Filing Income Tax Returns (ITR) is not just a legal responsibility but also an important step in managing your personal finances. With the financial year 2024–25 closing on 31st March 2025, taxpayers in India are now preparing to file their ITR for Assessment Year (AY) 2025–26.
In this guide, we’ll walk you through the process in simple steps so you can file your taxes smoothly and avoid penalties.
✅ Who Should File ITR in AY 2025–26?
You need to file ITR if:
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Your gross total income exceeds the basic exemption limit (₹2.5 lakh for individuals, ₹3 lakh for senior citizens under new regime).
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You want to claim a refund of excess TDS.
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You had foreign income or assets.
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You have deposited more than ₹1 crore in a bank, spent over ₹2 lakh on foreign travel, or paid electricity bills above ₹1 lakh.
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You are an NRI with taxable income in India.
📌 Step 1: Collect Your Documents
Before you start, keep these handy:
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Form 16 (issued by your employer)
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Form 26AS (tax credit statement)
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AIS & TIS (Annual Information Statement & Taxpayer Information Summary on income-tax portal)
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Bank statements
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Investment proofs (LIC, ELSS, PPF, Home Loan, Section 80C/80D/80G deductions)
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Capital gains statements (if you traded stocks, mutual funds, or crypto)
📌 Step 2: Choose the Right ITR Form
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ITR-1 (Sahaj): Salaried individuals with income up to ₹50 lakh (no business/profession).
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ITR-2: Individuals with income > ₹50 lakh, capital gains, or foreign income.
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ITR-3: Income from business/profession.
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ITR-4 (Sugam): Presumptive income scheme under Sections 44AD/44ADA.
📌 Step 3: Register/Login on the Income Tax Portal
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Go to Income Tax e-Filing Portal.
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Login using PAN/Aadhaar and OTP.
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First-time filers must register using PAN (which acts as your user ID).
📌 Step 4: Select the Filing Mode
You can file:
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Online (recommended): Directly fill details in the ITR form on the portal.
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Offline: Download the utility (Excel/JSON), fill it, and upload.
📌 Step 5: Pre-Fill and Verify Your Data
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Most details (salary, TDS, interest income, investments) are auto-filled.
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Cross-check with Form 16, Form 26AS, and AIS.
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Correct mismatches before submission.
📌 Step 6: Claim Deductions & Choose Tax Regime
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Deductions under Section 80C (₹1.5 lakh), 80D (medical insurance), 80G (donations), etc.
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Choose between Old Regime (with deductions) or New Regime (lower slabs, fewer deductions).
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Once you select and submit, you cannot change it for that assessment year.
📌 Step 7: Compute Tax & Pay Balance Tax (if any)
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The system auto-calculates your tax liability.
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If you owe more tax, pay it using Challan 280 (via NetBanking or portal).
📌 Step 8: Submit Your ITR
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Review all details carefully.
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Click Submit.
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You will get an Acknowledgement (ITR-V).
📌 Step 9: E-Verify Your ITR
Filing is incomplete without verification. Verify within 30 days via:
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Aadhaar OTP
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NetBanking
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Demat account
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Sending signed ITR-V by post to CPC, Bengaluru
📌 Step 10: Track Your Refund/Status
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Login to the portal → “View Filed Returns.”
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Refunds are usually credited within 30–45 days (if no discrepancies).
⚠️ Important Deadlines for AY 2025–26
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31st July 2025 – Due date for most individual taxpayers.
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31st October 2025 – Due date for taxpayers requiring audit.
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Filing late? A penalty of up to ₹5,000 may apply.
✍️ Final Thoughts
Filing ITR is simpler than most people think, especially with online pre-filled forms. The key is to organize documents early and cross-check your AIS & Form 26AS before submission. Filing on time not only saves penalties but also builds a solid financial record for loans, visas, and credit.
