Income Tax Filing for Salaried Employees in India: Complete Step-by-Step Guide 2026

Filing Your Own Taxes in 2026: Simpler Than You Think

The Income Tax Act 2025 has simplified the filing process significantly. For salaried employees — the largest segment of taxpayers in India — the ITR filing experience in 2026 is the most streamlined it has ever been. Auto-populated data, pre-filled forms, and a cleaner portal make it genuinely possible to file accurately without professional help.

But "simpler" doesn't mean "automatic." You still need to verify every number, understand what you're signing off on, and make the right choices.

This guide walks you through the complete process.

Before You Start: Documents to Collect

From your employer:

• ✅ Form 16 Part A (TDS deducted, PAN, employer details)
• ✅ Form 16 Part B (salary breakup, deductions, taxable income computation)

From the income tax portal:

• ✅ Form 26AS (TDS credit statement — all TDS deducted on your PAN)
• ✅ AIS (Annual Information Statement — comprehensive financial activity on your PAN)

From your bank:

• ✅ Bank statement for the financial year
• ✅ Fixed deposit interest certificate (if any)

For deductions (if claiming old regime):

• ✅ Investment proof (PPF statements, ELSS NAV statements, LIC receipts)
• ✅ Rent receipts + landlord PAN (for HRA)
• ✅ Home loan interest certificate

Step 1: Log into the E-Filing Portal

Visit incometax.gov.in and log in using your PAN as User ID.

If you're a first-time filer, register using your PAN, Aadhaar, and mobile number.

Step 2: Check Your AIS First

Before touching the ITR, go to Services → Annual Information Statement (AIS).

Review all entries:

• TDS/TCS credits from all payers (employer, bank, etc.)
• Dividend income reported by companies
• High-value transactions (property purchase, large cash deposits)
• Interest income reported by banks

If anything looks incorrect, use the Feedback option to dispute it. Discrepancies between your AIS and ITR trigger automated notices — always reconcile first.

Step 3: Select Your ITR Form

For most salaried employees: ITR-1 (Sahaj)

Use ITR-1 if you have:

• Salary income only
• Interest income (savings/FD)
• One house property (self-occupied or let-out)
• Total income below ₹50 lakh
• No capital gains, no foreign assets, no business income

Use ITR-2 if you have capital gains, more than one property, or foreign income/assets.

Step 4: Start Filing — Navigate to File ITR

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

Select: Tax Year 2026 → Original Return → ITR-1 → Continue

Step 5: Verify Pre-Filled Data

The portal pre-fills your:

• Personal information (name, address, bank details)
• Employer TDS data (from Form 16 / TDS statements)
• Other income (interest, dividends)

Do NOT assume pre-filled = correct. Always verify:

• Salary figures match your Form 16 Part B
• TDS credits match your Form 26AS
• Bank account details are current

Step 6: Select Old or New Tax Regime

This is the most important decision:

New Regime (default): Lower tax rates, no deductions. Best for income below ₹12 lakh and those with limited investments.

Old Regime: Higher rates but allows 80C, HRA, home loan interest, 80D. Can save more tax if deductions are significant.

Run both calculations before selecting. The portal shows comparative tax amounts.

Step 7: Enter Deductions (If Choosing Old Regime)

• 80C: Total investments in PPF, ELSS, LIC, EPF, etc. (max ₹1.5 lakh)
• 80D: Health insurance premiums (self: ₹25,000; parents: ₹25,000–₹50,000)
• HRA: Auto-calculated if you entered salary details correctly
• Home loan interest: Under Section 24(b) — up to ₹2 lakh

Step 8: Validate and Preview Tax Computation

The portal calculates:

• Gross total income
• Total deductions
• Net taxable income
• Tax liability (after rebate under Section 87A if applicable)
• TDS already deducted (from Form 26AS)
• Tax payable or refund due

Step 9: Pay Any Outstanding Tax (If Applicable)

If tax payable > TDS already deducted: Pay via Challan 280 online through Net Banking.

If TDS > tax liability: You're due a refund, credited directly to your bank account within 20–45 days of filing.

Step 10: Submit and E-Verify

Submit the return, then e-verify immediately using:

• Aadhaar OTP (fastest — recommended)
• Net banking
• Bank ATM (for select banks)
• DSC (Digital Signature Certificate)

Important: A return is not filed until it's verified. Unverified returns are treated as not filed — attracting late filing penalties.

Key Deadlines for Tax Year 2026

What Accountants Earn From ITR Filing Services

For freshers who want to leverage this skill professionally:

• Individual ITR-1: ₹300–₹800 per return
• Business ITR-3/4: ₹1,500–₹5,000 per return
• Peak season (July) volume: 50–200 returns → significant income

At Accountique Freshers Labz, our Income Tax & TDS Course includes live e-filing portal sessions where you practice filing returns from start to finish — building the confidence to handle your own taxes and those of clients or employers from day one.

The ITR filing window opens July 1, 2026. Be ready.