizen. Navigating the tax system can feel complex, but understanding the structures of the tax regimes and utilizing key deductions can save you thousands of Rupees in taxes.
1. The Core Slabs: Old Regime vs. New Regime
India operates a dual tax regime system. Under the **New Regime**, the standard deduction for salaried individuals has been increased to **₹75,000**, and the tax exemption limit is expanded, meaning individuals earning up to ₹12 Lakhs annual salary pay zero tax due to Section 87A rebates.
Under the **Old Regime**, the standard deduction remains **₹50,000**, but you can claim deductions for various savings and investments, such as PPF, life insurance, medical insurance, home loans, and HRA exemptions.
2. Tax Savings Deductions Checklist (Old Regime)
If you choose the Old Regime, ensure you utilize these limits to minimize your taxable income:
- Section 80C: Deductions up to ₹1,50,000 for PPF, EPF contributions, ELSS tax-saving mutual funds, National Savings Certificates (NSC), and children's school tuition fees.
- Section 80D: Deductions up to ₹25,000 for medical insurance premiums for self and family (increased to ₹50,000 if parents are senior citizens).
- Section 24(b): Exemption up to ₹2,00,000 on the interest component of home loans for self-occupied properties.
- Section 80CCD(1B): An extra deduction of up to ₹50,000 for voluntary deposits in the National Pension System (NPS).
3. Steps to File Your ITR Electronically
- Go to the official Income Tax e-filing portal (incometax.gov.in) and register using your PAN.
- Download your **Form 26AS** and **AIS (Annual Information Statement)** to verify TDS deductions and bank interest entries.
- Select the appropriate ITR form (ITR-1 for salary income, ITR-2 for capital gains, ITR-3 for business income).
- Pre-fill details, select your preferred tax regime, compute liabilities, pay any outstanding self-assessment tax, and submit.
- Crucial: Verify your ITR using Aadhaar OTP within 30 days of submission to ensure processing.