ITR Filing for Salary

ITR Filing for Salary for AY 2026-27 covers every salaried employee, including job changers receiving multiple Form 16 from successive employers in FY 2025-26, ESOP and RSU recipients with Section 17(2)(vi) perquisite income reflected in Form 12BA, RSU recipients from foreign-parent companies (Indian subsidiaries of US, UK, EU multinationals), and investors with capital gains under Section 111A (STCG 20 percent) or Section 112A (LTCG 12.5 percent above Rs 1.25 lakh). The default new tax regime offers zero tax up to Rs 12 lakh after the Section 87A rebate; the old regime continues for those with significant deductions under Sections 80C, 80D, HRA under Section 10(13A) and home loan interest under Section 24(b).

Patron Accounting has filed 50,000+ salaried returns over 15+ years across simple ITR-1 filings, multi-Form-16 consolidations for job changers, ITR-2 with ESOP perquisite reconciliation against Form 12BA, capital gains overlay in Schedule CG and NRI returnee scenarios. With offices in Pune, Mumbai, Delhi and Gurugram and a single named CA handling the full filing cycle, every salaried ITR comes with an old-vs-new regime comparison memo, AIS and Form 26AS line-by-line reconciliation, AIS feedback filed before ITR submission to prevent Section 143(1)(a) demand notices, and 12 months of post-filing Section 139(9), 142(1) and 148 notice support at no extra cost. In the AY 2025-26 cycle, the firm filed 12,400+ salaried ITRs with zero defective return notices and recovered Rs 8.2 crore aggregate excess-TDS refunds for clients.

Content is reviewed quarterly for accuracy.

ITR filing applies for AY 2026-27 under Section 139(1) of the Income Tax Act 1961 if any of the following holds. Filing is mandatory for income above the basic exemption limit; voluntary but recommended for refund claims, loan documentation and visa applications even at lower income.

• Income above basic exemption: Gross salary or total income exceeds Rs 4 lakh under the new regime or Rs 2.5 lakh under the old regime for individuals below 60 (Rs 3 lakh for 60 to 80, Rs 5 lakh for above 80).
• Job changers with multiple Form 16: You changed jobs and received Form 16 from two or more employers in FY 2025-26 - filing is the only way to consolidate and avoid Section 270A under-reporting penalty (50 percent of tax) that arises from each employer applying basic exemption independently.
• ESOP holders: ESOPs were exercised, vested or sold during FY 2025-26; perquisite under Section 17(2)(vi) reported in Form 12BA at FMV at exercise minus exercise price; TDS deducted under Section 192.
• RSU recipients: Restricted Stock Units vested with TDS under Section 192 deducted by the employer on FMV at vesting; foreign-parent RSUs (US, UK, EU multinationals) require Schedule FA disclosure for the vested shares.
• Capital gains earners: Equity, mutual funds, property, gold, bonds - any capital gain pushes filing requirement to ITR-2; ITR-1 cannot be used with any capital gain (even Rs 1).
• TDS refund claimants: Filing is the mechanism to claim refund of excess TDS deducted by employer, bank (Section 194A on interest) or buyer (Section 194-IA on property purchase from you).
• Foreign asset or income holders: Schedule FA disclosure is mandatory for Resident and Ordinarily Resident (ROR) - foreign bank accounts, foreign equity holdings (vested RSUs from foreign parent), foreign trusts. Non-disclosure attracts Rs 10 lakh penalty under Black Money Act 2015 Section 42.
• High-value transaction triggers (Section 139(1) Seventh Proviso): Current account deposits above Rs 1 crore, savings deposits above Rs 50 lakh, electricity bill above Rs 1 lakh or foreign travel spend above Rs 2 lakh - mandatory filing irrespective of income.

Statutory due dates for AY 2026-27: ITR-1 and ITR-2 non-audit cases - 31 July 2026. Belated return under Section 139(4) - 31 December 2026 with Section 234F fee. Revised return under Section 139(5) - 31 March 2027 (Budget 2026 extended from 31 December). Updated Return (ITR-U) under Section 139(8A) - 31 March 2031 (48 months from end of AY). E-verification window after ITR submission - 30 days per CBDT Notification 5/2022.

The Patron document checklist for salaried ITR is segmented by scenario - simple salaried, job changer, ESOP/RSU holder, capital gains investor and foreign-asset holder. Universal documents apply to all salaried filers; scenario-specific documents are added based on income type.

Universal (all salaried filers):

• PAN and Aadhaar (linked under Section 139AA).
• Form 16 Part A (TDS summary) and Part B (salary breakup) from current employer.
• AIS (Annual Information Statement) download and Form 26AS for FY 2025-26.
• Bank account details for refund credit; primary account flagged on the e-filing portal.
• Investment proofs for Section 80C (PPF, ELSS, life insurance, tuition fees, home loan principal) - old regime only.
• Section 80D health insurance premium receipts (self plus parents) - old regime only.
• Rent receipts and landlord PAN for HRA claim (if rent exceeds Rs 1 lakh per year, old regime).
• Home loan interest certificate from lender (Section 24(b)) - old regime only for self-occupied.

Job Changers (Multiple Form 16):

• Form 16 Part A and Part B from EACH employer of the FY (including the one you resigned from in April).
• Form 12B copy (declaration of previous employer's salary given to the new employer mid-year).
• Last salary slip from each employment showing year-to-date earnings.
• Resignation acceptance and joining dates to confirm employment period overlap.

ESOP and RSU Holders:

• Form 12BA from employer showing ESOP/RSU perquisite under Section 17(2)(vi).
• ESOP grant letter, exercise notification and FMV at exercise computation.
• Brokerage account statement showing share allotment and any post-exercise sales.
• For foreign-parent RSUs: stock plan administrator statement (Fidelity, E-Trade, Morgan Stanley, Charles Schwab); SBI TT buying rate on each vesting date.

Capital Gains Investors:

• Broker capital gains statement (Zerodha, Groww, ICICIdirect, Upstox) with STCG and LTCG bucketed.
• Mutual fund consolidated account statement (CAMS, KFintech).
• Property sale deed, purchase deed, registration receipts; valuation report if claiming 1 April 2001 FMV cost basis.
• Section 54, 54EC, 54F reinvestment proofs (purchase deed for replacement property, NHAI/REC bond certificate).

Foreign Asset Holders (Schedule FA Mandatory for ROR):

• Foreign bank account statements with peak value and closing balance per FY.
• Foreign equity holdings (vested RSUs from foreign parent) - shareholder statement from plan administrator.
• Form 67 working sheet for Foreign Tax Credit under Section 90 read with Rule 128 (filed BEFORE ITR submission).
• Foreign country tax certificates (US Form 1042-S, UK SA302, etc.).

Key Outputs You Receive: Filed ITR-1 or ITR-2 acknowledgement with e-verification confirmation. Old vs new regime comparison memo with chosen regime justification. AIS, Form 26AS and Form 16 reconciliation with variance notes. ESOP perquisite worksheet (Form 12BA validation) tying exercise FMV to cost of acquisition for future sale. Capital gains schedule (Schedule CG) with STCG and LTCG bucketing and Section 87A applicability memo. Multi-Form-16 consolidation sheet showing TDS by TAN.

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Disclaimer: All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Get a free ITR Filing for Salary consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

50,000+ Salaried Returns Filed | 4.9 Google Rating | 15+ Years in Practice | Pune Mumbai Delhi Gurugram

I changed jobs in October from a Pune product company to a Bengaluru SaaS firm. Both employers gave me Form 16 with separate basic exemption applied. I would have owed Rs 1.4 lakh as self-assessment tax. Patron consolidated both Form 16s, identified the standard deduction double-claim, and computed the actual liability. Filed by 25 July 2025 with full reconciliation. - Senior Engineer, Bengaluru.

My employer is a US-headquartered startup with India operations. RSUs vested in March 2026 worth Rs 18 lakh perquisite. Form 12BA showed the value correctly. Patron filed ITR-2 with Schedule FA for the foreign-parent shares and tracked FMV at vesting as cost basis. Zero defective return notices. - Product Manager, NCR.

I sold equity worth Rs 14 lakh in November 2025 - some LTCG, some STCG. Plus Rs 22 lakh salary plus Rs 60,000 dividend. Patron correctly bucketed STCG under 111A at 20 percent and LTCG under 112A above the Rs 1.25 lakh exemption at 12.5 percent. Got a refund of Rs 11,400 from excess TDS. - Marketing Director, Mumbai.

Outcome Proof: Across the AY 2025-26 cycle, Patron filed 12,400+ salaried ITRs with zero defective return notices under Section 139(9), 99.6 percent on-time submission, and Rs 8.2 crore aggregate excess-TDS refunds recovered for clients.

With offices in Pune, Mumbai, Delhi and Gurugram, Patron Accounting serves salaried clients across India - both in-person and remotely.

• Income Tax Return Filing Master Hub - hub-and-spoke routing across all 7 ITR forms and 14 sub-services including individual, business, professional, capital gains, F and O, crypto, NRI and company filings.
• ITR for F and O Traders - for salaried employees with F and O trading on the side; F and O is non-speculative business income under Explanation 2 to Section 28, routed through ITR-3 with set-off rules under Section 70.
• ITR for Property Sale - Section 54, 54EC, 54F reinvestment exemption planning; indexation transition for properties acquired before 23 July 2024 (taxpayer's choice of 12.5 percent without indexation or 20 percent with indexation).
• ITR for Crypto Traders - 30 percent flat tax under Section 115BBH on VDA gains, 1 percent TDS under Section 194S; Schedule VDA disclosure per coin.
• ITR for Capital Gains - comprehensive treatment of STCG and LTCG across all asset classes including equity, mutual funds, property, gold and bonds.
• Tax Planning Services - structure salary components and investments before year-end for next year's filing; regime arbitrage memo, Section 80C maximisation, NPS Section 80CCD planning.
• Income Tax Notice Response - Section 143(1)(a) intimation, Section 139(9) defective return, Section 142(1) inquiry, Section 148 reassessment, faceless assessment under Section 144B.

• Income Tax Act, 1961 - governing statute for AY 2026-27 salaried returns. The new Income Tax Act 2025 applies to FY 2026-27 income (Tax Year 2026-27 returns due in 2027). Income Tax Department e-filing portal.
• Section 15 - Salary chargeable to tax on due basis or receipt basis whichever is earlier.
• Section 16 - Deductions from salary - standard deduction Section 16(ia), entertainment allowance Section 16(ii), professional tax Section 16(iii).
• Section 17(1) - Definition of salary (basic, DA, allowances, bonus, perquisites) - the starting point for ITR computation.
• Section 17(2) - Perquisites - includes ESOP/sweat equity perquisite under Section 17(2)(vi).
• Section 17(2)(vi) - ESOP and sweat equity perquisite at exercise; computed as FMV minus exercise price multiplied by shares.
• Section 17(3) - Profits in lieu of salary - severance, terminal benefits, gratuity portion above exemption limits.
• Rule 3 of Income Tax Rules 1962 - FMV valuation methodology for ESOPs and other perquisites; listed shares use average of opening and closing market price on exercise date; unlisted shares use Category I merchant banker valuation.
• Section 80C - Up to Rs 1.5 lakh deduction (PPF, ELSS, life insurance, principal repayment, ULIP, tuition fees) - old regime only.
• Section 80D - Health insurance premium - Rs 25,000 self plus Rs 50,000 for senior parents (old regime only).
• Section 80CCD(2) - Employer NPS contribution - allowed in BOTH old and new regimes.
• Section 87A - Rebate Rs 60,000 new regime, Rs 12,500 old regime; Resident individuals only; non-refundable; not available against Section 111A/112A income.
• Section 115BAC - New tax regime (default for non-business taxpayers from AY 2024-25 onwards).
• Section 111A - STCG on listed equity at 20 percent (post Budget 2024).
• Section 112A - LTCG on listed equity at 12.5 percent above Rs 1.25 lakh (post Budget 2024).
• Section 112 - LTCG on unlisted shares, debt mutual funds, gold, jewellery, real estate at 12.5 percent without indexation (post 23 July 2024).
• Section 24(b) - Home loan interest deduction up to Rs 2 lakh self-occupied (old regime only); let-out full deduction in both regimes.
• Section 10(13A) - HRA exemption under three-formula lower (old regime only).
• Section 192 - TDS on salary by employer on average rates.
• Section 192(1C) - Startup ESOP perquisite TDS deferral up to 48 months for DPIIT-recognised startups with IMB certification; expands to 60 months under Income Tax Act 2025 Section 392(3).
• Section 139(1) - Mandatory return filing for income above basic exemption.
• Section 139(4) - Belated return until 31 December 2026 for AY 2026-27 with Section 234F fee.
• Section 139(5) - Revised return until 31 March 2027 for AY 2026-27.
• Section 139(8A) - Updated Return (ITR-U) within 48 months from end of AY; until 31 March 2031 for AY 2026-27.
• Section 139(9) - Defective return notice; respond within 15 days.
• Section 139AA - Mandatory PAN-Aadhaar linkage.
• Section 140A - Self-assessment tax payment before ITR filing where TDS is insufficient.
• Section 234F - Late filing fee Rs 5,000 (Rs 1,000 if total income up to Rs 5 lakh).
• Section 234A - Interest at 1 percent per month on unpaid tax from due date.
• Section 234B and 234C - Interest for advance tax default at 1 percent per month each.
• Section 270A - Under-reporting penalty at 50 percent of tax; 200 percent for mis-reporting.
• Section 271AAC - 60 percent on under-declared income from undisclosed sources.
• Section 90 and 91 read with Rule 128 - DTAA relief and unilateral foreign tax credit; Form 67 filed BEFORE ITR submission.
• Section 6 - Residency rules; Resident, RNOR, NRI classification - critical for NRI returnees.
• Black Money (Undisclosed Foreign Income and Assets) Act 2015 Section 42 - Rs 10 lakh penalty for undisclosed foreign assets in Schedule FA.
• CBDT Notification 5/2022 dated 29 July 2022 - 30-day e-verification window.
• Central Board of Direct Taxes (CBDT) - CBDT Notifications.

Statutory due date is 31 July 2026 for ITR-1 and ITR-2 non-audit salaried cases. Late filing triggers Section 234F fee up to Rs 5,000 plus Section 234A interest at 1 percent per month from 1 August 2026. Belated returns under Section 139(4) forfeit capital loss carry-forward under Section 74 and business loss carry-forward under Section 72. Job changers should collect Form 16 from every employer by 30 June 2026 to avoid last-week document chasing. Engage Patron Accounting by 15 July 2026 to lock in regime selection, validate multi-Form-16 consolidation and reconcile ESOP perquisite with Form 12BA. Call +91 945 945 6700 or WhatsApp us for a free 20-minute scoping call - we respond within 2 hours.

ITR Filing for Salary in AY 2026-27 covers single-employer simple ITR-1 returns, job-changer multi-Form-16 consolidations under Section 17(1), ESOP and RSU perquisite reconciliations under Section 17(2)(vi) with Form 12BA validation, and capital gains overlay in Schedule CG across equity (Sections 111A and 112A), mutual funds, property and bonds. Regime selection between default new and opt-in old, AIS reconciliation before submission, and Form 12BA validation are decisions that affect tax liability by tens of thousands of rupees per year and remain the most under-served pain point for salaried Indians.

Patron Accounting has filed 50,000+ salaried ITRs over 15+ years, with offices in Pune, Mumbai, Delhi and Gurugram and a single named CA owning the full filing cycle. In the AY 2025-26 cycle, the firm filed 12,400+ salaried ITRs with zero defective return notices under Section 139(9), 99.6 percent on-time submission, and recovered Rs 8.2 crore aggregate excess-TDS refunds for clients.

Ready to file your AY 2026-27 salaried ITR? Call CA Sundaram Gupta at +91 945 945 6700 or WhatsApp us for a free consultation. We respond within 2 hours during business hours.