Filing your ITR (Income Tax Return) is mandatory for salaried employees earning above ₹2.5L annually. With the Income Tax portal now highly improved, most salaried Indians can file in 15-20 minutes. Here's the complete step-by-step guide for FY 2025-26.
Who Must File ITR?
- Income above ₹2.5L (₹3L for seniors, ₹5L for super seniors)
- Foreign income or foreign assets
- TDS refund claimed
- Deposits above ₹1 crore in current accounts
- Electricity bills above ₹1L
- Foreign travel spend above ₹2L
Which ITR Form to Use?
| Form | Who Should Use |
|---|---|
| ITR-1 (Sahaj) | Salaried, one house property, interest income. Total income under ₹50L. |
| ITR-2 | Capital gains, multiple properties, foreign income, salary above ₹50L |
| ITR-3 | Business/professional income along with salary |
| ITR-4 (Sugam) | Presumptive taxation for small business/professionals |
Step-by-Step Filing Process
- Collect documents: Form 16 (from employer), bank statements, investment proofs, AIS from incometax.gov.in
- Login: incometax.gov.in → e-File → Income Tax Returns → File ITR
- Select ITR type: Most salaried use ITR-1. Portal pre-fills most data from Form 16 and AIS.
- Verify pre-filled data: Check salary, TDS, bank interest, dividend income
- Add deductions: 80C investments, NPS 80CCD(1B), health insurance 80D, home loan interest 24(b)
- Compare regimes: Portal shows tax under both — choose lower
- Submit and verify: Verify via Aadhaar OTP (fastest), net banking, or DSC
💡 Deadline: July 31, 2026 for FY 2025-26 (no penalty). After July 31, late filing fee of ₹1,000-5,000 applies. File by July 31 to avoid penalty and get faster refunds.
Common Mistakes to Avoid
- Not verifying ITR after submission — unverified returns are treated as not filed
- Missing interest income from savings accounts, FDs
- Not checking AIS for discrepancies before filing
- Choosing wrong tax regime without calculation
- Missing the 80CCD(1B) NPS deduction — free ₹15,600 tax saving