How to File Your ITR in India: A Step-by-Step Guide for FY 2025-26
Filing your ITR is simpler than most people fear — and missing the deadline costs you far more than the hour it takes to do it right.
Income tax return (ITR) filing is not just a legal obligation for many Indians — it is also the trigger for refunds, visa applications, loan approvals, and carry-forward of capital losses. For FY 2025-26 (Assessment Year 2026-27), the due date for salaried individuals is 31 July 2026 (unless extended by CBDT).
Which ITR Form Do You Need?
| Form | Who Should Use It |
|---|---|
| ITR-1 (Sahaj) | Salaried individual, one house property, other income up to ₹50 lakh; resident in India |
| ITR-2 | Salaried + capital gains, more than one house property, foreign assets |
| ITR-3 | Business/professional income along with salary/capital gains |
| ITR-4 (Sugam) | Presumptive taxation under Sections 44AD, 44ADA, 44AE — income up to ₹50 lakh |
Most salaried employees with mutual fund or stock gains file ITR-2. Those with only salary and FD/savings interest use ITR-1.
Documents to Gather Before You Start
- Form 16 (Part A + Part B) from your employer
- Form 26AS and AIS from the income tax portal (traces.gov.in / incometax.gov.in)
- Bank statements (savings interest)
- Capital gains statements from brokers and mutual fund registrars (Zerodha, Groww, CAMS, KFintech)
- Home loan interest certificate from lender
- Rent receipts / HRA calculation (if claiming old regime)
- Investment proofs: ELSS, PPF, NPS, insurance premiums (Section 80C/80D)
Step-by-Step: Filing on incometax.gov.in
- Login at incometax.gov.in using PAN and password (or Aadhaar OTP).
- Go to e-File → File Income Tax Return.
- Select Assessment Year 2026-27, filing type Original.
- Choose your ITR form. The portal suggests a form based on your profile.
- Select the filing mode: Online (recommended) vs offline JSON upload.
- Pre-fill and verify: The portal pre-fills data from Form 26AS and AIS. Review every entry carefully — employers, banks, and mutual fund houses may have reported figures that differ from your records.
- Enter remaining details: Deductions (80C, 80D, 80G, HRA), house property income/loss, capital gains.
- Choose tax regime: Old or new. The portal computes tax under both and highlights the better option.
- Compute tax and pay self-assessment tax (if any) via Challan 280 on the tax portal itself.
- Verify your return using one of these methods:
- Aadhaar OTP (instant, recommended)
- Net banking
- Demat account
- Physical ITR-V sent by speed post to CPC Bengaluru (must be done within 30 days of filing)
Key Deadlines for AY 2026-27
| Category | Deadline |
|---|---|
| Salaried individuals | 31 July 2026 |
| Businesses requiring tax audit | 31 October 2026 |
| Transfer pricing cases | 30 November 2026 |
| Belated return (with penalty) | 31 December 2026 |
Filing a belated return after 31 July attracts a late fee of ₹5,000 (₹1,000 if total income is below ₹5 lakh). You also lose the right to carry forward capital losses (except brought-forward losses from house property).
Common Errors to Avoid
- Not reconciling AIS: The IT department cross-checks your return against AIS. Unexplained mismatches trigger notices. Download your AIS and explain or correct any discrepancies before filing.
- Missing FD interest: Bank FD interest is taxable even if TDS was deducted. Always include it in "Income from Other Sources".
- Forgetting capital gains from liquid/debt funds: Indexation benefit changed from FY 2024-25. Debt fund gains are now taxed at slab rate regardless of holding period.
- Incorrect bank account for refund: Ensure your pre-validated bank account is correct. Refunds are issued only to pre-validated accounts.
Use the income tax calculator to estimate your final tax liability and identify if any self-assessment tax is payable before you file.
These figures are estimates for educational purposes. Consult a SEBI-registered advisor for personalised advice.
Frequently asked questions
Is it mandatory to file an ITR if my income is below the tax exemption limit?+
Not always, but it is advisable. Filing is mandatory if you meet certain high-spend criteria (foreign travel, electricity bills, etc.) regardless of income. Filing also creates a documented income history useful for visa applications, loans, and refund claims on TDS.
What is the difference between Form 26AS and AIS?+
Form 26AS shows TDS, TCS, advance tax, and self-assessment tax paid against your PAN. AIS (Annual Information Statement) is broader — it includes data on interest, dividends, mutual fund transactions, property purchases, and foreign remittances reported by various entities. AIS is more comprehensive.
Can I revise my ITR after filing?+
Yes. You can file a revised return under Section 139(5) any time before 31 December 2026 (the belated return deadline for AY 2026-27) or before the assessment is completed, whichever is earlier. There is no penalty for revision.
How do I carry forward capital losses?+
Capital losses can only be carried forward if the original return was filed on or before the due date (31 July 2026 for salaried individuals). Short-term capital losses can be set off against any capital gains; long-term losses only against long-term gains. Carry-forward is allowed for up to 8 years.
What happens if I get a notice after filing?+
Most notices are automated intimations under Section 143(1) — they are not full scrutiny. Read the notice carefully, log in to the e-filing portal, and respond within the given time. For scrutiny notices (143(2) or 148), consult a chartered accountant.
Try the calculators
Keep reading
- How to Calculate HRA Exemption in India (With Formula & Examples)
HRA is one of the most valuable salary exemptions available — yet many employees under-claim it simply because the formula seems complicated.
- What Is Surcharge on Income Tax in India? (FY 2025-26)
Earning over ₹50 lakh triggers a surcharge on top of your income tax — understanding marginal relief can save you thousands.
- What Is a PAN Card and Why Does It Matter?
A PAN card is not just a tax document — it is the identity backbone of every significant financial transaction in India.
Elena writes about taxes and the money side of running a small business. She’s on a mission to make VAT, margins, and break-even points feel a lot less scary.