ITR-1 (Sahaj) Filing for FY 2026-27: Complete Salaried Employee Guide
File your Income Tax Return accurately using Form 16/130. Know the 31 July 2027 deadline, new tax regime slabs (zero tax up to ₹12.75L), ₹5,000 late fee, and step-by-step portal process for AY 2027-28.
Key Compliance Specifications
At-a-Glance Statutory Requirements
Resident individuals with total income ≤ ₹50 lakh from salary/pension, up to two house properties, other sources (interest). No capital gains (except LTCG u/s 112A ≤ ₹1.25L), no foreign assets, no directorship, no business income.
No government fee for ITR filing. Late fee u/s 234F: ₹5,000 (₹1,000 if income ≤ ₹5L) if filed after 31 Jul but before 31 Dec 2027; ₹10,000 thereafter.
E-filing: Instant acknowledgement. Processing & refund: 2–8 weeks typically. E-verification mandatory within 30 days of filing.
Annual filing for each Financial Year (1 April – 31 March). Revised return u/s 139(5) allowed till 31 Dec 2027. Updated return (ITR-U) within 48 months from end of AY.
Late fee u/s 234F up to ₹10,000. Interest u/s 234A at 1%/month on unpaid tax. Loss carry-forward forfeited (except house property). Belated return cannot opt for old tax regime. Defective return notice u/s 139(9) if wrong form filed.
What is ITR-1 / salaried ITR filing?
ITR-1 (Sahaj) is the simplified Income Tax Return form for resident salaried individuals and pensioners for Assessment Year 2027-28 (income earned during FY 2026-27, 1 April 2026 – 31 March 2027). Governed by the Income Tax Act, 2025 (effective 1 April 2026), it applies to residents with total income up to ₹50 lakh from salary/pension, up to two house properties (new from AY 2026-27), and other sources like interest. Key exclusions: any capital gains (except LTCG u/s 112A ≤ ₹1.25L on listed equity/equity MFs), foreign assets/income, directorship in companies, business/profession income, or agricultural income > ₹5,000. The new tax regime (Section 115BAC / Section 202 of IT Act 2025) is the default; salaried taxpayers can opt for the old regime each year at the time of filing.
Governing Act: Income Tax Act, 2025 (effective 1 April 2026) / Income Tax Act, 1961 (for FY 2025-26)
Regulatory Authority: Central Board of Direct Taxes (CBDT), Income Tax Department
Who Needs to Comply / Eligibility Criteria
Key Benefits & Strategic Advantages
Statutory protections and operational advantages of timely compliance.
Document Checklist
Required Proofs & Paperwork
Official Fee Schedule
Statutory Government Fees & Penalty Matrix
| Category / Taxpayer Slabs | Government Fee | Applicable Penalty / Late Fee | Compliance Notes |
|---|---|---|---|
| ITR-1 E-Filing (Self / CA-assisted) | ₹0 (No government fee) | ₹5,000 u/s 234F if filed 1 Aug – 31 Dec 2027 (₹1,000 if total income ≤ ₹5L); ₹10,000 if filed after 31 Dec 2027 | Professional fees for CA-assisted filing vary (typically ₹500–₹5,000). FinacBooks offers expert CA filing with Form 16 reconciliation. |
| Revised Return u/s 139(5) | ₹0 | No late fee if original filed on time. Fee may apply if revised after 31 Dec 2027. | Allowed till 31 Dec 2027 or before assessment completion, whichever earlier. Only if original return filed by due date. |
| Updated Return (ITR-U) u/s 139(8A) | Additional tax: 25% of tax + interest (if within 12 months), 50% (if within 24 months) | Additional tax on unpaid liability + interest u/s 234A/234B/234C | Can be filed within 48 months from end of AY (till 31 Mar 2031 for AY 2027-28). For cases where original/belated/revised not filed. |
Official Filing Procedure
Step-by-Step e-Filing Workflow
Process executed on the official regulatory portal: https://www.incometax.gov.in/iec/foportal/
Collect & Reconcile Documents
Download Form 16/130 from all employers (issued by 15 Jun 2027). Download Form 26AS, AIS, TIS from incometax.gov.in. Match TDS figures in Form 16 with Form 26AS/AIS. Resolve mismatches with employer before filing.
Login to Income Tax E-Filing Portal
Go to https://www.incometax.gov.in/iec/foportal/. Login using PAN (User ID) and password. New users: Register with PAN, Aadhaar, mobile, email.
Start New ITR Filing
Dashboard → 'File Income Tax Return' → Select Assessment Year '2027-28' → Mode: 'Online' → Status: 'Individual' → ITR Form: 'ITR-1 (Sahaj)' → Continue.
Verify Pre-filled Personal & Income Data
Check auto-populated data: PAN, Aadhaar, Name, DOB, Contact, Bank Account (pre-validated for refund). Review Salary income (from Form 16/130), House Property (up to 2), Other Sources (interest, family pension). Edit if any discrepancy.
Choose Tax Regime (New vs Old)
New Regime (Default): Lower slabs, ₹75K standard deduction, ₹60K rebate (tax-free up to ₹12.75L gross), no 80C/80D/HRA/24b. Old Regime: Higher slabs, ₹2.5L exemption, all deductions available. Select based on comparative calculation. Salaried can switch every year.
Claim Deductions (If Old Regime Selected)
Enter 80C (max ₹1.5L), 80CCD(1B) NPS (₹50K), 80D (health insurance), 80E (education loan interest), 80G (donations), 24(b) home loan interest (₹2L self-occupied, no limit let-out), HRA exemption calculation. New regime allows only ₹75K standard deduction, employer NPS (80CCD(2) up to 14%), 80JJAA, family pension deduction.
Compute Tax, Pay Self-Assessment Tax (If Any)
Portal auto-computes tax on slab rates + 4% Health & Education Cess + Surcharge (if income > ₹50L). Compare with TDS/TCS/Advance Tax paid (from 26AS). Pay balance tax via 'e-Pay Tax' challan (ITNS 280) if payable. Enter challan details (BSR code, date, amount).
Preview & Submit Return
Review complete summary: Income, Deductions, Tax Computation, Taxes Paid, Refund/Demand. Confirm declaration. Click 'Proceed to Verification'.
E-Verify Within 30 Days (Mandatory)
Choose: Aadhaar OTP (mobile linked to Aadhaar), EVC via pre-validated bank/demat account, Net Banking, or DSC. Return is invalid without verification. Acknowledgement (ITR-V) generated on success.
Track Processing & Refund Status
Login → 'View Filed Returns' → Check status: 'Submitted', 'Verified', 'Processed', 'Refund Issued'. Refund credited to pre-validated bank account. Respond promptly to any notice u/s 143(1) (intimation) or 139(9) (defective).
Risk Mitigation & Error Prevention
Common Rejection Causes & Penalty Notices
- Mismatch between Form 16 TDS and Form 26AS/AIS — file only after employer corrects TDS return
- Filing ITR-1 when ineligible (capital gains, foreign assets, >2 house properties, income >₹50L, directorship) — triggers defective notice u/s 139(9)
- Not reporting exempt income (e.g., LTCG u/s 112A ≤ ₹1.25L, agricultural income ≤ ₹5,000) — though exempt, must be disclosed
- Forgetting to claim standard deduction ₹75,000 (auto in new regime, manual in old)
- Not e-verifying within 30 days — return treated as invalid/never filed
- Opting old regime in belated return — not allowed; belated return forces new regime
- Incorrect bank account (not pre-validated) — refund failure
Late filing fee u/s 234F: ₹5,000 (₹1,000 if income ≤ ₹5L) for filing 1 Aug – 31 Dec 2027; ₹10,000 thereafter. Interest u/s 234A: 1% per month on unpaid tax. Defective return notice u/s 139(9): 15 days to rectify or file correct form; else return treated as invalid. Intimation u/s 143(1): auto-adjusted demand/refund; respond within 30 days if mismatch. Scrutiny notice u/s 143(2): detailed enquiry. Penalty u/s 270A for misreporting (50%–200% of tax). Prosecution u/s 276CC for wilful default (3 months–7 years + fine).
Multiple employers in FY (Form 16 from each; TDS shortfall common). Switching tax regimes with carry-forward losses or prior Form 10-IEA filing. LTCG u/s 112A near ₹1.25L threshold requiring grandfathering computation. House property: let-out + self-occupied, co-ownership, pre-construction interest. Foreign assets/income (even small) — forces ITR-2. Defective return notice u/s 139(9) or scrutiny u/s 143(2) received. High-value transactions triggering AIS alerts (cash deposits, property, shares). Optimizing old vs new regime with complex deductions (HRA, 24b, 80C, NPS).
Frequently Asked Questions on ITR-1 / salaried ITR filing
File your ITR-1 accurately with FinacBooks' CA-assisted e-filing — Form 16 reconciliation, regime comparison, and 30-day e-verification support included.
Upload your Form 16/130 and let our verified CAs handle the rest — error-free filing, maximum refund, zero notice risk. Available remotely across India.
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