How to File ITR Online India 2026: Step-by-Step Guide for Salaried Employees

Filing deadline: July 31, 2026 (AY 2026-27 for FY 2025-26)

Most salaried employees with a single employer, no property income, no capital gains, and total income below ₹50L can file ITR in under 20 minutes. The Income Tax Department's portal has significantly improved and pre-fills most data from Form 16 and AIS.

This guide covers the complete process — from gathering documents to getting your refund.

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Which ITR Form Do You Need?

90%+ of salaried readers should file ITR-1. This guide focuses on ITR-1.

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Documents You Need (Gather Before Starting)

Mandatory:

• Form 16 — from your employer (should arrive by June 15)
• PAN card number
• Aadhaar linked to PAN (mandatory from 2024)
• Bank account details (account number + IFSC for refund credit)
• Mobile number linked to Aadhaar (for OTP verification)

If applicable:

• Form 26AS / AIS (Auto downloaded from IT portal)
• Investment proofs for deductions (80C, 80D, NPS, home loan statement)
• Rent receipts if claiming HRA
• Capital gains statement from broker (for ITR-2)
• Interest certificates from banks (savings, FD interest)

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Step 1: Check AIS and Form 26AS (Critical — Do This First)

Before filing, go to incometax.gov.in → Login → AIS (Annual Information Statement). This shows every income the Income Tax Department knows about:

• Salary from employer
• Interest income from all banks (auto-fetched via SFT)
• Dividend income
• Securities transactions (mutual fund purchases/sales, stock sales)
• Property purchase/sale
• GST information (if you have a business)

Why this matters: If your Form 16 shows ₹10L salary but AIS shows ₹10.5L (because you got a bonus not captured), the IT Department knows. Always reconcile AIS vs Form 16 before filing.

Common AIS discrepancy: Bank interest earned across multiple banks. The I-T Department gets all interest data from banks automatically. If you've missed declaring savings account interest or FD interest in previous years — this is the year to come clean.

If AIS has incorrect data: Use the "Feedback" button in AIS to mark entries as incorrect. IT Department will review — but file ITR with the correct figure regardless.

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Step 2: Login to the Income Tax Portal

1. Go to incometax.gov.in
2. Click Login
3. Enter PAN as user ID + password
4. Verify with OTP on Aadhaar-linked mobile

First time? Register with PAN + Aadhaar-linked mobile number. OTP verification sets up your account.

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Step 3: Start Filing ITR-1

1. On the dashboard → File Income Tax Return
2. Assessment Year: 2026-27 (for income earned in FY 2025-26, April 2025–March 2026)
3. Mode: Online
4. Status: Individual
5. ITR Form: ITR-1 (if conditions above match)
6. Click Proceed

The portal will pre-fill data from Form 16, AIS, and 26AS. Review every pre-filled field.

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Step 4: Fill Income Details

Part A — General Information

• Personal details (auto-filled from PAN/Aadhaar)
• Nature of employment: Govt / PSU / Private / Pensioner / Others
• Select tax regime: New regime (default) or Old regime (explicit choice)

Part B — Gross Total Income

Salary Income:

• The portal pre-fills from Form 16 / employer TDS. Verify vs your actual CTC.
• Gross salary = all allowances + basic + HRA received
• Less: exemptions = HRA exemption (if old regime) + LTA + standard deduction (₹75,000)
• Net salary = taxable salary

House Property Income:

• If you live in rented accommodation: no entry needed here
• If you own a self-occupied property: annual value = nil; you can claim home loan interest deduction (up to ₹2L, old regime only)
• If property is let-out: show actual rent received, claim 30% standard deduction + full home loan interest

Other Sources:

• Savings account interest: add all banks (₹10,000 deductible u/s 80TTA in old regime)
• FD interest: fully taxable, add all FD interest earned in FY 2025-26
• Dividend income: fully taxable from FY 2020-21 onward (company pays DDT no longer)

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Step 5: Enter Deductions (Old Regime Only)

If you chose new regime, skip to Step 6.

If you chose old regime:

80C (max ₹1,50,000):

• Enter total of: EPF employee contribution + PPF deposits + ELSS investment + LIC premium + NSC + tuition fees + home loan principal

80D (Health Insurance):

• Self + family premium: up to ₹25,000
• Parents premium: up to ₹25,000 (or ₹50,000 if senior citizen)
• Enter actual amounts paid during FY 2025-26

80CCD(1B) — NPS:

• Additional ₹50,000 over 80C limit
• Enter your NPS Tier 1 contribution (from NPS statement / CRA)

HRA Exemption:

• Enter actual HRA received + actual rent paid + basic salary
• Portal calculates eligible HRA exemption automatically

Home Loan Interest — Section 24(b):

• Enter interest paid during FY 2025-26 (from your bank's interest certificate)
• Maximum ₹2L for self-occupied property

Other deductions:

• 80TTA: savings account interest (max ₹10,000)
• 80G: donations to approved institutions
• 80E: education loan interest

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Step 6: Tax Computation Preview

After entering all income and deductions, the portal shows:

• Total income: gross income minus deductions
• Tax payable: as per slab + surcharge + 4% cess
• TDS already deducted: from Form 16 (employer) + 26AS (bank, others)
• Net tax payable / refund due

Common outcome for salaried employees:

• If employer has deducted correct TDS → balance tax = ₹0 or small refund
• If you claimed deductions employer didn't account for → refund
• If you have extra income (FD interest, rental income) employer didn't know → additional tax payable

If tax payable > ₹0: Pay self-assessment tax via Challan 280 on TIN-NSDL before filing. Add the challan number in ITR.

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Step 7: Verify and Submit

1. Review the summary — verify PAN, bank account, total income, tax
2. Declare: "I verify that the information given above is correct and complete"
3. Submit
4. e-Verify — this is mandatory within 30 days of filing:
   • Aadhaar OTP (simplest — takes 30 seconds)
   • EVC via net banking
   • Digital signature certificate

ITR is not complete until e-verification. An unverified ITR is treated as not filed.

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Step 8: Refund Status

After e-verification, refund processing takes 15–45 days typically. Track at:

• IT Portal → Dashboard → Refund/Demand Status
• NSDL Refund Status: tin.tin.nsdl.com

Refund is credited directly to your bank account. Make sure your bank account is pre-validated on the IT portal (one-time step under Profile → Bank Account).

If refund is delayed beyond 60 days: You're entitled to Section 244A interest at 6% per annum on the refund amount. This is automatically credited — you don't need to claim it separately.

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Common Mistakes That Trigger IT Notices

1. Not declaring interest income Banks report all interest to I-T Department via SFT (Statement of Financial Transactions). Missing ₹50,000 in FD interest is easily caught.

2. Capital gains from mutual fund redemptions not declared If you redeemed any mutual fund units in FY 2025-26, the gain must be declared in ITR-2 (not ITR-1). Many salaried employees file ITR-1 and skip this.

3. Foreign income or assets not declared If you received any foreign salary, rental income, or hold assets abroad — Schedule FA is mandatory. Non-declaration is a serious offence.

4. Mismatch between ITR and AIS If your declared income is lower than what AIS shows — expect an automated notice. Always reconcile before filing.

5. Wrong bank account for refund Verify your bank account is correct and pre-validated. Wrong account = refund failure = refund processing delay of months.

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Belated ITR: If You Miss the July 31 Deadline

Additional consequence of late filing:

• Cannot carry forward capital losses (STCL/LTCL) to offset future gains
• Refund interest under 244A is reduced proportionally
• Higher scrutiny risk from IT Department

File by July 31. Always.

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Should You Use ClearTax / Tax2Win Instead of the Official Portal?

Our recommendation: Use the official IT portal for simple ITR-1 (salaried, no capital gains). The portal has improved significantly. Use ClearTax if you have capital gains from stocks/MF, multiple sources of income, or want a guided experience with CA review.

→ File ITR with ClearTax — Guided, CA-reviewed

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FAQs

Q: What if I don't file ITR? Mandatory for everyone with gross income > ₹2.5L (₹3L in new regime). Non-filing attracts penalty + interest on tax due. For income > ₹50L, non-filing is a criminal offence.

Q: Can I revise my filed ITR? Yes. You can file a revised ITR by December 31 of the assessment year (December 31, 2026 for AY 2026-27). Revisions are unlimited — but each revision triggers a new processing queue.

Q: My employer already deducted all tax. Do I still need to file? Yes, if your gross income > ₹2.5L. Filing is mandatory regardless of TDS. However, if income is below the taxable threshold after deductions, filing is technically optional — but filing enables refund claim and maintains a clean IT history.

Q: What is AY vs FY? FY 2025-26 = income earned April 2025 – March 2026. AY 2026-27 = the year you're filing the return for that income (Assessment Year = FY + 1).

Q: I got a notice. What should I do? Don't panic. Most IT notices are automated — mismatch between AIS and ITR, or a request for more information. Log in to IT portal → e-Proceedings → respond online within the deadline stated. For complex notices, consult a CA.

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Deadline and penalty information for AY 2026-27. Tax laws may change. Always verify with the official incometax.gov.in portal and consult a CA for complex situations. RupeeIQ is not a tax advisory service.