⚠️ Important 2026 Update: The Income Tax Act 2025 came into force from 1 April 2026. The IT portal now shows TWO tabs. For filing FY 2025-26 income (AY 2026-27), you MUST use Tab 1 — Income Tax Act 1961. Do NOT use the Income Tax Act 2025 tab — that is for Tax Year 2026-27 income which will be filed in July 2027.
📋 Step 1 — Which ITR Form Should You File?
Choosing the wrong ITR form results in a defective return notice. Here's exactly which form applies to you:
ITR-1
Sahaj — Most Common
✅ Salaried employees
✅ Pension income
✅ One house property
✅ Interest/FD income
✅ Total income up to ₹50 lakh
✅ LTCG from equity up to ₹1.25L
90% of salaried Indians file this
✅ Pension income
✅ One house property
✅ Interest/FD income
✅ Total income up to ₹50 lakh
✅ LTCG from equity up to ₹1.25L
ITR-2
Capital Gains & More
✅ Capital gains from stocks/MF
✅ Income above ₹50 lakh
✅ Multiple house properties
✅ Foreign assets/income
✅ Director in a company
✅ Agricultural income above ₹5,000
If you sold stocks/MF in FY 2025-26
✅ Income above ₹50 lakh
✅ Multiple house properties
✅ Foreign assets/income
✅ Director in a company
✅ Agricultural income above ₹5,000
ITR-3
Business/Profession
✅ Business income
✅ Professional income (doctor, CA, lawyer)
✅ Freelancers with business income
✅ Partnership firm income
Self-employed individuals
✅ Professional income (doctor, CA, lawyer)
✅ Freelancers with business income
✅ Partnership firm income
ITR-4
Presumptive Income
✅ Small business under presumptive scheme
✅ Turnover up to ₹2 crore (business)
✅ Gross receipts up to ₹50L (profession)
✅ Salary income also allowed
Small businesses & professionals
✅ Turnover up to ₹2 crore (business)
✅ Gross receipts up to ₹50L (profession)
✅ Salary income also allowed
💡 Salaried with MF/stock investments? If you sold mutual funds or stocks during FY 2025-26 and your capital gains exceed ₹1.25 lakh — you MUST file ITR-2, not ITR-1. Filing ITR-1 in this case will result in a defective return notice from the Income Tax Department.
📁 Documents Required for ITR Filing 2026
Keep these documents ready before you start filing. Everything is available digitally:
Form 16
From your employer. Shows salary, TDS deducted, and deductions. Available by end of May from HR/payroll.
Form 26AS & AIS
Download from incometax.gov.in. Shows all TDS credits, interest, and income reported against your PAN.
Bank Statements
For interest income on savings accounts and FDs. Check all bank accounts — even dormant ones.
Home Loan Certificate
Annual interest certificate from your bank. Required for Section 24(b) deduction up to ₹2 lakh.
Capital Gains Statement
From Zerodha/Groww/other broker. For mutual fund redemptions — from CAMS or Kfintech portal.
80C/80D Proofs
LIC premium, PPF statement, ELSS investment, health insurance premium receipts for deductions.
PAN & Aadhaar
PAN is your login ID. Aadhaar for e-verification. Both must be linked — verify at incometax.gov.in.
Pre-validated Bank Account
Your refund will be credited here. Pre-validate your bank account on the IT portal before filing.
📱 Step by Step ITR Filing Process — FY 2025-26
Follow these steps exactly on the Income Tax e-filing portal at incometax.gov.in:
1
Login to incometax.gov.in
Go to incometax.gov.in → Click "Login" → Enter your PAN as User ID → Enter password → Complete OTP verification. First-time filer? Click "Register" and create account using PAN.
💡 Use Chrome or Edge browser for best experience. Avoid filing on mobile — use a laptop/desktop.
2
Select the Correct Tab — CRITICAL STEP
The portal shows TWO tabs in 2026. You will see "Income Tax Act 1961" and "Income Tax Act 2025". For FY 2025-26 return — click on Tab 1: Income Tax Act 1961 only. Do NOT click the new Act 2025 tab.
⚠️ This is the most important new change in 2026. Wrong tab = wrong filing. Always verify you are on the correct tab before proceeding.
3
Navigate to File Income Tax Return
On dashboard → Click e-File in top menu → Select Income Tax Returns → Click File Income Tax Return → Select Assessment Year: AY 2026-27 → Select Mode: Online → Click Continue.
4
Select the Correct ITR Form
Select "Individual" → Choose your ITR form (ITR-1 for most salaried, ITR-2 if you have capital gains) → Click "Proceed with ITR-1" (or applicable form). The portal will now show pre-filled data from your Form 26AS and AIS.
💡 Cross-check all pre-filled data with your Form 16 and AIS. Do not blindly accept pre-filled values — errors in pre-fill can cause tax notices later.
5
Choose Tax Regime — Old or New
The portal will ask you to select your tax regime. If you have investments (80C, 80D, HRA, home loan) — compare both regimes before selecting. New regime is default from FY 2024-25. If you miss the 31 July deadline and file belated return, you are locked into new regime.
💡 Use our tax regime calculator to decide old vs new regime before filing.
6
Enter Income Details
Fill in salary income from Form 16, interest income from bank statements, rental income if any, and any other income. All income must match what is shown in your AIS (Annual Information Statement). If AIS shows any income not in your Form 16 — declare it.
7
Claim All Deductions
Under Chapter VI-A, enter all eligible deductions: 80C (PPF, ELSS, LIC, home loan principal — up to ₹1.5L), 80D (health insurance — up to ₹75,000), 80CCD(1B) (NPS — up to ₹50,000), HRA exemption, and home loan interest under Section 24(b).
💡 Keep all investment proofs ready. The portal does not require uploads but the IT department may ask for them later during scrutiny assessment.
8
Pay Tax if Required & Submit
The portal will calculate your total tax liability. If tax is payable (more than TDS already deducted), pay self-assessment tax via Challan 280 → e-Pay Tax on the portal. After payment, submit your return.
✅ How to E-Verify Your ITR — Mandatory Within 30 Days
Filing your ITR is NOT complete until you e-verify it. An unverified ITR is treated as not filed and your refund will not be processed.
| E-Verification Method | Time | Best For |
|---|---|---|
| Aadhaar OTP Easiest | Instant | Everyone — OTP on Aadhaar-linked mobile |
| Net Banking EVC | Instant | If Aadhaar not linked — login via bank |
| Demat Account EVC | Instant | If you have Zerodha/Groww demat |
| Bank Account EVC | Instant | Pre-validated bank account on portal |
| ITR-V Physical Copy | 15–20 days | Last resort — print, sign, courier to Bengaluru CPC |
💡 Always use Aadhaar OTP — instant, free, and most reliable. Make sure your mobile number is linked to your Aadhaar. Check at myaadhaar.uidai.gov.in. If your Aadhaar mobile is changed — visit nearest Aadhaar centre to update before filing.
📅 All ITR Filing Deadlines — AY 2026-27
ITR-1 & ITR-4
31 July 2026
Salaried individuals, pensioners, small business presumptive
ITR-2 & ITR-3
31 July 2026
Capital gains, multiple house property, business/profession
Audit Cases (ITR-3/5/6)
31 Oct 2026
Businesses requiring tax audit under Section 44AB
💸 Penalty for Late ITR Filing — Section 234F
⚠️ Late Filing Fees — Don't Miss the Deadline
Income above ₹5 lakh — filed after 31 July 2026₹5,000
Income up to ₹5 lakh — filed after 31 July 2026₹1,000
Interest on unpaid tax — Section 234A1% per month
Last date for belated return (AY 2026-27)31 Dec 2026
Belated return — tax regime choiceLocked to new regime
🚩 7 Common ITR Filing Mistakes Indians Make
- Wrong Assessment Year — FY 2025-26 income = AY 2026-27. Many people accidentally select AY 2025-26 which files return for wrong year. Always double-check the assessment year before submitting.
- Clicking the wrong portal tab — In 2026, the IT portal has two tabs. Use Tab 1 (Income Tax Act 1961) for FY 2025-26. Using the new Act 2025 tab will cause filing errors.
- Not declaring all income — FD interest, savings account interest, rental income, freelance income — all must be declared even if TDS was already deducted. AIS has everything the IT department knows — match it fully.
- Not e-verifying within 30 days — The most common mistake. Filing without e-verifying makes your return invalid. Set a reminder immediately after filing.
- Wrong ITR form — Using ITR-1 when you should file ITR-2 (capital gains, income above ₹50L) results in defective return notice. Choose carefully.
- Not pre-validating bank account — Your refund cannot be credited to a bank account not pre-validated on the IT portal. Do this before filing at Profile → Bank Accounts → Pre-validate.
- Missing deductions — Most salaried people miss 80TTA (₹10,000 savings account interest deduction), 80D for parents' health insurance, and NPS 80CCD(1B) ₹50,000 extra. These are free tax savings most people miss.
Need Help Filing Your ITR?
Our banking and tax experts can guide you through the entire ITR filing process — completely free.
Get Free Tax Guidance → Tax Saving Guide →❓ Frequently Asked Questions
Even if your income is below the taxable limit (₹3 lakh new regime, ₹2.5 lakh old regime), filing ITR is mandatory if: you have deposited ₹1 crore+ in a bank account, spent ₹2 lakh+ on foreign travel, paid ₹1 lakh+ electricity bill, or own foreign assets. Also, filing ITR even when not mandatory is always a good practice — it helps with visa applications, loan approvals, and credit card applications.
Form 26AS shows TDS deducted from your income by employers, banks, etc. AIS (Annual Information Statement) is more comprehensive — it shows all financial transactions linked to your PAN including securities purchases, property transactions, FD interest, dividends, GST turnover, and more. Always check AIS before filing — if something is shown in AIS but not declared in your ITR, the IT department may send a notice.
Yes — salaried individuals can switch between old and new tax regime every year at the time of ITR filing. Even if you told your employer one regime, you can change it while filing. However, if you miss the 31 July deadline and file a belated return, you are locked into the new regime for that year. Self-employed individuals and those with business income can switch only once.
If your total tax liability is less than TDS already deducted, you will automatically get a refund. File your ITR accurately, claim all eligible deductions, and e-verify within 30 days. Refunds are typically processed within 20–45 days of e-verification and credited directly to your pre-validated bank account. You can track refund status at incometax.gov.in → Refund/Demand Status.
You can file a revised return under Section 139(5) to correct any mistake. For AY 2026-27, you can revise your return up to 31 March 2027 (or before completion of assessment). The revised return replaces the original return. You can also file an updated return (ITR-U) under Section 139(8A) within 2 years from end of assessment year if you missed declaring some income — though this comes with additional tax payment.
No — most salaried individuals can file ITR-1 themselves in 20–30 minutes on the IT portal. The portal pre-fills most data from Form 26AS and AIS. You just need to verify, add any missing deductions, choose your regime, and e-verify. A CA is only needed for complex cases — business income, multiple income sources, foreign assets, or tax audit requirements.
⚠️ Disclaimer: This guide is for educational purposes only based on Income Tax Act 1961 provisions for FY 2025-26 (AY 2026-27). Tax laws are subject to change. Deadlines, penalties, and procedures may be modified by CBDT notifications. Always verify current information at incometax.gov.in. FinMandi is not a tax advisor. For complex tax situations, consult a qualified Chartered Accountant. Filing an incorrect ITR can result in notices, penalties, and scrutiny assessment.