Tax filing time is here again! The Income Tax Department officially opened the doors for ITR filing on May 15, 2026.

For the unknown, this means that you can now go to the government’s tax website i.e. incometax.gov.in and start filing your income tax return for the money you earned between April 1, 2025 and March 31, 2026. This process is called ITR filing AY 2026-27.

Whether you earn a salary, run a small shop, work as a freelancer, or are retired and getting a pension — this applies to you too. The best advice? Never make the mistake of waiting till the last minute as filing early saves you from stress, mistakes, and delays in getting your tax refund.

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Key Takeaways

• ITR filing for the year 2026-27 has officially started from May 15, 2026.
• Now you can file your income tax return online on the government’s tax website.
• Most salaried people must file their return by July 31, 2026.
• Freelancers and small business owners get a little more time — their deadline is August 31, 2026.
• All the old tax deductions (like LIC, PPF, health insurance, home loan, etc.) still apply this year.
• The new tax regime is set as the default. If you want to claim deductions, you must choose the old regime yourself.
• This year, if you own two houses, you can still use the simpler ITR-1 form to file your return.

AY 2026-27: An Overview

Let us keep this very simple. The term Financial Year (FY) stands for the year in which you earn money. The year after that, when the government checks your earnings and taxes, is called the Assessment Year (AY). Hence if you earned money between April 2025 and March 2026 — that is termed as FY 2025-26. To add on, the year in which you file your tax return for that income — 2026-27 — is the Assessment Year.

Due to this reason, it is called AY 2026-27.Now, there is one thing that was confusing many people this year. A new Income Tax Act was introduced in 2025 and it came into effect from April 1, 2026. But here is the good news — this new law does NOT apply to your current filing.

For AY 2026-27, you will follow the same old tax rules that you have always followed. All the popular deductions — like investing in PPF or LIC under Section 80C, paying health insurance premiums under 80D, or claiming home loan interest — remain available just as before. The new law will only kick in from next year’s filing, i.e., when you file in 2027.

Right Form to Use to File Your Return

When filing your return, it is quite important that you have to choose the right form. It is equivalent to choosing the right application form. Suppose you pick the wrong one, your return may be rejected. To make things easy for you, we have prepared a plain and simple guide:

ITR-1 (also called Sahaj — meaning “easy”)

Use this if:

• Your income is from a job or pension
• You own one or two houses (good news — this year, two houses are now allowed in this simple form!)
• Your total yearly income is ₹50 lakh or less
• You have some interest income from savings or fixed deposits

ITR-2 

If you earn a salary but also have profits from selling shares or property, own more than two houses, have income from abroad, or earn more than ₹50 lakh per year, this form is to be used.

ITR-3

If you run your own business or work as a professional (like a doctor, lawyer, or consultant) and your accounts do not need a formal audit, this is the form to be used. Your deadline is August 31, 2026.

ITR-4 (also called Sugam — meaning “convenient”)

Use this if you are a small business owner, shopkeeper, or professional earning up to ₹50 lakh and you follow a simple, fixed-rate tax calculation method. Your deadline is also August 31, 2026.

ITR-5, ITR-6, ITR-7

These are for partnership firms, companies, and trusts. Individual taxpayers generally do not need to worry about these.

What is New this Year?

Here are the important changes in ITR filing AY 2026-27 that you should know about, explained in plain words:

1. Two Houses Are Now Allowed in the Simple ITR-1 Form

Earlier, if you owned two homes, you had to use the more complex ITR-2 form. This year, you can report income from up to two houses in the simpler ITR-1 form. This is a big relief for many salaried people who own a second property.

2. You Now Have 4 Years to Correct a Mistake in Your Return

Made a mistake in a past return? Forgot to report some income? Earlier, you had only 2 years to correct it. However, now you have up to 4 years to file a corrected return. For AY 2026-27, this means you can make corrections all the way up to March 31, 2031. Hence, there is no need to panic if you come across an error later.

3. Fewer People Need to List Their Property and Assets

Earlier, many taxpayers had to fill in a detailed list of all their properties, assets, and liabilities in their return. Now, only people earning more than ₹1 crore per year need to do this. If your income is below ₹1 crore, you are free from this extra paperwork.

4. Small Business Owners Need to Disclose Their Investments

If you are a small business owner or shopkeeper filing ITR-4, the government now wants to know how much you have invested during the year. This is a new addition to the form this year.

5. Extra Details Required If You Have Bought or Sold Shares

If you sold shares, equity mutual funds, or lost money due to company share buybacks, you will need to fill in some additional details in your return this year. Keep your broker statements or mutual fund capital gains reports handy.

6. Only 12-Digit Aadhaar Number Is Accepted Now

Earlier, did you enter your Aadhaar Enrolment ID (a 28-digit number) while filing? For your information, that option is no more there. Going forward, only your actual 12-digit Aadhaar number will be accepted.

When is the Last Date to File? A Simple Table

If you miss your deadline, you will have to pay a penalty of up to ₹5,000. But if your total income is below ₹5 lakh, the penalty is only ₹1,000. On top of that, you will also pay some interest on any tax that was still unpaid.

Old Tax Regime or New Tax Regime — Which is Better for You?

This is the question on every taxpayer’s mind during ITR filing AY 2026-27. Let us break it down simply. There are two ways to calculate your income tax in India right now:

The New Tax Regime has lower tax rates but you cannot claim most deductions and exemptions (like 80C savings, HRA, home loan interest, etc.).

The Old Tax Regime has slightly higher rates but allows you to reduce your taxable income by claiming all those deductions.

The new regime is set as the default this year. This means if you just file your return without choosing anything, the new regime will be applied automatically. If you want to go with the old regime and claim your deductions, you need to select it yourself while filing.

If you are a salaried person with no business income, you can switch freely between the two every year. The smart move is to calculate your tax both ways and go with whichever saves you more money. Many online tax calculators can help you do this in minutes.

8 Documents to Keep Handy Before Filing

If you get your papers ready before you start fling your returns, it will make the whole process much faster and stress-free. Make sure that you keep the below documents ready:

• Form 16 — Your employer gives this to you and it shows your salary and the tax already deducted.
• Form 26AS and AIS (Annual Information Statement) — Available on the tax portal, they show all the tax deducted from your income by banks, employers, etc. To keep it simple, it is a summary of your financial life from the government’s view.
• Bank statements — For any interest earned on savings accounts or fixed deposits.
• Investment receipts — Like your PPF passbook, LIC premium receipts, ELSS statements, health insurance premium receipts, etc.
• Home loan interest certificate — If you have a housing loan, your bank will give you this.
• Capital gains statement — If you sold shares or mutual funds, you need to collect this statement from your broker or fund house.
• Rent receipts — If you live in a rented house and want to claim HRA.
• Your Aadhaar and PAN — Both are compulsory.

One helpful thing to know: the tax portal now automatically fills in a lot of your information from your employer, bank, and broker. But do not just accept it blindly — always check it against your own records. A wrong auto-filled figure can lead to problems later.

How to File Your ITR Online — Step by Step

Filing online is actually quite straightforward. Here is how it works:

1. Open your browser and go to incometax.gov.in
2. Click on “Login” and enter your PAN number as your user ID, along with your password
3. After logging in, click on “e-File”, then “Income Tax Returns”, then “File Income Tax Return”
4. Select AY 2026-27 from the dropdown and choose “Online” mode
5. Pick the right ITR form for your situation (ITR-1 for most salaried people)
6. The form will already have some details filled in — check them carefully and correct anything that is wrong
7. Fill in your income, savings, investments, and any tax already paid
8. Choose between the old and new tax regime — the system will show you which one saves more tax
9. Click “Submit” and then — very important — verify your return

Verification can be done instantly using your Aadhaar OTP, through net banking, or by other methods. Please do not skip this step. If you do not verify your return, it is as if you never filed at all!

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Conclusion

The start of ITR filing AY 2026-27 is good news for taxpayers. The government has made several improvements this year. Some of them are the simpler ITR-1 that covers more people, you have more time to fix old mistakes, and for most taxpayers less paperwork is needed. The online portal is also easier to use than before, as more information is pre-filled for you.

The important message is simple: do not wait till the last day. Start preparing your documents now, log in to the portal, and file at your own pace. In case you have doubts about anything, reach out to a tax professional or a chartered accountant. When you file your return on time, it becomes one of the most responsible financial habits you can build. The simple reason is that it ensures you get any refund that is owed to you as quickly as possible.