The Income Tax Return filing season is currently underway for the financial year 2025-26, covering income transactions from April 1, 2025 to March 31, 2026. According to reports from ClearTax, eligible taxpayers are required to consolidate their transaction reports and submit returns for the relevant assessment year before the specified deadline. Filing on time helps avoid penalties, interest, and delays in processing refunds.
Individuals and Hindu Undivided Families (HUFs) are required to file income tax returns (ITR) if their total taxable income before the applicable exemptions and deductions exceeds the basic exemption limit. As per ClearTax, even if you're exempt, file a return if you have a refund due, or you need to apply for a loan, passport or visa. To determine mandatory filing requirements, taxpayers should refer to Section 263 of the new Income Tax Act, 2025, which carries all provisions related to filing of original, belated, revised, and updated returns. For the financial year 2025-26, the basic exemption limit for individuals below 60 years of age is ₹2.5 lakh under the old income tax regime and ₹4 lakh under the new income tax regime, as explained by The Times of India.
Several high-value transactions automatically trigger mandatory ITR filing requirements. According to ClearTax, these include deposits over ₹1 crore in current accounts, foreign travel expenses exceeding ₹2 lakh (excluding neighboring countries and specified pilgrimage destinations), electricity bills exceeding ₹1 lakh, business turnover above ₹60 lakh, gross receipts from profession above ₹10 lakh, and TDS/TCS aggregating ₹25,000 or more (₹50,000 or more for senior citizens). Additionally, deposits exceeding ₹50 lakh in savings accounts and deposits in overseas bank accounts trigger filing requirements. The Times of India reports that salaried employees often have a misconception that TDS deduction by employers eliminates ITR filing obligations, but TDS is only a tax collection mechanism and does not replace the obligation to file returns where prescribed conditions are met.
Taxpayers can now revise their ITR until March 31 of the following year, as reported by ClearTax. This deadline has been extended from the previous requirement of filing by December 31 of the same assessment year or before assessment completion. The extension provides greater convenience for taxpayers seeking to correct genuine errors without additional charges.
According to ClearTax, filing a revised ITR does not attract any penalty, allowing taxpayers to correct genuine errors without additional charges. However, belated returns filed after the due date can attract late fees under Section 234F with penalties up to ₹5,000. A return is treated as revised only if the original return is filed by the due date and e-verified within 30 days of e-filing. The Times of India emphasizes that timely ITR filing creates a credible financial record helping with loan applications, visa processing, and avoiding interest, penalties and compliance-related challenges.
