Salaried individuals in India earning up to Rs 12.75 lakh annually may pay zero income tax for AY 2026-27 due to enhanced Section 87A rebate and standard deduction, but filing an Income Tax Return (ITR) by July 31, 2026, is mandatory. This rebate excludes special incomes like capital gains and lottery winnings, which are taxed separately.
The Income Tax Department has launched online filing and Excel utility for Income Tax Return-3 (ITR-3) for Assessment Year 2026-27. This form is for individuals and HUFs with business or professional income, with a July 31, 2026, deadline for salaried individuals.
With India's tax administration becoming data-driven, taxpayers must file accurate Income Tax Returns (ITRs) for AY 2026-27. Key checks include selecting the correct ITR form, reconciling AIS data, reporting all income and exempt income, claiming eligible deductions, validating bank details, reviewing the return, filing by the due date, and completing verification within 30 days.
Salaried employees can claim meal card tax benefits under both old and new tax regimes from Tax Year 2026-27 onwards. For AY 2026-27, the benefit is restricted to the old tax regime with a Rs 50 per meal limit, while Tax Year 2026-27 allows Rs 200 per meal under both regimes. Proper ITR reporting and documentation are essential for claiming these exemptions.
