How to File Income Tax Returns (ITR) in India – A Step-by-Step Guide

Filing Income Tax Returns (ITR) in India is not just a legal obligation but also a crucial financial responsibility for every eligible individual and business. Whether you’re a salaried employee, freelancer, business owner, or pensioner, filing your ITR correctly and on time helps you stay compliant with the law and claim potential refunds or deductions.

In this guide, we’ll walk you through everything you need to know about filing your ITR in India for the financial year 2024–25.

📌 Why Filing ITR is Important

Before diving into the steps, let’s quickly understand why you should file your ITR even if your income is below the taxable limit:

• Legal compliance: It is mandatory if your income exceeds the basic exemption limit.
  
• Claim tax refunds: If TDS has been deducted, you can only claim a refund through ITR filing.
  
• Visa processing: Many embassies require ITR for visa approvals.
  
• Loan approval: Banks ask for ITR documents when processing loans or credit cards.
  
• Carry forward losses: To carry forward losses for future tax adjustments, filing ITR is mandatory.

🧾 Who Should File Income Tax Returns in India?

As per Indian tax laws, you must file ITR if:

• Your gross total income exceeds ₹2.5 lakh (₹3 lakh for senior citizens, ₹5 lakh for super senior citizens).
  
• You want to claim tax refund.
  
• You earn income from property, capital gains, or have foreign assets or income.
  
• You are a company or firm, irrespective of income.
  
• You’ve deposited over ₹1 crore in one or more current bank accounts.
  
• You’ve incurred high-value expenses, like travel or electricity bills exceeding certain thresholds.

✅ Documents Required to File ITR

Make sure you have the following documents ready before you begin:

• PAN card
  
• Aadhaar card
  
• Form 16 (for salaried individuals)
  
• Form 26AS (Annual tax statement)
  
• AIS/TIS (Annual Information Statement)
  
• Bank account details
  
• Investment proofs (LIC, ELSS, PPF, etc.)
  
• Interest certificates from banks and post office
  
• Home loan details, if applicable
  
• Capital gains statements (from shares, mutual funds, property)
  
• Business/professional income records, if applicable

🧭 Step-by-Step Guide to File ITR in India

Filing ITR can be done in two primary ways:

• Online via the Income Tax Department portal (https://www.incometax.gov.in)
  
• Offline using utilities like Excel or Java-based tools (recommended for tax professionals)
  

Here’s a step-by-step guide to filing your ITR online, which is the easiest and most preferred method.

Step 1: Register/Login to the Income Tax Portal

Visit https://www.incometax.gov.in

• If you’re a new user, click on “Register” and provide your PAN, mobile number, and email.
  
• Existing users can simply log in with their PAN (used as User ID) and password.

Step 2: Choose “File Income Tax Return”

After logging in, go to the ‘e-File’ tab and select ‘Income Tax Return’ under it.

You will be prompted to:

• Select Assessment Year (AY 2025–26 for FY 2024–25)
  
• Choose the mode (online is recommended for most individuals)
  
• Choose your status: Individual / HUF / Others

Step 3: Select the Appropriate ITR Form

The next step is to select the correct ITR form based on your income type:

Make sure to select the form that best applies to your situation. Filing the wrong ITR form may result in rejection or penalties.

Step 4: Pre-fill Your Details

The portal will auto-fetch details from your PAN, Aadhaar, Form 26AS, AIS, and TIS:

• Verify your personal details.
  
• Check income details from Form 16 or bank interest.
  
• Validate TDS information and tax payments.
  

If anything seems incorrect or missing, make the necessary edits and upload supporting documents, if needed.

Step 5: Enter Income and Deduction Details

Manually enter or verify:

• Salary income
  
• House property income
  
• Capital gains (if any)
  
• Other sources (bank interest, dividends, etc.)
  
• Tax-saving deductions under Chapter VI-A (80C, 80D, 80G, etc.)

Ensure that your deductions match the proofs you have submitted to your employer or maintained independently.

Step 6: Tax Calculation and Preview

The portal will now:

• Auto-calculate your total tax liability
  
• Show details of advance tax, self-assessment tax, or TDS
  
• Highlight any tax refund or payable amount
  

You can also download the preview of the return to verify everything before submission.

Step 7: Pay Any Remaining Tax

If your tax liability exceeds the tax already paid, you must pay the balance using Challan 280 on the tax payment portal:

https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

Once paid, enter the BSR code and challan details in your ITR.

Step 8: Submit the Return

Once all sections are complete:

• Click ‘Proceed to Validation’.
  
• If everything is correct, click ‘Submit’.
  
• Choose the verification method: Aadhaar OTP, net banking, or EVC.

Step 9: E-Verify Your Return

ITR is only valid after e-verification. You can e-verify using:

• Aadhaar OTP
  
• Net banking login
  
• Demat account
  
• Bank ATM (limited banks)

If you can’t e-verify immediately, you must send a signed ITR-V (Acknowledgement) to CPC, Bengaluru within 30 days.

🕒 Important Deadlines for ITR Filing

• For individuals: July 31, 2025 (for FY 2024–25)
  
• For businesses requiring audit: October 31, 2025
  
• Revised/Belated returns: December 31, 2025

Late filing attracts penalties under Section 234F and interest under Section 234A/B/C.

❗Common Mistakes to Avoid

• Selecting the wrong ITR form
  
• Missing out on reporting interest income
  
• Not declaring foreign income/assets
  
• Errors in bank account or PAN details
  
• Failing to verify the return
  
• Waiting until the last date

🧠 Tips to Make Filing ITR Easier

• Keep all documents handy and well-organized.
  
• Use Form 26AS and AIS for income and tax details.
  
• Use tax filing platforms like ClearTax, TaxBuddy, or the official portal.
  
• File early to avoid last-minute issues.

✅ Final Thoughts

Filing your Income Tax Return on time ensures financial transparency and helps you stay in good standing with the law. With the government’s efforts to simplify the process and increased digitization, filing ITR in India has become easier than ever.

Don’t delay—start gathering your documents today and file your return well before the deadline.