ITR for AY 2026-27: How to Calculate Dues Under Old vs New Tax Regimes Ahead of July 31 Deadline
As the July 31 ITR deadline for AY 2026-27 approaches, taxpayers must file and pay self-assessment taxes on time, e-verify within 30 days, and choose appropriately between the old and new tax regimes. Additionally, returns must be e-verified within 30 days of submission using Aadhaar OTP, net banking, or an electronic verification code to prevent processing delays.
As the July 31 deadline approaches for filing income tax returns (ITR) for the financial year 2025–26 (assessment year 2026–27), taxpayers are navigating the nuances of calculating dues under both the old and new tax regimes. The Income Tax Department has notified all online forms and enabled offline Excel utilities for ITR-1 through ITR-7, allowing individuals to prepare their returns ahead of final submission.
Understanding the Old Tax Regime
The old tax regime features traditional slab structures paired with various deductions and exemptions. Under this system, the standard deduction stands at INR 50,000, and a rebate under Section 87A applies for incomes up to INR 5 lakh. Taxpayers can also utilise deductions under Section 80C up to INR 1.5 lakh, alongside claims for house rent allowance (HRA), home loan interest, and contributions to the National Pension System (NPS). ITR Filing Last Date: What Happens if You Miss the July 31 Deadline?
Navigating the New Tax Regime
The new tax regime provides higher tax-free income thresholds and lower slab rates in exchange for fewer deductions and exemptions. This structure is generally beneficial for individuals with straightforward earnings below INR 12 lakh per annum. For income exceeding the INR 12 lakh limit, marginal relief provisions can apply. For instance, with an income of INR 12.15 lakh, the excess over the limit is INR 15,000. Applying the standard tax calculation alongside marginal relief provisions helps adjust overall liabilities, effectively lowering the payable tax after factoring in the cess.
Key Deadlines and Compliance
Taxpayers must complete filing and self-assessment tax payments by July 31. Additionally, returns must be e-verified within 30 days of submission using Aadhaar OTP, net banking, or an electronic verification code (EVC) to prevent processing delays. Will ITR Filing Last Date Be Extended? What Is the Penalty for Late ITR Filing?
Failing to meet deadlines can invite penalties, including late fees under Section 234F up to INR 5,000 for delayed filings, and charges under Section 270A for under-reporting income. Taxpayers who miss the primary deadline can still file a belated return until December 31, albeit with applicable late fees.
(The above story first appeared on LatestLY on Jul 27, 2026 11:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).