For AY 2026-27, the ITR filing deadline is July 31, 2026 for most salaried individuals. File online at incometax.gov.in using ITR-1 (Sahaj) if your income is under ₹50 lakh from salary, one house property, and other sources. Choose between the new tax regime (lower rates, no deductions) and old regime (higher rates, deductions allowed).
Every year around June, my WhatsApp fills up with the same messages from friends and relatives: “Bhai, ITR kaise file karein?” “CA ko kitna dena padta hai?” “Kya khud kar sakte hain?”
So let me save you the trouble and write the most practical ITR filing guide you’ll find. No jargon, no fluff. Just what you need to do.
Which ITR Form Should You Use?
For most salaried employees, it’s ITR-1 (Sahaj). You can use ITR-1 if:
Your total income is under ₹50 lakh
Income is from salary, one house property, and other sources (FD interest, etc.)
You’re a resident Indian
Agricultural income is under ₹5,000
If you have capital gains from stocks or mutual funds, you’ll need ITR-2. If you’re self-employed or have business income, ITR-3 or ITR-4.
Most salaried folks who also trade in stocks think they can use ITR-1. You can’t. Capital gains = ITR-2. This is one of the most common mistakes.
New Regime vs Old Regime — Which One Saves You More?
This is the question that trips up most people. Let me simplify it.
New Tax Regime (default from FY 2023-24):
|
Income Slab |
Tax Rate |
|
Up to ₹4 lakh |
Nil |
|
₹4–8 lakh |
5% |
|
₹8–12 lakh |
10% |
|
₹12–16 lakh |
15% |
|
₹16–20 lakh |
20% |
|
₹20–24 lakh |
25% |
|
Above ₹24 lakh |
30% |
Standard deduction of ₹75,000 is available. The Section 87A rebate remains at ₹60,000 under the new regime, effectively making taxable income up to ₹12 lakh tax-free.
Old Tax Regime:
|
Income Slab |
Tax Rate |
|
Up to ₹2.5 lakh |
Nil |
|
₹2.5–5 lakh |
5% |
|
₹5–10 lakh |
20% |
|
Above ₹10 lakh |
30% |
Standard deduction of ₹50,000. All deductions available — 80C (₹1.5 lakh), 80D (₹25,000–₹50,000), HRA, home loan interest (₹2 lakh), NPS (₹50,000).
Quick rule of thumb: If your total deductions exceed ₹4–4.5 lakh, old regime usually wins. If deductions are minimal, new regime is better. The new regime generally benefits taxpayers with fewer deductions, while the old regime remains advantageous for those claiming substantial HRA, home loan interest, Section 80C, and Section 80D deductions.
The Big Change in 2026: New Income Tax Act
The Income Tax Act, 2025 has replaced the Income Tax Act, 1961, effective from April 1, 2026. Section numbering has changed — Section 80C is now Section 123, and Section 87A is now Section 157. The substantive law is largely the same, but you’ll see new section numbers on Form 16, Form 26AS, and ITR utilities.
Also, the 50% HRA exemption has been extended to Bengaluru, Pune, Hyderabad, and Ahmedabad, taking the total list to eight cities. And disclosure of your relationship with the landlord is now mandatory for HRA exemption claims.
Documents You Need Before You Start
Form 16 from your employer
PAN card
Aadhaar (linked to PAN)
Bank account details
Form 26AS (tax credit statement)
AIS (Annual Information Statement)
Investment proofs (if claiming deductions)
Capital gains statement (if applicable)
Step-by-Step Filing Process
Step 1: Go to incometax.gov.in and log in with your PAN and password.
Step 2: Click “File Now” under the ITR section. Select the assessment year (AY 2026-27 for FY 2025-26).
Step 3: Choose your ITR form. The portal often pre-selects based on your data, but verify manually.
Step 4: Download the pre-filled JSON. Open it in the ITR utility or use the online form.
Step 5: Verify personal information — name, address, bank account, PAN-Aadhaar link status.
Step 6: Enter salary details from Form 16. Part B of Form 16 has the breakdown.
Step 7: Add other income (FD interest, savings interest, dividend). Even if TDS was deducted, declare it.
Step 8: Claim deductions. If old regime, add 80C, 80D, HRA, etc.
Step 9: Calculate tax. The portal does this automatically, but verify against your own calculation.
Step 10: Pay any remaining tax via net banking, UPI, or challan.
Step 11: Submit and e-verify. You must e-verify within 30 days, or the return is invalid. Use Aadhaar OTP, net banking, or EVC.
ITR Due Dates for AY 2026-27
|
Category |
Due Date |
|
Salaried individuals (ITR-1, ITR-2) |
July 31, 2026 |
|
Non-audit business/professional (ITR-3, ITR-4) |
August 31, 2026 |
|
Audit cases |
October 31, 2026 |
|
Belated return |
December 31, 2026 |
Mistakes That Cost People Money
Not declaring savings account interest. Banks report it to the IT department. If you don’t declare it and it exceeds ₹10,000 (TDS threshold), you’ll get a notice.
Claiming HRA when you don’t pay rent. If you live with your parents and pay them rent, you can claim HRA — but have a rent agreement and bank transfer proof. And now, you must disclose your relationship with the landlord.
Forgetting to link PAN with Aadhaar. If not linked, your return won’t be processed.
Ignoring AIS mismatch. The AIS shows all your financial transactions. Reconcile it with your return before filing.
Using ITR-1 when you have capital gains. This is the most common mistake among salaried investors. Capital gains = ITR-2.
What If You Miss the July 31 Deadline?
You can file a belated return until December 31, 2026, with a late fee of ₹1,000–₹5,000 under Section 234F. Interest under Section 234A applies too. Don’t wait — the penalty compounds.
FAQ
Q: Can I file ITR myself without a CA?
A: Absolutely. If you’re salaried with simple finances, the portal is user-friendly enough. First-timers might take 2–3 hours; after that, 45 minutes.
Q: What if my employer hasn’t given Form 16?
A: You can use your salary slips and bank statements to compute income. But chase your employer for Form 16 — it’s mandatory for them to issue.
Q: Is it mandatory to file ITR if my income is below ₹2.5 lakh?
A: Not mandatory unless you have foreign assets, want a refund, or need it for visa/loan purposes. But filing is good practice.
Q: Which regime is better for someone earning ₹15 lakh?
A: If you claim HRA, 80C, and 80D deductions exceeding ₹4 lakh, old regime saves more. Otherwise, new regime is better. Run the numbers on the income tax calculator before deciding.
Q: What documents do I need for HRA exemption?
A: Rent receipts, rent agreement, and proof of rent payment (bank statement). And now, disclosure of your relationship with the landlord.
Q: Can I file a revised return if I make a mistake?
A: Yes, you can file a revised return until December 31, 2026. But avoid mistakes — revised returns increase the chances of scrutiny.