Paying income tax is not just about giving money to the government. It is also about being a responsible citizen and keeping your financial records clean. Every year, the Income Tax Department asks individuals and businesses to file their Income Tax Return (ITR). Many people delay it because they find it confusing, but in reality, it’s quite simple if you know the process.
What is Income Tax Return (ITR)?
An Income Tax Return (ITR) is basically a form where you give details of:
- How much you earned in a financial year
- From where you earned (salary, business, rent, interest, capital gains, etc.)
- How much tax you already paid (TDS, advance tax, self-assessment tax)
- What deductions or exemptions you want to claim (like investments, insurance, education loan, etc.)
After you file it, the Income Tax Department checks your details. If you paid extra tax, you get a refund. If you paid less, you will have to pay the balance. Even if you don’t owe tax, filing ITR is useful for things like visa approval, getting loans, or carrying forward losses for future tax benefits.
Step 1: Collect All the Required Documents
Before you start filing, keep everything ready so you don’t have to stop midway. You will need:
- PAN Card & Aadhaar Card – Basic identity proof.
- Bank details – Account number, IFSC code (to receive refund).
- Form 16 – If you are salaried, this is provided by your employer. It has your salary breakup and tax deducted.
- Form 26AS & AIS (Annual Information Statement) – Download from the portal. These show all taxes deposited in your name, including TDS by employers, banks, or others.
- Details of other income – Such as savings account interest, FD interest, rent received, capital gains from shares, etc.
- Investment proofs – LIC premium, PPF, ELSS, medical insurance, home loan interest, etc., for tax deductions under sections like 80C, 80D, 80G.
Having these documents will save you from mistakes and mismatches later.
Step 2: Visit the Income Tax e-Filing Portal
- Go to the official website: https://www.incometax.gov.in.
- On the top right, click Login.
- Enter your User ID (which is your PAN), password, and captcha.
If you are a first-time user, you’ll need to register first using PAN, Aadhaar, and basic details.
Step 3: Choose “File Income Tax Return”
Once you log in:
1. Go to the top menu e-File → Income Tax Returns → File Income Tax Return.
2. Select the Assessment Year(AY). Remember: AY is the year after the financial year in which you earned income.
Example: For income earned in FY 2024–25 (April 2024 to March 2025), you will file in AY 2025–26.
3. Choose your filing type → Individual (if you are filing for yourself).
Step 4: Select the Correct ITR Form
There are different ITR forms depending on your type of income. Choosing the right one is important.
- ITR-1 (Sahaj): For salaried individuals with income up to ₹50 lakh from salary, one house property, and other simple incomes like interest.
- ITR-2: For individuals with capital gains, more than one house property, or income above ₹50 lakh.
- ITR-3: For those earning from business or profession.
- ITR-4 (Sugam): For small businesses and professionals under presumptive taxation scheme.
The portal often suggests the correct form, but double-check to avoid mistakes.
Step 5: Fill in Your Income Details
Now comes the main part. The portal auto-fills many things using your PAN, Form 26AS, and AIS. But you must review and add missing details.
- Personal Information: Your name, address, PAN, Aadhaar, bank account.
- Salary Income: Comes from Form 16. Enter basic salary, allowances, perquisites, etc.
- House Property Income: If you earn rent or have a home loan (interest deduction).
- Capital Gains: If you sold shares, property, or mutual funds.
- Other Income: Savings bank interest, FD interest, freelance income, etc.
- Deductions: Add all eligible deductions (80C, 80D, 80G, 80TTA, etc.).
Be careful here. Even a small mismatch can delay your refund or trigger notices.
Step 6: Check the Tax Calculation
Once all details are filled, the system automatically calculates:
- Gross Total Income
- Deductions
- Taxable Income
- Total Tax Payable or Refundable
Double-check this. If everything matches your Form 16, 26AS, and investments, you’re good to go.
Step 7: Pay Remaining Tax (if required)
If the portal shows you still owe tax, you need to pay it before submitting:
- Go to e-Pay Tax on the portal.
- Select Challan 280 for income tax.
- Pay using net banking, debit card, or UPI.
- Once paid, enter the Challan details in your return.
Step 8: Submit and Verify ITR
After review, click Preview and Submit. But remember: Filing is not complete until you verify your ITR.
You can verify instantly using:
- Aadhaar OTP (most common & easy)
- Net banking login
- Bank account EVC
- Or, if you can’t do digital verification, you can print and sign the ITR-V form and send it to CPC, Bengaluru within 120 days.
Step 9: Download the Acknowledgment
Once verified, download the ITR-V acknowledgment. Keep a copy saved in your system and also email it to yourself. This is proof that you filed successfully.
Final Note
Filing ITR is not just a legal requirement, it’s proof of your financial honesty. It makes life easier when you apply for loans, want to buy property, or apply for a visa. Plus, it helps you get refunds for excess TDS deducted. The usual last date for filing ITR (without late fees) is 31st July of the Assessment Year, so don’t wait till the last day.
Also Read : How to select old vs new tax regime with example
