ITR Filing for Salaried Employees: Step-by-Step on the Income-tax Portal (AY 2026-27)

Most salaried employees can file their own return in under an hour once the documents are in one place. The portal pre-fills salary, TDS and interest from the department's own data, so the job is less "data entry" and more "verify, choose the regime, claim what is allowed, and e-verify". This guide follows the actual screen order on incometax.gov.in for Assessment Year 2026-27 (income earned in FY 2025-26) and flags the points where people make mistakes that lead to a 143(1) adjustment later.

Before you log in — the five documents

If AIS shows an item you do not recognise, raise feedback in AIS itself before filing; if it shows income you genuinely earned but forgot, include it. The mismatch is what generates a notice, not the amount.

Which form — ITR-1 or ITR-2

ITR-1 (Sahaj) is for a resident individual with total income up to ₹50 lakh from salary or pension, one house property, other sources (interest, family pension), and agricultural income up to ₹5,000. Long-term capital gains under section 112A up to ₹1.25 lakh from listed shares or equity funds can also be reported in ITR-1 for AY 2026-27, provided there is no loss to carry forward.

You need ITR-2 if you have capital gains beyond that, more than one house property, foreign assets or income, directorship in a company, unlisted shares, or income above ₹50 lakh. Picking ITR-1 when ITR-2 applies makes the return defective under section 139(9).

Old regime or new regime — decide before you start

The new regime is the default for FY 2025-26. Under it, income up to ₹12 lakh is tax-free after the section 87A rebate, the standard deduction is ₹75,000, and employer NPS under 80CCD(2) is still allowed — but 80C, 80D, HRA and home-loan interest on a self-occupied house are not. The old regime keeps all of those with the older slabs and a ₹50,000 standard deduction.

A salaried person with no deductions at all is better off in the new regime at every income level. The old regime only wins when deductions are large — as a rough guide, around ₹8 lakh or more of combined deductions at higher incomes. Run both on the ITR wizard; it shows the two totals side by side before you commit, and the computation it produces is the same one you enter on the portal.

Two rules about switching: a salaried taxpayer without business income can choose either regime every year simply by selecting it in the return; and the regime your employer used for TDS does not bind you — if the employer deducted under the new regime but the old regime saves you tax, claim it in the return and take the refund.

The portal flow, screen by screen

1. Log in with PAN as user ID. Go to e-File → Income Tax Returns → File Income Tax Return.
2. Select AY 2026-27, mode "Online", status "Individual", and the form (ITR-1 or ITR-2). Choose "Taxable income is more than the basic exemption limit" or the applicable reason for filing.
3. Personal information — confirm name, address, mobile and email; select the regime; add your bank account and nominate one for refund (it must be pre-validated).
4. Gross total income — the salary schedule is pre-filled from Form 16; check gross salary, exempt allowances and the standard deduction. Add house property (rent received or interest on a let-out property) and other sources (interest from the AIS, dividends).
5. Total deductions — only visible meaningfully in the old regime: 80C (₹1.5 lakh), 80CCD(1B) NPS (₹50,000), 80D health insurance, 80TTA, 80G donations. In the new regime, 80CCD(2) is the main one.
6. Tax paid — TDS from Form 16 and 16A, advance tax and self-assessment tax from 26AS. Anything missing here means a lower refund or a demand; add the challan details if you paid tax yourself.
7. Total tax liability — the portal computes tax, rebate, cess and interest. If there is tax payable, pay it as self-assessment tax (challan 280, type 300) and enter the challan before submitting.
8. Preview and submit, then e-verify — Aadhaar OTP is fastest; net banking, bank account EVC or a signed ITR-V posted to CPC Bengaluru within 30 days also work.

If the due date has already passed

The due date for salaried returns was 31 July 2026. A return filed after that and up to 31 December 2026 is a belated return under section 139(4): the portal adds a late fee under section 234F (₹1,000 if total income is up to ₹5 lakh, otherwise ₹5,000) and interest under section 234A at 1% a month on any unpaid tax. You still get your refund, and you still choose your regime. What you lose is the right to carry forward capital or business losses. If you already filed and found an error, file a revised return under 139(5) by the same 31 December date — no late fee if the original was on time.

Common mistakes

• Submitting without e-verifying. The return simply does not exist until verification; CPC does not process it and the refund never comes.
• Trusting Form 16 over AIS. Interest, dividends and share sales are in AIS even when your employer knows nothing about them. Leaving them out is the most common 143(1) adjustment.
• Claiming HRA without rent receipts or the landlord's PAN when annual rent exceeds ₹1 lakh. Allowed in the old regime only, and only with proof you can produce.
• Two Form 16s, one standard deduction. If you changed jobs, add both salaries; the standard deduction is ₹75,000 (new) or ₹50,000 (old) in total, not per employer, and the second employer often under-deducts TDS — expect a balance to pay.
• Not pre-validating the refund bank account. The refund fails and you spend weeks on a re-issue request.
• Choosing ITR-1 with capital gains above the 112A limit or with a loss. Use ITR-2; a defective-return notice takes longer to fix than filing the right form.

Frequently asked questions

Can I file ITR myself if I only have salary income?

Yes. With Form 16, your AIS and bank interest certificate, ITR-1 takes under an hour on the portal because salary, TDS and interest are pre-filled. Your job is to verify those figures, pick the regime that gives the lower tax, add anything the pre-fill missed, pay any balance and e-verify within 30 days.

My employer deducted TDS under the new regime. Can I still claim the old regime in my return?

Yes. For a salaried taxpayer with no business income the regime is chosen afresh in each year's return, regardless of what payroll used. If the old regime with your 80C, HRA and home-loan interest gives lower tax, select it and the excess TDS comes back as a refund.

What happens if I file after 31 July 2026?

Up to 31 December 2026 you can file a belated return under section 139(4). The portal adds a late fee of ₹1,000 (income up to ₹5 lakh) or ₹5,000 under section 234F, plus 1% a month interest under 234A on unpaid tax. Refunds are still paid; capital and business losses cannot be carried forward.

Do I need to report savings-account interest if TDS was not deducted?

Yes. All interest is taxable as income from other sources whether or not TDS was deducted. In the old regime, section 80TTA then allows a deduction of up to ₹10,000 on savings-account interest (₹50,000 under 80TTB for senior citizens, including FD interest).

General information for FY 2026-27, not professional advice for your specific case. Rules change — verify against the latest notification or ask a KyaTax expert.
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