ITR Filing 2026-27 for Salaried Employees: Every Step, Every Document, Every Deduction

By Nitish Bharadwaj · Published Sep 3, 2026 · 11 min

This operational guide for salaried ITR-1 filers covers a complete document checklist (Form 16, Form 26AS, AIS, FD interest certificates, 80C proofs), a worked new-regime vs old-regime comparison for a ₹12 lakh salary showing the new regime saves ₹72,436 in FY 2025-26, and a step-by-step section-by-section walkthrough of the Income Tax e-filing portal. Also covers belated return rules, the five most common mistakes that cause notices, and what happens after filing.

For a salaried employee filing ITR-1 with salary plus FD interest, the actual act of submitting the return takes roughly 25 minutes on the Income Tax e-filing portal — once your documents are in order. That caveat is where most people lose an entire weekend. Form 16 arrives in June and sits in the inbox. The AIS shows numbers that don't match the bank statement. The FD interest figure the bank gave over the phone differs from what's in Form 26AS. This guide solves exactly that problem: a complete document checklist (with precisely where to find each one), a regime comparison worked out with real numbers for a ₹12 lakh salary, and a section-by-section walkthrough of the e-filing portal for AY 2026-27. Deadline: July 31, 2026 for original returns. If you're reading this after that date, the belated return rules are covered at the end.

Who Should File ITR-1 vs ITR-2 (AY 2026-27)

The single most common mistake salaried employees make is filing in the wrong form. ITR-1 (Sahaj) is designed for the simplest salary-plus-interest income profile. The moment your income gets more complex — capital gains, multiple house properties, foreign assets — you move to ITR-2 or beyond.

Complete Document Checklist for Salaried ITR-1 Filers

New Regime vs Old Regime: A Worked Example for ₹12 Lakh Annual Salary (FY 2025-26)

The regime question is not answered in the abstract — it depends entirely on what deductions you can actually claim. Here is a worked calculation for a salaried employee earning ₹12 lakh gross annual salary with a typical deduction profile. Run your own numbers in our <a href="/calculators/income-tax-calculator">Income Tax Calculator for FY 2025-26</a> to get a personalised answer.

Step-by-Step: Filing ITR-1 on the Income Tax e-Filing Portal (AY 2026-27)

URL: <strong>https://eportal.incometax.gov.in</strong>. Browser compatibility note: Chrome and Edge work most reliably. Have all documents from the checklist open in separate browser tabs before you begin. The portal times out after 20 minutes of inactivity.

Step 1: Login and Pre-Fill Verification

1. Go to eportal.incometax.gov.in → Login → enter PAN as User ID → enter password.
2. On the dashboard, click "e-File" in the top menu → "Income Tax Returns" → "File Income Tax Return".
3. Select Assessment Year: 2026-27. Select Mode: Online. Click Continue.
4. The portal will show a pre-filled ITR based on Form 26AS and AIS data. This is a starting point, not a finished return. Accept the pre-fill option when prompted.
5. Before touching anything, go to "View AIS" and "View Form 26AS" in separate tabs and keep them open for comparison throughout the session.

Step 2: Verify Personal Information

• Name must match PAN card exactly — even a middle name mismatch can cause processing delays.
• Aadhaar number must be linked to PAN. If not linked, go to "Link Aadhaar" on the portal before proceeding — an unlinked PAN cannot file returns from AY 2024-25 onwards.
• Email and mobile number: update if changed since last year. OTP verification links are sent here.
• Bank account for refund: add the account where you want the refund credited. Validate it by clicking "Validate" next to the account. Only a validated, pre-validated bank account can receive a refund.
• Select your filing status: Individual. Nature of employment: Government / Public Sector / Private Company / Others — select the one that matches your employer.

Step 3: Filing Details — Employer Details and Salary Income

1. Go to "Schedule Salary" (or "Income Details → Salary"). The portal pre-fills employer name, TAN, and salary amount.
2. Cross-reference with Form 16 Part B. The "Net Salary after allowing all exemptions" on Part B is what should appear as taxable salary in the ITR. If the pre-filled number is different, override it.
3. Enter employer TAN from Form 16 Part A. If you had two employers in FY 2025-26, click "Add Employer" and enter details of both. The salaries add up automatically.
4. Enter allowances in the exempt category: HRA (if claiming old regime), LTA (if reimbursed), uniform allowance, etc. These should match Form 16 Part B exactly.
5. Professional tax paid: enter if your state levies it. This is deductible and appears in Form 16 Part B.

Step 4: Income from Other Sources — FD Interest and Savings Account Interest

1. Go to "Schedule Other Sources." Pre-filled data often misses FD interest from banks that don't deduct TDS (TDS is cut only if FD interest exceeds ₹40,000/year per bank). Even if no TDS was deducted, the interest is still taxable.
2. Add FD interest: enter the total FD interest earned across all banks during FY 2025-26. Use your FD interest certificate, not Form 26AS (26AS only shows what was TDS-deducted, not total interest).
3. Add savings account interest: enter the total interest credited to all savings accounts during FY 2025-26. Find this in your bank statement under "INT" entries.
4. The portal total for Other Sources will now include FD interest + savings interest. Verify this matches your own calculation.
5. Do not enter dividend income here if you have any — dividends from listed companies and mutual funds have their own pre-filled section and appear in AIS.

Step 5: Deductions Under Chapter VI-A (Old Regime Only)

Step 6: Tax Computation Review — Where to Spot Errors

• Gross total income: does it include FD interest? If Other Sources is zero, you missed Step 4.
• Deductions under Chapter VI-A: do they match your proofs? A common error is the portal pre-filling 80C at ₹0 when your employer already accounted for it in Form 16 — don't double-enter it.
• Net taxable income: does it match your own spreadsheet calculation?
• Tax payable / TDS already deducted: TDS figures here come from Form 26AS. If they differ from Form 16 Part A, a TDS mismatch exists. The gap becomes either additional tax due or a refund.
• If tax payable exceeds ₹10,000 after TDS credit, you should technically have paid advance tax in installments during the year. If you did not, there will be interest under Section 234B and 234C. The portal calculates this automatically.
• If there is additional tax to pay: click "Pay Now" before submitting. Generate a Challan 280 payment through the portal and complete it via net banking. Note down the BSR code and challan serial number.

Step 7: E-Verify Your Return

1. After confirming all details and submitting, the portal redirects to the e-verification screen.
2. Easiest method — Aadhaar OTP: Select "Generate Aadhaar OTP." The OTP goes to the mobile number registered with Aadhaar (not the ITR portal's registered number — they can differ). Enter the 6-digit OTP within 15 minutes.
3. Alternative — Net banking: Login via your bank's net banking, navigate to the Income Tax filing section, and approve the verification.
4. Alternative — EVC through bank ATM or Demat account: Generate an Electronic Verification Code via your bank or Demat account and enter it on the portal.
5. Last resort — Physical ITR-V: If none of the above work, download the signed ITR-V form and send a signed physical copy to CPC Bengaluru by ordinary post within 30 days.
6. Post verification, note the acknowledgement number. Save the confirmation email. This is your proof of filing.

What Happens After You File — Timeline

Missed the July 31 Deadline? Belated Return Rules

• <strong>Last date for belated return:</strong> December 31, 2026 (end of the assessment year).
• <strong>Late filing fee under Section 234F:</strong> ₹5,000 if total income exceeds ₹5 lakh; ₹1,000 if total income is below ₹5 lakh. No fee if income is below the basic exemption limit.
• <strong>Interest under Section 234A:</strong> 1% per month (or part of month) on any unpaid tax amount from August 1 until the date of filing. Only applies if there is tax to pay.
• <strong>Loss carry-forward restriction:</strong> If you have capital losses or business losses to carry forward, these cannot be carried forward in a belated return.
• <strong>Old regime not available for belated return:</strong> If you missed the July 31 deadline and were planning to claim deductions under the old regime, you lose that option for a belated return. New regime applies by default to belated returns.
• <strong>Revised return:</strong> Even if you filed on time but made an error, you can file a revised return under Section 139(5) up to December 31, 2026.