Income Tax Return (ITR) Filing — Complete Practical Guide (AY 2026-27)
What is ITR
An Income Tax Return is a form you file with the Income Tax Department declaring your income, deductions, and tax already paid (TDS) for a financial year. It tells the government whether you owe more tax or are due a refund.
- FY 2025-26 (income earned) → filed in AY 2026-27 (this year)
- This is the last year under the old Income Tax Act, 1961 — from FY 2026-27 onward, the new Income Tax Act, 2025 applies
Step 1: Know Your Due Date
| Taxpayer Type | Due Date (AY 2026-27) |
|---|---|
| Salaried, pensioners, capital gains (ITR-1/ITR-2) | 31 July 2026 |
| Business/professionals, no audit (ITR-3/ITR-4) | 31 August 2026 |
| Accounts requiring audit | 31 October 2026 |
| Transfer pricing cases | 30 November 2026 |
| Belated return (with penalty) | 31 December 2026 |
| Revised return | 31 March 2027 |
No extension is expected this year — filing utilities are working smoothly, so file well before your deadline.
Step 2: Pick the Right ITR Form
| Form | Who Should Use It |
|---|---|
| ITR-1 (Sahaj) | Salary/pension income, one house property, other income (interest), total income ≤ ₹50 lakh, LTCG up to ₹1.25 lakh |
| ITR-2 | Capital gains, multiple house properties, foreign assets, no business income |
| ITR-3 | Business or professional income (with books of accounts) |
| ITR-4 (Sugam) | Presumptive business/professional income (turnover under limits, Section 44AD/44ADA) |
Not eligible for ITR-1 if: you're a company director, hold unlisted shares, have foreign income/assets, or have more than 2 house properties.
Step 3: Choose Your Tax Regime
New Tax Regime (default) — FY 2025-26 slabs:
| Income Slab | Rate |
|---|---|
| ₹0 – 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: ₹75,000 (salaried/pensioners)
- Section 87A rebate: up to ₹60,000 — taxable income up to ₹12 lakh is effectively tax-free (~₹12.75 lakh for salaried after standard deduction)
- Most deductions (80C, HRA, home loan interest) not allowed
Old Tax Regime — for those with large deductions:
| Income Slab | Rate |
|---|---|
| ₹0 – 2.5 lakh | Nil |
| ₹2.5 – 5 lakh | 5% |
| ₹5 – 10 lakh | 20% |
| Above ₹10 lakh | 30% |
- Standard deduction: ₹50,000; 87A rebate up to ₹12,500 (income ≤ ₹5 lakh)
- Allows 80C (₹1.5L), 80D, HRA, home loan interest, etc.
Rule of thumb: If your total deductions (80C + HRA + home loan interest, etc.) exceed roughly ₹4–5 lakh, the old regime may save more. Otherwise, stick with the new regime.
Step 4: Documents to Keep Ready
- PAN and Aadhaar
- Form 16 (from employer, for salaried)
- Form 26AS and AIS (Annual Information Statement) — download from the portal, shows all TDS/TCS and reported income
- Bank statements, interest certificates
- Capital gains statements (if you sold stocks, mutual funds, property)
- Investment proofs for deductions (80C, 80D, home loan interest) — only if using old regime
- Bank account details for refund (must be pre-validated on portal)
Step 5: File Your Return (incometax.gov.in)
- Go to incometax.gov.in → Login with PAN
- Go to e-File → Income Tax Returns → File Income Tax Return
- Select Assessment Year 2026-27 → mode: Online
- Select your applicable ITR form (system suggests one based on your profile)
- Choose the reason for filing (e.g., "Taxable income above basic exemption limit")
- Personal Info tab — verify pre-filled details (bank accounts, contact info)
- Gross Total Income — most fields (salary, TDS, interest) are pre-filled from Form 16/AIS/26AS — cross-check these against your own records
- Deductions tab — enter 80C, 80D, etc. (only relevant under old regime)
- Tax Paid tab — confirm TDS/advance tax already paid
- System calculates tax payable or refund due
- If tax is due, pay via e-Pay Tax (Challan 280) before submitting
- Preview and Submit
Step 6: E-Verify (Mandatory — Do This Immediately)
Filing isn't complete until you e-verify within 30 days, or your return is treated as not filed.
Easiest options:
- Aadhaar OTP (fastest — instant)
- Net banking
- Bank account/Demat EVC
Once verified, you'll get an acknowledgment (ITR-V) — save it for your records.
Late Filing = Real Cost
- Late fee (Sec 234F): ₹5,000 (₹1,000 if income below ₹5 lakh)
- Interest (Sec 234A): 1% per month on unpaid tax
- You lose the ability to carry forward capital/business losses to future years
- Cannot switch to old regime for that year if filed as belated return
Final Checklist
- ✅ Check your due date based on ITR form
- ✅ Download Form 16, 26AS, and AIS — verify they match
- ✅ Decide: old regime or new regime (compare actual numbers)
- ✅ Choose the correct ITR form
- ✅ File online at incometax.gov.in
- ✅ E-verify within 30 days — filing isn't done without this
- ✅ Save the ITR-V acknowledgment
Tax rules and dates change with each Budget — always verify on incometax.gov.in or consult a CA for your specific situation.
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