Filing Your Income Tax Return for the First Time: Step-by-Step Guide for AY 2026-27

Do I need to file an income tax return?

You must file an ITR if your gross total income before deductions exceeds the basic exemption limit: Rs 4,00,000 under the new tax regime (default for AY 2026-27) or Rs 2,50,000 under the old regime (for those below 60 years). Even if your income is below the limit, you should file if you want to claim a tax refund, carry forward losses, apply for a loan or visa, or build a documented financial record. (Source: Section 139(1), Income Tax Act; incometax.gov.in)

Frequently Asked Questions

What is the last date to file ITR for AY 2026-27?

July 31, 2026 for individuals and HUFs not subject to tax audit. Businesses requiring audit have until October 31, 2026. Filing after the deadline attracts a late fee under Section 234F.

Which ITR form should a salaried person file?

Most salaried employees with income up to Rs 50 lakh from salary, one or two house properties, and other sources (interest, dividends) file ITR-1 (Sahaj). If you have capital gains above Rs 1.25 lakh from shares, foreign income, or are a company director, file ITR-2.

Can I file my ITR without Form 16?

Yes. Form 16 makes filing easier because it summarizes your salary and TDS, but it is not mandatory. You can file using your salary slips, bank statements, and the TDS data available in Form 26AS and AIS on the e-filing portal.

How do I e-verify my ITR?

The simplest method is Aadhaar OTP: click e-Verify on the portal, select Aadhaar OTP, enter the OTP sent to your Aadhaar-linked mobile, and confirm. Other methods include net banking, bank account EVC, demat account EVC, or sending a signed ITR-V to CPC Bengaluru by post.

Is there a fee for filing ITR online?

Filing on the official portal incometax.gov.in is free. There is no government fee for e-filing. If you hire a CA or use a paid filing service, that is a separate professional fee.

If this is the first time you are filing an income tax return in India, the process can feel unfamiliar. This guide walks through every step: registering on the portal, gathering documents, choosing the correct form, filling in income and deduction details, and completing e-verification.

The entire filing can be done online on the Income Tax Department portal. No physical forms or visits to any office are required.

Looking for expert help with how to file ITR first time online India AY 2026-27 beginners guide? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant end-to-end: filings, notices, and advisory, all in one place.

---

Before You Start: Documents You Need

Gather these before you open the portal:

For the full checklist, see the documents required for ITR filing AY 2026-27.

---

Step 1: Register on the E-Filing Portal

If you have never filed an ITR before, you need to create an account on incometax.gov.in.

How to Register

1. Go to incometax.gov.in and click Register.
2. Enter your PAN and click Validate. The system checks your PAN against the Income Tax database.
3. If your PAN and Aadhaar are linked (mandatory since 2023), select the checkbox for UIDAI validation.
4. Enter your basic details: name (as on PAN), date of birth, gender, and residential status.
5. Enter your contact details: primary mobile number (preferably Aadhaar-linked), email ID, and address.
6. Two separate OTPs are sent to your mobile number and email. Enter both within 15 minutes. You get 3 attempts.
7. Set a password. It must include uppercase, lowercase, a digit, and a special character.
8. Set a personalized secure access message. This message appears each time you log in, confirming you are on the genuine government site and not a phishing page.
9. Registration is complete. Your User ID is your PAN.

PAN-Aadhaar Link Check

If your PAN is not linked with Aadhaar, the portal will block registration and filing. Check the link status at incometax.gov.in under Quick Links > Link Aadhaar Status. If not linked, link it before proceeding.

For the linking process and reactivation of inoperative PAN, see the PAN Aadhaar link guide.

---

Step 2: Download Form 26AS and AIS

Before you start filling the return, download two documents from the portal. These are your primary cross-reference for accuracy.

Form 26AS (Tax Credit Statement)

Shows all TDS deducted against your PAN during the year, advance tax and self-assessment tax paid, and high-value transactions reported by banks and other entities.

Path: Log in > e-File > Income Tax Returns > View Form 26AS

Annual Information Statement (AIS)

A comprehensive view of your financial transactions: salary, interest, dividends, share transactions, property purchases, GST turnover, and more. The AIS is the primary source the Income Tax Department uses to cross-verify your return.

Path: Log in > AIS from the top menu (redirects to the compliance portal)

Compare your Form 16 salary figures, bank interest, and capital gains with what AIS shows. If there is a mismatch (for example, AIS shows interest from a bank account you forgot about), correct your return before submitting. Filing with unreported income invites a mismatch notice later.

For a detailed guide on reading these, see the AIS vs Form 26AS vs TIS comparison guide.

---

Step 3: Choose the Right ITR Form

The wrong form makes your return defective. The portal may auto-suggest a form, but verify against these criteria:

Most First-Time Filers Use ITR-1

If you are salaried, earn up to Rs 50 lakh, have savings account interest, and no capital gains (or only equity LTCG within Rs 1.25 lakh), ITR-1 is your form.

When You Need ITR-2 Instead

If you sold shares or mutual funds with LTCG above Rs 1.25 lakh, sold property, have income from outside India, hold foreign assets (even a small foreign bank account), or are a director in any company, you must file ITR-2 regardless of income level.

For help choosing, see the ITR form selector guide AY 2026-27.

---

Step 4: Start Filing Online

1. Log in to incometax.gov.in with your PAN and password.
2. Go to e-File > Income Tax Returns > File Income Tax Return.
3. Select Assessment Year: 2026-27 (for income earned in FY 2025-26, April 2025 to March 2026).
4. Select Online as the filing mode.
5. Select Individual as the filing status.
6. Choose the ITR form (ITR-1, ITR-2, etc.).
7. Select the reason for filing: most first-time filers choose "Taxable income exceeds the basic exemption limit" or "Filing voluntarily".

Pre-Fill Your Data

Click Let's Pre-fill (or Pre-fill depending on the form). The portal pulls data from your employer's TDS filings, bank interest reports, and other financial information already reported against your PAN.

Review every pre-filled field. Common items to verify:

• Gross salary and exempt allowances (HRA, LTA) match Form 16
• TDS amount matches Form 26AS
• Bank interest matches your bank statements
• Dividend income from shares or mutual funds

If a figure is wrong or missing, correct it manually.

---

Step 5: Fill Income Details

Salary Income (for salaried employees)

If you have Form 16, the salary section is straightforward:

• Gross salary: Total salary before any deductions (Part B of Form 16)
• Allowances exempt under Section 10: HRA exemption, LTA, and other exempt components (listed in Form 16)
• Standard deduction: Rs 75,000 (automatic under both old and new regime for AY 2026-27)
• Professional tax: Amount deducted by your employer (usually Rs 2,400 to Rs 2,500 per year depending on the state)

Income from House Property

If you have a home loan on a self-occupied property, enter the interest paid (deductible up to Rs 2,00,000 per year under the old regime; Rs 2,00,000 under the new regime for self-occupied property). If you receive rental income, declare it under Income from House Property.

Income from Other Sources

Savings account interest, FD interest, dividend income, and any other income not covered under salary, house property, capital gains, or business income.

Capital Gains (if applicable)

If you sold shares, mutual funds, or property, enter the details. For listed equity held over 12 months, LTCG above Rs 1.25 lakh is taxed at 12.5%. For other assets, rates vary by holding period and asset type.

For details, see the capital gains tax guide AY 2026-27.

---

Step 6: Choose Your Tax Regime

For AY 2026-27, the new tax regime is the default. You do not need to do anything to opt into it.

If you want to file under the old tax regime (to claim deductions like 80C, 80D, HRA exemption), you must actively opt out of the new regime during filing.

Quick Comparison

If you are a first-time filer with only salary income and no investments to claim deductions on, the new regime is usually simpler and often results in lower tax.

For a detailed comparison, see the old vs new tax regime comparison guide.

---

Step 7: Enter Deductions (Old Regime Only)

If you opted for the old regime, fill Schedule VI-A with your deductions:

• Section 80C (up to Rs 1,50,000): PPF, ELSS, life insurance, home loan principal, children's tuition fees
• Section 80D (up to Rs 25,000 self + Rs 25,000 parents): Health insurance premium
• Section 80CCD(1B) (Rs 50,000): Additional NPS contribution
• Section 80E: Education loan interest (no limit)
• Section 80G: Donations to approved charitable institutions
• Section 24(b): Home loan interest (up to Rs 2,00,000 for self-occupied property)

Under the new regime, these deductions (except standard deduction and employer NPS) are not available. Do not fill Schedule VI-A under the new regime.

For the full list, see the Section 80C deductions list AY 2026-27 and Section 80D guide.

---

Step 8: Verify Tax Computation

Before submitting, the portal shows a tax computation summary. Check:

• Total income matches your expectation
• Tax liability looks correct based on the slab rates
• TDS credited matches Form 26AS
• Refund or balance payable: If TDS exceeds your liability, you get a refund. If your liability exceeds TDS, you must pay the difference as self-assessment tax before submitting.

Paying Self-Assessment Tax

If you owe tax:

1. Click Pay Now on the tax computation page (or go to e-Pay Tax separately).
2. Select Income Tax, then Self-Assessment Tax (300) as the type of payment.
3. Enter the amount and pay via net banking, UPI, or debit card.
4. The challan details auto-populate in your return after payment.

For a detailed guide on paying tax online, see the how to pay income tax online guide.

---

Step 9: Submit and E-Verify

Click Preview and Submit. Review the final summary one more time. Click Submit.

After submitting, you must e-verify your return within 30 days. An unverified return is treated as not filed.

E-Verification Methods

For the full e-verification walkthrough, see the how to e-verify ITR guide.

---

After Filing: What to Expect

Acknowledgement Number

After successful submission and e-verification, you receive an acknowledgement number (ITR-V or e-verified acknowledgement). Save this. You will need it for loan applications, visa applications, or if you receive a notice.

CPC Processing

The Centralized Processing Centre (CPC) at Bengaluru processes your return. Processing typically takes 15 to 45 days. You will receive an intimation under Section 143(1) via email and on the portal with one of three outcomes:

1. Refund: If TDS exceeded your liability, the refund is credited to your pre-validated bank account.
2. No refund, no demand: Your return matches the CPC computation. No further action needed.
3. Demand: The CPC found a difference. You either pay the demand or file a rectification if you disagree.

Refund Timeline

Refunds are typically credited within 20 to 45 days of e-verification. To check status, go to incometax.gov.in > e-File > Income Tax Returns > View Filed Returns, or check on the NSDL refund status page.

For details on tracking your refund, see the income tax refund status guide.

---

Common Mistakes First-Time Filers Make

1. Not verifying AIS: Filing without checking AIS means missing unreported bank interest, dividends, or high-value transactions. The CPC catches these and sends a mismatch notice.

2. Choosing the wrong form: Filing ITR-1 when you have capital gains above Rs 1.25 lakh or foreign income results in a defective return notice under Section 139(9).

3. Forgetting to e-verify: Your return is invalid until e-verified. Do it immediately after filing.

4. Not reporting exempt income: Exempt income (like agricultural income above Rs 5,000, or LTCG below Rs 1.25 lakh) must still be reported in the return. Not reporting it does not make it invisible to the CPC.

5. Selecting the wrong regime by accident: If you intend to claim 80C and 80D deductions, you must actively opt for the old regime. The new regime is the default, and deductions under Chapter VI-A are not allowed under it.

6. Not pre-validating bank account: Refunds are credited only to pre-validated bank accounts linked on the portal. Add and validate your bank account before filing.

For a full list, see the common ITR filing mistakes guide.

---

Timeline and Deadlines

Filing after July 31 attracts a Section 234F late fee. For details on the fee and interest, see the Section 234F late filing fee guide.

---

Source: Section 139(1), Income Tax Act 1961; incometax.gov.in portal registration and filing user manuals; CBDT notification for ITR forms AY 2026-27; ClearTax ITR filing guide; Section 234F, Income Tax Act 1961. All procedures and deadlines verified as of July 2026.