The deadline to file Income Tax Return for FY 2025-26 (AY 2026-27) is July 31, 2026, with delayed filing available until December 31, 2026. However, ITR forms 3 and 4 have an extended deadline of August 31, 2026. For taxpayers with income above ₹5 lakh, late filing after the due date attracts penalties ranging from ₹1,000 to ₹10,000 under Section 234F, while those with income up to ₹5 lakh face a penalty of ₹1,000. The belated return filing deadline is December 31, 2026, with the revised return deadline set for March 31, 2027. As per Mint, delayed returns may lose certain deductions and face increased scrutiny from the Income Tax Department.
Profits from the sale of crypto assets are taxed at a flat rate of 30% under India's virtual digital asset (VDA) rules, as reported by Mint. A 4% cess is also applicable, irrespective of whether the income is treated as capital gains or business income. Crypto income may be classified as business income (ITR-3) or capital gains (ITR-2), depending on whether you have invested in cryptocurrency or trading in crypto as a business activity. Gains from cryptocurrencies and other virtual digital assets must be disclosed separately under Schedule VDA in the relevant ITR form. Additionally, there is a 1% tax deducted at source (TDS) levied on all crypto transactions, though this does not apply to individuals and HUFs with business turnover up to ₹1 crore or retail investors with total sales below ₹10,000. Failure to report crypto gains can lead to penalties of 50% to 70% of the tax due, plus interest, with the Income Tax Department potentially imposing penalties for non-disclosure and prosecution.
Foreign stocks are taxed differently depending on the holding period and nature of gains, according to Mint reports. Long-term gains from foreign company shares held for more than 24 months before selling are taxed at a flat rate of 12.5% (plus applicable cess and surcharge), with indexation benefit not available. Short-term gains from shares held for less than 24 months are considered as short-term capital gains, with the sale added to total income and taxable at individual's slab rate. Investors must report foreign assets and overseas income separately in their ITR forms. Taxpayers with foreign assets or investments in foreign companies are required to file ITR regardless of income level, as per Mint guidelines.
The Central Board of Direct Taxes (CBDT) notified all ITR forms on March 31, 2026, enabling individuals, businesses, and entities to begin filing for Financial Year 2025-26. Salaried taxpayers must file ITR-1 (Sahaj) if they are resident individuals with income up to ₹50 lakh from salary, two house properties, and interest income. A key change under the new Income Tax Act 2026 allows long-term capital gains up to ₹1.25 lakh from listed equity and equity-oriented mutual funds to be reported in ITR-1. Gains exceeding this limit require filing ITR-2. Freelancers must file ITR-3 or ITR-4, with those opting for presumptive taxation under Section 44ADA declaring 50% of total receipts as taxable income. If tax liability exceeds ₹10,000, advance tax must be paid quarterly. For FY 2025-26, ITR-1 form is suitable for salaried individuals with one house property and other sources, while ITR-2 is for individuals or Hindu Undivided Family (HUF) without business income.
Taxpayers can file ITR through certified professionals (Chartered Accountants or financial planners) or directly online via the Income-Tax department's website. For online filing, taxpayers must register using PAN, Aadhaar, and other details if filing for the first time. Required documentation includes Form 16 from current and former employers, PAN Card, Aadhaar Card (PAN-Aadhaar must be linked), investment proofs, home loan interest certificates, and insurance premium payment receipts. Additional requirements include bank deposit statements (savings accounts: ₹50 lakh, current accounts: ₹1 crore combined), electricity charges exceeding ₹1 lakh, foreign travel expenses over ₹2 lakh, and business sales exceeding ₹60 lakh. As per Mint, taxpayers should keep these documents ready before filing to ensure smooth processing.
If you fail to report gains from foreign stocks or provide incorrect information, penalties can be severe, as reported by Mint. For every year that you do not disclose foreign assets, you could face a penalty of ₹10 lakh. Any non-reporting of foreign assets while filing the ITR is considered willful evasion of tax, and the defaulter may face imprisonment of up to 7 years. In the case of crypto, if you fail to report and pay taxes on your gains, the Income Tax Department can impose a penalty equal to 50% to 70% of the tax due, along with interest on the unpaid amount, according to Mudrex. The more delayed your ITR filing becomes, the higher the penalties and increased scrutiny from the Income Tax Department.
