ITR Filing FY 2026-27 Guide — Forms, Deadlines, and Step-by-Step Process

ITR filing for FY 2026-27 (Assessment Year 2027-28) is mandatory for Indian residents with gross total income above ₹2.5 lakh (or ₹3 lakh for senior citizens, ₹5 lakh for super seniors). Key dates: July 31, 2027 for individuals without audit requirement; October 31, 2027 for those requiring audit. Form selection: ITR-1 (Sahaj) for salaried with income below ₹50 lakh; ITR-2 for those with capital gains, multiple house properties; ITR-3 for business/profession income; ITR-4 (Sugam) for presumptive taxation. New tax regime is default for FY 2026-27; old regime requires explicit Form 10-IEA filing for those with business income. Electronic filing via incometax.gov.in is mandatory for most taxpayers. Penalty for late filing: ₹5,000 for income above ₹5 lakh; ₹1,000 for income below ₹5 lakh. For Indian middle-class salaried earners, ITR filing is the annual financial compliance ritual — understanding deadlines, forms, and process prevents penalties and ensures tax refunds. Freedomwise's Old vs New Tax Regime FY 2026-27 helps with regime choice.

What are the key dates for ITR filing FY 2026-27?

Important deadlines:

Deadline	Applicable to	Penalty for missing
July 31, 2027	Individuals without audit (most salaried)	₹1K-5K late filing fee
October 31, 2027	Audit-required cases (business with turnover > ₹1cr)	₹10K+ depending
November 30, 2027	Transfer pricing cases	Significant
December 31, 2027	Revised return for FY 2026-27	n/a
December 31, 2027	Belated return last date	Higher penalty
March 31, 2028	Updated return	25-50% additional tax

Practical timeline:

• April-May 2027: Receive Form 16 from employer
• June-July 2027: Compile documents; verify
• Mid-July 2027: File ITR (avoid last-minute rush)
• August 2027: Refund processing typically completes

Which ITR form should I use?

Form selection criteria:

ITR-1 (Sahaj) — Most common for salaried:

• Annual income ≤ ₹50 lakh
• Income from salary, one house property, other sources
• Not applicable: capital gains, agricultural income > ₹5K, foreign assets/income
• Used by: Most salaried, middle-class earners

ITR-2:

• Income > ₹50 lakh OR
• Capital gains (stocks, MF, property sale)
• Multiple house properties
• Foreign income or foreign assets
• Used by: Most investors, NRIs, those with capital gains

ITR-3:

• Income from business or profession (proprietorship)
• Partner in firm
• LLP business
• Used by: Self-employed, business owners, professionals

ITR-4 (Sugam):

• Presumptive taxation (Section 44AD, 44ADA, 44AE)
• Income below ₹50 lakh
• Simpler filing for small business
• Used by: Small businesses, freelancers under presumptive taxation

ITR-5, ITR-6, ITR-7: For specific entity types (firms, companies, trusts).

Decision tree:

• Salaried only + interest income → ITR-1
• Salaried + mutual fund redemptions / stock sales → ITR-2
• Business income → ITR-3 or ITR-4

What is the step-by-step filing process?

Detailed procedure:

Step 1: Register on e-filing portal.

• Visit incometax.gov.in
• Register using PAN (becomes username)
• Set password
• Verify email and mobile
• Profile completion

Step 2: Gather documents.

Document	Source
Form 16	Employer (after May)
Form 16A	Banks, payers of TDS (interest, dividend)
Form 26AS / AIS	Income Tax portal (consolidated tax statement)
Bank statements	Banks
Investment proofs	AMC, broker, life insurance company
Rent receipts (HRA)	Landlord
Loan statements	Bank/lender
Capital gains statements	Mutual fund/broker
Donation receipts (80G)	Approved organizations
Health insurance premium receipts (80D)	Insurer

Step 3: Compute total income.

• Salary income
• Capital gains (LTCG/STCG)
• Rental income (if any)
• Interest income (FDs, savings)
• Other income (dividends, etc.)

Step 4: Calculate deductions (old regime) or apply new regime.

Old regime deductions:

• Section 80C (₹1.5 lakh)
• Section 80D (₹25K-1 lakh)
• Section 80CCD(1B) (₹50K NPS)
• Section 24(b) (home loan interest, up to ₹2L)
• Standard deduction (₹50K salary)
• HRA exemption
• LTA exemption

New regime: standard deduction ₹75K only.

Step 5: Calculate tax.

• Apply slab rates
• Add cess (4% Health & Education Cess)
• Subtract TDS already paid
• Compute refund or tax due

Step 6: File on portal.

• Pre-filled data already populated (since 2022)
• Verify all amounts
• Submit ITR
• E-verify (Aadhaar OTP, net banking, or bank account)

Step 7: Receive acknowledgment.

• ITR-V (acknowledgment) generated
• E-verification confirms filing
• Refund processed (if applicable) within 4-8 weeks

What is the new tax regime vs old tax regime?

FY 2026-27 framework:

New Tax Regime (Default from FY 2024-25):

Slab	Rate
Up to ₹4L	Nil
₹4L - ₹8L	5%
₹8L - ₹12L	10%
₹12L - ₹16L	15%
₹16L - ₹20L	20%
₹20L - ₹24L	25%
Above ₹24L	30%

• Standard deduction: ₹75,000
• Rebate u/s 87A: up to ₹60,000 if income ≤ ₹12.75L
• No 80C, 80D, 80E, 80EEA, etc. (most deductions removed)

Old Tax Regime:

Slab	Rate
Up to ₹2.5L	Nil
₹2.5L - ₹5L	5%
₹5L - ₹10L	20%
Above ₹10L	30%

• Standard deduction: ₹50,000
• All deductions available (80C, 80D, 80E, 80EEA, etc.)
• Rebate u/s 87A: up to ₹12,500 if income ≤ ₹5L

Regime choice:

• New regime: Better for those without significant deductions
• Old regime: Better for those with ₹1.5L+ 80C + ₹50K+ 80D + home loan interest
• Run both calculations; choose better outcome

What documents are needed for ITR filing?

Comprehensive list:

Income proofs:

• Form 16 (employer)
• Form 16A (banks, others paying TDS)
• Salary slips (if Form 16 unavailable)
• Bank statements (interest income calculation)
• Mutual fund statements (capital gains)
• Stock broker statements (capital gains)
• Rental receipts (if landlord)
• Dividend statements
• Other income documents

Deduction proofs (old regime):

• PPF passbook
• ELSS investment proofs
• Life insurance premium receipts
• Health insurance premium receipts
• Home loan certificate (principal + interest split)
• Education loan interest certificate (80E)
• HRA receipts and rent agreement
• Donation receipts (80G)

Verification documents:

• PAN card
• Aadhaar card (for OTP-based verification)
• Bank account details
• Mobile number (for OTP)
• Email ID

Other:

• Form 26AS (consolidated tax statement) — download from portal
• AIS (Annual Information Statement) — from portal
• Reconcile with your records

What are common ITR filing mistakes?

Five errors to avoid:

1. Late filing.

• ₹1K-5K penalty
• Cannot revise later (only specific revisions)
• File 1-2 weeks before deadline

2. Wrong form selection.

• Using ITR-1 with capital gains → returns rejected
• Using ITR-2 unnecessarily → delays processing
• Verify income types before form selection

3. Not reconciling with Form 26AS/AIS.

• TDS mismatch with employer's filing
• Refund delays or notices
• Always cross-check tax statement before filing

4. Forgetting bank account information.

• Refund can't be credited
• Multiple bank accounts? Specify primary for refund
• Pre-validate bank account on portal

5. Not e-verifying after filing.

• Filing without e-verify = invalid
• 30-day window to e-verify after filing
• Multiple e-verification methods available

What happens after I file ITR?

Post-filing process:

Step 1: Acknowledgment.

• ITR-V generated immediately
• Confirms ITR is submitted
• Save for records

Step 2: E-verification.

• Aadhaar OTP, net banking, ATM card, bank account, or DSC
• 30 days from filing to complete
• Without e-verify: filing invalid

Step 3: Refund processing (if applicable).

• Verification by department: 30-60 days
• Refund credited: typically within 60-120 days
• For e-filed + e-verified: usually faster

Step 4: Notices (if any).

• Section 143(1) intimation: automatic acknowledgment + minor adjustment notice
• Section 139(9): defective return notice
• Section 143(2): scrutiny notice
• Section 245: adjustment notice
• Respond within prescribed timelines

Step 5: Revised return (if needed).

• File revised return by Dec 31, 2027
• Use ITR-U for updated returns (later)

Use this on Freedomwise

• Old vs New Tax Regime FY 2026-27 — regime choice
• Capital Gains Tax India — capital gains filing
• Section 80C Explained — deductions
• Tax on Mutual Funds India — MF tax
• General pillar — broader financial literacy