How to File ITR-1 for AY 2027-28: Step-by-Step Guide for Salaried Employees

If you have filed ITR-1 before, the form will feel familiar this July. If you have not, you have picked an unusually interesting year to start. Returns for AY 2027-28 cover income earned during FY 2026-27 — the first complete tax year under the new Income Tax Act, 2025, which came into force on 1 April 2026 after replacing the 1961 Act that had governed Indian taxation for sixty-five years. Most of the underlying rules carry forward, but the section numbers, the form structure, and a few procedural windows have changed in ways that will trip up anyone copying instructions from a 2024-vintage blog post.

This guide walks through everything a salaried employee needs to file ITR-1 for AY 2027-28 cleanly the first time. It assumes you have a Form 16, a few interest certificates, and roughly an hour to spare. You can use Ganak''s Income Tax Calculator (New Regime) alongside this article to verify what your liability should look like before you submit anything to the portal.

Old Act vs New Act: A Reference Map

Before walking through the form, here is the section-number mapping every salaried filer should know. The provisions are substantively the same; only the citations have changed.

Who Can File ITR-1 for AY 2027-28

ITR-1, also known as Sahaj, is the simplest of India''s seven income tax return forms. It exists specifically for the resident salaried taxpayer with straightforward income sources. To use it for AY 2027-28, you must satisfy all of the following:

You are a resident individual (not RNOR, not non-resident). Your total income for the year is up to ₹50 lakh. Your income comes from salary or pension, plus optionally from up to two house properties, plus optionally from other sources like savings interest, fixed deposit interest, or family pension. You may also have long-term capital gains under Section 112A — but only up to ₹1.25 lakh, the annual exempt threshold, with no carry-forward losses to set off.

If any of those conditions break, ITR-1 is the wrong form. Capital gains above ₹1.25 lakh, business or freelance income, foreign assets, foreign income, directorship of a company, or unlisted equity holdings — any of these push you to ITR-2 or ITR-3.

The most useful expansion under the new framework concerns house property. Until AY 2025-26, ITR-1 allowed reporting income from only one house property. From AY 2026-27 onwards — and this carries into AY 2027-28 — you can report income from up to two house properties. So if you own one self-occupied flat plus one let-out apartment, ITR-1 still works. Three or more houses, however, mean ITR-2.

What''s Actually Different This Year

The Income Tax Act, 2025 is structurally a simplification project. The old Act had grown to 819 sections across 23 chapters with 47 schedules. The new Act consolidates this into 536 sections with 16 schedules, with much of the law rewritten in plainer English. For ITR-1 filers, five things are genuinely worth knowing.

Section numbers will look unfamiliar. Section 139 of the old Act, which governed return filing, is now Section 263 of the new Act. Sub-sections also moved: original return is 263(1), belated 263(4), revised 263(5), updated (ITR-U) is 263(6). The late filing fee that was Section 234F is now Section 428(b). The amounts and obligations are unchanged; only the citations are new. Don''t second-guess the form when its references don''t match older guides online.

The terminology has shifted. The old Act distinguished between "Previous Year" (the year you earned) and "Assessment Year" (the year you filed). The new Act uses "Tax Year" instead of Previous Year and largely retires the term Assessment Year for substantive provisions. For practical purposes, the ITR you are about to file is for income from Tax Year 2026-27, which the e-filing portal will continue to label AY 2027-28 since the assessment year framework remains intact for filing logistics.

The revised return window is now 12 months, not 9. This is the most useful procedural change for ordinary taxpayers. Under the old Act, you had until 31 December of the assessment year to file a revised return — the same deadline as a belated return. If you filed your belated return in late December, you had hours to revise it, which was absurd. Section 263(5) of the new Act extends the revised return window to 12 months from the end of the tax year. For AY 2027-28, that means you can file a revised return until 31 March 2028. A small fee under Section 428(b) — ₹1,000 if your income is up to ₹5 lakh, ₹5,000 otherwise — applies if the revision happens after 9 months.

HRA and 80C disclosure is more granular this year. From AY 2026-27 onwards, the form requires you to break down what you are claiming under each. Under HRA you specify metro vs non-metro, basic salary, rent paid, HRA received separately. Under 80C you list each instrument — PPF, ELSS, life insurance premium, EPF, principal repayment on home loan, tuition fees — with amounts. The total still caps at ₹1.5 lakh, but you can no longer just type a lumpsum.

Aadhaar enrolment IDs are not accepted. Until last year, you could enter a 28-digit Aadhaar Enrolment ID if your Aadhaar was still being processed. The portal now requires the actual 12-digit Aadhaar number. If you have not received an Aadhaar yet, complete the enrolment before you file.

What to Have Ready Before You Start

You can file ITR-1 from a phone, but a laptop is much faster. Before you log into the portal, gather these:

• Form 16 from your employer (Part A from TRACES showing TDS, Part B with the salary breakup)
• Form 26AS and AIS — you''ll see both inside the portal, but it''s helpful to download them in advance to spot mismatches
• Bank interest certificate for savings and FD interest above ₹10,000 (₹50,000 for senior citizens)
• Form 16A from any other deductors — your bank for FD TDS, a tenant if you rent out property and they cross the ₹50,000/month TDS threshold under Section 194-IB
• Rent receipts and rent agreement if claiming HRA under the old regime
• Investment proofs for 80C (PPF passbook screenshot, ELSS statement, EPF passbook), 80D (mediclaim premium receipt), 80E (education loan interest certificate), 80CCD(1B) (NPS contribution statement)
• Home loan interest certificate if claiming Section 24(b)
• Bank account details with valid IFSC for refund credit

Verify your Aadhaar-PAN linkage and mobile number registration a day before filing — both are common roadblocks at e-verification. If your PAN is inoperative due to unlinked Aadhaar, fix that first; you cannot file otherwise.

The Filing Flow on the e-Filing Portal

The actual sequence is straightforward once you know the order. Here is the seven-step flow most salaried filers will follow:

1. Log in at incometax.gov.in using your PAN and password. New users register with PAN, name, and date of birth, with OTP verification on registered mobile.
2. Navigate to e-File → Income Tax Returns → File Income Tax Return. Select Assessment Year 2027-28, filing type Original (or revised, if applicable), and ITR-1 (Sahaj).
3. Verify pre-filled personal information. The portal pre-fills most of your data from Form 26AS, AIS and your previous returns. Verify name, address, contact details, Aadhaar, bank accounts. The bank account marked for refund must be pre-validated and active.
4. Enter and verify salary income. Enter the gross salary, exempt allowances, and Section 16 deductions (standard deduction ₹75,000 in new regime, ₹50,000 in old regime; professional tax under 16(iii); entertainment allowance for government employees only). Cross-check against Part B of Form 16 and AIS — discrepancies are the single most common reason for defective return notices.
5. Add house property and other income. If you own one self-occupied home, the income is treated as nil and you can claim home loan interest of up to ₹2 lakh under Section 24(b) in the old regime. For let-out property, declare gross rent, deduct municipal tax paid, claim a 30% standard deduction, and deduct interest paid. Then add bank interest, FD interest, dividend income.
6. Choose tax regime and enter deductions. The new regime is the default. Salaried taxpayers can switch between regimes every year — a flexibility advantage you do not get if you have business income. Run both calculations through Ganak''s Income Tax Calculator (Old Regime) and New Regime Calculator before you decide. Then list each deduction (80C instruments individually, 80D, 80E, 80CCD(1B), HRA components separately).
7. Reconcile TDS, pay any balance, and submit. The portal computes your final liability after deductions and TDS credit. If you owe additional tax, pay it through the "Pay Now" link before submitting. If a refund is due, the amount appears in the summary.

The portal pre-fills heavily, which is convenient and dangerous in equal measure. Treat the auto-filled fields as a starting point, never as the final answer. Numbers from Form 26AS get refreshed continuously — what you saw on the portal in May may be different by the time you actually file in July, particularly the TDS section under Section 194 entries.

E-Verify Within 30 Days, or Your Return Doesn''t Exist

Once you click submit, you have 30 days to e-verify. An unverified return is treated as never filed. Aadhaar OTP is the fastest method — receive an SMS, enter the code, done. Net banking through your account works too if you use one of the listed banks. The physical alternative — printing the ITR-V acknowledgement, signing it, and mailing it to CPC Bengaluru — is allowed but undermines the whole point of e-filing.

This is the step that catches more than a third of taxpayers off guard. They click submit, see the success screen, assume they''re done — and three months later receive a notice that no return was filed. Set a calendar reminder.

Common Mistakes That Trigger Defective Notices

Mismatch between salary in Form 16 and salary declared. The AIS now consolidates data from Form 16, banks, employers, and a few other sources. If your declaration disagrees with what the IT department already has on record, expect a Section 139(9) notice — Section 263(9) under the new Act — within a few months.

Claiming HRA without rent payment evidence. If your annual rent exceeds ₹1 lakh, the landlord''s PAN is mandatory under Rule 26C. If your rent exceeds ₹50,000 per month, you also have a TDS obligation under Section 194-IB that most tenants ignore until questioned. Pay rent through bank transfer or UPI, never cash.

Forgetting to declare interest below the TDS threshold. Savings bank interest under ₹10,000 doesn''t attract TDS but is still taxable. The AIS captures it — leaving it out of your return creates a silent mismatch. Under Section 80TTA you can deduct savings interest up to ₹10,000 in the old regime; in the new regime, it''s just taxable.

Selecting the wrong assessment year. Tax Year 2026-27 returns are filed under Assessment Year 2027-28. Tax Year 2025-26 returns were AY 2026-27. People filing late (a year behind) often pick the wrong year and have to redo everything.

Deadlines and What Happens If You Miss Them

The original due date for ITR-1 is 31 July 2027. Miss it and you can still file a belated return until 31 December 2027 with a Section 428(b) fee of ₹1,000 (income up to ₹5 lakh) or ₹5,000 (above). Interest under Sections 234A, 234B and 234C applies on any unpaid tax.

The revised return window is now 12 months — until 31 March 2028. After 31 December 2027, revisions attract the same Section 428(b) fee. After 31 March 2028, your only option is the updated return (ITR-U) under Section 263(6), which can be filed within 48 months of the tax year end but with a steep additional tax premium of 25% to 70% depending on how late you file.

Before You Hit Submit

A simple final check before you submit: open Ganak''s Take-home Salary Calculator, enter your CTC, and confirm the resulting income figure broadly matches what you have entered in Section 1 of the form. Open the income tax calculator for your chosen regime and verify the tax payable. If both numbers line up, your form is internally consistent.

The ITR you file in July is, in the most literal sense, a self-assessment. The IT department processes it through automated reconciliation against AIS data. Mismatches surface within months. Numbers that match get accepted, refunds get credited, and you don''t hear from anyone for years. That''s the goal — file once, file accurately, get back to your life.

Frequently Asked Questions

Can I file ITR-1 if I have capital gains?

Only if your long-term capital gains under Section 112A (listed equity and equity mutual funds) are within the ₹1.25 lakh annual exemption and you have no carry-forward losses. The moment your gains exceed ₹1.25 lakh, or you have any short-term capital gains, or you have gains from property, debt funds or unlisted shares, you must use ITR-2 instead.

What is the deadline for filing ITR-1 for AY 2027-28?

The original due date is 31 July 2027 for income earned during FY 2026-27. A belated return can be filed until 31 December 2027 with a late fee of ₹1,000 or ₹5,000 under Section 428(b). A revised return is permitted until 31 March 2028 — the window now extends to 12 months from the end of the tax year, an improvement over the old 9-month rule.

Can I switch between old and new tax regime every year?

Yes, if you have only salary, pension, or other non-business income. Salaried taxpayers can choose afresh each year directly inside the ITR. If you have business or professional income, switching is more restricted — you must file Form 10-IEA, and the option to re-enter the new regime is available only once in a lifetime. For salaried filers, this annual flexibility is a real planning advantage.

What happens if I miss the 31 July 2027 deadline?

You can still file a belated return until 31 December 2027 under Section 263(4). The late fee under Section 428(b) is ₹1,000 if your total income is up to ₹5 lakh, or ₹5,000 otherwise. Interest under Sections 234A, 234B and 234C applies on any unpaid tax. After 31 December 2027, your only option is the updated return (ITR-U) within 48 months, but with a 25% to 70% additional tax premium.

Do I need to file ITR-1 if my income is below the exemption limit?

Filing is mandatory if you fall under any of the conditions in Section 263(1) — including high-value transactions like ₹1 crore+ in current accounts, foreign travel above ₹2 lakh, electricity bills above ₹1 lakh, or sales/turnover over the prescribed thresholds. Even if your income is technically below the basic exemption limit, voluntary filing is recommended for maintaining a clean tax record, claiming TDS refunds, and meeting visa or loan documentation requirements.

How do I e-verify my ITR-1?

Five options are available, in descending order of speed: Aadhaar OTP (fastest, requires linked mobile), net banking (through listed banks), bank account EVC (electronic verification code), demat account EVC, and physical signed ITR-V mailed to CPC Bengaluru. Aadhaar OTP completes in under a minute. The deadline is 30 days from submission — an unverified return is treated as never filed.

Can I file ITR-1 on a mobile phone?

Yes, the e-filing portal is mobile-responsive and the official IT Department app supports ITR-1 filing. However, the form has many fields and validation steps; a laptop with a larger screen is significantly faster, especially for the deductions section which requires granular HRA and 80C breakdowns under the new disclosure rules. If you must use mobile, complete the filing in one sitting with a stable internet connection.

What is the difference between Form 26AS and AIS?

Form 26AS is the older tax credit statement — it shows TDS, TCS, advance tax and self-assessment tax credited under your PAN. AIS (Annual Information Statement) is broader and newer; it consolidates Form 26AS data plus dividends, interest from all banks, mutual fund transactions, securities trades, foreign remittances, and high-value purchases. AIS is what the IT department actually compares your ITR against. Always verify both before filing — discrepancies between AIS and your declaration are the leading cause of defective return notices.

Sources and Further Reading

This guide is based on the Income Tax Act, 2025 framework that took effect 1 April 2026, CBDT FAQs on the transition, and the e-filing portal''s notified procedures for AY 2027-28. For the official text and updates:

• Income Tax Department — Income Tax Returns FAQs (incometax.gov.in)
• Objective and Scope of the New Income Tax Act, 2025 (incometax.gov.in)
• Salaried Individuals Return Filing Guide — Income Tax Department
• PIB India — Press releases on Income Tax Act, 2025 implementation

Last verified: April 2026. This article will be updated when the Central Board of Direct Taxes notifies the official ITR-1 form structure for AY 2027-28, expected before April 2027.