How to File Taxes in India and the US (2025–2026) – Complete Income Tax Filing Guide
- Septembar 5, 2025
Every year, tax season brings questions, confusion, and sometimes even stress. For 2025–2026, both the U.S. and India have updated rules, deadlines, and processes that individuals must follow.
Whether you are an employee, a freelancer, or someone with multiple income sources, filing your taxes on time is not just about following the law, it also ensures you avoid penalties and may even help you save money. This income tax filing guide 2025 will walk you through how to file taxes in the U.S. in 2025 and how to file taxes in India 2025–26.
We will also highlight the differences in U.S. vs India tax filing, explain the tax regimes, outline important deadlines, and provide a tax filing checklist 2025–26 so you are prepared.
Why Tax Filing 2025–2026 Matters
Filing taxes is not only a legal obligation but also a way to claim benefits. For 2025–26 :-
- In the U.S., taxpayers can qualify for deductions and credits that reduce taxable income.
- In India, choosing between the old vs the new tax regime of 2025 affects how much tax you pay.
- Both countries have strict deadlines—missing them could lead to penalties.
U.S. vs India Tax Filing – A Snapshot
| Aspect | United States | India |
|---|---|---|
| Filing Year | Tax Year 2025 → Deadline April 15, 2026 | FY 2025–26 → AY 2026–27 |
| Authority | Internal Revenue Service (IRS) | Central Board of Direct Taxes (CBDT) |
| Forms | W-2, 1099, 1098, 1040 | ITR-1, ITR-2, ITR-3, etc. |
| Digital Portal | IRS Free File / Paid Software | Income Tax e-Filing Portal |
| Deductions | Standard deduction, credits, retirement savings | Section 80C, 80D, 80G |
| Crypto Rules | Must report crypto trades | VDA (Virtual Digital Asset) tax rules |
| Verification | E-file PIN or mail signature | e-Verify using Aadhaar OTP, bank account, or DSC |
IRS Tax Filing Process 2025
Here is a clear step-by-step IRS tax filing process for 2025 :-
- Collect Documents
- W-2 for salary income.
- 1099 forms for freelance, interest, dividend, or crypto income.
- 1098 for mortgage or tuition.
- Records of investments and retirement contributions.
- Choose Your Filing Status
- Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Widow(er).
- Calculate Adjusted Gross Income (AGI)
- Add income from all sources.
- Subtract deductions like retirement contributions or student loan interest.
- Claim Standard Deduction or Itemize
- For 2025, the standard deduction is expected to be around
- Single: ~$14,500
- Married Filing Jointly: ~$29,000
- Head of Household: ~$21,600
- If your itemized deductions (medical, mortgage, donations) are higher, you can itemize instead.
- For 2025, the standard deduction is expected to be around
- Apply Credits and Deductions
- Earned Income Tax Credit.
- Child Tax Credit.
- Education credits.
- Clean energy credits for EVs and solar.
- File Your Return
- IRS Free File if income is below $79,000.
- Tax software like TurboTax or H&R Block.
- Tax professionals (CPA, enrolled agents) for complex or cross-border cases.
- Pay or Claim Refund
- Refunds usually arrive within 21 days if you e-file.
- Payments can be made online through IRS Direct Pay.
U.S. Tax Filing 2025–2026 Updates
- Crypto tax rules U.S. 2025: New Form 1099-DA for digital assets.
- Higher standard deduction due to inflation.
- Retirement contribution limits increased.
- More benefits under tax deductions and credits U.S. 2025, especially for green energy.
India Income Tax Return Filing AY 2026–27
India Income Tax Return Filing Deadlines
India’s tax year runs from April 1, 2025 to March 31, 2026. The India income tax return filing AY 2026–27 deadlines are :-
- July 31, 2026: For individuals without an audit.
- October 31, 2026: For businesses requiring an audit.
- December 31, 2026: Last date to file a revised return.
Missing deadlines in India can result in late fees under Section 234F.
Who Needs to File?
- Residents: Must declare global income.
- NRIs: File only on Indian-sourced income.
- Basic exemption limits :
- Old regime: ₹2.5 lakh (below 60 years), ₹3 lakh (60–80 years), ₹5 lakh (80+).
- New regime: ₹3 lakh exemption.
Tax Filing Checklist 2025–26 for India
Here is the tax filing checklist 2025–26 if you are filing in India :-
- Collect Documents
- Form 16 from the employer.
- Form 26AS and AIS/TIS from the portal.
- Capital gains reports from brokers.
- Bank interest statements.
- Choose Old vs New Tax Regime India 2025
- Old regime: Higher rates but allows deductions.
- New regime: Lower rates but no deductions.
- Compute Income
- Salary income.
- House property.
- Capital gains (short- and long-term).
- Business or professional income.
- Other income, like dividends and crypto.
- Claim Deductions (if under old regime)
- Section 80C: PF, ELSS, life insurance.
- Section 80D: Medical insurance.
- Section 80G: Donations.
- Section 24: Housing loan interest.
- Advance Tax Payment India 2025–26
- Ensure advance tax is paid if the liability exceeds ₹10,000.
- Select the Correct ITR Form
- ITR forms India 2025–26: ITR-1, ITR-2, ITR-3, or ITR-4 based on your income type.
- E-File on Portal
- Use the income tax portal filing India 2025.
- e-Verify Income Tax Return India
- Via Aadhaar OTP, net banking, or EVC.
U.S. vs India Tax Filing – Key Differences
| Feature | U.S. Tax Filing | India Tax Filing |
|---|---|---|
| Tax Year | Jan–Dec | Apr–Mar |
| Deadline | April 15, 2026 | July 31, 2026 (non-audit) |
| Global Income | Taxed for residents/citizens | Taxed for residents; NRIs only on Indian income |
| Standard Deduction | Automatic | Only in new regime |
| Crypto Rules | Report via 1099-DA | 30% flat tax + 1% TDS |
| Filing Platform | IRS e-File, software, CPA | Income tax portal, CAs |
Common Mistakes to Avoid in 2025–2026
- Filing after U.S. tax filing deadline 2026 or India income tax return filing AY 2026–27.
- Not declaring crypto tax rules U.S. 2025 or crypto VDA tax India 2025.
- Choosing the wrong status or regime.
- Ignoring deductions like Section 80C, 80D, 80G deductions in India or tax deductions and credits U.S. 2025.
- Forgetting to e-verify the return in India.
Also Reads :-
FAQs
1. What is the last date for filing taxes in India for FY 2025–26?
The last date for India income tax return filing AY 2026–27 is July 31, 2026 for most individuals. Businesses with audits must file by October 31, 2026.
2. Do I need to report crypto in the U.S. and India?
Yes. Under crypto tax rules, U.S. 2025, all transactions must be reported using Form 1099-DA. In India, under the crypto VDA tax India 2025, income is taxed at 30% with 1% TDS on transfers.
3. Can NRIs file taxes online in India?
Yes. NRI tax filing in India 2025 can be done through the income tax portal filing India 2025. You will need to select the correct ITR form, declare Indian income, and e-verify.
Conclusion
Filing taxes in both the U.S. and India may look complicated, but with the right tax filing checklist 2025–26, organized documents, and timely planning, the process becomes smooth. The IRS and the Indian Income Tax Department are moving toward digital tax filing U.S. and India, making it easier for taxpayers to comply.
Still, for individuals with cross-border income, NRIs, or businesses, filing correctly requires expertise.
At Finklr, we not only simplify your financial planning but also guide you with the right tools and advice for tax compliance. If you’re looking for cross-border tax filing guidance or need help with tax technology, our experts can help you stay compliant and stress-free.
