How to File ITR Online in India 2026: Step-by-Step Guide for Salaried & Business Professionals

The income tax return (ITR) filing deadline is one of the most important dates in the Indian financial calendar. Yet every year, thousands of taxpayers across Kolkata and West Bengal either miss the deadline, file the wrong ITR form, or leave money on the table by not claiming the right deductions.

This comprehensive guide walks you through how to file ITR online in India for Assessment Year 2026-27 — covering everything from choosing the right form to maximizing your deductions and navigating the new income tax e-filing portal.

Which ITR Form Should You File?

India has 7 ITR forms. Choosing the wrong one can result in a defective return notice from the Income Tax Department. Here's a quick guide:

Step-by-Step: Filing ITR-1 for Salaried Employees

ITR-1 is the most commonly filed return in India — covering salaried individuals, pensioners, and those with small additional incomes. Here's the step-by-step process on the new Income Tax e-Filing 2.0 portal:

• Step 1: Login to incometax.gov.in with your PAN and password. If not registered, create an account using PAN as your user ID.
• Step 2: Go to e-File → Income Tax Returns → File Income Tax Return
• Step 3: Select Assessment Year (AY 2026-27) and filing mode — Online or Offline (JSON upload)
• Step 4: Choose ITR-1 and select "Taxable Income is more than Basic Exemption Limit" or "Refund is due" as reason
• Step 5: Your pre-filled data appears — verify salary, TDS, interest income from AIS/TIS
• Step 6: Add deductions — Section 80C (PF, PPF, ELSS, LIC), 80D (health insurance), HRA, LTA
• Step 7: Choose Old Regime or New Regime and calculate tax liability
• Step 8: Pay any remaining tax liability via Challan 280
• Step 9: Review, submit, and e-verify via Aadhaar OTP, Net Banking, or Bank Account Validation

"The new ITR e-filing portal has made return filing much more streamlined — but understanding the pre-filled data, reconciling AIS with Form 26AS, and claiming the right deductions still requires solid practical knowledge." — Subhajit Dey

Filing ITR-4 for Business Owners Under Presumptive Taxation

If you're a freelancer, small trader, or professional (doctor, CA, architect, consultant) in Kolkata with turnover below ₹2 crore (₹50 lakhs for professionals), you can file ITR-4 under presumptive taxation — declaring a fixed percentage of turnover as income without maintaining detailed books of accounts.

• Section 44AD: Business — 8% of turnover (6% for digital receipts) deemed as profit
• Section 44ADA: Professionals — 50% of gross receipts deemed as income
• Section 44AE: Transport contractors — per-vehicle income presumed

Key Deductions to Claim in AY 2026-27

Under the Old Tax Regime, these deductions can significantly reduce your tax liability:

• Section 80C (₹1.5 lakh limit): EPF/PPF, ELSS, Life Insurance Premium, NSC, 5-year FD, home loan principal, tuition fees
• Section 80D: Health insurance premiums — ₹25,000 (self/family) + ₹25,000 (parents) + ₹50,000 if parents are senior citizens
• Section 24(b): Home loan interest — up to ₹2 lakh for self-occupied property
• HRA: Exempt up to the minimum of actual HRA received, 50% of basic salary (metro), or rent paid minus 10% of basic
• Standard Deduction: ₹50,000 flat for salaried employees and pensioners
• Section 80G: Charitable donations — 50% or 100% deduction depending on the organisation

Old Regime vs New Regime: Which Should You Choose in 2026?

From FY 2023-24, the New Tax Regime became the default. You must actively opt for the Old Regime if you want to claim deductions. Here's a quick comparison:

The Old Regime remains beneficial if your total eligible deductions (80C + 80D + HRA + Home Loan) exceed ₹3-4 lakhs. Use a tax comparison calculator and choose whichever minimises your tax outgo. For most Kolkata professionals, this calculation makes a significant difference.

TDS Returns and Form 16 — What Every Employer Needs to Know

TDS (Tax Deducted at Source) is deducted by employers on salary and deposited to the government quarterly. The employer must file Form 24Q (quarterly TDS return for salary) and issue Form 16 to each employee by May 31st every year.

• Form 16 Part A: Generated from TRACES — contains TDS certificate with quarterly breakdowns
• Form 16 Part B: Salary breakdown, perquisites, deductions allowed by employer
• Form 26AS: Tax credit statement — verify that TDS deducted matches what appears in your 26AS before filing ITR
• AIS (Annual Information Statement): New — includes all financial transactions reported to Income Tax Department