ITR Filing AY 2026-27: Complete A to Z Guide for Beginners, Salaried People, Investors and Traders

Income Tax Return filing looks simple from outside. Login, select form, enter income, submit — finished.

But when a beginner actually opens the Income Tax portal, the real confusion starts.

Which ITR form should I select?
Should I use ITR-1 or ITR-2?
What if I sold shares?
What if I did F&O or intraday trading?
Should I check AIS or Form 26AS?
What happens if I forget to e-verify?

This guide is written exactly for that confusion.

For Assessment Year 2026-27, taxpayers are filing return for income earned during Financial Year 2025-26, meaning income earned from 1 April 2025 to 31 March 2026. The Income Tax Department’s official portal has shown that ITR-1, ITR-2 and ITR-4 filing utilities are live, and the common offline utility for ITR-1, ITR-2 and ITR-4 was updated on 29 May 2026.

This article will explain ITR filing from A to Z in simple language.

What Is ITR Filing?

ITR means Income Tax Return.

It is a statement you submit to the Income Tax Department showing:

Your income
Your deductions
Your tax already paid
Your tax still payable, if any
Your refund, if excess tax was paid
Your capital gains, business income or other income, if applicable

Filing ITR is not only for people who have tax payable. Even if your employer already deducted TDS, you may still need to file ITR if your income crosses the basic limit, you want a refund, you have capital gains, you have foreign assets, you need to carry forward losses, or you want clean financial records for loans and visas.

For AY 2026-27, one important point is that the return for FY 2025-26 is still governed by the Income Tax Act, 1961, even though the new Income Tax Act framework starts from 1 April 2026 for later tax years. The official Income Tax help page clearly says AY 2026-27 filings relate to income of FY 2025-26 and should be filed by selecting AY 2026-27 on the portal.

Why ITR Filing Is Important

Many people think ITR filing is only a tax formality. Actually, it is more than that.

A properly filed ITR helps when you apply for a home loan, personal loan, business loan, visa, credit card or government tender. It also helps you claim refund if extra TDS was deducted from salary, bank interest, rent, commission or professional income.

For investors and traders, ITR filing is even more important. If you have capital loss from shares or mutual funds and you want to carry it forward, you must file the return within the due date. The Income Tax Department also says filing return of loss within the due date is necessary for carry-forward of certain losses, including business and capital gains losses.

ITR Filing AY 2026-27: Important Dates

For most salaried individuals and non-audit taxpayers, the regular due date is generally 31 July 2026. For some non-audit business or professional cases using ITR-3 or ITR-4, the due date may be 31 August 2026. Audit cases generally have later timelines.

The official Income Tax help page mentions AY 2026-27 due dates such as 31 July or 31 August for non-audit cases, and also explains that tax audit reports are generally due one month before the ITR due date.

A belated return for AY 2026-27 can be filed on or before 31 December 2026, or before completion of assessment, whichever is earlier. Late filing fee under Section 234F is ₹1,000 where total income does not exceed ₹5 lakh and ₹5,000 in other cases.

Which ITR Form Should You Choose?

This is the most important step. Selecting the wrong form can lead to defective return notice, delay in refund or wrong reporting.

ITR-1 Sahaj

ITR-1 is mainly for resident individuals with simple income.

For AY 2026-27, ITR-1 can be used by a resident individual, other than not ordinarily resident, having total income up to ₹50 lakh from salary or pension, house property, other sources like interest, agricultural income up to ₹5,000 and long-term capital gains under Section 112A up to ₹1.25 lakh. The official ITR-1 form and Income Tax portal guidance also show that ITR-1 now covers income from up to two house properties, subject to conditions.

You cannot use ITR-1 if you have short-term capital gains, LTCG under Section 112A above ₹1.25 lakh, income from more than two house properties, foreign assets, foreign income, business income, unlisted equity shares, company directorship, carried-forward losses or total income exceeding the permitted limit.

ITR-2

ITR-2 is for individuals and HUFs who do not have business or professional income, but are not eligible for ITR-1.

Use ITR-2 if you have capital gains from shares, mutual funds, property or other assets beyond the ITR-1 limit. Also use ITR-2 if you have foreign assets, foreign income, more than two house properties, total income above ₹50 lakh, unlisted equity shares, or if you are a director in a company.

The Income Tax Department describes ITR-2 as applicable to individuals and HUFs having income under any head other than profits and gains of business or profession, and who are not eligible to file ITR-1.

ITR-3

ITR-3 is for individuals and HUFs having business or professional income.

This is especially important for people doing F&O trading, intraday trading, freelancing, consulting, professional work, small business or proprietary business.

The Income Tax Department describes ITR-3 as applicable for individuals and HUFs having income from salary/pension, house property, profits or gains of business or profession, capital gains or other sources, where they are not eligible for ITR-1, ITR-2 or ITR-4.

The notified ITR-3 form for AY 2026-27 has separate fields for turnover from intraday trading, income from intraday trading, turnover from Futures & Options trading and income from Futures & Options trading. This is very important for traders because reporting is becoming more detailed.

ITR-4 Sugam

ITR-4 is a simplified form for resident individuals, HUFs and firms other than LLP who declare income under presumptive taxation sections like 44AD, 44ADA or 44AE.

The official Income Tax Department guidance says ITR-4 is not mandatory; it is a simplified return that eligible taxpayers may choose when they declare profits and gains from business or profession on presumptive basis.

ITR-4 cannot be used by a person who has short-term capital gains, LTCG under Section 112A above ₹1.25 lakh, foreign assets, foreign income, unlisted equity shares, carried-forward losses, company directorship or total income above the allowed limit.

Documents Required Before Filing ITR

Before opening the portal, keep documents ready. This saves time and reduces mistakes.

Keep these details ready:

PAN and Aadhaar
Bank account details
Form 16 from employer
Form 16A for non-salary TDS
Form 26AS
AIS and TIS
Salary slips
Interest certificates from banks
Home loan interest certificate
Rent receipts, if claiming HRA under old regime
Insurance, ELSS, PPF, NPS, tuition fee and medical insurance proofs
Capital gains statement from broker or mutual fund platform
F&O and intraday trading P&L statement
Bank statement
Dividend details
Foreign asset details, if applicable

For salaried people, Form 16 is the base document. But do not blindly copy only Form 16. You must also check AIS, TIS and Form 26AS.

What Are Form 26AS, AIS and TIS?

Form 26AS mainly shows tax deducted and collected against your PAN. AIS gives a wider picture of your financial information, including income, tax details and financial transactions. The official Income Tax Department says from AY 2023-24 onwards, Form 26AS on TRACES mainly displays TDS/TCS data, while other taxpayer information is available in AIS. AIS also allows taxpayers to provide feedback on reported transactions, and TIS is the taxpayer information summary contained under AIS.

In simple words:

Form 26AS = tax credit statement
AIS = detailed financial information report
TIS = summary of AIS data used for return filing

Before filing ITR, compare these three with your own documents. Sometimes AIS may show duplicate entries or incorrect values. Do not panic. Check the source, match it with bank/broker records and use the feedback option where needed.

New Tax Regime vs Old Tax Regime

For AY 2026-27, most individual taxpayers will compare old regime and new regime.

Under the new regime for FY 2025-26, the slab structure includes nil tax up to ₹4 lakh, 5% from ₹4 lakh to ₹8 lakh, 10% from ₹8 lakh to ₹12 lakh, 15% from ₹12 lakh to ₹16 lakh, 20% from ₹16 lakh to ₹20 lakh, 25% from ₹20 lakh to ₹24 lakh and 30% above ₹24 lakh, as shown in the Income Tax Department’s AY 2026-27 slab guidance.

Budget 2025 had also announced that under the new tax regime there would be no income tax on annual income up to ₹12 lakh, and for salaried taxpayers the effective limit would be ₹12.75 lakh because of the ₹75,000 standard deduction.

But one important warning: capital gains and other special-rate income may not get the same rebate treatment as normal salary income. So investors should calculate carefully instead of assuming “income below ₹12 lakh means no tax in every case”.

Old regime may still help taxpayers who have large deductions like HRA, home loan interest, Section 80C, Section 80D, NPS and other eligible deductions. New regime may help people who do not use many deductions. Compare both before submitting.

How To File ITR Online: Step-by-Step

Step 1: Login to the Income Tax Portal

Go to the official Income Tax e-filing portal. Login using PAN as user ID, password and required verification.

Never use random links received by SMS, WhatsApp or email. Always type the official portal address manually or use a trusted saved bookmark.

Step 2: Select File Income Tax Return

After login, go to:

e-File → Income Tax Returns → File Income Tax Return

The Income Tax Department’s own service guide explains the online filing route through the e-filing portal and the option to enter relevant data directly online and submit.

Step 3: Select Assessment Year

For income earned from 1 April 2025 to 31 March 2026, select:

Assessment Year 2026-27

Do not select Tax Year 2026-27 by mistake. AY 2026-27 is for FY 2025-26 income.

Step 4: Select Filing Mode

Most individuals can choose online mode. Offline utility may be useful if the return is detailed or if the online form is difficult to complete.

The official downloads page currently shows a common offline utility for ITR-1, ITR-2 and ITR-4 for AY 2026-27.

Step 5: Choose the Correct ITR Form

Select ITR-1, ITR-2, ITR-3 or ITR-4 based on your income type.

Do not select ITR-1 only because it looks easy. If you have F&O income, intraday income, business income, foreign assets or complex capital gains, choose the proper form.

Step 6: Check Pre-Filled Data

The portal may pre-fill salary, TDS, interest, dividend, bank details and other information.

Check every figure. Pre-filled data is helpful, but it is not always final truth. Your responsibility is to file correct income.

Step 7: Enter Income Details

Add salary income from Form 16.

Add house property income if you have rental income or home loan interest.

Add other income like savings interest, FD interest, dividend, commission, family pension and any other taxable income.

For investors, enter capital gains correctly. Use your broker capital gains statement and mutual fund statement.

For F&O and intraday traders, use proper trading P&L, turnover and expense details. Intraday and F&O reporting should not be treated casually because ITR-3 now asks for separate trading-related information.

Step 8: Claim Deductions Carefully

Under the old regime, eligible deductions may include Section 80C, 80D, 80CCD, 80G and others.

Under the new regime, many old deductions and exemptions are not available. So do not claim deductions blindly. Select regime first, then check what is allowed.

Step 9: Check Tax Payable or Refund

After entering all details, the portal calculates tax.

If tax is payable, pay self-assessment tax before final submission. After payment, challan details must reflect correctly.

If refund is due, check that your bank account is validated and linked properly. Wrong bank details can delay refund.

Step 10: Preview Return

This is the most ignored step.

Before submitting, check:

Name
PAN
Address
Bank account
Salary income
Interest income
Dividend income
Capital gains
TDS
Tax paid
Refund amount
Regime selected
Schedule details
Loss carry forward details
Foreign asset schedule, if applicable

One small mistake can create unnecessary notice or refund delay.

Step 11: Submit and E-Verify

After final submission, e-verification is compulsory.

The Income Tax Department says you can e-verify using Aadhaar OTP, EVC through pre-validated bank or demat account, net banking or Digital Signature Certificate. E-verification also avoids sending physical ITR-V to CPC, Bengaluru.

Without verification, the return is not treated as properly completed.

Capital Gains Reporting for Investors

If you sold shares, equity mutual funds, debt mutual funds, gold, land, building or any other capital asset, you must report capital gains.

For small equity investors, ITR-1 may now allow LTCG under Section 112A up to ₹1.25 lakh, subject to eligibility conditions. But if you have short-term capital gains, capital gains above the permitted limit, property sale, carried-forward losses or more complex situations, ITR-2 or ITR-3 may be needed.

Do not rely only on AIS for capital gains. AIS may not always show correct purchase cost, grandfathering value, expenses or adjustments. Use broker statements, contract notes and mutual fund capital gains reports.

F&O and Intraday Trading Reporting

Many retail traders make a big mistake here. They think F&O profit or intraday profit is just “stock market income” and can be shown as capital gains.

Generally, F&O and intraday trading are reported under business income, and many individuals with such income use ITR-3. Intraday and F&O details need proper turnover, profit/loss and expense reporting. The AY 2026-27 ITR-3 form has specific fields for intraday trading turnover/income and F&O turnover/income.

If you are a trader, maintain:

Broker P&L statement
Turnover calculation
Expense details
STT, brokerage and exchange charges
Internet/software expenses, if claimed
Bank statement
Tax audit applicability check
Books of account, if required

For active traders, it is better to take help from a CA because audit rules, loss adjustment and turnover calculation can become technical.

Common ITR Filing Mistakes To Avoid

Do not select wrong ITR form.

Do not ignore AIS mismatch.

Do not forget savings account interest.

Do not forget FD interest.

Do not claim deductions under the wrong regime.

Do not miss dividend income.

Do not report F&O as simple capital gains.

Do not forget to e-verify.

Do not enter wrong bank account.

Do not file without checking Form 26AS and AIS.

Do not hide income because it is already visible to the department through TDS, SFT, AIS, broker reports and bank data.

Should Beginners File ITR Themselves or Use a CA?

A simple salaried person with one employer, no capital gains, no foreign income and no business income can usually file ITR after carefully checking Form 16, AIS and Form 26AS.

But professional help is better if you have:

F&O trading
Intraday trading
Capital gains from many transactions
Property sale
Foreign income
Foreign assets
Crypto/VDA income
Business income
Freelance income
Tax audit possibility
Notice from department
Loss carry-forward case

Saving a small filing fee should not create a big tax problem later.

FAQs on ITR Filing AY 2026-27

1. Which income is filed for AY 2026-27?

AY 2026-27 is for income earned during FY 2025-26, from 1 April 2025 to 31 March 2026.

2. Which ITR form is for salaried people?

Most simple salaried taxpayers use ITR-1. If they have capital gains, foreign assets, or complex income, ITR-2 may be required.

3. Which ITR is used for F&O trading?

F&O and intraday traders generally use ITR-3 because trading income is usually treated as business income.

4. Is e-verification required after filing ITR?

Yes. ITR filing is complete only after e-verification.

5. What happens if I file ITR late?

Late fee, interest, and loss carry-forward restrictions may apply.

Disclaimer

This article is for educational purposes only. Tax rules may change, so please verify details on the official Income Tax portal or consult a qualified tax professional before filing your ITR.