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Income Tax Return Filing Guide: Step-by-Step for AY 2026-27

Income Tax Updated: 26 Oct 2026 9 min read By The Finance Men
ITR Filing Made Easy – The Finance Men

Filing your Income Tax Return (ITR) sounds scary, but once you know which form to use, which regime fits you and what documents to keep ready, it's a 30-minute job. This guide walks you through everything for FY 2025-26 (AY 2026-27), the return you file in 2026.

Key Takeaways

  • ITR-1 and ITR-2 were due on 31 July 2026. Missed it? You can still file a belated return till 31 December 2026.
  • Non-audit business and professional cases (ITR-3/ITR-4) had time till 31 August 2026. Audit cases now have till 21 November 2026.
  • Under the new regime, there's zero tax up to ₹12 lakh of income (₹12.75 lakh for salaried, thanks to the ₹75,000 standard deduction).
  • Always match your return with AIS, TIS and Form 26AS before submitting.
  • Filing isn't complete until you e-verify within 30 days.

Who must file an ITR?

You must file a return if your gross total income (before deductions) is above the basic exemption limit: ₹4 lakh under the new regime, or ₹2.5 lakh under the old regime (₹3 lakh for senior citizens and ₹5 lakh for super senior citizens).

Even if your income is below the limit, filing is mandatory if during the year you:

  • Deposited more than ₹1 crore in one or more current accounts, or ₹50 lakh or more in savings accounts
  • Spent more than ₹2 lakh on foreign travel, or more than ₹1 lakh on electricity bills
  • Had TDS/TCS of ₹25,000 or more (₹50,000 for senior citizens)
  • Had business turnover above ₹60 lakh, or professional receipts above ₹10 lakh
  • Hold any foreign asset or signing authority in a foreign account (as a resident)
NoteEven when it's not mandatory, filing is worth it. It's the only way to claim a TDS refund, and banks, embassies and lenders ask for ITRs as income proof.

ITR due dates for AY 2026-27

WhoDue date
Salaried, pensioners, capital gains (ITR-1, ITR-2)31 July 2026
Business/profession, no audit (ITR-3, ITR-4)31 August 2026
Tax audit cases21 November 2026 (extended from 31 October)
Transfer pricing cases30 November 2026
Belated return31 December 2026
Revised return31 March 2027
Watch outFiling after your due date means a late fee under Section 234F (₹1,000 if income is up to ₹5 lakh, ₹5,000 otherwise), interest at 1% per month on unpaid tax under Section 234A, and you lose the right to carry forward most losses.

Which ITR form should you use?

FormWho uses it
ITR-1 (Sahaj)Resident individuals with income up to ₹50 lakh from salary, one house property, other sources (interest etc.) and LTCG on listed shares up to ₹1.25 lakh
ITR-2Individuals and HUFs with capital gains, more than one house property, foreign income or assets, or income above ₹50 lakh, but no business income
ITR-3Individuals and HUFs with business or professional income (including F&O traders)
ITR-4 (Sugam)Residents opting for presumptive taxation under 44AD, 44ADA or 44AE, with income up to ₹50 lakh
Pro TipNot sure? Pick the simplest form you qualify for. Filing the wrong form can lead to a "defective return" notice under Section 139(9), which you'll have to fix within the time given.

Old vs new tax regime

The new regime is the default. It has lower rates but almost no deductions. The old regime has higher rates but lets you claim deductions like 80C, 80D and HRA.

New regime slabs (FY 2025-26)

Taxable incomeRate
Up to ₹4,00,000Nil
₹4,00,001 – ₹8,00,0005%
₹8,00,001 – ₹12,00,00010%
₹12,00,001 – ₹16,00,00015%
₹16,00,001 – ₹20,00,00020%
₹20,00,001 – ₹24,00,00025%
Above ₹24,00,00030%

Old regime slabs (below 60 years)

Taxable incomeRate
Up to ₹2,50,000Nil
₹2,50,001 – ₹5,00,0005%
₹5,00,001 – ₹10,00,00020%
Above ₹10,00,00030%
ParticularsNew RegimeOld Regime
Standard deduction (salary/pension)₹75,000₹50,000
Rebate under 87AUp to ₹60,000 (income up to ₹12 lakh)Up to ₹12,500 (income up to ₹5 lakh)
80C, 80D, HRA, home loan interest (self-occupied)Not allowedAllowed
Employer's NPS contribution 80CCD(2)AllowedAllowed

Health and Education Cess of 4% applies on top of tax in both regimes.

Pro TipSalaried taxpayers can pick either regime every year while filing. If you have business income, you can switch back from the old regime to the new one only once, so choose carefully.
Watch outThe ₹12 lakh zero-tax benefit applies to normal income. The 87A rebate can't be used against tax on special-rate income like capital gains on shares, so check your numbers if you sold investments this year.

Worked example

Riya is salaried with a gross salary of ₹12,50,000 and no other income. Here's her tax under the new regime:

Example: ₹12.5 lakh salary, new regime
Gross salary₹12,50,000
Less: Standard deduction(₹75,000)
Taxable income₹11,75,000
Tax on ₹4–8 lakh at 5%₹20,000
Tax on ₹8–11.75 lakh at 10%₹37,500
Less: Rebate under 87A(₹57,500)
Tax payable₹0
ExampleIf Riya's salary were ₹14,00,000, her taxable income would be ₹13,25,000. Tax works out to ₹78,750, plus 4% cess of ₹3,150, so ₹81,900 in total. Once you cross ₹12 lakh, the rebate goes away.

Want your exact number under both regimes? Try our free income tax calculator.

Calculate now →

Documents checklist

  • PAN and Aadhaar (they must be linked)
  • Form 16 from your employer (Form 16A for other TDS)
  • AIS, TIS and Form 26AS, downloaded from the income tax portal
  • Bank statements and interest certificates for savings, FDs and RDs
  • Capital gains statements from your broker and mutual fund RTAs (CAMS, KFintech)
  • Investment proofs for 80C, 80D etc., if you're choosing the old regime
  • Rent receipts and landlord's PAN if claiming HRA (old regime)
  • Home loan interest certificate, if applicable
  • Pre-validated bank account on the portal for your refund

How to file ITR online, step by step

  1. Log in to the e-filing portal at incometax.gov.in using your PAN and password.
  2. Check AIS and TIS under Services. Every salary credit, interest, dividend and share sale reported to the department appears here. Give feedback if anything is wrong.
  3. Go to e-File → Income Tax Returns → File Income Tax Return and select AY 2026-27.
  4. Choose online mode, your status (Individual/HUF), and the ITR form that applies to you.
  5. Select your tax regime, then review the pre-filled data: personal details, salary, interest and TDS.
  6. Add missing income and deductions. Don't skip savings interest or FD interest, even if no TDS was deducted.
  7. Check the tax computation. If tax is payable, pay it through e-Pay Tax as self-assessment tax before submitting.
  8. Preview and submit the return.
  9. E-verify using Aadhaar OTP, net banking, or a bank/demat EVC. You can also post a signed ITR-V to CPC Bengaluru.
Watch outYou must e-verify within 30 days of filing. If you don't, your return is treated as never filed.

Common mistakes to avoid

  • Ignoring AIS mismatches. This is the biggest reason for notices. Your return should match what the department already knows.
  • Leaving out interest income. Savings and FD interest are taxable, even if the bank didn't deduct TDS.
  • Choosing the wrong form, such as ITR-1 when you sold shares or mutual funds during the year.
  • Not reporting exempt income, like PPF interest or agricultural income. It has its own schedule.
  • Wrong bank details, which delay your refund. Pre-validate your account on the portal.
  • Forgetting to e-verify, which makes the whole return invalid.
NoteThe new Income-tax Act, 2025 came into force on 1 April 2026 and replaces "previous year" and "assessment year" with a single "tax year". Returns for income earned in FY 2025-26 (this guide) are still filed under the old Income-tax Act, 1961. Section numbers will change from the next filing cycle.

FAQs

I missed the 31 July deadline. Can I still file?

Yes. You can file a belated return till 31 December 2026, with the late fee under Section 234F and interest under Section 234A if tax is due. You'll lose the right to carry forward most losses.

How do I check my refund status?

Log in to the e-filing portal and go to e-File → Income Tax Returns → View Filed Returns. Refunds usually arrive within a few weeks of processing, directly in your pre-validated bank account.

I made a mistake in my filed return. What now?

You can file a revised return for AY 2026-27 till 31 March 2027, as long as the original hasn't been assessed. Just select "Revised" and enter the original acknowledgement number.

My income is below ₹12 lakh. Do I still need to file?

If your gross income is above the basic exemption limit of ₹4 lakh, yes. The rebate brings your tax to zero, but it doesn't remove the filing requirement.

Which regime is better for me?

If your total deductions (80C, 80D, HRA, home loan interest etc.) are small, the new regime usually wins. If they're large, compare both. Our income tax calculator shows the numbers side by side.

Need help filing your ITR?

Our CA team handles salary, capital gains, business and NRI returns end to end, with AIS matching and regime comparison included.

Talk to The Finance Men

This article is for general information only and is based on the law applicable to FY 2025-26 (AY 2026-27) as on the date of update. Please consult a professional for advice on your specific situation.

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