Gather and Organize Your Documents
Before you log in to the e-filing portal, make sure you have all necessary documents handy. For a salaried individual, the most critical document is Form 16, issued by your employer. If you changed jobs during the financial year (2025-26), you will need
the Form 16 from each employer. Beyond this, collect your bank statements or interest certificates for details on interest income from savings accounts and fixed deposits. Also, gather proof for any deductions you plan to claim, such as premium receipts for life and health insurance (80C and 80D), home loan interest certificates, and rent receipts if you are claiming House Rent Allowance (HRA).
Reconcile with Form 26AS and AIS
Do not file your return based on Form 16 alone. The Income Tax Department has a comprehensive record of your financial transactions in Form 26AS and the Annual Information Statement (AIS). Download these from the e-filing portal and cross-verify that the TDS (Tax Deducted at Source) mentioned in your Form 16 matches the figures in Form 26AS. The AIS provides a wider view, including details on savings interest, dividends, and securities transactions. Ignoring a mismatch between your declared income and the information in your AIS is a primary trigger for tax notices.
Choose the Correct ITR Form
Selecting the wrong ITR form is a common error that can render your return 'defective'. For most salaried individuals with income up to ₹50 lakh from salary, one house property, and other sources like interest, ITR-1 (Sahaj) is the correct form. However, if you have capital gains from selling property or shares (beyond certain limits), income from more than one house property, or any foreign income or assets, you will likely need to file ITR-2.
Decide Between Old and New Tax Regimes
This is one of the most crucial decisions that impacts your tax liability. The New Tax Regime is the default option for AY 2026-27 and offers lower tax rates but disallows most common deductions like those under 80C, 80D, and HRA. The Old Tax Regime has higher slab rates but allows you to claim these deductions. If your total deductions are significant (typically over ₹3.75 lakh), the old regime might be more beneficial. Salaried individuals can switch between regimes each year at the time of filing, so run a comparison on the tax portal's calculator before making a final choice.
Report All Sources of Income
Many salaried taxpayers mistakenly report only their salary income. You must declare income from all sources. This includes interest earned from all your bank accounts, fixed deposits, rental income, and any capital gains from mutual funds or stocks. Even income that is exempt from tax, like interest from a PPF account, should be reported under the relevant schedule for complete disclosure.
Pre-Validate Your Bank Account
To ensure you receive any potential tax refund without delay, you must have at least one bank account pre-validated on the income tax portal. During filing, you need to select this pre-validated account for receiving the refund. An incorrect account number or IFSC code can lead to refund failure, requiring you to raise a reissue request later. This simple check takes only a few minutes and can save you a lot of hassle.
Don't Forget to E-Verify
Filing your ITR is not the final step; you must verify it. An unverified return is considered invalid, as if it was never filed. You have 30 days from the date of filing to complete the verification process. The quickest and most common method is e-verification through an Aadhaar-linked mobile OTP. Other options include using net banking or generating an Electronic Verification Code (EVC) through your bank account or demat account. Once verified, you will receive a confirmation, and only then is your filing process truly complete.
What if You Miss the Deadline?
If you cannot file by July 31, all is not lost. You can file a 'belated return' until December 31, 2026. However, this comes with consequences. You will have to pay a late filing fee of up to ₹5,000 under Section 234F. Additionally, if you have taxes due, you will be liable for interest, and you will lose the ability to carry forward certain losses (like capital losses) to set off against future income.
