In this guide
The ITR filing reason for AY 2026-27 is an important field on the Income Tax portal. When you file online, the portal may ask: “Are you filing the income tax return for any of the following reasons?” The options can look similar, particularly if your income is below the basic exemption limit but tax was deducted, or you are filing to claim a refund.
The options generally cover income above the basic exemption limit, a filing obligation under the seventh proviso to section 139(1), or another voluntary reason. Select the option that matches your circumstances.
The reason question is separate from the choice of ITR form, tax regime and the section under which you file. This distinction matters when you file a belated or revised return, respond to a notice, claim a refund or report high-value transactions.
What does “reason for filing ITR” mean?
The question identifies the basis for filing. It does not calculate your tax, determine which ITR form you must use or replace the legal filing requirements under the Income-tax Act, 1961.
For income earned from 1 April 2025 to 31 March 2026, the return is for FY 2025-26 and AY 2026-27. It continues to be governed by the Income-tax Act, 1961, even though the Income-tax Act, 2025 took effect from 1 April 2026. Tax Year 2026-27 relates to income earned from 1 April 2026 onwards, so it is a different filing period.
The AY 2026-27 ITR forms include a separate question about filing under the seventh proviso to section 139(1), even if you are otherwise not required to file. The online utility may show this as part of a broader “reason for filing” screen. Follow the wording on the current portal and answer the related questions accurately.
Which option should you select?
| Your situation | Reason that generally fits | What to check |
|---|---|---|
| Your income exceeds the applicable basic exemption limit | Taxable income is more than the basic exemption limit | Check income before specified deductions and exemptions, using the limit for your tax regime and age |
| Your income is below that limit, but a specified condition makes filing compulsory | Filing due to a condition under the seventh proviso to section 139(1) | Identify each condition that applies and provide the details requested |
| Filing is not compulsory on either basis, but you choose to file | “Others” or the voluntary-filing option shown on the portal | A refund claim, income record or other permitted reason may support voluntary filing |
| You filed late, are correcting a return or are responding to a notice | Select the filing section or notice response separately | The reason for filing is not the same as original, belated, revised or notice-response status |
Use the current portal labels. Do not choose an option only because you expect a refund or have no tax to pay.
Option 1: Income is above the basic exemption limit
An individual generally has to file a return when total income, computed under the Act’s rules, exceeds the applicable maximum amount that is not chargeable to tax. For this filing test, section 139(1) requires certain deductions and exemptions to be ignored. Do not subtract Chapter VI-A deductions such as sections 80C or 80D before deciding whether this reason applies. Certain specified capital-gains exemptions are also disregarded for the filing test.
For AY 2026-27, the basic exemption amount depends on the tax regime and, under the old regime, the age category:
| Individual’s tax treatment | Basic exemption amount for AY 2026-27 |
|---|---|
| New tax regime, any age | ₹4,00,000 |
| Old regime, below 60 years | ₹2,50,000 |
| Old regime, resident age 60 to under 80 | ₹3,00,000 |
| Old regime, resident age 80 or more | ₹5,00,000 |
These figures are filing thresholds, not a tax calculation. The new regime is the default for AY 2026-27. Check your eligibility before opting out.
A rebate does not remove a filing obligation
You may owe no tax after a rebate, TDS or other tax credit and still have to file because your income exceeds the filing threshold. For example, a resident individual may qualify for a rebate under section 87A, but the rebate does not by itself cancel the obligation to file.
Tax deducted by your employer or bank also does not mean your income is below the filing limit. Compare your complete income with the correct threshold, rather than looking only at your final tax payable or refund.
Option 2: Filing is required under the seventh proviso
The seventh proviso to section 139(1) can require certain individuals, HUFs and other specified persons to file even if their income does not otherwise require a return. If one of these conditions applies and you are otherwise not required to file, select the portal option for the seventh proviso and provide the details it requests.
The principal conditions and prescribed thresholds include:
| Condition during the relevant previous year | Filing trigger |
|---|---|
| Deposits into one or more current accounts | Aggregate deposits exceed ₹1 crore |
| Foreign travel expenditure for yourself or another person | Aggregate expenditure exceeds ₹2 lakh |
| Electricity consumption expenditure | Aggregate expenditure exceeds ₹1 lakh |
| Business sales, turnover or gross receipts under Rule 12AB | Exceeds ₹60 lakh |
| Professional gross receipts under Rule 12AB | Exceeds ₹10 lakh |
| TDS and TCS under Rule 12AB | Aggregate is ₹25,000 or more; ₹50,000 or more for a resident individual aged 60 or above |
| Deposits in one or more savings bank accounts under Rule 12AB | Aggregate is ₹50 lakh or more |
Some thresholds use “exceeds,” while others apply at the stated amount or above. Check the wording of the relevant condition. Current accounts and savings bank accounts are separate tests. Do not add ordinary bank balances, cash withdrawals or fixed-deposit balances unless the rule specifically calls for them.
The foreign-travel test concerns expenditure on travel to a foreign country for yourself or another person. The Act excludes travel to neighbouring countries and pilgrimage places notified by the CBDT. A foreign remittance, overseas investment or bank transfer is not automatically travel expenditure; check the purpose of the transaction.
Rule 12AB includes business turnover, professional receipts, TDS/TCS and savings-account deposits. Report every applicable condition the portal asks about.
This option is for someone who is filing because a seventh-proviso condition applies but is otherwise not required to furnish a return under section 139(1). If your income already makes filing compulsory, the seventh-proviso option is not a substitute for the income-based reason, even if you also had a high-value transaction.
A resident and ordinarily resident individual may have a separate filing obligation if they hold an asset or financial interest outside India, have signing authority in a foreign account, or are a beneficiary of a foreign asset. Foreign income must also be reported where taxable. Companies and firms have their own filing obligations and should not use an individual’s age-based exemption threshold. TaxClear’s guide to who is not required to file an ITR for AY 2026-27 explains the filing tests in more detail.
Option 3: “Others” or voluntary filing
If your income is below the relevant threshold and none of the seventh-proviso conditions applies, you may still choose to file voluntarily where the law permits. In that case, “Others” or the corresponding voluntary-filing option is generally the relevant reason.
Common reasons for filing voluntarily include:
- Claiming a refund of TDS, TCS or advance tax.
- Reporting income and tax paid in a formal return for your records.
- Providing a return or acknowledgement to a lender, for a visa application or to another institution.
- Reporting income even though the filing threshold is not crossed.
- Reporting a loss or transaction where filing is needed to preserve a tax treatment.
A refund claim alone does not trigger the seventh proviso. If no mandatory filing condition applies, choose the voluntary or “Others” reason.
If you want to carry forward a loss, check that the type of loss can be carried forward and file by the applicable due date. A late return may not preserve every loss. House-property losses and certain other items have different rules.
The reason is not the same as the filing section
The portal and ITR form also ask how the return is being filed. This is a different field from the reason for filing.
- An original return filed within the due date is generally under section 139(1).
- A belated return is generally under section 139(4).
- A revised return correcting an earlier return is generally under section 139(5).
- A return filed after condonation or in response to a notice must be identified under the applicable order or notice option.
For AY 2026-27, the due date for most non-audit taxpayers was 31 August 2026. CBDT Circular No. 07/2026 extended the due date for persons in the relevant audit category from 31 October 2026 to 21 November 2026.
A belated return may generally be filed by 31 December 2026 or before assessment is completed, whichever is earlier. The revised-return deadline for AY 2026-27 is generally 31 March 2027 or before assessment is completed, whichever is earlier. A fee under section 234-I applies to revised returns filed after 31 December 2026: ₹1,000 where total income does not exceed ₹5 lakh and ₹5,000 otherwise. Check the Income Tax Department’s current deadline for your category.
Choosing “Others” does not make a late return timely. The seventh-proviso option does not turn a belated return into an original return. If you file after the due date, answer both fields correctly: the reason for filing and the section or status under which you are filing.
For the portal sequence, see TaxClear’s step-by-step ITR filing guide for AY 2026-27. Salaried taxpayers can also refer to the ITR-1 online filing guide.
How to select the reason on the portal
The menu may change, but the filing process generally follows these steps:
- Log in to the Income Tax e-Filing portal and select e-File → Income Tax Returns → File Income Tax Return.
- Select AY 2026-27 for income earned in FY 2025-26. Do not choose Tax Year 2026-27 for this return.
- Choose your taxpayer status and the ITR form that matches your income and circumstances.
- When the portal asks why you are filing, check your facts against the income threshold and seventh-proviso conditions.
- Select the relevant option and provide supporting amounts or details if requested.
- Fill in the remaining return information, validate the return, check the tax calculation and submit.
- E-verify the return within 30 days of filing, or submit the ITR-V within that time.
Keep your computation, AIS, Form 26AS, TDS records, turnover details and evidence for relevant transactions. Documents generally are not attached to the return, but retain them to support your answers.
Examples
Example 1: Salary income above the threshold, tax reduced by rebate
Riya is 29, has income above the applicable basic exemption amount and has no seventh-proviso trigger. A rebate and tax credits may reduce her final tax to nil. She should generally select the income-above-basic-exemption reason because the filing obligation is based on the income test, not the final tax payable.
Example 2: Income below the threshold, but foreign-travel condition applies
Aman’s income is below the exemption amount, but his foreign-travel expenditure exceeded ₹2 lakh. If no other filing rule applies, he should select the seventh-proviso reason and report the details requested.
Example 3: Income below the threshold and bank deducted TDS
Meera’s income is below her filing threshold. Her bank deducted TDS on interest, and she wants the excess tax refunded. If no mandatory filing condition applies, she is filing voluntarily to claim a refund. She should use the portal’s “Others” or voluntary-filing option, not the seventh-proviso choice.
Example 4: Income above the threshold and a high-value transaction
If income already crosses the filing threshold, the income-based reason applies even if the taxpayer also crossed a high-value transaction threshold.
Common mistakes to avoid
- Selecting an option without checking the applicable regime and threshold.
- Reporting only salary and ignoring other income.
- Subtracting deductions before the section 139(1) filing test.
- Assuming nil tax, TDS or a refund is a mandatory filing condition.
- Selecting the seventh-proviso reason without meeting its criteria.
- Confusing the reason field with belated, revised or notice-response status.
FAQs
If my income is below the basic exemption limit, should I select “Others”?
Generally, yes, if you choose to file voluntarily and no seventh-proviso or other legal filing requirement applies. If a prescribed transaction condition makes filing mandatory, use the relevant seventh-proviso option.
If TDS was deducted, do I choose the seventh-proviso reason?
Not automatically. TDS/TCS at the prescribed threshold may be one of the Rule 12AB filing conditions. If your TDS/TCS meets that threshold and you are otherwise not required to file, choose the seventh-proviso reason. A lower TDS deduction made only so you can claim a refund is not by itself a seventh-proviso trigger.
Should I choose “taxable income above the exemption limit” if my tax payable is zero?
Generally, yes, if income crosses the section 139(1) threshold. Rebates and tax credits do not change the filing test.
Does the reason depend on whether I file ITR-1 or ITR-2?
No. Choose the form based on your income and eligibility. The reason question is separate.
What if I selected the wrong reason and submitted my ITR?
Check the filed return, whether a revised return is permitted and the current deadline for correcting it. If the wrong answer changes a material disclosure or filing obligation, get help before submitting a correction.
Does selecting the seventh-proviso option mean I owe tax?
No. It identifies a filing obligation triggered by specified conditions. The return may still show no tax payable, a refund or a balance due after income, tax credits and tax payments are calculated.
