ITR Filing Guide for Salaried Employees: AY 2026-27
The assessment year 2026-27 ITR filing window opens in April 2026 with a July 31 deadline. Most salaried employees file in a rush in late July, make errors, and then receive defective return notices in August. Filing early — in May or June, once your Form 16 is available — means fewer mistakes, faster refunds, and a cleaner record. Here's the complete guide.
Which ITR Form Should You Use?
| ITR Form | Who Should Use It |
|---|---|
| ITR-1 (Sahaj) | Salaried income + one house property + other sources (interest, dividends) up to ₹50 lakh total income. No capital gains, no business income. |
| ITR-2 | Salary + capital gains (mutual funds, stocks, property) + multiple house properties. No business/professional income. |
| ITR-3 | Salary + business or professional income (freelance, F&O trading, consulting). |
| ITR-4 (Sugam) | Presumptive income under 44AD/44ADA/44AE — for small business owners and freelancers below ₹50 lakh turnover. |
Most salaried employees with some interest income and mutual fund SIPs (with LTCG) should use ITR-2. Don't use ITR-1 if you have any capital gains — it's technically ineligible and can lead to a defective return notice.
Documents You Need Before You Start
- Form 16: Issued by employer by June 15 — your complete salary and TDS summary for FY 2025-26
- Form 26AS: Download from income tax portal — shows all TDS credits, advance tax paid, and high-value transactions
- AIS (Annual Information Statement): New comprehensive statement — includes mutual fund transactions, property sales, dividend income, and more
- Capital Gains Statement: From your broker or mutual fund platform for all sell transactions
- Bank interest certificates: Annual interest earned from savings accounts and FDs
- Home loan statement: If applicable — shows principal and interest split for 80C and Section 24 deductions
Step-by-Step Filing Process
- Log in to incometax.gov.in with PAN and password
- Navigate to e-File → Income Tax Returns → File Income Tax Return
- Select AY 2026-27 and filing mode (Online recommended)
- Choose the correct ITR form
- Use the pre-filled data as a starting point — but verify every field against Form 16 and 26AS
- Enter capital gains from mutual funds/stocks (import from broker statement)
- Enter deductions: 80C, 80D, 80CCD(1B), HRA, home loan interest
- Compute tax — verify against your Form 16 computation
- Pay any remaining tax (self-assessment tax via Challan 280) before submitting
- Submit and e-verify via Aadhaar OTP, Net Banking, or DSC
The 3 Most Common Mistakes Salaried Employees Make
Not reporting FD interest: Banks send 26AS data to the IT Department. If you don't declare FD interest and it's in your 26AS, you'll get a notice. Always include all interest income.
Forgetting LTCG from mutual funds: The AIS now tracks all mutual fund transactions. Unreported LTCG is automatically flagged by the new ITR pre-fill system.
Using ITR-1 with capital gains: ITR-1 doesn't have a capital gains schedule. If you had any mutual fund redemptions, use ITR-2. Filing the wrong form makes the return defective.
FAQ
What is the last date to file ITR for FY 2025-26?
July 31, 2026 for individuals (without audit). A belated return can be filed by December 31, 2026 with a penalty of ₹1,000 (income below ₹5 lakh) or ₹5,000 (above ₹5 lakh) plus interest on unpaid tax.
Do I need to file ITR if my income is below ₹7 lakh (after rebate)?
Under the new regime, rebate u/s 87A makes tax zero up to ₹12 lakh taxable income. But filing ITR is still advisable — it serves as income proof, enables refunds of TDS already deducted, and is required for visa applications and loan processing.
What is e-verification and is it mandatory?
E-verification confirms you're the actual filer. It must be done within 30 days of submission (reduced from 120 days). An unverified ITR is treated as not filed. Use Aadhaar OTP (fastest) or net banking.
