The Income Tax Return (ITR) filing window for Assessment Year 2026-27 is open. The due date for salaried individuals is July 31, 2026 — and unlike some previous years, there is no indication from CBDT of an extension. Filing early is strongly advisable: the IT portal experiences peak load and slowdowns in the last 7–10 days of July every year.
This checklist covers every step a salaried employee must complete before filing — from gathering documents to choosing the right form, picking the correct tax regime, and e-verifying correctly.
Step 1: Download and Reconcile Your AIS and Form 26AS
Before opening the ITR portal, download both your Annual Information Statement (AIS) and Form 26AS from incometax.gov.in.
AIS is the single most important document in 2026. It aggregates data from banks, employers, mutual fund houses, property registrars, and credit card companies. If any income source appears in your AIS but not in your ITR, the system will send an automatic notice — even for small amounts.
What to reconcile:
- Salary income shown in AIS vs. your actual salary slips and Form 16
- Savings account interest (all banks, including dormant accounts)
- FD interest — even FDs held jointly or in a minor’s name where you are the guardian
- Dividend income from mutual funds and stocks
- Capital gains from equity, mutual funds, or property sales
- High-value transactions flagged in AIS (deposits above ₹10 lakh, property purchases above ₹30 lakh)
If you find an error in AIS — income that is not yours or amounts that are wrong — you can provide feedback directly on the AIS portal. Document everything before filing.
Step 2: Collect Form 16 (and Know What to Do Without It)
Form 16 is your employer’s TDS certificate. It has two parts:
- Part A: TDS deducted and deposited to the government (quarter by quarter)
- Part B: Salary breakup, allowances, perquisites, and deductions as reported by your employer
If you changed jobs this year, you’ll have multiple Form 16s — one from each employer. Your new employer may not have factored in income from your previous employer while computing TDS, which is a common source of tax shortfall at filing time.
If you didn’t receive Form 16, your employer is legally required to issue it by June 15 of the following year. If they haven’t, follow up immediately. As an alternative, your TDS information is available in Form 26AS and AIS.
Step 3: Choose Your Tax Regime — Old or New
For AY 2026-27, the new tax regime is the default. If you want to use the old regime, you must actively select it at the time of filing (or inform your employer before April 30 of the financial year for TDS purposes).
New regime slabs (AY 2026-27):
- Up to ₹4 lakh: 0%
- ₹4–8 lakh: 5%
- ₹8–12 lakh: 10%
- ₹12–16 lakh: 15%
- ₹16–20 lakh: 20%
- ₹20–24 lakh: 25%
- Above ₹24 lakh: 30%
Standard deduction: ₹75,000. Tax rebate under Section 87A: complete rebate for income up to ₹12 lakh (zero tax). Effective zero-tax limit for salaried employees: ₹12.75 lakh.
Old regime still benefits those with large deductions — 80C at full ₹1.5 lakh, HRA exemption on high rent, home loan interest deduction up to ₹2 lakh under Section 24, 80D health insurance, NPS under 80CCD(1B). If your total deductions exceed ₹3.5–4 lakh, run both calculations before deciding.
Step 4: Choose the Correct ITR Form
Using the wrong form results in a defective return notice under Section 139(9). The most common mistake is salaried employees with capital gains filing ITR-1 instead of ITR-2.
ITR-1 (Sahaj): Salaried income, one house property, income from other sources. Income up to ₹50 lakh. No capital gains. No foreign income or assets.
ITR-2: Same as ITR-1 plus capital gains (shares, mutual funds, property), multiple house properties, foreign income or assets, income from winning lotteries, director in a company.
ITR-3: Business or professional income in addition to the above.
ITR-4 (Sugam): Presumptive income under Section 44AD/44ADA/44AE.
If you sold even one unit of equity mutual funds or shares this year, you are in ITR-2 territory, not ITR-1.
Step 5: Gather All Required Documents
Keep these ready before starting the actual filing:
- PAN card and Aadhaar card (linked — mandatory for e-verification)
- Form 16 Part A and Part B from all employers
- Form 26AS and AIS downloaded from IT portal
- Bank account details for all active accounts (including joint accounts)
- Savings account interest certificates from all banks
- FD interest certificates
- Capital gains statement from broker (P&L report) if applicable
- Mutual fund capital gains statement from CAMS/KFintech
- Investment proofs for old regime deductions: PPF passbook, LIC premium receipts, ELSS statements, home loan certificate showing principal and interest breakup, health insurance premium receipt, rent receipts for HRA if applicable
- Previous year’s ITR acknowledgment (useful for verifying carry-forward losses)
Step 6: Pre-validate Your Bank Account
Your tax refund, if any, will be credited directly to your bank account. The bank account must be pre-validated on the IT portal. To check: log in to incometax.gov.in → Profile → My Bank Account.
If the account is not validated, validate it now. Refund failure due to unvalidated accounts is one of the top grievances every year.
Step 7: File and E-Verify Within 30 Days
Once you file your return, you must e-verify it within 30 days. An unverified return is treated as not filed — even if you submitted it before July 31.
E-verification options:
- Aadhaar OTP (fastest — instant)
- Net banking
- Bank ATM
- Demat account
- Send physical ITR-V to CPC Bangalore (slowest — not recommended)
Common Mistakes to Avoid in AY 2026-27
1. Not reporting savings account interest — All interest above ₹10,000 per year (from all banks combined) should be reported. The 80TTA deduction allows you to claim ₹10,000 as a deduction under the old regime.
2. Not reconciling AIS before filing — If AIS shows income you don’t recognise, provide feedback on the AIS portal before filing. Do not ignore it.
3. Filing ITR-1 with capital gains — Any equity sale, however small, requires ITR-2.
4. Switching regimes without calculating — Changing from old to new regime mid-year is possible at filing time, but should be done after a proper comparison, not arbitrarily.
5. Not e-verifying — The most common, and entirely avoidable, mistake.
Conclusion
ITR filing for AY 2026-27 is not complicated, but it requires methodical preparation. The AIS reconciliation step alone prevents the majority of post-filing notices. Start early, use the correct form, compare both tax regimes before committing, and e-verify the same day you file.
Author: Sarfaraz, Chartered Accountant, TAAX, Chennai. The author is a Chartered Accountant associated with TAAX, a CA firm based in Spencer Plaza, Chennai, providing assisted ITR filing, GST registration, and compliance services across Tamil Nadu.
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