⚡ Quick Summary: Do-It-Yourself Tax Filing
Many salaried employees believe a common myth: "My company already deducted TDS, so I don't need to file income tax." This is incorrect. TDS is just the tax deducted in advance; filing the Income Tax Return (ITR) is the only way to officially declare your income to the government and, more importantly, claim a refund if extra tax was cut.
ITR-1 (Sahaj) is the simplest form, designed specifically for resident individuals with a total income of up to ₹50 Lakhs. This covers income from Salary/Pension, one House Property, and "Other Sources" like bank interest. The modern e-Filing portal has made this process incredibly smooth by offering a "Pre-filled Return". Most of your data—salary details from Form 16, interest income from banks, and tax payments—is automatically fetched from the Annual Information Statement (AIS). You essentially just need to validate this data rather than typing it from scratch.
Filing your ITR-1 takes less than 15 minutes if you have your Form 16 and bank statements ready. Beyond saving tax, a filed ITR is a powerful financial document. It acts as the standard Income Proof required for approving Home Loans, Car Loans, and even Visa applications for countries like the USA and UK. The deadline is usually July 31st. Missing this deadline attracts a late fee of up to ₹5,000 and prevents you from carrying forward losses. This guide walks you through the new portal step-by-step to file your return accurately without paying a CA.
How to File ITR-1 Online (Salaried): Step-by-Step Guide
Filing taxes doesn't have to be scary. With the new e-Filing portal, 80% of your data (Salary, Interest, TDS) is pre-filled. You just need to verify and submit. This guide will walk you through the process, ensuring you don't miss any refunds.
Warning: The "AIS" Trap
The biggest mistake beginners make is blindly accepting the pre-filled data.
Check AIS First: The government tracks your high-value transactions (Stock sales, FD interest, Credit Card bills > ₹1L). If you don't declare income shown in your AIS (Annual Information Statement), you will receive a "Defective Return Notice" instantly.
Which Regime is Better?
The portal defaults to the "New Regime". Should you switch?
Verdict: If your total deductions (HRA + 80C + 80D) are more than ₹3.75 Lakhs, stick to the Old Regime. Otherwise, the New Regime saves you more tax.
Don't Ignore the July 31st Deadline!
Missing the deadline has serious consequences:
- ❌ Late Fee: Automatic penalty of ₹1,000 (income < 5L) or ₹5,000 (income > 5L).
- ❌ Interest: 1% per month interest on unpaid tax under section 234A.
- ❌ No Carry Forward: You cannot carry forward losses (like stock market losses) to next year.
Documents Checklist
You don't need to upload these, but keep them handy:
- ✅ Form 16: Provided by your employer (Part A & B).
- ✅ Bank Statement: To check interest credited.
- ✅ Form 26AS / AIS: Download from the tax portal.
Ready to File?
Filing ITR-1 (Sahaj) is applicable for resident individuals having total income up to ₹50 Lakh, having income from Salaries, one House Property, other sources (Interest etc.), and agricultural income up to ₹5,000. If this is you, let's start.
Crucial: Don't Confuse AY and FY
Selecting the wrong year is the #1 mistake beginners make.
Example: April 2024 to March 2025.
Example: AY 2025-26.
1 Step 1: Login & Select Form
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1
Login
Go to incometax.gov.in. Click Login. Your User ID is your PAN Number.
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2
File Income Tax Return
On dashboard, click File now.
Select Assessment Year: 2025-26 (Current).
Mode of Filing: Online. -
3
Select Status & ITR Type
Status: Individual.
ITR Type: ITR-1 (Sahaj).
Click "Proceed with ITR-1".
2 Step 2: Personal Information & Regime Selection
Verify your Profile data (Name, PAN, Aadhaar). This is usually pre-filled.
New vs Old Regime: You will see an option "Do you wish to exercise the option u/s 115BAC(6) of opting out of new tax regime?".
- Select No (Default): To stay in New Regime (Low rates, No deductions like 80C/HRA).
- Select Yes: To switch to Old Regime (High rates, But allows 80C/HRA/Home Loan deductions).
Old vs New Regime: Quick Check
| Feature | New Regime (Default) | Old Regime |
|---|---|---|
| Tax Rates | Lower | Higher |
| 80C (LIC/PPF) | Not Allowed | Allowed (up to 1.5L) |
| HRA / LTA | Not Allowed | Allowed |
| Standard Deduction | Allowed | Allowed |
3 Step 3: Gross Total Income (The Core)
This section has data pre-filled from your Form 16 and AIS. Verify it carefully.
A. Income from Salary
Check "Gross Salary as per section 17(1)". It must match Part B of your Form 16.
Note: Standard Deduction of ₹50,000 (or ₹75,000 as per latest updates) is automatically applied.
B. Income from House Property
If you have a Home Loan, enter the "Interest Payable" amount here as a negative value (e.g., -2,00,000) to claim deduction (Only in Old Regime).
C. Income from Other Sources
This includes Savings Bank Interest and FD Interest. Do not delete this! The department knows this via AIS. If you hide it, you will get a notice.
4 Step 4: Tax Paid & Verification
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📄
TDS Verification: Go to "Taxes Paid" tab. Ensure the TDS deducted by your employer (and banks) matches your Form 26AS. If there is a mismatch, ask your employer to rectify it.
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Refund or Payable? The system will calculate if you need to pay more tax or if you get a refund. If refundable, check your bank account details carefully.
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✅
e-Verification (Mandatory): After submitting, click "e-Verify Now". Select "I would like to verify using OTP on mobile number registered with Aadhaar". Enter OTP and submit. Your filing is NOT complete until you e-Verify.
Frequently Asked Questions
How long does it take to get the refund?
If you e-Verify via Aadhaar OTP, refunds are now processed very fast, often within 10 to 30 days. Ensure your bank account is "Validated" on the portal.
I made a mistake. Can I change it?
Yes. You can file a Revised Return (u/s 139(5)) before 31st December of the Assessment Year. There is no penalty for revising, but try to avoid it.
Do I need to file if income is below 5 Lakhs?
If your gross income is above ₹2.5 Lakh (or ₹3 Lakh in new regime), filing is mandatory. Even if it is below, filing a "Nil Return" is helpful for loan approvals and visa applications.