How to File Income-tax Return Form 1 for Assessment Year 2026-27

Eligibility Test for Income-tax Return Form 1

Resident individual (not non-resident or resident-but-not-ordinarily-resident)

Total income up to INR 50 lakh

Income only from: salary or pension PLUS one house property PLUS other sources PLUS agricultural income up to INR 5,000

NOT a company director

NO unlisted equity shares

NO foreign asset or signing authority abroad

NO claim of relief under sections 90 / 90A / 91 (foreign tax credit)

NO carry-forward losses (other than house property)

Permanent Account Number plus Aadhaar (linked)

Verify Permanent Account Number is OPERATIVE; inoperative Permanent Account Number means tax-deducted-at-source at 20%

Form 16 from employer

Part A from the Tax Deduction Reconciliation Analysis Correction Enabling System portal plus Part B prepared by the employer

Form 16A for non-salary tax-deducted-at-source

Fixed deposit interest, contractor tax-deducted-at-source etc.

Form 26AS / Annual Information Statement / Taxpayer Information Summary

From the Income Tax Portal

Bank account statements

Reconcile interest income

House property documents

Rental income or self-occupied with home loan

Investment proofs

Life insurance, Public Provident Fund, Equity Linked Savings Scheme, National Savings Certificate, section 80D, 80G certificates

Home loan interest certificate

From the bank

Capital gains statements

Broker statements with date of transfer

Tax payment challans

Advance tax / self-assessment tax challan ITNS-280

Bank account number plus Indian Financial System Code

Pre-validated for refund credit

Step 1: Log in to e-Filing Portal

Visit incometax.gov.in. Log in with Permanent Account Number plus password. Navigate to e-File then Income Tax Returns then File Income Tax Return. Select assessment year 2026-27. Select 'Online' filing mode. Status: Individual.

Step 2: Choose Income-tax Return Form 1

Select Income-tax Return Form 1. Verify the eligibility checklist. Click Continue. The portal will pre-populate from your Permanent Account Number profile, the Annual Information Statement, and Form 26AS. VERIFY each pre-filled item against your records.

Step 3: Verify Personal Details

Name, Permanent Account Number, Aadhaar (must be linked), date of birth, contact details, residential status, nature of employment. Pre-validate at least one bank account for refund.

Step 4: Income Details -- Salary

Enter from Form 16 Part B: gross salary under section 17(1) plus perquisites under section 17(2) plus profits in lieu of salary under section 17(3). Less: exemptions under section 10 (House Rent Allowance / Leave Travel Allowance / gratuity / leave encashment) plus standard deduction INR 75,000 (new regime) / INR 50,000 (old regime) plus professional tax.

Step 5: Income Details -- House Property

Self-occupied: annual value Nil; deduction under section 24(b) up to INR 2 lakh in old regime. Let-out: annual value (higher of municipal or fair rent or actual rent received) less municipal taxes less 30% standard deduction less interest. Loss capped at INR 2 lakh against other heads under section 71.

Step 6: Income Details -- Other Sources

Bank interest (savings plus fixed deposit plus recurring deposit), dividend, family pension (one-third or INR 15,000 standard deduction). Cross-check with the Annual Information Statement / Taxpayer Information Summary -- mismatch means a notice.

Step 7: Chapter VI-A Deductions (Old Regime)

Section 80C INR 1.5 lakh (Life Insurance / Public Provident Fund / Equity Linked Savings Scheme / National Savings Certificate / tuition fees / home loan principal). Section 80CCD(1B) INR 50,000. Section 80D INR 25,000 to 1 lakh. Section 80E (no cap). Section 80G (50% / 100% with or without gross-total-income cap). Section 80TTA / 80TTB. NEW REGIME: only sections 80CCD(2) / 80JJAA / 80M / 80LA / 80CCH preserved.

Step 8: Compute Taxable Income and Tax

Apply slab rates. New regime: NIL up to INR 3 lakh / 5% (3-7 lakh) / 10% (7-10 lakh) / 15% (10-12 lakh) / 20% (12-15 lakh) / 30% (above 15 lakh) plus section 87A rebate INR 25,000. Old regime: NIL up to 2.5 lakh / 5% (2.5-5 lakh) / 20% (5-10 lakh) / 30% (above 10 lakh) plus section 87A rebate INR 12,500. Surcharge plus 4% cess.

Step 9: Tax Paid / Tax-Deducted-at-Source Reconciliation

Tax-deducted-at-source from salary (Form 16 Part A) plus Form 16A plus self-assessment plus advance tax. Compare with tax payable. Refund or shortfall? Pay self-assessment via the portal e-Pay Tax BEFORE filing to avoid section 234A interest.

Step 10: Validate

Click Validate. Common errors: missing bank account, mismatched tax-deducted-at-source, regime not chosen, section 87A claim error. Fix all errors before submission.

Step 11: Submit and Generate Acknowledgement

Click Submit. Acknowledgement generated with 14-digit reference number.

Step 12: Electronic Verification Within 30 Days

(a) Aadhaar one-time-password (instant); (b) Net banking; (c) Digital Signature Certificate; (d) Bank Automated Teller Machine; (e) Demat. Failure to verify means the return is treated as not filed.

Top Five Pitfalls

Annual Information Statement / Taxpayer Information Summary not reconciled -- bank fixed deposit interest missed leads to a mismatch notice.

Tax-deducted-at-source in Form 16 but not reflecting in Form 26AS -- delays refund.

Bank account NOT pre-validated -- refund cannot be credited.

Self-assessment tax NOT paid before filing -- section 234A interest accrues.

Failure to electronically verify within 30 days -- return treated as not filed.

Refund Processing

7 to 30 days post processing

Refund credit to pre-validated bank account

Intimation under section 143(1)

Within 9 months from end of assessment year

Respond within 30 days if adjustments are proposed

Notice under section 143(2) -- Scrutiny

Within 3 months from end of assessment year

Faceless assessment via the National Faceless Assessment Centre if selected

Assessment Completion

Within 9 months from end of assessment year

Demand notice or refund order