ITR Filing for Salaried Employees in India (AY 2026–27): Step-by-Step Guide
How to file your Income Tax Return as a salaried individual in India for AY 2026–27 — old vs new tax regime, ITR-1 vs ITR-2, deductions to claim, and last dates.
Quick summary
- Last date for ITR filing (non-audit cases): 31st July 2026
- Salaried, single Form 16, income < ₹50 lakh → use ITR-1 (Sahaj)
- Capital gains, multiple properties, foreign assets → use ITR-2
- Old vs New regime — recalculate every year; the new regime is now the default
Step 1: Gather your documents
Before sitting down to file, keep these handy:
- PAN and Aadhaar (must be linked)
- Form 16 from your employer (Part A + Part B)
- Form 26AS and AIS / TIS from the e-filing portal — to cross-check TDS
- Bank account statements (for interest income)
- Investment proofs: 80C, 80D, 80G, NPS, home loan certificates
- Capital gains statements (if any) from your broker
Step 2: Pick the right tax regime
From AY 2024–25 onwards, the new tax regime is the default. You can still opt for the old regime if your deductions and exemptions make it more beneficial.
Old regime (FY 2025–26)
| Slab (₹) | Rate |
|---|---|
| Up to 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Standard deduction: ₹50,000. Rebate u/s 87A available up to ₹5 lakh.
New regime (FY 2025–26)
| Slab (₹) | Rate |
|---|---|
| Up to 3,00,000 | Nil |
| 3,00,001 – 7,00,000 | 5% |
| 7,00,001 – 10,00,000 | 10% |
| 10,00,001 – 12,00,000 | 15% |
| 12,00,001 – 15,00,000 | 20% |
| Above 15,00,000 | 30% |
Standard deduction: ₹75,000. Rebate u/s 87A up to ₹7 lakh.
Rule of thumb: If your 80C + 80D + home loan interest + HRA deductions exceed ~₹3.75 lakh, old regime is usually better.
Step 3: Pick the right ITR form
- ITR-1 (Sahaj) — salary, one house property, interest income, total income up to ₹50 lakh
- ITR-2 — capital gains, more than one house property, foreign assets, income above ₹50 lakh
- ITR-3 — income from business or profession (freelancers, consultants)
- ITR-4 (Sugam) — presumptive taxation (44AD / 44ADA / 44AE)
Step 4: File on the e-filing portal
Go to incometax.gov.in, login, File Return, choose AY 2026–27, pick the form, validate, pay any balance tax (challan 280), and submit.
Step 5: E-verify within 30 days
- Aadhaar OTP (instant)
- Net-banking
- Demat / bank-account based EVC
- Physical ITR-V to CPC, Bangalore (within 30 days of filing)
Without verification, your return is treated as not filed.
Common mistakes salaried individuals make
- Forgetting to add interest from savings / FDs (TDS is deducted at 10% but it must still be declared)
- Not reconciling Form 26AS with their actual TDS claim
- Missing the rent receipts when claiming HRA above ₹1 lakh a year
- Choosing old regime by default — without doing the math
Need help? FilingBase files your ITR within 1–3 working days. Get a free quote →
FAQs