Most salaried employees file ITR-1 using Form 16, after checking it against AIS and Form 26AS; you need ITR-2 instead if you have capital gains beyond the ITR-1 limits, more than two house properties, foreign assets or income above ₹50 lakh. For FY 2025-26 the 31 July 2026 date has passed, but a belated return can be filed until 31 December 2026. Our CA team reconciles your Form 16, compares both tax regimes, files the return and completes e-verification, from ₹899. Cases with capital gains, multiple properties or foreign income are routed to the right form or specialist service.
Professional fee: From ₹899. GST and applicable government charges, if any, are extra.
CA-reviewed · Form 16 reconciliation · AIS + 26AS review · E-verification
| Question | Position for FY 2025-26 (AY 2026-27) |
|---|---|
| Usual form | ITR-1 (Sahaj); ITR-2 if any ITR-1 condition fails |
| Original due date | 31 July 2026 (passed) |
| Belated return | Until 31 December 2026, or before assessment is completed |
| Late fee (Section 234F) | ₹1,000 if total income is up to ₹5 lakh; ₹5,000 otherwise |
| Default regime | New regime under Section 115BAC; old regime can be chosen in a return filed by the due date |
| Standard deduction | ₹75,000 (new regime) or ₹50,000 (old regime) |
| Nil-tax limit (new regime) | Total income up to ₹12 lakh after the Section 87A rebate of up to ₹60,000, so salary up to ₹12.75 lakh |
| Applicable law | Income-tax Act, 1961; the Income-tax Act, 2025 starts with income from 1 April 2026 |
Answer each question. If any answer falls in the right-hand column, ITR-1 is not available and ITR-2 (or ITR-3 with business income) applies.
| Check | ITR-1 allowed | Needs ITR-2 |
|---|---|---|
| Residential status | Resident and ordinarily resident | NRI or resident but not ordinarily resident |
| Total income | Up to ₹50 lakh | Above ₹50 lakh |
| House property | Up to two house properties | Three or more |
| Long-term capital gains under Section 112A (listed shares, equity funds) | Up to ₹1.25 lakh | Above ₹1.25 lakh |
| Short-term capital gains | None | Any amount |
| Agricultural income | Up to ₹5,000 | Above ₹5,000 |
| Director in a company | No | Yes |
| Unlisted equity shares held during the year | No | Yes |
| Foreign assets or foreign income | None | Any |
Selling ESOP shares of a foreign parent, holding a US brokerage account or owning RSUs usually means foreign assets, so ITR-2 is needed even if your salary is modest.
A salaried taxpayer's return is not always as simple as copying figures from Form 16.
Before filing, the tax computation should be checked against:
The correct ITR form and tax regime should then be selected based on the taxpayer's circumstances and the rules applicable to the relevant tax year.
This page is primarily for individuals whose income is mainly from employment, including:
If you have substantial business/professional income, foreign-income complexity, crypto/VDA transactions or other specialist circumstances, use the relevant specialist ITR workflow.
Eligible salaried individuals can use ITR-1 where all prescribed conditions are satisfied.
For AY 2026-27, the Income Tax Department describes ITR-1 for eligible resident individuals (other than not ordinarily resident) with total income up to ₹50 lakh and specified income sources, subject to the form's conditions.
A salaried individual may need ITR-2 when ITR-1 is not available because of circumstances such as specified capital gains, multiple house properties, foreign assets/income or other conditions covered by the form.
The correct form should always be selected from the current year's notified ITR instructions.
Do not choose ITR-1 simply because your main income is salary.
Investment and deduction documents are relevant depending on the tax regime and applicable provisions.
You generally do not need to upload every supporting document with the ITR, but the underlying records should be retained where required.
Form 16 is the salary TDS certificate issued by the employer. It provides important salary and TDS information for the return.
Form 26AS contains specified tax-related information available through the Income Tax Department's system, including TDS/TCS information.
The Annual Information Statement provides broader reported information from multiple sources.
A salaried taxpayer may see differences between Form 16, AIS and Form 26AS because of reporting timing, corrections, transactions reported by third parties or other data issues.
A reconciliation before filing helps identify these differences instead of blindly accepting auto-populated information.
Provide Form 16 along with AIS and Form 26AS.
Identify interest, dividends, rental income, capital gains and other taxable receipts.
Review the applicable tax regime and the deductions/exemptions permitted under the relevant rules.
Determine whether ITR-1, ITR-2 or another form is appropriate.
Match TDS/TCS and other tax payments against the available records.
The income, tax computation and applicable schedules are prepared.
The return is reviewed before submission.
The return is submitted electronically and the taxpayer completes the prescribed verification.
The tax-regime choice can affect the final tax payable.
The comparison should consider the taxpayer's actual facts, including:
For AY 2026-27, the Income Tax Department states that the new regime under Section 115BAC is the default for eligible individuals, while an eligible taxpayer in a non-business case can opt for the old regime in the ITR subject to the applicable rules.
| Item | New regime | Old regime |
|---|---|---|
| Standard deduction (Section 16(ia)) | ₹75,000 | ₹50,000 |
| Basic exemption (below 60) | ₹4,00,000 | ₹2,50,000 |
| Section 87A rebate | Up to ₹60,000; total income up to ₹12,00,000 | Up to ₹12,500; total income up to ₹5,00,000 |
| HRA exemption, Section 80C, 80D, home-loan interest on self-occupied house | Not allowed | Allowed, subject to limits |
| Top slab | 30% above ₹24,00,000 | 30% above ₹10,00,000 |
Take a resident employee below 60 with salary of ₹15,00,000, ₹1,50,000 invested under Section 80C, ₹25,000 of health insurance under Section 80D and ₹2,00,000 of home-loan interest on a self-occupied house.
| Step | New regime | Old regime |
|---|---|---|
| Salary | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | − ₹75,000 | − ₹50,000 |
| 80C + 80D + home-loan interest | Not allowed | − ₹3,75,000 |
| Taxable income | ₹14,25,000 | ₹10,75,000 |
| Tax on slabs | ₹93,750 | ₹1,35,000 |
| Add 4% cess | ₹97,500 | ₹1,40,400 |
Here the new regime saves ₹42,900 even with ₹3.75 lakh of deductions. The old regime tends to win only where HRA exemption is large as well. Run your own figures in the income tax calculator or the HRA calculator.
Important: Tax-regime rules are year-specific. Do not use an old tax calculator for a current-year return.
HRA treatment depends on the taxpayer's salary structure, rent actually paid, location and the applicable tax regime.
Where HRA exemption is being claimed under the applicable provisions, maintain the relevant rent/payment records and supporting documents.
Do not assume that paying rent automatically creates an HRA exemption.
A salaried employee with a home loan may need to consider:
Where there are multiple properties, ITR-2 or another appropriate return may become relevant depending on the taxpayer's circumstances.
If you changed employers during the financial year, your income may be reported through more than one Form 16.
Before filing:
This is a common source of discrepancies in salaried returns.
Salary plus investments can require a more detailed return.
Examples include gains from:
A taxpayer with specified capital gains may need ITR-2 rather than ITR-1.
The capital-gains statement should be reconciled with broker/demat records and the applicable tax rules for the relevant year.
Related service: ITR Filing
Foreign bank accounts, securities, income or other specified foreign assets can create additional reporting requirements.
A taxpayer with foreign assets/income should not automatically use the basic salaried workflow. Residential status, treaty considerations and the applicable disclosure schedules should be reviewed.
Related service: NRI ITR Filing
Before filing, review the AIS for entries such as:
If an AIS entry does not match your records:
AIS should be treated as a valuable reconciliation source, not as an automatic substitute for the taxpayer's records.
A refund may arise when TDS or other taxes paid exceed the final tax liability.
Refund review can include:
A refund is not guaranteed simply because an employer deducted TDS.
Yes.
Form 16 is an important employer-issued TDS certificate, but a return can be prepared from other reliable records where Form 16 is unavailable.
The taxpayer may need:
TDS should be reconciled carefully before filing.
Do not automatically change the return to match AIS.
First identify the reason:
The return should be based on the taxpayer's actual taxable income and applicable law, with appropriate correction/feedback steps where required.
ITR due dates depend on the relevant tax year and taxpayer category.
For AY 2026-27, the Income Tax Department's guidance states that the standard non-audit individual/HUF due date was 31 July 2026, subject to applicable extensions and conditions.
| Filing | Last date | Status (11 Oct 2026) |
|---|---|---|
| Original return, salaried (ITR-1 / ITR-2) | 31 July 2026 | Passed |
| Salaried with a side business or profession, no audit (ITR-3 / ITR-4) | 31 August 2026 | Passed |
| Belated return | 31 December 2026 | Open: ₹1,000 or ₹5,000 fee |
| Revised return (to correct a filed return) | 31 March 2027 (free until 31 December 2026, then a Section 234I fee) | Open |
| First return under the Income-tax Act, 2025 (Tax Year 2026-27 salary) | Due in 2027 under Section 263 | Not yet open |
The CBDT's extension to 21 November 2026 covers only audit cases; it does not reopen the 31 July date for salaried taxpayers. For a current or future filing, verify the official Income Tax Department deadline rather than relying on an old blog or static date.
If the original deadline is missed, a belated return may be available subject to the applicable statutory conditions and time limits.
For AY 2026-27, the Income Tax Department states that a belated return under Section 139(4) may be filed by 31 December 2026 or before completion of assessment, whichever is earlier. Delayed-filing fee and interest can apply.
CorporateWalla's salaried ITR professional-fee packages:
| Plan | Professional Fee | Scope |
|---|---|---|
| Starter | ₹899 | ITR-1/ITR-2, Form 16 + AIS reconciliation, TDS refund claim and e-verification |
| Standard | ₹1,999 | ITR-1/ITR-2, Form 16 + AIS reconciliation, TDS refund claim and tax-planning support |
| Pro | ₹3,499 | ITR-1/ITR-2, broader reconciliation, refund support, eligible deduction review and tax-planning support |
Professional fees exclude GST and government charges. Capital gains, foreign assets/income, multiple properties, notices, complex tax reconciliations and other specialist matters may require a different package or separate quotation.
Share your Form 16, AIS and Form 26AS. A CA-led team can reconcile your tax information, determine the appropriate ITR workflow and assist with filing and e-verification.
Pick the speed and depth that matches your need. Same quality, same CA team — only the timeline changes.
Timeline: 3–5 business days
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Government fee — paid by you at actuals
Professional fees exclude GST and government charges.
Every price above is a professional fee, excluding GST and government charges. 50% upfront, 50% on delivery.
Capital gains, foreign assets/income, multiple properties, notices, complex tax reconciliations and other specialist matters may require a different package or separate quotation.
Provide Form 16 and basic personal/tax information.
Tax statements are checked against employer records.
Interest, dividends, rent, capital gains and other income are identified.
The applicable ITR form and tax-regime options are reviewed.
Tax computation and eligible claims are checked.
The return is filed and e-verification is completed.
Tell us your requirement, a CA will call you in 30 minutes.
The return is reviewed by a CA-led team before filing.
The workflow checks multiple tax information sources instead of relying on Form 16 alone.
Salaried taxpayers are assessed for ITR-1 vs ITR-2 based on their actual circumstances.
Support continues through the verification stage after filing.
Where required, the salaried workflow can connect with capital-gains, tax-notice, tax-planning and other tax services.
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