Filing your Income Tax Return (ITR) online in India is mandatory if your income crosses the basic exemption limit, and voluntary-but-smart even if it is not — a filed return is proof of income for visas, loans, and refunds. The process on incometax.gov.in takes 30–60 minutes once you know the steps. Here is the full walkthrough for FY 2025-26 (Assessment Year 2026-27).
Before you start: gather these documents
- PAN and Aadhaar (Aadhaar-PAN linking is mandatory).
- Form 16 from your employer (if salaried) — or Form 16A/16B for other income.
- AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) from the portal — these show what the IT department already knows about your income.
- Bank statements and interest certificates (savings, FD).
- Investment proofs if claiming deductions under the old regime: 80C (PPF, ELSS, EPF), 80D (health insurance), home loan interest, HRA rent receipts.
- Capital gains statements from your broker or mutual fund platform.
The takeaway
Download your AIS first and reconcile it with your records. If the department's data does not match yours, fix discrepancies before filing — otherwise you may get a notice later.
Step 1: Log in and pick the right ITR form
Go to incometax.gov.in, log in with your PAN and password (or OTP). Navigate to e-File → Income Tax Returns → File Income Tax Return. Select Assessment Year 2026-27 and the correct ITR form:
- ITR-1 (Sahaj): Salaried individuals with income up to ₹50 lakh, one house property, and no business income or capital gains.
- ITR-2: Individuals with capital gains, foreign income, or more than one house property.
- ITR-3: For individuals with business or professional income (freelancers with books).
- ITR-4 (Sugam): Presumptive taxation under 44AD/44ADA — common for freelancers under ₹75L receipts.
Step 2: Choose old or new tax regime
The new regime is the default for FY 2025-26. It has lower slab rates and a ₹75,000 standard deduction for salaried taxpayers, but removes most exemptions (80C, HRA, home loan interest). The old regime keeps those deductions but taxes at higher slabs. You can switch each year if you have no business income. Run both side by side with an income tax calculator before filing — the difference can be ₹20,000–₹80,000 depending on your deductions.
Step 3: Fill income, deductions, and tax paid
Most fields pre-fill from Form 16 and AIS. Verify salary, TDS deducted, other income (interest, dividends, capital gains), and deductions. Enter 80C investments, 80D health insurance, HRA exemption (old regime only), and home loan interest if applicable. The portal calculates tax, cess, and surcharge automatically.
Step 4: Verify, e-verify, and submit
- 1.Review the tax summary — check if TDS already paid covers your liability or if you owe additional tax.
- 2.Pay any balance tax via the portal (Challan 280) before submitting if due.
- 3.Submit the return. You have 30 days to e-verify — do it immediately via Aadhaar OTP (fastest), net banking, or DSC.
- 4.An unverified return is treated as not filed. E-verification takes 30 seconds with Aadhaar OTP.
Common mistakes to avoid
- Picking the wrong ITR form — using ITR-1 when you have capital gains triggers a defect notice.
- Forgetting to e-verify within 30 days.
- Not checking AIS — mismatched TDS or undeclared interest gets flagged.
- Claiming HRA in the new regime — it is not allowed.
- Missing the deadline (usually 31 July for non-audit cases) — late filing costs ₹5,000 penalty plus interest on unpaid tax.
Filing ITR is not complicated once you do it once. The portal pre-fills most fields, and the hardest decision — old vs new regime — takes five minutes with a calculator. Do it on time, e-verify immediately, and keep your acknowledgement for seven years.