How to File Your ITR: Step-by-Step Guide
Filing your Income Tax Return (ITR) is not rocket science. The new e-filing portal has made it easier than ever. You don't always need a CA to do it. Follow this guide to file your own tax returns in 15 minutes.
Step 0: The "Must-Have" Documents
Before you login, keep these documents ready on your desk (or desktop).
Step 1: Choose the Correct Form (Crucial)
Choosing the wrong form will get your return rejected as "Defective". Here is the cheat sheet for the Common Man:
| Form Name | Who is it for? | Who CANNOT use it? |
|---|---|---|
| ITR-1 (Sahaj) | Salaried individuals, One House Property, Total Income < ₹50 Lakhs. | If you sold stocks (Capital Gains), hold foreign assets, or are a Director in a company. |
| ITR-2 | Salaried people who have Capital Gains (Sold Stocks/Mutual Funds) or income > ₹50 Lakhs. | People with Business/Profession income. |
| ITR-3 | People with Business Income (Intraday trading is considered business). | Salaried people with no business income (use ITR-2 instead). |
| ITR-4 (Sugam) | Small Business/Freelancers choosing Presumptive Taxation (declaring flat % profit). | If you want to claim detailed business expenses or have Capital Gains. |
Step 2: The E-Filing Process (Walkthrough)
1. Login and Start
Go to incometax.gov.in . Login using your PAN card number and password. Click on "File Now" . Select the Assessment Year (Remember: For income earned in 2024-25, AY is 2025-26).
2. Verification of AIS (The Trap)
Before you fill data, download your AIS (Annual Information Statement) from the Services menu. This document shows every rupee you earned that the government knows about (Dividend, Interest, Stock sales).
Warning: If your ITR data does not match your AIS data, you will likely get a notice. Always ensure you declare at least as much income as shown in AIS.
3. Personal Information
Verify your Aadhaar, Phone number, and Bank Account details. Ensure at least one bank account is "Validated" so you can receive refunds.
4. Gross Total Income
This section is pre-filled mostly. Check your Salary income against Form 16.
- Salary: Ensure specific allowances (HRA, LTA) are exempt properly.
- House Property: If you have a home loan, declare the interest paid here (negative figure) to reduce tax.
- Other Sources: Add Savings Bank Interest. (You can claim deduction up to ₹10,000 u/s 80TTA later, but declare it first!).
5. Total Deductions
This is where you save tax. Enter details for:
- 80C: LIC, PPF, EPF (max ₹1.5L).
- 80D: Medical Insurance.
- 80TTA: Savings interest deduction.
6. Tax Paid & Verification
The system will calculate your final tax. If you paid extra via TDS, it will show a Refund amount. If you paid less, it will show "Amount Payable" . You must pay this online immediately.
Step 3: Verification (Don't Forget!)
Submitting the return is not enough. You must Verify it. The easiest way is "e-Verify using Aadhaar OTP".
Once you enter the OTP, the process is complete. You will get an acknowledgement email. Now, wait for the processing intimation (Section 143(1)).
Frequently Asked Questions
Can I file ITR after the due date? ▼
Yes, you can file a 'Belated Return' usually until December 31st of the Assessment Year. However, you will have to pay a late fee (penalty) of up to ₹5,000.
Do I need to send physical documents to Bangalore? ▼
No. If you e-Verify your return using Aadhaar OTP or Net Banking, the process is 100% online. You only need to send the physical ITR-V to CPC Bangalore if you fail to e-Verify online within 30 days.
What if I made a mistake in my filed ITR? ▼
Don't panic. You can file a 'Revised Return' under Section 139(5). This allows you to correct errors and re-submit the return without penalty, provided you do it within the time limit (usually Dec 31st).