If you are a salaried person earning under ₹50 lakh, ITR-1 is your form. The Income Tax Department made this clearer for AY 2026-27, but the portal is still intimidating the first time. This guide walks through every screen, every box, and every common error.
Who can file ITR-1 (the eligibility test)
You qualify for ITR-1 if all of these are true:
- Total annual income is under ₹50 lakh
- Income comes from salary or pension
- Income from one house property (self-occupied, rented, or vacant — only one)
- Income from interest (savings account, fixed deposit, recurring deposit)
- You are an Indian resident (not NRI, not RNOR)
You cannot use ITR-1 if you have:
- Capital gains (sold shares, mutual funds, property, gold) — even ₹1 of capital gains forces you to ITR-2
- More than one house property
- Foreign income or foreign assets
- Income from business or profession (use ITR-3 or ITR-4)
- Agricultural income above ₹5,000
- Lottery winnings, racehorses, unexplained income
If you sold even one mutual fund unit at a profit in FY 2025-26, you need ITR-2, not ITR-1. This is the most common ITR mistake.
What you need before you start (10 minute prep)
Open a folder on your laptop. Drop these in:
1. PAN card — number memorized 2. Aadhaar number — must be linked to PAN at incometax.gov.in/Aadhaar 3. Form 16 — from your employer, issued by 15 June 2026 4. Bank account number + IFSC of the account where you want the refund (must be pre-validated on the portal) 5. Form 26AS / AIS / TIS — download from the portal once logged in (shows TDS credits) 6. Interest certificates — from every bank where you earned more than ₹500 interest 7. Investment proofs — only if filing under old regime (PPF, ELSS, life insurance, home loan interest, HRA) 8. Mobile number linked to Aadhaar — needed for OTP e-verification
If your PAN-Aadhaar link is broken, fix it first at incometax.gov.in. Otherwise your return cannot be e-verified and is treated as not filed.
Step 1 — Login
Go to incometax.gov.in. Click Login. Enter your PAN as User ID, password, and captcha.
First-time filer? Click Register and use your PAN as user ID. Set a password (12 characters, 1 special char minimum).
After login, you land on a dashboard. Top right shows your name and PAN. If anything looks wrong, stop and verify — phishing sites that mimic this URL exist.
Step 2 — Start the return
Top menu: e-File → Income Tax Returns → File Income Tax Return.
You are asked: - Assessment Year — pick 2026-27 (this covers income earned in FY 2025-26, April 2025 to March 2026) - Mode of Filing — Online (faster, pre-fills your data automatically) - Status — Individual - ITR Form — ITR-1
Click Proceed.
Step 3 — Reason for filing
Pick one: - Taxable income above basic exemption (most common — choose this if your gross salary minus deductions is above ₹3 lakh under new regime or ₹2.5 lakh under old) - Above the threshold for savings account interest, cash deposit etc. (rare) - Filing voluntarily even though below threshold (good idea if you want refund of TDS)
Most salaried readers pick the first option.
Step 4 — Personal information
The portal pre-fills this from your PAN/Aadhaar:
- Name, PAN, Aadhaar
- Date of birth
- Address (verify — many people moved and never updated)
- Mobile + email
Verify carefully. A wrong address means lost refund cheques (CPC still mails them in some cases). A wrong email means missed intimation orders.
Filing status — pick Resident unless you have spent fewer than 182 days in India during FY 2025-26.
Nature of employment — pick from drop-down: Government, PSU, Pensioner, Others (most private-sector), Not applicable.
Step 5 — Gross total income
This is the biggest section. The portal auto-pulls salary data from Form 16 your employer uploaded. Do not just trust it — verify against your own Form 16.
### Salary section
You will see: - Gross salary = total CTC components: basic + HRA + special allowance + bonus + LTA, etc. - Allowances exempt under section 10 = HRA exemption, LTA, conveyance (max ₹19,200 if old regime) - Net salary - Standard deduction = ₹75,000 under new regime (raised in Budget 2024 from ₹50,000), ₹50,000 under old regime - Professional tax = ₹2,500/year if your state deducts it (Maharashtra, Karnataka, West Bengal, etc.)
Verify each line against your Form 16. If the auto-filled gross salary is wrong, you can edit it but you must explain the variance later.
### House property section
If you live in your own house and have a home loan: under old regime, you can claim ₹2 lakh interest deduction. Under new regime, no interest deduction is allowed for self-occupied house.
If you rent out a property: enter rent received minus 30% standard deduction minus municipal taxes paid.
If you have a vacant second house, you can no longer claim it as self-occupied (rule changed in 2019). It is treated as deemed-let-out.
### Other sources
- Savings account interest — full amount earned across all accounts in FY 2025-26. The bank reports it in your AIS automatically.
- Fixed deposit interest — full amount earned (not just the part where TDS was deducted)
- Recurring deposit interest
- Dividend income — yes, even if it is ₹500. Dividends are taxable in your hands now.
Step 6 — Deductions (Chapter VI-A)
If you picked new regime (the default), you skip most of this section. Only NPS employer contribution (Section 80CCD(2)) and standard deduction apply.
If you picked old regime, claim:
- Section 80C — up to ₹1.5 lakh (PPF, ELSS, life insurance premium, EPF, principal of home loan, tuition fees of 2 children, NSC, tax-saving FD)
- Section 80D — health insurance premium (₹25,000 self/family + ₹50,000 senior parents)
- Section 80CCD(1B) — additional ₹50,000 in NPS Tier-1
- Section 80E — education loan interest (no cap, claim for 8 years)
- Section 80G — donations (50% or 100% deductible based on the cause)
- Section 80TTA — savings interest up to ₹10,000 (for those under 60)
Pro tip: If your old-regime deductions add up to less than ₹2 lakh, you almost always pay more tax under old regime. Stay on new regime. Use our Old vs New Tax Regime Calculator to be sure.
Step 7 — Tax computation
Once income and deductions are entered, the portal computes:
- Taxable income
- Tax at slab rates (different for old vs new regime)
- Section 87A rebate (full waiver if taxable income under ₹7 lakh in new regime, ₹5 lakh in old regime)
- Health and Education Cess @ 4%
- Tax payable or refund due
The ₹7 lakh rebate is the big deal in new regime. If your taxable income (after standard deduction of ₹75,000) is ₹7 lakh, you owe zero tax. So gross salary up to ₹7,75,000 = zero tax under new regime.
Step 8 — Tax paid
The portal shows TDS deducted (from Form 16) and any advance tax/self-assessment tax you paid. This should match Form 26AS exactly.
If the portal shows less TDS than your Form 16 says, your employer has not yet uploaded the TDS return. Wait until 15 June 2026 minimum before filing.
Step 9 — Validate
Click Validate. The portal runs about 30 logic checks. Common errors it flags:
- "Salary income inconsistent with Form 16" — re-check the salary data
- "Bank account not validated" — go to Profile → Add Bank Account → Validate
- "Aadhaar-PAN linkage mismatch" — fix at the linking page
- "Mandatory field missing" — usually on the bank IFSC or PIN code
Fix every error. The form will not let you submit until validation passes.
Step 10 — Pay tax (if you owe)
If you owe tax (rare for fully salaried — TDS usually covers it), pay it through the portal directly. Use challan ITNS-280, AY 2026-27, Self-Assessment Tax (300).
After payment, the BSR code, challan number, and date appear on your return. Without this, the portal shows "tax not fully paid" and rejects the submission.
Step 11 — Submit
Once validation passes, click Preview. Read every line. Compare against your Form 16. The most expensive mistake is submitting a wrong return — you have to file a revised return later.
When happy, click Submit. You get a 15-digit acknowledgement number (e.g., 123456789012345). Save it.
Step 12 — E-verify (this step is mandatory)
A submitted but unverified return is treated as not filed. You must e-verify within 30 days.
Fastest method: Aadhaar OTP 1. Click e-Verify Now 2. Choose Aadhaar OTP 3. Enter the OTP sent to your Aadhaar-linked mobile 4. Done in 60 seconds
Net banking method: 1. Choose e-Verify through net banking 2. Pick your bank from the list 3. Login to your bank 4. Click "Income Tax e-filing" link in your bank's portal 5. The site auto-verifies
EVC method: Generate a 10-digit EVC code from your bank's portal or ATM, enter it here.
Old way (avoid): Print ITR-V, sign, send by post to CPC Bengaluru. Takes 60+ days. Use only if you have no Aadhaar.
After e-verification, you get an ITR-V with "Successfully e-Verified" stamped on it. Your return is now filed. Save the PDF.
What happens after filing
- Within 24 hours — portal shows "Return Submitted"
- 3-5 days — return moves to "ITR Processed by CPC" if no manual review needed
- 30-45 days — refund credited to your bank account if you had excess TDS
- 6-12 months — if discrepancies, you receive an intimation under Section 143(1) by email. Read it carefully.
Track refund status at the portal: Services → Refund Status or directly at tin.tin.nsdl.com.
ITR-1 vs ITR-2 — the boundary cases
| Situation | Form | |---|---| | Salary + 1 house + interest, total under ₹50 lakh | ITR-1 | | Same as above but you sold any equity/MF/crypto/property in FY 2025-26 | ITR-2 | | Total income is ₹52 lakh | ITR-2 | | You own 2 houses | ITR-2 | | You have foreign assets, foreign bank account | ITR-2 | | You have business or freelance income | ITR-3 or ITR-4 | | You are NRI | ITR-2 (always) |
When in doubt, ITR-2 is safer. Filing the wrong form makes your return invalid and you have to refile.
Common errors that delay refunds
1. Bank account not pre-validated — refund cannot be credited 2. Mismatch between Form 16 and Form 26AS — CPC flags it for manual review (60-90 day delay) 3. Aadhaar-PAN linking pending — return cannot be e-verified 4. Wrong assessment year picked — entire return invalid 5. Picking ITR-1 when capital gains exist — invalid form, refile 6. Not declaring savings account interest — AIS shows it; CPC will issue 143(1) notice 7. Claiming HRA without proof — flagged in scrutiny if rent exceeds ₹1 lakh/year (PAN of landlord required)
Filing fees
Free. The Income Tax Department charges nothing. Anyone asking ₹500 to file your ITR-1 is selling you a service, not a requirement. CAs charge ₹500-₹2,000 for handling but for a simple ITR-1 you can do it yourself.
Deadline reminder
For AY 2026-27 (income earned April 2025 to March 2026): - 31 July 2026 — last date to file ITR-1 without late fee - 31 December 2026 — belated return with ₹5,000 late fee (₹1,000 if income under ₹5 lakh) - 31 March 2027 — final cutoff for any ITR for AY 2026-27
After 31 March 2027, no return for AY 2026-27 can be filed except via condonation request to CBDT (rarely granted).
Related reading
- How to Read Form 16 in 2026
- ITR-1 vs ITR-2 vs ITR-3: Which Form Do You File?
- Old vs New Tax Regime FY 2026-27
- Form 16 Explained — How to Read It
Related calculators
- Income Tax Calculator (India) — model your tax under old vs new regime
- Old vs New Tax Regime Calculator — pick the right regime
- HRA Calculator — compute your HRA exemption
Our source
Income Tax Department of India e-filing portal: incometax.gov.in. Form ITR-1 (Sahaj) for AY 2026-27 notified under CBDT Notification (April 2026). Section references and rebate limits per Finance Act 2024 and Finance Act 2025.