How to file your income tax return (ITR) in India

Who needs to file You must file an income tax return if your gross total income exceeds the basic exemption limit — or in several other cases regardless of income, such as holding foreign assets, depositing large sums in bank accounts, or spending heavily on travel or electricity. Even when not mandatory, filing is worth it to claim a refund of excess TDS and to build a record for loans and visas.

Step 1 — Pick the right regime First decide between the old and new tax regimes. The new regime has lower rates but removes most deductions; the old regime rewards those with significant investments and exemptions (80C, HRA, home-loan interest). Estimate your tax under both before you file — the cheaper one is not the same for everyone.

Step 2 — Choose the correct ITR form - ITR-1 (Sahaj): salaried individuals with income up to ₹50 lakh from salary, one house property and other sources. - ITR-2: individuals with capital gains, more than one house, or foreign income. - ITR-3 / ITR-4: business or professional income.

Filing the wrong form can make your return defective, so match it to your income sources.

Step 3 — Gather your documents - Form 16 from your employer (salary and TDS). - Form 26AS and the Annual Information Statement (AIS) — your consolidated tax and transaction record. - Interest certificates from banks, and capital-gains statements from brokers/mutual funds. - Proofs for any deductions you claim (80C, 80D, home-loan interest, etc.).

Step 4 — File online 1. Log in to the income tax e-filing portal with your PAN. 2. Select the assessment year and the right ITR form. 3. Much of it is pre-filled from Form 26AS/AIS — verify every figure against your own records. 4. Add any missing income, claim deductions, and let the portal compute the tax or refund. 5. Pay any balance tax due before submitting.

Step 5 — Verify within 30 days Filing is not complete until you e-verify the return — usually via Aadhaar OTP, net banking or a pre-validated bank account. An unverified return is treated as not filed, so do this immediately.

Don't miss the deadline The usual due date for individuals is 31 July of the assessment year. Late filing attracts a penalty and interest, and you lose the ability to carry forward certain losses. Estimate your liability early so you can plan cash flow and avoid a last-minute scramble.