Filing Income Tax Return (ITR) is both a legal obligation and a smart financial habit. Here's your complete guide for AY 2026-27.

Who Must File ITR?

• Individuals with income > ₹2.5L (₹3L senior citizen, ₹5L super senior)
• All companies and LLPs (regardless of income)
• Trusts, political parties, educational institutions
• NRIs with Indian income > ₹2.5L
• Anyone wanting refund of TDS

Choose the Right ITR Form

• ITR-1 (Sahaj): Salaried with income < ₹50L, one house, no capital gains
• ITR-2: Salaried + capital gains, foreign income, multiple houses
• ITR-3: Business/profession income
• ITR-4 (Sugam): Presumptive business (44AD, 44ADA)
• ITR-5: LLPs, partnerships, AOPs
• ITR-6: Companies
• ITR-7: Trusts, charitable institutions

Documents to Gather

For Salaried

• Form 16 from employer
• Form 26AS + AIS
• Salary slips (if Form 16 missing)
• Rent receipts (for HRA)
• Investment proofs (80C, 80D)
• Home loan statement

For Business

• Profit & Loss statement
• Balance Sheet (if turnover > ₹1 Cr)
• Bank statements
• GST returns
• TDS certificates

Deductions to Claim

• 80C (up to ₹1.5L): LIC, PPF, ELSS, NPS, principal home loan
• 80D: Health insurance — ₹25K self, ₹50K parents (senior)
• 80G: Donations to approved charities
• 80E: Education loan interest (no limit)
• 80CCD(1B): Additional ₹50K for NPS
• 80TTA: ₹10K on savings interest
• HRA: Based on actual rent paid
• Standard deduction: ₹50K for salaried

New vs Old Regime

New regime (default from FY 2023-24) has lower tax rates but no deductions. Old regime allows 80C, 80D, HRA, etc.

Rule of thumb: If total deductions > ₹3.5L, old regime usually better. Use online calculators.

Step-by-Step Filing

1. Log in to incometax.gov.in

2. Click "File Income Tax Return"

3. Select AY 2026-27, Online mode

4. Choose applicable ITR form

5. Review pre-filled data (salary, TDS from Form 26AS)

6. Fill missing details (deductions, other income)

7. Review tax computation

8. Pay tax (if any)

9. Submit

10. E-verify within 30 days (Aadhaar OTP or net banking)

Deadlines

• July 31: Individuals (non-audit)
• October 31: Businesses requiring audit
• November 30: Transfer pricing cases

Refund Timeline

Post e-verification, refund is credited to bank account linked to PAN within:

• ITR-1/4: 30–60 days
• ITR-2/3: 60–90 days

Track at incometax.gov.in → Check Refund Status.

Common Mistakes

1. Choosing wrong ITR form

2. Missing TDS claim (verify Form 26AS)

3. Not reporting capital gains from equity/crypto

4. Missing e-verification (return invalidated after 30 days)

5. Wrong bank account for refund

6. Claiming ineligible deductions

Penalty for Late Filing

• ₹5,000 (₹1,000 if income < ₹5L)
• 1% monthly interest on outstanding tax
• Can't carry forward losses
• Can't revise return

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