How to File ITR for AY 2026-27: Step-by-Step

Every year, millions of salaried Indians scramble to file their Income Tax Return before the July deadline. The process has become significantly simpler with the new e-filing portal, pre-filled data from Form 26AS and AIS, and Aadhaar-based e-verification. Yet many first-time filers still find it confusing. This guide walks you through each step with practical tips to help you file accurately and on time.

Before you start, you need to decide which tax regime works better for your salary level. Use our Tax Regime Comparator to check, or read the detailed Old vs New Tax Regime guide for worked examples at every salary level.

Documents You Need Before Filing

Gather these documents before you start. Having them ready ensures you can complete the process in one sitting without pausing to search for details.

• Form 16 (Parts A and B) — issued by your employer by 15 June. Part A has TDS details; Part B has salary breakup, deductions claimed, and tax computation.
• Form 26AS — your consolidated tax credit statement showing all TDS deducted against your PAN. Download from the e-filing portal under "e-File > Income Tax Returns > View Form 26AS."
• Annual Information Statement (AIS) — shows interest income, dividends, mutual fund transactions, property transactions, and more. Cross-check this with your own records.
• Bank statements — for interest income from savings accounts and fixed deposits.
• Investment proofs — 80C (ELSS, PPF, EPF, life insurance), 80D (health insurance), 80CCD(1B) (NPS), home loan interest certificate.
• Rent receipts — if claiming HRA exemption under the Old Regime. Landlord PAN is mandatory if annual rent exceeds ₹1 lakh.

Step 1: Register or Log In to the e-Filing Portal

Go to incometax.gov.in and log in with your PAN as the user ID. If this is your first time, register using your PAN, Aadhaar number, and mobile number linked to Aadhaar. After registration, you can set up a password. Pre-validate your bank account and Aadhaar for smoother e-verification later.

Step 2: Select Assessment Year and ITR Form

Navigate to e-File > Income Tax Returns > File Income Tax Return. Select Assessment Year 2026-27 (for income earned in FY 2025-26). The portal will suggest the appropriate ITR form based on your profile. Most salaried employees with income under ₹50 lakh and no capital gains file ITR-1 (Sahaj). If you have capital gains from mutual funds or shares, you need ITR-2. For detailed form eligibility, read our Which ITR Form guide.

Step 3: Choose Your Tax Regime

The portal asks you to select your tax regime. The New Tax Regime is the default for FY 2025-26. Under the New Regime, income up to ₹12 lakh is effectively tax-free (after ₹75,000 standard deduction and Section 87A rebate). The slabs are: 0-4L nil, 4-8L at 5%, 8-12L at 10%, 12-16L at 15%, 16-20L at 20%, 20-24L at 25%, and above 24L at 30%.

If your total deductions under the Old Regime (80C + 80D + HRA + home loan interest + NPS) exceed ₹3.75-4.25 lakh, the Old Regime may save you more. You can switch regimes every year as a salaried individual. The portal shows your tax under both regimes for comparison.

Step 4: Verify Pre-Filled Data

The portal pre-fills your salary income, TDS details, interest income, and other information from Form 26AS and AIS. Carefully verify each field against your Form 16 and bank statements. Key items to cross-check:

• Gross salary — should match Form 16 Part B, "Gross Salary" figure
• TDS on salary — should match Form 16 Part A and Form 26AS
• Interest income — savings account interest from all banks, FD interest
• Dividend income — from stocks and mutual funds (taxable from FY 2020-21)

If any pre-filled data is incorrect, edit it to match your actual documents. The AIS may show transactions you are not aware of — check for discrepancies and provide feedback on the AIS portal if needed.

Step 5: Enter Deductions (Old Regime Only)

If you have opted for the Old Regime, enter your deductions. Under the New Regime, only the ₹75,000 standard deduction and employer NPS contribution (80CCD(2)) are allowed. For Old Regime, compute your take-home pay first using our Salary Calculator to understand your salary structure.

• Section 80C (up to ₹1.5 lakh) — EPF, PPF, ELSS, life insurance, children's tuition. Read our Section 80C guide for the full list of eligible investments.
• Section 80D (up to ₹25K/₹50K) — health insurance premium. ₹25,000 for self and family, additional ₹25,000 (₹50,000 for senior citizens) for parents.
• Section 80CCD(1B) — additional ₹50,000 for NPS self-contribution.
• HRA exemption — under Section 10(13A), computed as the minimum of actual HRA received, rent paid minus 10% of basic, or 50%/40% of basic (metro/non-metro).
• Section 24(b) — home loan interest up to ₹2 lakh for self-occupied property.

Step 6: Compute Tax and Review

After entering all income and deductions, the portal computes your total tax liability. Compare this with the TDS already deducted (shown in Form 26AS). If TDS exceeds your tax liability, you are due a refund. If there is a shortfall, you need to pay self-assessment tax before filing. You can pay via the "e-Pay Tax" option on the portal using net banking, UPI, or debit card.

Step 7: E-Verify Your Return

After submitting, e-verify your return within 30 days. The easiest method is Aadhaar OTP — an OTP is sent to the mobile number linked to your Aadhaar. Other options include net banking, bank account EVC, and Demat account EVC. An unverified return is treated as not filed, so complete this step immediately after submission.

Common Mistakes to Avoid

• Wrong ITR form — filing ITR-1 when you have capital gains leads to a defective return notice. Double-check eligibility.
• Missing interest income — banks deduct TDS on FD interest above ₹40,000, but all interest (including below ₹40K) must be reported.
• Not reporting exempt income — agricultural income, PPF maturity, and LTCG up to ₹1.25 lakh are exempt but must be disclosed in the ITR.
• TDS mismatch — ensure TDS in your ITR matches Form 26AS exactly. Even ₹1 difference can delay processing.
• Forgetting to e-verify — your return is invalid without e-verification within 30 days.

After Filing: What to Expect

After successful e-verification, the CPC Bengaluru processes your return. You will receive an intimation under Section 143(1) via email, usually within 2-6 months. This intimation confirms your tax computation matches the department's records. If there is a refund, it is credited directly to your pre-validated bank account. Track your refund status on the e-filing portal under "e-File > Income Tax Returns > View Filed Returns."