Filing your Income Tax Return (ITR) is mandatory for most taxpayers in India. Whether you are a salaried employee, freelancer, or business owner, this guide covers the complete ITR filing process for FY 2026-27 (AY 2027-28) step by step.
Who Needs to File ITR?
- Income above basic exemption: ₹2.5 lakh (old regime) / ₹3 lakh (new regime)
- TDS deducted: Even if total income is below exemption, file ITR to claim refund
- Foreign income or assets: Mandatory filing regardless of income level
- Business turnover above ₹60 lakh: Mandatory (even if income is below exemption)
- Professional receipts above ₹10 lakh: Mandatory filing
- Electricity bill above ₹1 lakh: Mandatory filing
- Deposits above ₹1 crore in bank: Mandatory filing
ITR Due Dates FY 2026-27
| Category | Due Date | Penalty for Late Filing |
|---|---|---|
| Individual (non-audit) | 31st July 2027 | ₹5,000 (or ₹1,000 if income < ₹5 lakh) |
| Tax audit cases | 31st October 2027 | ₹5,000 |
| Transfer pricing cases | 30th November 2027 | ₹5,000 |
| Belated/Revised return | 31st December 2027 | ₹5,000 |
Which ITR Form To File?
| ITR Form | For Whom | Key Features |
|---|---|---|
| ITR-1 (Sahaj) | Salaried, pension, one house property | Income up to ₹50 lakh |
| ITR-2 | Capital gains, multiple house properties, foreign income | No business income |
| ITR-3 | Business or profession (proprietary) | Full P&L and balance sheet required |
| ITR-4 (Sugam) | Presumptive income (44AD/44ADA/44AE) | Income up to ₹50 lakh |
| ITR-5 | LLP, AOP, BOI, firm | Not for individuals |
| ITR-6 | Companies (not claiming 11 exemption) | E-filing mandatory |
| ITR-7 | Trusts, political parties, institutions | Under Sections 139(4A-D) |
Step-by-Step ITR Filing Process
Step 1: Gather Documents
- Form 16 (from employer) or Form 26AS
- Interest certificates (banks, post office)
- Capital gains statements (mutual funds, stocks, property)
- Rent receipts (if claiming HRA)
- Investment proofs (80C, 80D, NPS, etc.)
- Bank account details (for refund)
- AIS (Annual Information Statement) from Income Tax portal
Step 2: Log In to Income Tax Portal
Visit incometax.gov.in and log in with your PAN and password. If you don't have an account, register using your PAN.
Step 3: Verify Form 26AS and AIS
Download Form 26AS and AIS. Check that all TDS credits are reflected. Compare with your Form 16 or TDS certificates. Any mismatch must be resolved before filing.
Step 4: Select ITR Form & Assessment Year
Select the correct ITR form (ITR-1 for most salaried). Choose AY 2027-28 for FY 2026-27 income.
Step 5: Fill Income Details
- Salary income: Auto-filled from Form 16 in most cases
- House property: Rental income and home loan interest
- Business/Profession: P&L and balance sheet (ITR-3/4)
- Capital gains: Sale of property, shares, mutual funds
- Other sources: Interest, dividends, FD interest
Step 6: Claim Deductions
Enter all eligible deductions:
- Section 80C: PPF, ELSS, LIC, EPF, tuition fees (up to ₹1.5 lakh)
- Section 80D: Health insurance premium (up to ₹25,000/₹50,000)
- Section 80CCD(1B): NPS additional contribution (up to ₹50,000)
- Section 24(b): Home loan interest (up to ₹2 lakh)
- Section 80E: Education loan interest (no limit)
- Section 80TTA/TTB: Savings interest deduction (₹10,000/₹50,000)
Need help with 80C? Read our complete Section 80C guide.
Step 7: Verify Tax Computation
Check the auto-computed tax liability. Ensure TDS credit is properly adjusted. Verify the refund or payable amount.
Step 8: File & Verify ITR
Submit the return and complete verification within 30 days using:
- Aadhaar OTP (most common)
- Net banking
- DSC (Digital Signature)
- Physical ITR-V to CPC Bengaluru (last resort)
Calculate Your Tax Before Filing
Use our free calculator to check your tax liability, TDS credit, and refund amount before filing ITR.
Tax Calculator Free →ITR Filing Tips to Avoid Notices
- Match AIS with ITR: All income reported in AIS must be declared in ITR.
- Report all bank interest: Even ₹500 interest must be declared.
- Capital gains reporting: Every buy-sell transaction must be reported.
- Don't claim fake deductions: 80C/80D claims without proof invite scrutiny.
- File on time: Late filing means losing the option to carry forward losses.