How to File ITR for Salaried Employees: Step-by-Step for AY 2026-27
How to file ITR for salaried employees: ITR-1 eligibility, Form 16 and AIS checks, regime choice, e-filing steps, and what to do if you missed the 31 July deadline.
To file ITR as a salaried employee, log in to incometax.gov.in, pick Assessment Year 2026-27 and form ITR-1 (Sahaj), check the pre-filled salary, bank-interest and TDS details against your Form 16 and AIS, claim your deductions, and submit - then e-verify within 30 days, because an unverified return is treated as not filed. Most salaried people with income under â¹50 lakh, one house property and interest income belong in ITR-1 and finish in under an hour. One timing note upfront: the regular due date for AY 2026-27 was 31 July 2026. If you missed it, you can still file a belated return by 31 December 2026 with a late fee - do it now rather than waiting.
Which ITR form: ITR-1 for most salaried people
Per the Income Tax Department's official AY 2026-27 guidance, ITR-1 (Sahaj) applies to a resident individual with total income up to â¹50 lakh from salary/pension, one house property, other sources (interest, family pension, dividend), agricultural income up to â¹5,000, and long-term capital gains under section 112A up to â¹1,25,000.
| Your situation | Form |
|---|---|
| Salary + interest + one house property, income up to â¹50 lakh | ITR-1 |
| Salaried but income above â¹50 lakh, or more than one house property, or capital gains beyond the ITR-1 limits | ITR-2 |
| Salary plus business/professional income (freelancing, side consulting) | ITR-3 |
| Director in a company, unlisted shares, foreign assets or income, brought-forward losses | Not ITR-1 - usually ITR-2 |
Freelance income on the side is the most common ITR-1 disqualifier among salaried employees - even a small professional receipt moves you to ITR-3.
Before you log in: the three documents to reconcile
- Form 16 from your employer - salary breakup and TDS deposited against your PAN. Part A shows TDS; Part B shows the salary computation and deductions your employer applied.
- AIS (Annual Information Statement) on the portal - interest, dividends, mutual fund and share transactions the department already knows about. If AIS shows income your return misses, expect a notice.
- Form 26AS - the tax-credit statement. Form 16 TDS and advance tax should match 26AS before you file.
If a bank account or FD is missing from the pre-filled data, add the interest manually - the pre-filled return is a starting point, not a guarantee.
Filing step by step on incometax.gov.in
- Log in with PAN and password; go to e-File > Income Tax Returns > File Income Tax Return.
- Select AY 2026-27, mode Online, status Individual, then ITR-1.
- Choose your regime. The new regime is the default; it gives a â¹75,000 standard deduction and a section 87A rebate that makes total income up to â¹12 lakh effectively tax-free (marginal relief applies just above â¹12 lakh). The old regime gives a â¹50,000 standard deduction and lets you claim HRA, 80C, 80D and home-loan interest - run both computations, the portal shows the comparison.
- Check every pre-filled line against Form 16 and AIS: salary, exempt allowances, TDS, interest income.
- Pay any balance tax (self-assessment tax) before submitting; the portal computes it.
- Submit, then e-verify by Aadhaar OTP, net banking EVC or DSC. Without verification within 30 days the return is invalid.
Missed the 31 July deadline? File belated, now
A belated return for AY 2026-27 can be filed up to 31 December 2026. The late fee under section 234F is â¹1,000 if your total income is up to â¹5 lakh and â¹5,000 above that, plus 1% monthly interest under section 234A on any unpaid tax. Filing belated also means losing the option to carry forward most losses - another reason not to push it to December.
A worked example
Ankit earns â¹11.4 lakh gross in Bengaluru: â¹75,000 standard deduction (new regime) brings taxable income to about â¹10.65 lakh - comfortably inside the â¹12 lakh 87A rebate zone, so his new-regime tax works out to zero after rebate. His employer still deducted TDS because payroll computed on projections; the ITR is how he gets that refund. He logs in, confirms the pre-filled salary matches Form 16, adds â¹18,000 FD interest AIS shows but his employer never saw, submits, e-verifies by Aadhaar OTP, and the refund lands in his bank account after processing.
Mistakes that trigger notices or delays
- Filing only from Form 16. AIS captures interest, dividends and capital gains your employer never sees; mismatches generate automated queries.
- Skipping e-verification. The single most common reason returns get treated as invalid.
- Wrong bank account or unvalidated account. Refunds go only to a pre-validated bank account linked to PAN.
- Claiming old-regime deductions in the new regime. HRA, 80C and 80D do not apply under 115BAC - the portal blocks or recomputes these.
- Ignoring the regime comparison. Above roughly â¹15-16 lakh with full 80C+HRA, the old regime often wins; below that, the new regime usually does. Compute both before choosing.
Make the salary side of this easier
Knowing your real taxable income starts with understanding your payslip - our in-hand salary calculator breaks CTC into taxable components, and our guides to reading Form 16 and new vs old tax regime walk through the regime choice with numbers. If you claim HRA, the HRA exemption calculation guide shows exactly what the old regime saves.
Frequently asked questions
Can I file ITR without Form 16?
Yes. Form 16 is a convenience, not a requirement - use payslips for salary, AIS/26AS for TDS and interest, and compute the return yourself on the portal.
What is the last date to file for AY 2026-27?
The regular due date for salaried (ITR-1/ITR-2) filers was 31 July 2026. A belated return with late fee is allowed until 31 December 2026.
Which regime is better for salaried employees?
It depends on your deductions. New regime: â¹75,000 standard deduction, lower slab rates, 87A rebate up to â¹12 lakh income. Old regime: worth it only if HRA + 80C + 80D + home-loan interest together exceed roughly â¹3.5-4 lakh. Always run the portal's comparison.
Do I need a CA to file ITR-1?
No. The pre-filled ITR-1 on incometax.gov.in is designed for self-filing; a CA adds value when you have capital gains, multiple employers with mismatched TDS, or business income.
How long does the refund take?
Typically a few weeks after e-verification, credited directly to your pre-validated bank account. Track it under e-File > View Filed Returns on the portal.
Sources
- Income Tax Department - Returns and forms applicable for salaried individuals, AY 2026-27
- CBDT - Section 87A rebate FAQ (reviewed 08-Oct-2026)
- CBDT - Deductions from salary, including the â¹75,000 new-regime standard deduction
Due dates and limits above reflect AY 2026-27 as of October 2026; verify current figures on incometax.gov.in before filing.
