Filing Income Tax Return (ITR) in India has become easier, but still intimidates first-timers. With the new tax regime now default and the portal upgraded, the 2026 filing season has important changes.
Key Changes for AY 2026-27
- New tax regime is default — opt for old regime if you want it
- Zero tax up to ₹12 lakh under new regime (₹12.75L with standard deduction)
- Standard deduction ₹75,000 for salaried under new regime
- Updated return window — file updated returns up to 2 years from assessment year end
Which ITR Form?
| Form | Who Files |
|---|---|
| ITR-1 (Sahaj) | Salaried, income up to ₹50L, one house property |
| ITR-2 | Capital gains, foreign assets, multiple house properties |
| ITR-3 | Business owners, freelancers, professionals |
| ITR-4 (Sugam) | Presumptive taxation under 44AD (up to ₹2 crore) |
Documents Needed
- PAN Card and Aadhaar (must be linked)
- Form 16 (from employer)
- Bank statements (all accounts)
- TDS certificates (Form 16A/16B/16C)
- Investment proofs (80C, 80D, HRA)
- Capital gains statements (from broker/CAMS/KFintech)
Step-by-Step: Filing ITR-1 Online
Step 1: Register/Login on Income Tax Portal
Visit incometax.gov.in. Login with PAN and password.
Step 2: Download AIS and TIS
Download Annual Information Statement (AIS) and Taxpayer Information Summary (TIS). These show all income and transactions the government knows about.
Step 3: Start ITR Filing
Go to e-File → Income Tax Return. Select AY 2026-27, ITR-1, filing type (Original). Choose new or old tax regime.
Step 4: Fill Income Details
Pre-filled data from AIS appears. Verify salary income (from Form 16), house property income, and other sources.
Step 5: Claim Deductions
Enter deductions under Chapter VI-A: 80C (investments), 80D (health insurance), 80CCD(1B) (NPS), HRA. If using new regime, most deductions are not available.
Step 6: Verify Tax Computation
Portal calculates tax liability. Check if you owe tax or are due a refund. If tax owed, pay via e-Pay Tax before submitting.
Step 7: Submit and e-Verify
Submit and e-verify within 30 days using Aadhaar OTP, net banking, or bank account.
Filing for Freelancers (ITR-3/4)
- Under Section 44AD: declare 50% of gross receipts as income (business under ₹2 crore)
- Under Section 44ADA: professionals declare 50% of gross receipts (up to ₹75 lakh with digital payments)
- No audit required under presumptive taxation
New vs Old Tax Regime
| Factor | New Regime | Old Regime |
|---|---|---|
| Standard Deduction | ₹75,000 | ₹50,000 |
| 80C Deductions | Not available | Up to ₹1.5 lakh |
| HRA Exemption | Not available | Available |
| Tax-Free Income | Up to ₹12.75L | Up to ₹5L (with deductions) |
See our tax saving guide for detailed analysis.
Common Mistakes
- Not e-verifying — ITR invalid without verification within 30 days
- Not reporting all income — savings interest, FD interest, capital gains must be reported
- Wrong bank account for refund
- Missing the deadline — July 31; late fee up to ₹5,000
- Not matching AIS — major mismatches trigger scrutiny
🔑 Key Takeaways
- New regime is default — opt out if old saves more
- Zero tax up to ₹12.75L for salaried under new regime
- Most salaried need ITR-1 (Sahaj)
- Download AIS/TIS first — ITR must match government data
- E-verify within 30 days or ITR is invalid
- Deadline: July 31, 2026
Frequently Asked Questions
What is the last date to file ITR for AY 2026-27?
July 31, 2026 for most taxpayers. Belated returns until December 31, 2026 with late fee.
Can I file ITR for free?
Yes. The Income Tax portal is completely free. ClearTax and Tax2Win also offer free filing for simple returns.
What if I miss the deadline?
File belated return by December 31, 2026 with late fee of ₹1,000 (under ₹5L income) or ₹5,000 (above ₹5L).
Do I need to file if income is below taxable limit?
Not mandatory, but recommended for: claiming refunds, carrying forward losses, visa/loan applications, income proof.
