How to File Income Tax Return (ITR) in India — Practical Step-by-Step Guide

Updated 2025 — This guide explains the ITR filing process for salaried and non-salaried taxpayers, how to pick the correct ITR form, documents required, e-filing walkthrough, common errors, due dates and tips to speed up refunds.

Filing your Income Tax Return (ITR) is an annual responsibility for every taxpayer in India who meets the income threshold. While many salaried taxpayers find it straightforward, self-employed people, freelancers, and those with multiple income sources can be confused about the correct form, deductions, and supporting documents. This guide gives a clear, actionable checklist so you can file correctly and on time.

1. Who must file ITR?

You must file ITR if your total income (before exemptions) exceeds the basic exemption limit. For most individuals this is set by the government each year. Additionally, you must file ITR even if income is below the limit in cases such as:

• You have tax deducted at source (TDS) and want a refund.
• You carried foreign assets or income.
• You want to claim carry forward of losses (capital or business).
• You have deposited large cash or property transactions that require explanation.

2. Choose the right ITR form

Picking the correct ITR form is essential. Below is a simplified mapping (rules may change — always check income tax portal instructions):

3. Documents & information checklist

Before starting, collect these documents — they make filing quick and avoid mistakes.

• PAN card (linked with Aadhaar), bank account details.
• Form 16 (employer) — salaried income + TDS details.
• Form 26AS / TRACES — consolidated TDS and tax payments record.
• Bank interest certificates, FD interest, dividend statements.
• Investment proofs for deductions: PPF, ELSS, life insurance, tuition fees, home loan principal, etc.
• Capital gains statements, mutual fund statements, property sale/purchase documents.
• Details of business income and expenses (for self-employed).

4. Step-by-step e-filing (quick walkthrough)

1. Visit the Income Tax e-filing portal (https://www.incometax.gov.in) and login using your PAN and password or via Aadhaar (OTP).
2. Select the assessment year (the year after the financial year you are filing for).
3. Pick the correct ITR form and choose “prepare and submit online” or upload XML (if using offline utility).
4. Pre-fill or verify personal details (name, PAN, address, bank account). Make sure bank account numbers are correct for refunds.
5. Enter income sources — salary (Form 16), bank interest, capital gains, other income.
6. Claim deductions under Chapter VI-A (80C, 80D, 80G, 80TTA etc.) with amounts and supporting details.
7. Verify tax computation — tax payable or refundable will be auto-calculated. If payable, you can pay before submitting.
8. Submit and e-verify — e-verify using Aadhaar OTP, net banking, or by sending signed ITR-V to CPC Bangalore (not recommended due to delay).

5. How to e-verify (fastest methods)

E-verification completes the filing. Options:

• Aadhaar OTP: linked Aadhaar mobile receives OTP — fastest and immediate.
• Netbanking: login and approve ITR submission using bank’s e-verify option.
• Bank ATM/Bank e-statement: limited banks provide this option.
• Digital signature (DSC): used by companies or professionals.

6. Common mistakes & how to avoid them

• Mismatched PAN/Aadhaar details: ensure spellings and DOB match — mismatch causes rejection.
• Incorrect bank account for refund: use correct IFSC and account number.
• Forgetting to report capital gains: include short-term and long-term gains and claim indexation where applicable.
• Wrong ITR form: double-check — if wrong form submitted, rectify by filing revised return or seeking professional help.

7. Deadline & late filing consequences

ITR due dates can change each year. For normal taxpayers (non-audit cases), the usual due date is 31st July after the end of the financial year — but verify current year deadlines. Late filing can lead to:

• Late fees under Section 234F (up to ₹10,000 for income > ₹5 lakh).
• Interest on tax due under Section 234A/234B/234C.
• Loss of ability to carry forward certain losses (if return filed after due date).

8. Refunds — how to speed them up

If excess TDS or advance tax paid results in refund, follow these tips to get money faster:

• Provide accurate bank details (account + IFSC) during filing.
• Prefer e-verification (Aadhaar OTP or netbanking) — avoid sending physical ITR-V.
• Check Form 26AS to ensure TDS entries match Form 16/other sources.

9. Revised & belated returns

If you discover an omission after filing, you can file a revised return within the prescribed time (usually before completion of assessment). A belated return (filed after due date) can be accepted but with restrictions on carry-forward of losses and possible late fees.

10. Practical tips for salaried and freelancers

Salaried: keep Form 16, investment proofs for 80C & 80D, and Form 26AS handy. Use correct HRA, LTA inputs and report interest income from FDs.

Freelancers / Business owners: maintain separate business bank account, track expenses carefully, preserve invoices, and reconcile GST (if applicable). For presumptive taxation scheme users, understand the turnover thresholds and simplified compliance rules.

11. When to seek professional help

Consult a tax professional or CA if you have complex capital gains (like property sale), foreign income, large business income, complicated deductions, or if you receive a notice from the Income Tax Department.

Summary checklist before you click submit

• Is PAN linked to Aadhaar and details match?
• Have you chosen the correct ITR form?
• Is Form 26AS reconciled with your TDS and advance taxes?
• Have deductions under Chapter VI-A been claimed with proofs?
• Have you saved bank details correctly for refund?
• Did you e-verify after submitting?