Documents to Keep Ready
Before you log in to the income tax portal, gathering your documents will make the process smoother. You will need your PAN card, Aadhaar card, and bank account details. Your employer will provide Form 16, which details your salary and the tax deducted
at source (TDS). Also, download your Form 26AS and the Annual Information Statement (AIS) from the e-filing portal. These documents summarise all the financial transactions and taxes linked to your PAN, such as interest from savings accounts, dividends, and property transactions. If you plan to claim deductions under the old tax regime, keep proofs of investments (like PPF, ELSS, insurance premiums) and expenses ready.
Which ITR Form Is Right for You?
Choosing the correct Income Tax Return (ITR) form is crucial. For the Assessment Year (AY) 2026-27, here's a simple breakdown for individuals: ITR-1 (Sahaj): This is for resident individuals with a total income of up to ₹50 lakh. Your income sources should be limited to salary, one or two house properties, interest income, and agricultural income up to ₹5,000. A new provision for AY 2026-27 allows for long-term capital gains from listed equities up to ₹1.25 lakh to be included in ITR-1. ITR-2: You must file ITR-2 if your income exceeds ₹50 lakh, you have income from capital gains (beyond the new ITR-1 limit), have more than two house properties, hold foreign assets, or are a director in a company. ITR-3 and ITR-4 (Sugam): These forms are for individuals with income from a business or profession. ITR-4 is for those opting for the presumptive taxation scheme. The filing deadline for non-audit business cases is August 31, 2026.
Old vs. New Tax Regime: Making the Choice
For AY 2026-27, the New Tax Regime is the default option. It offers lower tax rates but disallows most common deductions like those under Section 80C (for investments), 80D (health insurance), and HRA. However, it does allow a standard deduction of ₹75,000 for salaried individuals and pensioners. The Old Tax Regime allows you to claim various deductions, which can be beneficial if you have significant investments, a home loan, and other eligible expenses. It's wise to compare the tax liability under both regimes before making a final decision. You can make this choice in the 'Personal Information' section when filing your return.
A Step-by-Step Guide to e-Filing
Filing your return on the official income tax portal is a straightforward process. 1. Login: Go to the income tax e-filing portal and log in using your PAN as the user ID and your password. 2. Start Filing: Click on 'e-File' > 'Income Tax Returns' > 'File Income Tax Return'. Select the Assessment Year as 2026-27 and the mode of filing as 'Online'. 3. Select Status: Choose your applicable status (e.g., Individual) and then select the correct ITR form (ITR-1 or ITR-2). 4. Validate Information: The portal pre-fills a lot of your data from your Form 16, AIS, and Form 26AS. Carefully review each section—Personal Information, Gross Total Income, Total Deductions, Tax Paid, and Total Tax Liability. Correct any discrepancies and fill in any missing information. 5. Submit and Verify: Once you have confirmed all the details and there is no tax due, you can submit the return. The final and most critical step is to e-verify your return.
Don't Forget to e-Verify
Filing is not complete until you verify your return. You have 30 days from the date of filing to complete this step. An unverified return is considered invalid. There are several easy ways to e-verify: Aadhaar OTP: An OTP is sent to the mobile number linked with your Aadhaar. Net Banking: You can log in to the e-filing portal through your bank's net banking interface. Bank or Demat Account: You can generate an Electronic Verification Code (EVC) through your pre-validated bank or demat account. Bank ATM: Some banks allow you to generate an EVC for income tax filing through their ATMs. If you cannot use any of these digital methods, you can print the ITR-V acknowledgement, sign it in blue ink, and physically mail it to the CPC in Bengaluru.
What if You Miss the Deadline?
The deadline for most individual taxpayers for AY 2026-27 is July 31, 2026. If you miss this date, you can file a belated return until December 31, 2026. However, this comes with consequences. A late filing fee under Section 234F of up to ₹5,000 will be charged. If you have tax dues, an interest of 1% per month will be levied on the outstanding amount under Section 234A. You also lose the right to carry forward certain losses.
