How To File ITR
It may appear daunting if you’re a first-timer, but filing your Income Tax Return (ITR) is very easy once you learn the basics. In India, ITR refers to the yearly declaration of your income, deductions, and taxes paid to the Income Tax Department. Whether you are an employed person, a freelancer, or a businessman, submitting ITR not only keeps you in line with the law but also allows you to claim refunds, forward losses, and maintain a financial history for loans or visas. We have it all in this guide, from basic details to step-by-step submission directions, including what papers you will require. We will deal with the present Assessment Year (AY) 2025-26, matching the Financial Year (FY) 2024-25.
What is ITR and Why Do You Need to File It?
ITR is short for Income Tax Return, a document in which you declare your income from the last financial year and the taxes you’ve paid or are due. This is used by the Income Tax Department to check whether you’ve paid the right amount of tax or not.
Top Basics for Newcomers
- Assessment Year (AY) vs. Financial Year (FY): FY refers to the year in which you receive income (for example, April 1, 2024, to March 31, 2025, as FY 2024-25). AY refers to the subsequent year where you calculate and file taxes on that FY (for example, AY 2025-26).
- Who Should File? Anyone whose total gross income is more than the basic exemption threshold has to file. For AY 2025-26, this is ₹3 lakh under the new regime or ₹2.5 lakh under the old regime (more for senior citizens). Even if you are below the threshold, file if you have had TDS deducted, claim a refund, or fall into other categories such as foreign assets or high electricity bills.
- Tax Regimes: Opt for the Old Regime (with deductions such as HRA, 80C investments) or the New Regime (simpler slabs but less deductions). The new regime is the default, but you can choose not to.
- Benefits of Filing: Avail tax refunds, prevent penalties (up to ₹10,000 for delayed filing), and ensure compliance for future monetary requirements.
Filing is generally online through the e-Filing portal (incometax.gov.in) and hence is accessible to all.
Types of ITR Forms: Which One are You?
India has seven primary ITR forms, each of which is appropriate for different types of taxpayers. Select according to the source of income and income level. Take a quick comparison here:
| ITR Form | Applicable For | Key Eligibility Criteria | Income Sources Allowed |
|---|---|---|---|
| ITR-1 (Sahaj) | Residents Individuals | Income of up to ₹50 lakh from salary, one house property, other sources (interest, etc.), agricultural income up to ₹5,000. No foreign income or capital gains. | Salary, Pension, One House Property, Other Sources. |
| ITR-2 | Individuals & HUFs | Income from salary, house property, capital gains, foreign income. No business/profession income. | Salary, House Property, Capital Gains, Other Sources, Foreign Income. |
| ITR-3 | Individuals & HUFs | Income from business/profession, in addition to all in ITR-2. Ideal for partners in firms. | All sources, including Business/Profession. |
| ITR-4 (Sugam) | Individual, HUFs, Firms (excluding LLPs) | Section 44AD/ADA/AE presumptive income (business turnover up to ₹2 crore, profession up to ₹50 lakh). No foreign capital gains. | Business/Profession (Presumptive), Salary, One House Property, Other Sources. |
| ITR-5 | Firms, LLPs, AOPs, BOIs | For associations and partnerships. | All except sources requiring ITR-7. |
| ITR-6 | Companies | Except companies claiming exemption under Section 11. | Business/Profession of companies. |
| ITR-7 | Trusts, Political Parties, etc. | For those claiming exemptions under Section 11 (charitable trusts). | Exempt income-generating sources. |
For salaried employees, ITR-1 or ITR-2 is typical. Non-residents have special rules—see your residential status first.
Documents Required for Filing ITR
Collect these documents beforehand—they will help pre-populate your form and claim deductions correctly. Documents differ based on income type, but here’s an exhaustive list:
General Documents (Applicable to All):
- PAN Card (Permanent Account Number).
- Aadhaar Card (connected with PAN for e-verification).
- Form 26AS (Tax Credit Statement—download from portal to confirm TDS).
- Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) for detailed income information.
- Bank account details (all accounts, including dormant accounts).
For Salaried Income:
- Form 16 (employer, reflecting salary, TDS, allowances).
- Salary slips (in case of HRA claims if not in Form 16).
For House Property Income:
- Rent receipts (in case of claiming HRA).
- Rental agreement and tenant details (name, PAN/Aadhaar).
- Home loan interest certificate (from bank for deduction under Section 24).
- Property details (address, co-owners if any).
For Capital Gains:
- Deeds of sale/purchase of assets (property, stocks, mutual funds).
- Broker/demat account capital gains statements.
- Proofs of cost of acquisition/improvement.
For Business/Profession Income:
- Profit & Loss Account, Balance Sheet (audited, if any).
- Business account bank statements.
- GST returns (if applicable).
- Receipts/invoices for expenses.
For Other Sources (Interest, Dividends, etc.):
- Banks/post office interest certificates (Form 16A for TDS on interest).
- Dividend statements.
- Form 16A/16B/16C for TDS on other incomes (e.g., rent, contracts).
For Deductions and Exemptions:
- Proof of investments (LIC premiums, PPF, ELSS under Section 80C—up to ₹1.5 lakh).
- Medical insurance premium receipts (Section 80D).
- Receipt of donation (Section 80G).
- Education loan interest certificates (Section 80E).
Have digital copies handy since the portal auto-fetches a lot from AIS/Form 26AS. If claiming foreign tax relief, keep foreign income proofs handy.
Step-by-Step Guide to File ITR Online
Most filings happen online via the e-Filing portal. Here’s how:
- Register/Login: Visit https://www.incometax.gov.in/iec/foportal/. Register using PAN (as User ID) if new, or log in with PAN and password. Link Aadhaar if not done.
- Select Assessment Year and Mode: Go to e-File > Income Tax Returns > File Income Tax Return. Choose AY 2025-26 and “Online” mode.
- Select ITR Form: According to your profile (individual/HUF), select the relevant form (e.g., ITR-1).
- Complete the Form: Portal fills in data from Form 16, 26AS, and AIS. Provide remaining information:
- Personal details.
- Income from all sources.
- Deductions and exemptions.
- Tax paid (TDS, advance tax).
Select tax regime.
- Calculate Tax: Cross-verify calculations, claim rebates (e.g., Section 87A of ₹12,500/₹25,000 based on regime).
- Validate and Submit: Verify, preview, submit. You’ll receive an Acknowledgment (ITR-V).
Offline option: Download utility, fill JSON, upload.
Verify Your ITR
After submission, verify within 30 days to finalize:
- e-Verify through Aadhaar OTP, Net Banking, EVC, or DSC.
- Or send signed ITR-V to CPC Bengaluru.
Unverified returns are invalid.
Deadlines, Penalties, and Common Errors
- Deadline for AY 2025-26: September 15, 2025 (extended from July 31).
- Late Filing: Possible up to December 31, 2025, with a charge of ₹5,000 (₹1,000 if income < ₹5 lakh).
- Penalties: Interest @1% monthly on taxes not paid; up to ₹10,000 late fee.
- Mistakes to be Avoided: Inappropriate selection of form, omission of income (e.g., interest), improper deduction, failure to verify in time. Always reconcile with Form 26AS/AIS.
Final Thoughts
Filing ITR is your civic responsibility and a financially wise decision. File early, refer to the help sections of the portal, or approach a CA if complicated. With facilities such as pre-filled forms, it’s never been simpler. Keep in mind, proper filing generates trust with the taxman and ensures your refunds. If you are filing for the first time, attempt ITR-1 if eligible—it’s the easiest!
Keep yourself informed through the official Income Tax portal or application. Happy filing!