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How to File Income Tax Return (ITR) Online FY 2025-26

Step-by-step guide to file ITR online for FY 2025-26 at the income tax e-filing portal. Free, takes 30-60 minutes.

📁 Tax ⏱️ 30-60 mins 💰 Free

About This Guide

Income Tax Return (ITR) filing is mandatory for individuals with annual income above ₹2.5 lakh (₹3 lakh for senior citizens, ₹5 lakh for super senior). FY 2025-26 (AY 2026-27) deadline is July 31, 2026 for non-audit cases. Filing online at https://incometax.gov.in is FREE and takes 30-60 minutes for salaried individuals. Most common forms: ITR-1 (Sahaj) for salaried with single house property, ITR-2 for capital gains/multiple properties, ITR-3 for business income, ITR-4 (Sugam) for presumptive income. Late filing: ₹5,000 penalty (₹1,000 if income < ₹5L) + 1% interest per month.

Eligibility Criteria

Mandatory if total income exceeds ₹2.5 lakh (under 60), ₹3 lakh (60-80), ₹5 lakh (80+)
Mandatory regardless of income if: foreign assets/income, claim refund, want to carry forward losses
Mandatory if deposited > ₹1 crore in current account
Mandatory if foreign travel expense > ₹2 lakh
Mandatory if electricity bill > ₹1 lakh in year
Voluntary filing recommended for visa/loan applications even if not mandatory

Documents Required

Keep these documents ready before starting application. Missing documents = delayed approval.

PAN card (10-digit)
Aadhaar card (linked with PAN)
Bank account details with IFSC
Form 16 (from employer for salary income)
Form 16A (TDS on other income like FD interest)
Form 26AS (download from incometax.gov.in - shows TDS, advance tax)
Annual Information Statement (AIS) - download from portal
Investment proofs (80C, 80D, etc.) for old regime
House loan interest certificate
Capital gains statements (mutual fund, shares, property)
Bank statements

Step-by-Step Application Process

Follow these steps in order. Each step is critical - skip none.

Choose Tax Regime

Decide Old or New regime BEFORE filing. Use Income Tax Calculator at /calculators/income-tax-calculator. New regime default from FY 2023-24. Old regime allows all deductions but higher slabs.

Collect Documents

Download Form 16 from employer's portal. Form 26AS from incometax.gov.in (shows ALL income reported by deductors). AIS for transactions above thresholds. Bank interest certificates.

Visit https://www.incometax.gov.in. Click "Login" with PAN + Password. First-time users: register with PAN, OTP. Forgot password: reset via Aadhaar OTP.

Choose ITR Form

ITR-1 (Sahaj): Salaried with income < ₹50L, single house, no capital gains. ITR-2: Capital gains, multiple houses, NRI. ITR-3: Business/profession income. ITR-4 (Sugam): Presumptive business. Use form selector tool on portal.

Pre-filled Data Verification

Most data is pre-filled from Form 26AS, AIS, and banks. Verify carefully: Salary, TDS, bank interest, dividend, capital gains. Click each section, verify or correct.

Add Income Sources

Section 1: Salary (from Form 16). Section 2: House property (rental income - 30% standard deduction). Section 3: Capital gains (FMV, cost, holding period). Section 4: Other sources (FD interest, dividend, prizes).

Claim Deductions (Old Regime)

Section 80C: PPF, ELSS, LIC, Home loan principal (max ₹1.5L). 80D: Health insurance. 80CCD(1B): NPS extra ₹50K. 80E: Education loan interest. 80G: Donations. HRA exemption from Form 16.

Verify Tax Calculation

Portal auto-calculates tax. Verify total tax payable. If TDS already deducted = no additional payment. If less TDS = pay self-assessment tax via Net banking before submission.

E-verify ITR

After submission, ITR must be e-verified WITHIN 30 DAYS. Options: (1) Aadhaar OTP - easiest (2) Net banking (3) Bank account EVC (4) Demat EVC. Without e-verification, ITR is invalid.

Track Refund Status

If refund due, processed by CPC Bangalore in 2-4 weeks typically. Track at incometax.gov.in → "View Returns/Forms". Refund credited to bank account directly. Status: Submitted → Verified → Processed → Refund Issued.

Key Benefits

Mandatory legal compliance (penalty ₹5,000 for late)
Refund of excess TDS deducted
Required for visa applications
Required for home loan/bank loan
Carry forward losses (8 years for capital losses)
Insurance claims processing
Government scheme eligibility proof
High creditworthiness

What Happens After Application?

After submission and e-verification, ITR is processed by CPC. Common outcomes: (1) Accepted - Refund issued in 2-4 weeks (2) Defective - Notice received, correct via Section 139(9) within 15 days (3) Audit/Scrutiny - Detailed verification, respond to notices. Use incometax.gov.in for all communication. Save ITR-V, acknowledgment, refund order. Keep documents for 7 years for any verification.

Frequently Asked Questions

What if I miss July 31 deadline?

File belated return till December 31. Late fee ₹5,000 (₹1,000 if income < ₹5L) + interest 1% per month on unpaid tax. After Dec 31, file updated return (ITR-U) within 24 months with extra tax 25-50%.

Can I file ITR without Form 16?

Yes, use salary slips and bank statements. Calculate annual salary, TDS deducted (visible in Form 26AS). Form 16 just consolidates - not mandatory if you have other proofs.

How to choose between old and new regime?

Use Income Tax Calculator at /calculators/income-tax-calculator. Generally: deductions > ₹3.5L → Old regime better. Deductions < ₹2L → New regime better. Calculate both ways.

ITR e-verification failed - what to do?

Try alternate methods. If Aadhaar OTP fails, try Net Banking EVC. If digital fails, send signed ITR-V to CPC Bangalore by ordinary post within 30 days of filing.

Refund not received after 2 months?

Check status at incometax.gov.in → My Account. Common issues: Bank account not pre-validated, IFSC wrong, account closed. Update bank details and re-validate. Contact CPC at 1800-103-4455.