The Income Tax Returns (ITR) filing procedure for Assessment Year 2026-27 is gaining momentum as taxpayers prepare to submit returns for the financial year 2025-26. According to reports from The Economic Times, the Central Board of Direct Taxes (CBDT) had notified all ITR forms on March 31, allowing salaried individuals, businesses, professionals and other entities to begin preparations for filing their returns. While the income tax portal officially opens from April 1 each year, actual return filing activity generally picks up only after backend systems and forms are fully updated and stabilised, which usually happens around mid-May. With the New Income Tax Rules 2026 coming into play for Tax Year 2026-27, taxpayers who file their ITR on or before July 31, 2027, can enjoy many tax benefits through certain perks and allowances that were not previously available under the new regime. However, recent guidance from tax experts suggests that filing ITR before June 15, 2026 is not advisable, as backend systems may still be undergoing updates and could cause processing delays.
Salaried individuals earning up to ₹50 lakh annually can generally file returns using ITR-1 (Sahaj), provided their income comes from salary, up to two house properties and interest income. As reported by The Economic Times, the government has introduced several changes in ITR-1 for FY26 under the new Income Tax Act, 2026. A major change allows taxpayers to report long-term capital gains (LTCG) from listed equities and equity-oriented mutual funds in ITR-1, provided total LTCG does not exceed ₹1.25 lakh during the financial year. If capital gains exceed that threshold, taxpayers must shift to ITR-2. Under the new tax regime, salaried individuals can significantly reduce their tax liability by strategically utilizing allowances and perquisites, potentially bringing a ₹15 lakh CTC to zero tax through the right combination of reimbursements, allowances and perquisites.
The taxation structure for long-term capital gains has been standardised under Budget 2024-25, with 12.5% tax without indexation and 20% tax with indexation. According to The Economic Times, these revised tax rules will apply while filing returns for FY26. Additionally, individuals with income from two house properties can now use ITR-1, as the form was previously restricted to taxpayers with income from only one house property. Under the new tax regime, income up to ₹12.75 lakh can effectively become tax-free, making it more attractive for salaried individuals.
The new tax regime offers significant tax efficiency through strategic use of allowances and perquisites. As reported by The Economic Times, meal coupons and gadget reimbursements now provide substantial tax benefits under the new regime. Meal vouchers have increased from ₹50 to ₹200 per meal, while employer-provided gadgets like laptops, computers, tablets and mobile phones for official use remain not taxable as perquisite. Telephone and internet reimbursements for official use are fully exempt from tax under both old and new tax regimes, provided they are based on actual bills submitted to the employer. Certain employer-sponsored health benefits also remain tax-efficient, with medical insurance premium paid or reimbursed by the employer not chargeable to tax. The Income-Tax Rules, 2026 have increased the tax-free cap on meal vouchers from ₹50 to ₹200 per meal, applying to office meals, food during working hours, and eligible meal vouchers accepted only at eating joints.
Non-audit taxpayers filing ITR-1 and ITR-2 must submit returns by July 31, 2026, while taxpayers filing ITR-3 and ITR-4 have a deadline of August 31, 2026. According to The Economic Times, taxpayers who miss the original due date can still file a belated return by December 31, 2026, although late fees and interest penalties may apply. The complete list of ITR forms includes ITR-1 for salaried individuals, ITR-2 for capital gains income, ITR-3 for business or professional income, ITR-4 for small businesses under presumptive taxation, ITR-5 for firms and LLPs, ITR-6 for companies, and ITR-7 for charitable trusts.
