Filing your ITR (Income Tax Return) is mandatory if your gross total income exceeds ₹3 lakhs (new regime) or ₹2.5 lakhs (old regime). This guide covers the complete process — from registering on the e-filing portal to filling ITR-1 or ITR-2 and submitting it with or without audit.

## What You Will Learn

Who must file an income tax return in India
How to register on the Income Tax e-filing portal
Step-by-step process to file ITR-1 and ITR-2
How to claim tax refunds if excess tax was deducted
Common mistakes to avoid when filing

## Who Must File an Income Tax Return Filing an Income Tax Return (ITR) is mandatory for certain individuals and optional for others. **Mandatory Filing Thresholds (Financial Year 2025-26)**: | Category | Gross Total Income Threshold | |---|---| | Individuals, HUF, AOC below 60 years | Income > ₹3 lakhs (new regime) / ₹2.5 lakhs (old regime) | | Senior Citizens (60–80 years) | Income > ₹3 lakhs | | Super Senior Citizens (80+ years) | Income > ₹5 lakhs | **Mandatory Filing Regardless of Income**: - If you are a resident of India and has signing authority in a foreign account - If you are a beneficiary of a foreign trust or asset - If TDS or TCS has been deducted from your income even if below threshold - If you have deposited ₹1 crore or more in a current account in a year - If you have paid electricity bills of ₹1 lakh or more in a year - If you have paid foreign travel expenses of ₹2 lakhs or more in a year As per the Income Tax Act, 1961, every person whose total income exceeds the basic exemption limit must file a return. The government has made e-filing mandatory for all individuals above 60 years with income above ₹3 lakhs. ## Step 1: Register on the Income Tax e-Filing Portal Before filing, you must register on the official Income Tax e-filing portal. **Registration Process**: 1. Go to incometax.gov.in 2. Click "Register" (for new users) or "Login" (if already registered) 3. Enter your PAN (must be linked to your mobile number for OTP) 4. Select "Individual" as the user type 5. Enter your PAN, date of birth, and mobile number 6. Validate with OTP sent to your Aadhaar-linked mobile 7. Set your password and complete registration **Key Information to Have Ready**: - PAN card - Aadhaar card (linked to mobile for OTP) - Form 16 from employer (if salaried) - Bank account details (for refund credit) - Previous ITR acknowledgment (for returning filers) ## Step 2: Determine Which ITR Form to Use The Income Tax Department has different ITR forms for different types of taxpayers. **ITR Forms and Who Uses Them**: | Form | Who Uses It | |---|---| | ITR-1 (Sahaj) | Salaried individuals, pensioners, income from one house property, agricultural income up to ₹5,000 | | ITR-2 | Individuals and HUFs with income from more than one house property, capital gains, foreign income | | ITR-3 | Individuals and HUFs with income from business or profession | | ITR-4 (Sugam) | Individuals, HUFs, firms (not LLP) with presumptive income from business/profession | | ITR-5 | Limited Liability Partnerships (LLP), Body of Individuals (BOI) | | ITR-6 | Companies (not claiming exemption under Section 11) | | ITR-7 | Companies and persons filing under Section 139(4A), (4B), (4C), (4D) | Most salaried individuals with only salary income use ITR-1. If you have rental income, capital gains, or foreign income, you must use ITR-2. ## Step 3: Download Your Documents Before filing, gather all necessary documents. **Documents Required**: **For Salaried Individuals**: - Form 16 (TDS certificate from employer) — Parts A and B - Salary slips for the year - Bank statements showing salary credits - Details of other income (interest from savings account, FD interest) - Details of tax-saving investments and payments (for claiming deductions) **For Self-Employed / Business**: - Profit and Loss statement - Balance sheet (for regular books of accounts) - Bank statements for the year - Receipts for major expenses - GST returns filed (if applicable) **For All**: - Aadhaar card - PAN card - Bank account details (IFSC, account number) - Previous year's ITR acknowledgment (if filing again) - Details of home loan EMIs (Form 16 Part B will have this) ## Step 4: File Your ITR Step-by-Step **Step-by-Step ITR Filing (Using e-Filing Portal)**: **Step 1 — Login**: - Log in to incometax.gov.in with PAN and password - Select "e-File" → "Income Tax Returns" → "File Income Tax Return" **Step 2 — Select Assessment Year and ITR Form**: - Assessment Year: AY 2026-27 (for FY 2025-26) - ITR Form: Select based on your income type (ITR-1 for most salaried) - Filing Type: Original Return (for first filing) - Submission Mode: "With JSON" or "Online" **Step 3 — Fill in Personal Details**: - Name, PAN, Aadhaar (auto-populated if already linked) - Date of birth, gender, father's name - Contact details, bank account for refund **Step 4 — Fill in Income Details**: - **Salary Income**: Auto-populated from Form 16 if employer has filed quarterly statements - **Income from House Property**: Enter details of home loan EMI, property address, rental income if any - **Capital Gains**: Enter details of stocks, mutual funds, property sold during the year - **Other Income**: Interest from savings account, FD, dividends **Step 5 — Claim Deductions**: - **Section 80C**: PPF, ELSS, life insurance premium, home loan principal, children's tuition fees, NPS - **Section 80D**: Health insurance premium (self, spouse, children, parents) - **Section 80CCD(1B)**: NPS additional contribution (₹50,000 extra over 80C) - **HRA**: If claiming house rent allowance exemption (need landlord PAN if rent > ₹15,000/month) - **Standard Deduction**: Auto-populated at ₹75,000 for FY 2025-26 **Step 6 — Calculate Tax Liability**: - The portal auto-calculates tax based on the income and regime (old/new) you select - If you have paid advance tax or TDS, these are shown as taxes paid - If TDS > tax liability, you get a refund **Step 7 — Verify and Submit**: - Review all details carefully - Submit the ITR - You will receive an acknowledgment (ITR-V) if not using Aadhaar OTP or net banking verification ## Step 5: Verify Your ITR After submission, the ITR must be verified to be considered valid. **Verification Methods**: **1. Aadhaar OTP (Fastest — Recommended)**: - Receive OTP on Aadhaar-linked mobile - Enter OTP on the portal within 10 minutes - ITR is verified instantly **2. Net Banking**: - Log in through your bank's net banking portal - Select "Income Tax e-Filing" under the tax section - Verify the ITR **3. Bank Account Verification**: - If you pre-validated your bank account on the e-filing portal, you can verify by logging into net banking **4. Demat Account Verification**: - If you have a validated demat account, use it for verification **5. Sending ITR-V by Post** (Last Resort): - If none of the above methods work, download ITR-V (a PDF) - Print, sign, and send to CPC Bangalore within 30 days of filing ## Common Mistakes to Avoid **Filing in the Wrong ITR Form**: Using ITR-1 when you should use ITR-2 (e.g., you have capital gains) results in an defective return. Use ITR-2 if you have capital gains, multiple house properties, or foreign income. **Not Reporting All Income**: Failing to report interest from savings accounts, FD interest, or dividends is a common reason for notice from the Income Tax Department. All income must be reported, even if tax was deducted at source. **Claiming Deductions Without Proof**: Claims under Section 80C, 80D, and other sections must have supporting documents. The Income Tax Department matches claims against third-party data (Form 16, 26AS, AIS). Incorrect claims trigger notices. **Missing the Filing Deadline**: The due date for ITR filing for individuals is typically 31 July of the assessment year. Late filing attracts a penalty of ₹1,000 (if tax liability is below ₹1 lakh) or ₹5,000 (if above ₹1 lakh). File before the deadline. ## Pros and Cons | Pros | Cons | |---|---| | E-filing is free and takes 30–60 minutes | Understanding tax slabs and deductions requires learning | | Claim tax refunds of excess TDS deducted | Wrong claims trigger Income Tax notices | | Avoid penalties for non-filing | Late filing penalty of ₹1,000–₹5,000 | | Helps build a financial trail for loans and visas | Processing of ITR refund can take 2–6 weeks | ## Frequently Asked Questions **Q1: What is the last date for filing ITR for individuals?** A: For FY 2025-26 (AY 2026-27), the due date for individuals not requiring audit is 31 July 2026. For those requiring audit (business income), the due date is 31 October 2026. Late filing attracts penalty and interest. **Q2: How do I claim refund if excess TDS was deducted?** A: File your ITR with all income details. If TDS deducted exceeds your tax liability, the portal calculates the refund. After ITR verification, the refund is processed via NEFT to your bank account within 2–6 weeks. **Q3: I have no tax liability — do I still need to file ITR?** A: If your gross total income exceeds ₹3 lakhs (new regime) or ₹2.5 lakhs (old regime), you must file ITR even with zero tax liability. Additionally, if you have deposited ₹1 crore in a current account, paid electricity bills of ₹1 lakh, or paid foreign travel of ₹2 lakhs, you must file regardless of income level. **Q4: What is Form 26AS and why is it important?** A: Form 26AS is your tax credit statement showing all TDS and TCS deducted against your PAN. Always check Form 26AS before filing to ensure all TDS credits shown match what your employer/bank has actually filed. Mismatches cause processing delays. **Q5: Can I revise my ITR after filing?** A: Yes. You can file a revised return using ITR-1 within the due date or before the end of the assessment year (31 March 2027 for AY 2026-27). Use "Rectification" under e-file to correct errors in income, deductions, or TDS. ## Related Guides