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Gratuity and Leave Encashment Received Together Filing Calendar: Return Form, Deadline and Documents for FY 2025–26

By CA Nikhil Gupta · 23 July 2026

Scope: FY 2025–26 (1 April 2025 to 31 March 2026), filed for AY 2026–27

Finin2min Summary

The Answer in One Table

QuestionFinin2min answer
Income periodFY 2025–26 (1 April 2025 to 31 March 2026)
Assessment yearAY 2026–27
Likely headSalary income with scenario-specific exemption, relief or reconciliation
Likely ITRITR-1 if otherwise eligible; ITR-2 where exclusions apply
AlternativeITR-1 / ITR-2
Normal deadline31 July 2026
Audit pointNo audit issue unless a separate business exists.

The Two-Minute Answer

Start with Form 16 but do not stop there. Reconcile the additional event, determine whether it creates capital gains, relief, exemption or foreign disclosure, and file one complete return.

This page targets the frequent search intent—which return, which deadline, which schedules and which documents? It does not treat a broker, bank, app or platform label as the legal answer.

Step 1 — Classify the Income

The return form follows the legal head and taxpayer profile. The starting classification is Salary income with scenario-specific exemption, relief or reconciliation and the likely form is ITR-1 if otherwise eligible; ITR-2 where exclusions apply. The final form applies to the taxpayer as a whole: salary, rent, gains, business and other income are combined in one correct return rather than split into separate returns.

Classification should be documented before tax is calculated. Review ownership, intention, contracts, frequency, funding, books, services, foreign status and consistency with earlier years. The same product may be an investment for one person and stock-in-trade for another.

Step 2 — Compute the Taxable Amount

Start with Form 16 but do not stop there. Reconcile the additional event, determine whether it creates capital gains, relief, exemption or foreign disclosure, and file one complete return.

Use transaction-level data wherever lots, dates, fees, refunds, foreign currency or TDS matter. Reconcile gross receipt or sale consideration to platform settlement, bank movement, AIS, Form 26AS and GST. TDS is a credit, not an expense or proof that income was correctly computed.

Step 3 — Apply the Filing Calendar

The normal filing timing is 31 July 2026. For AY 2026–27, ITR-1 and ITR-2 individual cases remain on the 31 July track; non-audit business or professional cases move to 31 August; ordinary audit cases remain 31 October and transfer-pricing cases 30 November. A belated return is generally available to 31 December 2026, subject to earlier assessment completion, but it does not preserve every loss or procedural right.

Income earned during FY 2025–26 remains governed by the Income-tax Act, 1961. The official transition FAQ confirms that the old forms and proceedings continue for AY 2026–27.

Step 4 — Build the Evidence File

The file should allow another reviewer to reproduce the number from source statement to ITR schedule. Record the download date because platform reports can later change layout or aggregation.

Worked Indian Example

A taxpayer has Form 16 plus the additional transaction in this article. The additional income can change both form and deadline. The final ITR combines salary, the additional head, deductions and credits once; it is not split into two returns.

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Finin2min Decision Checklist

Finin2min Q&A

Which ITR should I use for Gratuity and Leave Encashment Received Together Filing Calendar?

The starting answer is ITR-1 if otherwise eligible; ITR-2 where exclusions apply. The alternative is ITR-1 / ITR-2 where those facts apply.

What is the AY 2026–27 filing deadline?

The normal deadline is 31 July 2026. Audit, transfer-pricing, belated or correction facts can change the calendar.

Which income head applies?

The starting classification is Salary income with scenario-specific exemption, relief or reconciliation. Contracts, ownership, records, intention and consistency can alter the result.

Does a small amount still need reporting?

A small amount does not create a general exemption and can make a simplified return ineligible.

Which documents should I preserve?

Preserve Form 16, payslips, employer statement, transaction documents, AIS, 26AS, tax challans and supporting forms. Keep downloaded source files, not only screenshots.

What is the main filing risk?

Key risks are filing two returns; double-counting deductions; changing Form 16 figures without employer evidence. Classify first, reconcile gross figures and then select the form.

Related Finin2min Reading

Primary Sources

Editorial and Risk Note

This guide is educational and scenario-based. The final return depends on complete facts, residential status, audit position, other income, losses, foreign assets and the law on the filing date. Dynamic deadlines and portal procedures must be rechecked immediately before submission.