Filing your Income Tax Return (ITR) is a legal obligation for most earning individuals in India and can be done entirely online in under 30 minutes. This step-by-step guide walks you through the process from selecting the right ITR form to e-verification, ensuring a smooth and error-free filing experience.
Who Must File ITR
Filing is mandatory if your gross total income exceeds the basic exemption limit (₹3 lakh under the new regime, ₹2.5 lakh under old regime for individuals below 60). Even if your income is below the limit, filing is required if you want to claim a tax refund, have deposited more than ₹1 crore in current accounts, have spent more than ₹2 lakh on foreign travel, have electricity bills exceeding ₹1 lakh, or have TDS deducted that you want refunded. It is also needed for visa applications and loan approvals.
Choosing the Right ITR Form
ITR-1 (Sahaj) is for salaried individuals with income up to ₹50 lakh from salary, one house property, and other sources. ITR-2 is for individuals with capital gains, multiple house properties, foreign income, or income above ₹50 lakh. ITR-3 is for individuals with business or professional income. ITR-4 (Sugam) is for small businesses and professionals opting for presumptive taxation. Most salaried individuals file ITR-1 or ITR-2.
Step-by-Step Filing Process
Log in to the e-filing portal (efilingindia.gov.in) with your PAN. Download your Annual Information Statement (AIS) and Form 26AS to verify TDS credits and reported financial transactions. Select the assessment year and ITR form. The portal pre-fills most salary and TDS data from your Form 16 and 26AS. Enter additional income (interest, capital gains, rental income). Claim deductions under 80C, 80D, and other sections. Verify the tax computation — check if tax is due or refund is expected. Submit and e-verify using Aadhaar OTP, net banking, or digital signature.
Common ITR Filing Mistakes
Not reporting all income sources — the tax department matches your ITR against AIS data and sends notices for mismatches. Forgetting to report bank interest, even from savings accounts (though ₹10,000 is exempt under 80TTA). Not claiming eligible deductions, especially 80D health insurance and education loan interest under 80E. Filing the wrong ITR form, which can lead to rejection. Missing the July 31 deadline results in late filing fees of ₹1,000-₹5,000 and interest on any tax due.
What is the deadline for filing ITR?
The standard deadline is July 31 of the assessment year. For FY 2025-26, the deadline is July 31, 2026. Belated returns can be filed until December 31, 2026, but with penalties and loss of certain benefits like carrying forward losses.
Do I need a CA to file my ITR?
Most salaried individuals with straightforward income can easily file their own ITR using the pre-filled forms on the e-filing portal. CA assistance is recommended for business income, multiple income sources, capital gains from multiple transactions, or complex financial situations.