ITRAgent Logo
ITR Agent
All ArticlesLaunch App
E-Filing & Compliance2026-08-1114 min read (2,200+ words)

Complete Guide to Filing ITR-1 (Sahaj) & ITR-2 for AY 2026-27: Step-by-Step CBDT JSON Upload, Deadlines & Exemptions

Master Assessment Year 2026-27 income tax return filing. In-depth eligibility matrix for ITR-1 vs ITR-2, 4-way AIS/26AS reconciliation, Section 87A rebate marginal relief, Section 234F penalties, and direct JSON portal upload guide.

C
CA Ananya Sharma
Senior Tax Consultant & Compliance Lead

1. Eligibility Matrix: Who Should File ITR-1 (Sahaj) vs ITR-2 in AY 2026-27?

Choosing the wrong Income Tax Return form is one of the most common reasons the Income Tax Department issues a notice under Section 139(9) for a defective return. For Assessment Year 2026-27 (Financial Year 2025-26), the Central Board of Direct Taxes (CBDT) has laid out strict eligibility criteria based on income sources, gross total income limits, and holding of foreign assets.

Defective Return Notice under Section 139(9)
If you sold equity shares, mutual fund units, or crypto assets during FY 2025-26 and file ITR-1 instead of ITR-2, your return will be flagged as defective under Section 139(9). Always verify your Annual Information Statement (AIS) before selecting your return form.
Parameter / Income HeadITR-1 (Sahaj) EligibleITR-2 EligibleForm Recommendation
Resident StatusResident Individuals OnlyResident, RNOR & Non-Resident (NRI)ITR-1 for Resident Only
Total Income CapUp to ₹50,00,000 (₹50 Lakhs)No Income Ceiling LimitITR-2 if Income > ₹50L
Salary / Pension IncomeAllowed (Single or Multiple Employers)Allowed (Single or Multiple Employers)Both ITR-1 & ITR-2
House Property IncomeOne House Property (Self or Let-Out)Multiple House PropertiesITR-2 if >1 Property
Capital Gains (Stocks/MF)NOT Allowed (Zero Capital Gains)Allowed (STCG 111A, LTCG 112A, Debt MF)ITR-2 Required for Gains
Crypto / VDA Income (115BBH)NOT AllowedAllowed (Schedule VDA Entry)ITR-2 Mandatory for Crypto
Agriculture IncomeAllowed up to ₹5,000Allowed Above ₹5,000ITR-2 if Agi Income > ₹5K
Unlisted Shares / Foreign AssetsNOT AllowedAllowed (Schedule FA & Foreign Assets)ITR-2 Mandatory for Foreign

2. Form 16, Form 26AS, AIS & TIS: The 4-Way Reconciliation Checklist

Before opening the e-filing portal or uploading a JSON payload, every taxpayer must perform a comprehensive 4-way data reconciliation. The Income Tax Department uses automated computer algorithms to match figures reported in your return against third-party records submitted by banks, stock brokers, registrars, and employers.

  • •Form 16 (Part A & Part B): Verify Part A TDS deducted against quarterly Form 24Q statements and check Part B Section 17(1) gross salary, Section 10 exempt allowances, and Section 16 standard deduction.
  • •Form 26AS (Tax Credit Statement): Verify all tax deducted at source (TDS u/s 192, 194A, 194C, 194J) and tax collected at source (TCS u/s 206C) across all deductors and employers.
  • •Annual Information Statement (AIS): Review every Information Category including SFT-005 (Savings Interest), SFT-006 (Fixed Deposit Interest), SFT-014 (Securities/MF Sales), and Dividend Income.
  • •Taxpayer Information Summary (TIS): Use TIS headline summaries as the master guidance. If AIS contains duplicate or incorrect entries, file online AIS Feedback on the portal before submitting your return.
AI Tax Filing Assistant

Ready to file your ITR in under 5 minutes?

Upload Form 16 PDF or financial statements. ITRAgent auto-compares Old vs. New regime and generates CBDT-compliant ITR JSON for direct upload.

Launch ITRAgent Now100% Schema Compliant

3. Tax Computation Engine Rules: Slabs, Section 87A Rebate & Surcharge Tiers

Tax arithmetic under AY 2026-27 is strictly governed by statutory rules defined in the Finance Act. Salaried individuals filing under the Default New Tax Regime benefit from enhanced slab thresholds and Section 87A rebate rules.

Section 87A Marginal Relief in New Tax Regime
Under the New Regime, if your taxable slab income is up to ₹12,00,000, Section 87A provides a maximum rebate of ₹60,000, reducing tax to ZERO. If your slab income slightly exceeds ₹12,00,000, marginal relief ensures your tax payable does not exceed the income exceeding ₹12,00,000.
Taxable Income Slab (INR)New Regime Tax RateOld Regime Tax Rate (<60 Years)
Up to ₹4,00,0000% (Nil)0% (Nil up to ₹2.5L)
₹4,00,001 to ₹8,00,0005%5% (above ₹2.5L)
₹8,00,001 to ₹12,00,00010%20%
₹12,00,001 to ₹16,00,00015%30%
₹16,00,001 to ₹20,00,00020%30%
₹20,00,001 to ₹24,00,00025%30%
Above ₹24,00,00030%30%

4. Section 234A, 234B, 234C Interest & Section 234F Late Fee Breakdown

Filing your tax return past statutory deadlines or underpaying advance tax attracts mandatory statutory interest and late fees. Understanding how these are calculated protects you from unexpected demand notices under Section 143(1).

  • •Section 234F Late Filing Fee: ₹1,000 if total income is up to ₹5,00,000; ₹5,000 if total income exceeds ₹5,00,000 when filed past statutory due date (31 July 2026 for ITR-1/2). Zero fee if total income is below basic exemption limit.
  • •Section 234A Delay Interest: Charged at 1% per month or part of a month on unpaid tax liability calculated from the day immediately following the due date until the date of filing.
  • •Section 234B Advance Tax Default Interest: Charged at 1% per month from 1 April 2026 if advance tax paid within FY 2025-26 is less than 90% of assessed tax liability.
  • •Section 234C Installment Deferment Interest: Charged at 1% per month for deferment in quarterly advance tax installments (15% by 15 June, 45% by 15 Sept, 75% by 15 Dec, 100% by 15 March). Resident senior citizens with no business income are exempt u/s 207(2).

5. Step-by-Step Portal Upload Guide for CBDT JSON Files

Once your tax figures are validated and your official CBDT JSON payload is generated using ITRAgent, follow these steps on incometax.gov.in to complete filing without manual form entry.

  • •Step 1: Go to incometax.gov.in and log in using your PAN, User ID, and Password.
  • •Step 2: Navigate to e-File > Income Tax Returns > File Income Tax Return.
  • •Step 3: Select Assessment Year 2026-27, Filing Mode 'Offline (JSON Upload)', and Select Form Type (ITR-1 or ITR-2).
  • •Step 4: Drag and drop your downloaded ITR_AY2026-27_Filing.json file into the portal upload box.
  • •Step 5: The portal validation engine will run schema checks. Once 'Validation Successful' appears, click Proceed to Verification.
  • •Step 6: Review final net payable or refund figure against ITRAgent calculation. Complete e-Verification via Aadhaar OTP, Net Banking, or Bank EVC.

Frequently Asked Questions

What is the statutory due date to file ITR-1 and ITR-2 for AY 2026-27?
The statutory due date for non-audit individual taxpayers filing ITR-1 or ITR-2 for AY 2026-27 (FY 2025-26) is 31 July 2026. Belated returns under Section 139(4) can be filed up to 31 December 2026 with late fee u/s 234F.
Can I file ITR-1 if I have capital gains from selling mutual funds?
No. If you have earned short-term or long-term capital gains from equity shares, mutual funds, gold, or real estate, you cannot file ITR-1. You must file ITR-2.
How long does it take to receive income tax refund after filing?
Once e-verified, CPC Bengaluru processes returns under Section 143(1) typically within 7 to 30 days, crediting refunds directly to your pre-validated bank account.
What happens if I don't e-verify my ITR within 30 days?
If you fail to e-verify your return within 30 days of filing, your return is treated as invalid (unfiled), as if you never filed it, attracting late fees u/s 234F and interest.

More Tax Guides