Filing your income tax return does not have to be complicated. This guide walks you through the entire process in plain language—who needs to file, which form to use, and exactly how to do it step by step.
What Is an ITR and Why Should You File It?
An Income Tax Return (ITR) is a form you submit to the Income Tax Department every year. It maintains records of your complete income, the taxes you've previously paid, and whether you have more or are able to receive a refund.
If you want to understand the complete process of filing returns professionally, consider enrolling in our Income Tax Return (ITR) Filing Course to gain practical knowledge and hands-on experience.
You should file ITR even if your income is below the taxable limit. Here is why it matters:
It works as strong income proof for home loans, car loans, and credit cards
Many embassies ask for ITR when you apply for a visa
You can claim back TDS that was already deducted from your income
You can carry forward losses to reduce tax in future years
It builds your financial credibility over time
AIS vs. Form 26AS—Which One to Download First and Why?
Before you even open the ITR filing page, you need two documents from the income tax portal — AIS and Form 26AS. Most people have heard of Form 26AS but have no idea what AIS is. Here is the difference and exactly what to do with each one.
Form 26AS is your Tax Credit Statement. It shows all the tax that has been deducted on your behalf — TDS from your employer, TDS on bank interest, TDS from clients if you are a freelancer, and any advance tax you paid yourself. Think of it as a record of tax already deposited with the government in your name.
AIS (Annual Information Statement) is newer and much more detailed. It was introduced to give taxpayers and the Income Tax Department a complete picture of every financial transaction you made in the year. AIS shows your salary, interest from all bank accounts, dividends, capital gains, property purchases and sales, mutual fund transactions, and even foreign remittances.
The key difference in simple terms: Form 26AS tells you how much tax was paid on your behalf. AIS tells you everything the department already knows about your income and transactions.
Which one to download first?
Download AIS first. Here is why: the Income Tax Department uses AIS data to cross-check your return. If you declare less income than what AIS shows, the system flags a mismatch and you get a notice. So you need to see what the department already knows before you fill in your return.
After downloading AIS, download Form 26AS and cross-check the TDS figures in both. They should match. If they do not, trust Form 26AS for TDS credit but use AIS for understanding your complete income picture.
How to download both:
Go to incometax.gov.in and log in. Click on e-File in the top menu, then go to Income Tax Returns and select View AIS. Download your AIS from there. For Form 26AS, go to the same portal, click on your profile, or use the quick link for Annual Tax Statement.
What to do if AIS shows wrong information:
This happens more often than people expect. A bank may have reported interest incorrectly, or a property transaction may appear twice. Do not ignore it and do not just leave it.
Open the AIS on the portal, find the wrong entry, and click Submit Feedback. Select the correct reason—income is not mine, income is overstated, or duplicate entry. The department reviews your feedback. In your ITR, declare the correct figures and keep a note that you have raised feedback on the disputed AIS entry.
Never file based on wrong AIS figures just because they are pre-filled. You are responsible for what goes into your return.
Which ITR Form Should You Use?
This is where most people get confused. Here is a simple breakdown:
ITR-1 (Sahaj) — For salaried individuals and pensioners with income up to Rs. 50 lakh. You are only allowed to have one home and no capital gains. This is the most common form for regular employees.
ITR-2 — For individuals who have capital gains (from selling shares, mutual funds, or property), multiple house properties, or foreign assets. No business income allowed.
ITR-3—For business owners, doctors, lawyers, consultants, and other professionals who earn from a business or profession. Also for freelancers who do not want to use the presumptive scheme.
ITR-4 (Sugam) — For small businesses and freelancers who opt for presumptive taxation under Section 44AD or 44ADA. The income limit is Rs. 50 lakh for professionals.
ITR-5, 6, 7—For partnership firms, companies, and institutions. Not for individual taxpayers.
Quick rule: Salaried with no capital gains → ITR-1. Capital gains from stocks or property → ITR-2. Self-employed or freelancer → ITR-3 or ITR-4.
Documents You Need Before You Start
Keep all of these ready before you open the portal:
Everyone needs:
PAN card and Aadhaar number
Bank account number and IFSC code for receiving refund
Form 26AS downloaded from the income tax portal
AIS (Annual Information Statement) downloaded from the portal
Salaried employees also need the following:
Form 16 from your employer
Salary slips for the year
If collecting HRA, provide rent receipts and the landlord's PAN.
For investments and deductions:
80C proofs — LIC receipts, PPF passbook, ELSS statements
80D proofs — health insurance premium receipts
Home loan interest certificate from your bank
Capital gain statements from your broker or mutual fund app
Old Tax Regime vs. New Tax Regime—Which One to Choose?
The new tax regime is the default from FY 2024-2025. You cant do anythings with this but yes, it may not always save you money anymore.
New Tax Regime — Lower tax rates but almost no deductions allowed. Good for people who do not have many investments or insurance policies.
Old Tax Regime — Slightly higher rates but allows deductions under 80C, 80D, HRA, home loan interest, and more. Good for people who invest regularly and claim deductions above Rs. 1.5 lakh per year.
Simple rule: If your total deductions (80C plus 80D plus HRA and others) cross Rs. 3 lakh per year, the old regime usually saves more tax. If your deductions are below Rs. 1.5 lakh, the new regime is likely better.
You can switch between regimes every year if you are a salaried person. There must be condition with business income; they can switch only once
Step-by-Step Guide to File ITR Online
While this guide covers the basics, individuals who wish to build a career in taxation or offer tax filing services can explore our comprehensive ITR filing training program designed for beginners and professionals alike.
Step 1 — Login to the Portal
Go to incometax.gov.in. If you are a first-time user, register using your PAN as your user ID. If already registered, login with your PAN and password.
Before starting the process, you must be sure PAN is linked with Aadhaar. Without this link, you cannot file.
Step 2—Go to File ITR
After signup on the portal, click on e-File in the top menu. After selecting ITR, click on "File Income Tax Return." Click on the e-Fi
Step 3 — Select Year and Form
Choose Assessment Year 2026-27 for income earned in FY 2025-26. Select Online as the mode. Choose the appropriate ITR form, which must be completely based on your income source
Step 4 — Review Pre-filled Data
The portal automatically fills your name, PAN, employer details, and TDS amounts from Form 26AS. Do not assume this is correct. Cross-check every entry with your own documents and AIS. Correct anything that does not match.
Step 5 — Choose Your Tax Regime
The new regime is selected by default. If you want the old regime, look for the option in the Personal Information section and change it. Once you switch, the portal will show you deduction entry fields.
Step 6 — Enter Income and Deductions
Fill in all your income sources—salary, interest from bank accounts, capital gains, rental income, and freelance income. Then enter your deductions if you are in the old regime. Do not forget bank interest income—because the department has this data from the AIS form.
Step 7 — Check Tax Computation
The portal calculates your tax automatically. Review the final number. If you owe additional tax, you will see the amount. If you paid more than needed, you will get a refund if you paid any excess amount by mistake.
Step 8 — Pay Balance Tax If Required
If you owe tax, click Pay Now. Use net banking, UPI, or a debit card. After payment, a challan is generated. Save it and mention the challan details in the ITR.
Step 9 — Submit the Return
Click Preview Return, read through everything once, and then click Submit. Your return is now filed.
Step 10 — E-Verify Immediately
This is the most important step that people forget to verify. Filing without e-verification means your return is treated as not filed at all.
E-verify using Aadhaar OTP — it takes about 30 seconds. Net banking and demat accounts can also be used. You must e-verify within 30 days of filing.
What Happens After You File?
After e-verification, your return transfer to the Centralised Processing Centre (CPC) for processing. You will see one of these statuses when you check:
Successfully e-Verified — It means your return is accepted and under review
Under Processing—Normal stage, takes a few days to a few weeks
Processed — Return accepted, no action needed
Defective Return — Something is missing; you must respond within 15 days
Once processing is complete, if you are having a refund, it's deposited directly to your pre-validated bank account. When it is given, you will get the SMS and email.
Under section 143(1), you will get an intimation. Do not consider it as a notice; it's just a confirmation of what the CPC calculated. If it matches your return, no action needed. If it shows a demand or a different refund amount, check the reason and respond accordingly.
Due Dates and Penalties
July 31, 2026—Deadline for individuals (salaried, freelancers, non-audit cases)
October 31, 2026 — Deadline for businesses requiring a tax audit
December 31, 2026 — Last date for belated returns (filed after the original deadline)
If you file late, you pay a penalty of Rs. 1,000 if your income is up to Rs. 5 lakh, or Rs. 5,000 if it is above Rs. 5 lakh. You also pay interest at 1% per month on any unpaid tax under Section 234A.
Missing the July 31 deadline also means you cannot carry forward most losses to the next year—which is often the bigger financial cost.
Five Mistakes to Avoid
Not checking AIS before filing — The department has your full financial data in AIS. If you declare less than what AIS shows, you will get a notice. Always download and review AIS first.
Wrong bank account details — Your refund goes to the account you enter. A typo in the account number means the refund fails. Pre-validate your bank account on the portal before filing.
Not declaring bank interest—Savings account interest is taxable. Many people forget this. Check your bank statements for total interest earned and add it under Other Sources.
Not e-verifying on the same day—Filing and e-verification are two separate steps. Complete both on the same day to avoid forgetting.
Choosing the wrong ITR form—Using ITR-1 when you have capital gains means you need to file a revised return. Check your income sources carefully before picking a form.
FAQs —
How do I file my ITR myself?
You can file your ITR yourself by logging into the Income Tax e-Filing portal, selecting the correct ITR form, entering income and deduction details, reviewing pre-filled information, submitting the return, and completing e-verification using Aadhaar OTP or net banking.
Can I file ITR without a CA?
Yes, you can file your ITR without hiring a Chartered Accountant (CA). The Income Tax Department provides an online e-filing portal that allows individuals to file their own returns by following the prescribed steps and selecting the appropriate ITR form.
How to fill ITR for the first time?
First-time taxpayers should gather documents such as PAN, Aadhaar, Form 16, AIS, and Form 26AS. Then, log in to the e-Filing portal, choose the correct ITR form, enter the required details, verify the information, and e-verify the return.
How much does a CA charge for ITR?
CA fees for ITR filing typically range from ₹500 to ₹5,000 or more, depending on the complexity of the return. Salaried individuals generally pay lower fees, while business owners and taxpayers with capital gains may pay higher charges.
What is the minimum salary to file an ITR?
For FY 2025-26, individuals under 60 years of age generally need to file an ITR if their gross total income exceeds the basic exemption limit specified under the applicable tax regime. Certain conditions may require filing even below this threshold.
Who is not eligible to file ITR?
Individuals whose income is below the prescribed exemption limit and who do not meet mandatory filing conditions may not be required to file an ITR. However, filing voluntarily can still provide several financial benefits.
How much monthly income is tax-free?
The tax-free monthly income depends on the applicable tax regime and deductions claimed. Since tax liability is calculated annually, taxpayers should assess their total yearly income to determine whether they are required to pay income tax.
What is the benefit of filing ITR?
Filing an ITR helps establish income proof, facilitates loan and visa applications, enables taxpayers to claim refunds, carry forward losses, and maintain financial compliance with the Income Tax Department.
What documents are needed for ITR filing?
Common documents required for ITR filing include PAN, Aadhaar, Form 16, AIS, Form 26AS, bank statements, investment proofs, home loan certificates, and capital gains statements, depending on the taxpayer's income sources.
How to file ITR for a salaried person?
A salaried person can file an ITR by collecting Form 16, verifying AIS and Form 26AS details, selecting the appropriate ITR form (usually ITR-1 or ITR-2), entering deductions and income details, submitting the return, and completing e-verification.
