ITR Filing FY 2025-26: Step-by-Step Guide for Salaried People

Filing your income tax return is one of those tasks that feels bigger than it is. For most salaried people, it's genuinely a 30-45 minute job once the documents are in front of you. This guide walks through the whole thing for FY 2025-26 (that's income earned between April 2025 and March 2026, filed as Assessment Year 2026-27).

When is the deadline?

For salaried taxpayers (no audit requirement), plan around the notified due date in the July-September 2026 window - the department announces (and sometimes extends) the exact date each year, so check the income tax portal rather than relying on memory. Filing early has real advantages: refunds arrive sooner, and you're not fighting portal traffic on the last weekend.

Miss the due date and you're into belated-return territory - late fees, interest on unpaid tax, and loss of the option to switch to the old regime. Don't let it get there.

Step 1: Gather your documents

You don't need a folder full of paper. You need these:

• Form 16 - issued by your employer, usually by mid-June 2026. Part A shows TDS deposited; Part B shows the salary break-up and deductions your employer considered. If you switched jobs during the year, collect Form 16 from every employer.
• AIS and Form 26AS - download both from the income tax portal. Form 26AS is your TDS ledger; the AIS (Annual Information Statement) is broader, showing interest income, dividends, mutual fund transactions and more that banks and institutions have reported against your PAN.
• Bank interest certificates - savings and FD interest is taxable, and the AIS usually knows about it even if you forgot.
• Investment proofs - only if you're claiming old-regime deductions like Section 80C or HRA that your employer didn't factor in. For HRA claims, keep rent receipts handy - you can generate proper ones with the rent receipt generator.
• Capital gains statements - from your broker or mutual fund house, if you sold shares or funds.

Cross-check Form 16 against AIS/26AS before filing. If TDS in Form 16 doesn't appear in 26AS, chase your employer - you can't claim credit for tax that was never deposited against your PAN.

Step 2: Pick the right form - ITR-1 or ITR-2

Most salaried people use one of these two:

ITR-1 (Sahaj) works if all of these are true:

• Total income up to ₹50 lakh
• Income from salary or pension, one house property, and other sources (interest, etc.)
• You're a resident individual, no foreign assets, not a company director, no unlisted shares

ITR-2 is for you if any of these apply:

• Total income above ₹50 lakh
• Capital gains - sold shares, mutual funds, or property (rules on when small listed-equity gains still fit ITR-1 have shifted over the years, so if you have any capital gains, confirm the current position or check with a CA)
• More than one house property
• Foreign assets or foreign income, directorship, or unlisted equity holdings

Picking the wrong form can make your return defective, so spend the two minutes here.

Step 3: Choose your regime - at filing time

The new regime is the default. Whatever you told your employer in April only affected TDS; at filing time you get a fresh choice, and salaried taxpayers (without business income) can switch every year.

This matters because the regimes differ sharply for FY 2025-26 - the new regime makes salaries up to ₹12.75 lakh effectively tax-free via the ₹60,000 Section 87A rebate, while the old regime only wins if you carry heavy deductions. If you haven't decided, read our new vs old regime comparison and run both scenarios in the income tax calculator before you file.

If your employer deducted TDS under one regime and you file under the other, the portal simply recomputes - excess TDS comes back as a refund.

Step 4: File on the portal

• Log in at the income tax e-filing portal with your PAN.
• Choose "File Income Tax Return" for AY 2026-27, select online mode.
• The form comes pre-filled from your employer's and banks' reporting. Don't trust it blindly - verify salary figures against Form 16, interest against your bank statements, and every TDS entry against 26AS.
• Add anything missing: savings interest, a second employer's salary, capital gains.
• Confirm your regime selection, review the computation, pay any self-assessment tax due, and submit.

Step 5: E-verify - the step people forget

An unverified return is treated as not filed. E-verify within 30 days of submission - Aadhaar OTP is the fastest route; net banking works too. This one click is the difference between done and not done.

Common mistakes to avoid

• Skipping interest income. The AIS already shows it; omitting it invites a mismatch notice.
• Forgetting the second Form 16 after a job switch - both employers may have given you the basic exemption, leaving tax due.
• Claiming deductions without proof in the old regime. HRA and 80C claims can be questioned; keep rent receipts and investment statements safely for a few years.
• Wrong bank account for refund. The account must be pre-validated on the portal.
• Filing but not e-verifying. See above. It's the most common own goal.
• Last-day filing. Portal slowdowns are a tradition. Don't participate.

Refund timeline: what to expect

Once you e-verify, the return goes for processing under Section 143(1). For straightforward salaried returns, refunds commonly arrive within a few weeks, though it can stretch longer during peak season or if the return is picked for closer checking. You'll get an intimation email when processing completes; the refund lands directly in your pre-validated bank account.

If the intimation shows a mismatch you disagree with, you can respond or file a rectification - for anything beyond a simple correction, check with a CA.

The short version

Collect Form 16 and AIS, reconcile them, pick ITR-1 or ITR-2 honestly, choose your regime with actual numbers rather than habit, file well before the due date, and e-verify immediately. Do that, and ITR filing is a coffee-length task - with a refund as the reward.