How to File an Income Tax Return — Step-by-Step ITR Filing Guide

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Anurag, who is a 28-year-old software engineer earning ₹8,00,000 a year, was submitting his first Income Tax Return (ITR). He carefully collected all the necessary documentation before starting. According to his Form 16, his employer had already deducted ₹60,000 as TDS. In addition, he found out that he had earned ₹5,000 in interest from his savings.

The good news is that Anurag made some smart financial decisions over the year, allocating ₹150,000 to a PPF, ₹25,000 to health insurance, and ₹50,000 to interest on an education loan. Because of them, he was able to deduct ₹2,25,000 in total under Sections 80C, 80D, and 80E.

Anurag logged into the Income Tax e-filing portal and selected ITR-1 (Salaried Individuals). He entered the following details:

Gross Salary: ₹8,00,000
TDS: ₹60,000
Interest Income: ₹5,000
Deductions: ₹2,25,000

His total income subject to taxes was ₹5,75,000.00. According to the current tax slabs, ₹5,75,000 is subject to ₹19,500 in taxes. As ₹60,000 had already been deducted for TDS, Anurag was entitled to a ₹40,500 refund.

Who Needs to File Income Tax Returns?

The Income Tax Act of 1961 states that everyone whose total income is over the basic exemption limit must file an Income Tax Return (ITR). The exemption limits for the Fiscal Year 2023–2024 (Assessment Year 2024–2025) are:

₹2,50,000 for individuals below 60 years of age
₹3,00,000 for senior citizens aged between 60 and 80 years
₹5,00,000 for super senior citizens aged above 80 years

These limits apply under the old tax regime. Under the new tax regime, the basic exemption limit is ₹3,00,000 for all taxpayers, regardless of age.

Even if your income is below these thresholds, you may still be required to file an ITR if you meet certain criteria, such as:

Foreign Assets or Income: Being a resident with assets or financial interests outside India, or having signing authority in foreign accounts.
High-Value Transactions: Depositing over ₹1 crore in one or more current accounts, incurring expenses exceeding ₹2 lakh on foreign travel, or paying electricity bills over ₹1 lakh.
Tax Deducted at Source (TDS): Having TDS or Tax Collected at Source (TCS) aggregating to ₹25,000 or more (₹50,000 for senior citizens).
Business or Profession: Having a business or profession with a turnover exceeding ₹60 lakh (business) or ₹10 lakh (profession).
Claiming Refund or Carrying Forward Losses: If you wish to claim a tax refund or carry forward losses.
Applying for Loans or Visas: Financial institutions and embassies often require ITRs as part of their due diligence process.

Filing an ITR is not only a legal obligation but also beneficial for maintaining financial transparency and availing various financial services.

Documents Required for Filing ITR

Document	Purpose / Use	Example
PAN Card	Unique ID for taxpayers; required for filing ITR and high-value transactions.	Example: PAN - ABCDE1234F. Must match in Form 16 and Form 26AS.
Aadhaar Card	Mandatory for e-verification via OTP and PAN-Aadhaar linking.	Aadhaar OTP sent to your registered mobile during ITR e-verification.
Form 16	Issued by employer. Shows salary, deductions, and TDS.	Example: Annual Salary ₹8,00,000; TDS deducted ₹60,000.
Form 26AS	Consolidated tax credit statement showing all taxes paid.	Example: TDS ₹60,000, Advance Tax ₹10,000 credited to PAN.
Bank Account Details	Required to receive a tax refund and for validation.	Example: HDFC A/C No. 1234567890, IFSC: HDFC0001234 (Refund of ₹12,500 credited here).
Investment Proofs (80C, 80D, 80E)	To claim deductions and reduce taxable income.	Example: PPF ₹1,50,000 (80C), Health Insurance ₹25,000 (80D), Education Loan Interest ₹50,000 (80E).
Interest Certificates	Shows interest income from FDs, RDs, and savings accounts.	Example: Savings A/C interest ₹5,000; FD interest ₹12,000. Total = ₹17,000 (taxable).
TDS Certificates (Form 16A/B/C)	For non-salary TDS: rent, property, bank interest	Example: TDS of ₹10,000 on FD interest (Form 16A); ₹1,00,000 TDS on flat sale (Form 16B).
Capital Gains Statements	For gains from the sale of shares, mutual funds, or property.	Example: Sold equity MF for ₹3,00,000, bought at ₹2,00,000 → LTCG = ₹1,00,000.
Home Loan Statement	To claim deduction on loan interest (Section 24b).	Example: Principal ₹1,00,000, Interest ₹2,00,000 → Claim ₹2,00,000 deduction.

Start early: Avoid last-minute rush and portal glitches.
Use Form 26AS + AIS (Annual Information Statement) to cross-check all reported incomes.
Report all income, even if below the taxable limit (e.g., FD interest).
E-Verify within 30 days of filing to complete the process.
Use online calculators to estimate tax liability before filing.
Keep copies of all supporting documents for at least 6 years.

Step-by-Step Guide to File ITR Online

Log in to the e-filing Portal

Visit https://www.incometax.gov.in/iec/foportal/.
Enter your PAN as the User ID.
Input your password and the captcha code
.
Click "Login".

Go to 'File Income Tax Return'

From the dashboard, click on e-File.
Select "Income Tax Returns".
Click on "File Income Tax Return".

Select the Assessment Year and ITR Form

Choose the Assessment Year (e.g., 2024–25 for FY 2023–24).
Select the appropriate ITR form (e.g., ITR-1 for salaried individuals).
Choose the Filing Type:
- Original Return
- Revised Return
Select "Online" as the Mode of Filing.
Click "Continue".

Fill in the ITR Form

The form will be pre-filled with details like your name, PAN, and contact information.
Manually enter income details, deductions, and other required information.
Click "Save Draft" periodically to avoid losing data.

Validate and Calculate Tax

After entering all the details, click on "Calculate Tax".
Review the tax computation.
If there's any tax payable, proceed to make the payment.

Preview and Submit

Click on "Preview Return" to review all entered details.
Ensure all information is accurate.
Click "Proceed to Preview".
After reviewing, click "Submit".

Verify Your Return

You must verify your return within 30 days of filing.
Choose one of the following verification methods:
- Aadhaar OTP: Receive OTP on your Aadhaar-linked mobile number.
- Net Banking: Verify through your bank's net banking portal.
- EVC: Generate an Electronic Verification Code.
- ITR-V: Download, sign, and send the ITR-V form to the Centralised Processing Center (CPC) in Bengaluru within 120 days.

Common Deductions to Save Tax (Sections 80C, 80D, 80E, etc.)

Section	Purpose	Maximum Deduction	Eligibility	Example
80C	Investments & expenses for savings	₹1,50,000	Individual/HUF investing in PPF, ELSS, LIC, tuition fees, home loan (principal)	₹1,50,000 in PPF, ELSS, and LIC → Full deduction under 80C
80D	Health insurance premiums	₹25,000 – ₹1,00,000 (combined)	Premiums for self/family + parents (more for senior citizens)	₹25K for family + ₹50K for senior citizen parents → ₹75K deduction total
80E	Education loan interest	No upper limit	Interest on loan for higher education (self/spouse/children/legal ward)	₹50,000 interest paid on education loan → ₹50,000 deduction
80EE / 80EEA	Home loan interest (1st-time/affordable housing)	₹50,000 (80EE) / ₹1,50,000 (80EEA)	First-time buyers with property < ₹50L (EE) or ₹45L (EEA); loan from bank	₹1,20,000 interest paid on affordable home loan → ₹1,20,000 deduction (EEA)

Note: Under the previous tax system, these deductions were applicable. The majority of deductions are prohibited if you choose the new tax regime (Section 115BAC), except employer NPS contributions, 80CCD(2), and a few others.

How to Claim Tax Refunds (if applicable)?

Action	Details	Tips / Notes
File ITR	Submit a return with all income and TDS details. A refund is generated if excess tax is paid.	Must e-verify ITR within 30 days to process the refund.
Provide Bank Details	Enter pre-validated bank A/C & IFSC in the ITR.	Ensure the account is active & in your name. Validate via the e-filing portal.
Check Refund Status	Log in to incometax.gov.in or TIN NSDL	Track status using PAN & Assessment Year
Possible Refund Statuses	Issued, Failed, Adjusted against demand, Processed but no refund, etc.	Cross-check ITR, Form 26AS, and AIS for any mismatch.
Raise Refund Reissue Request	In case of refund failure, go to "Services" → "Refund Re-issue" in the e-filing portal.	Update the correct bank details before submitting the reissue request.
Interest on Delayed Refund (Sec 244A)	6% per annum interest if the refund is delayed by the Income Tax Dept.	Auto-credited with a refund, if eligible.

Helplines:

Purpose	Contact Number
General Tax Queries	1800-180-1961 (Toll-Free)
Refund Status Queries	1800-425-2229 / 080-43456700
SBI Refund Support	1800-425-9760

Tips for First-Time Tax Filers

Tip	Details	Key Takeaway
Collect Required Documents	Gather Form 16, Form 26AS, bank statements, investment proofs, PAN & Aadhaar, etc.	Ensures a smooth and error-free filing process.
Choose the Correct ITR Form	Use ITR-1 for salaried individuals, ITR-2 for capital gains, ITR-4 for presumptive income, etc.	Filing with the wrong form may lead to rejection or a notice.
Verify Pre-Filled Data	Cross-check auto-filled info in the ITR form (salary, TDS, PAN, etc.).	The mismatch may delay refund or trigger scrutiny.
Claim Eligible Deductions	Use Sections 80C, 80D, 80TTA, 24(b), etc., to reduce taxable income.	₹1.5L under 80C, ₹25K–₹50K under 80D, ₹10K under 80TTA.
File Before Deadline	Usually July 31st of the Assessment Year.	Filing late may attract up to ₹10,000 penalty (u/s 234F).
Verify Your Return	Must e-verify within 30 days using Aadhaar OTP, net banking, etc.	Return is not valid until verified.
Keep Records Safely	Store ITR-V, acknowledgement, and proofs for 6 years.	Useful for future loans, visa, or tax scrutiny.

Conclusion

If you adhere to the official instructions as presented by the Income Tax Department, it is quite an easy procedure to file your Income Tax Return (ITR) online in India. You adhere to tax regulations and help in the growth of the country by registering on the e-filing portal, opting for the suitable ITR form, filling in your income and deduction information properly, and validating your return through any of the means available. Don't forget to submit your return timely to prevent interest and penalties.

Faqs

Q. Who is required to file an Income Tax Return (ITR)?

Anyone whose total income exceeds the basic exemption limit (₹2.5 lakh for individuals below 60) must file an ITR.

Q. Can I file ITR without Form 16?

Yes, you can file your ITR using salary slips, Form 26AS, and bank statements in place of Form 16.

Q. What happens if I miss the ITR filing deadline?

You may incur a late filing fee of up to ₹5,000 and lose eligibility to carry forward certain losses.

Q. Is it mandatory to link PAN with Aadhaar for ITR filing?

Yes, linking PAN with Aadhaar is mandatory for successful ITR filing and processing.

Other Related Pages
Section 206AB of the Income Tax Act	Section 194H of the Income Tax Act	Section 270A of the Income Tax Act	Section 194S of the Income Tax Act
Car Loan Tax Benefits	Section 194JB of the Income Tax Act	Section 16 of the Income Tax Act	How to Calculate TDS
How to File an Income Tax Return	How to Pay House Tax Online in India	What is Income Tax	What is Taxation
What is TDS Deduction		What is Double Taxation