How to File ITR: Step-by-Step Guide

Filing ITR is mandatory if your income exceeds ₹2.5 Lakhs (Old Regime) or ₹3 Lakhs (New Regime). Even if you have zero tax to pay, filing ITR is crucial for:

1. Loan Approvals: Banks ask for 3 years' ITR.
2. Visa Applications: Proof of income.
3. Claiming Refunds: If TDS was deducted but you owe no tax.

Documents You Need

Before you sit down to file, keep these ready:

1. PAN Card & Aadhaar Card.
2. Form 16: From your employer (shows salary and TDS).
3. Form 26AS / AIS (Annual Information Statement): Download from Tax Portal. It shows all tax deducted against your PAN.
4. Bank Statements: For interest income.
5. Investment Proofs: LIC receipts, PPF passbook (if using Old Regime).

Which ITR Form to Choose?

• ITR-1 (Sahaj): For Salaried individuals with income less than ₹50 Lakhs, one house property, and interest income. (Most common).
• ITR-2: If you have Capital Gains (Stocks/Mutual Funds) or more than one house.
• ITR-3: For Business/Profession income.
• ITR-4 (Sugam): For Freelancers/Small Business using Presumptive Taxation (Section 44AD).

Step-by-Step Filing Process (ITR-1)

Step 1: Login

Go to incometax.gov.in. Login with PAN.

Step 2: File Now

Click e-File > Income Tax Returns > File Income Tax Return.

• Select Assessment Year (e.g., 2024-25).
• Select "Online" mode.

Step 3: Start New Filing

• Choose Status: Individual.
• Choose ITR Form: ITR-1.

Step 4: Validate Pre-filled Data

The portal pre-fills data from Form 16 and AIS.

1. Personal Information: Check Name, Address, Aadhaar linking.
2. Gross Total Income:
   • Verify Salary matches Form 16.
   • Add "Income from Other Sources" (Savings Bank Interest, FD Interest).
3. Total Deductions:
   • Enter 80C (LIC, PPF), 80D (Health Insurance).
   • Standard Deduction: ₹50,000 is automatically added for salaried.

Step 5: Tax Paid

Verify TDS details match your Form 26AS. If there is a mismatch, contact your employer/bank.

Step 6: Tax Liability

The system calculates tax.

• If Tax Payable: Pay online via Netbanking/UPI.
• If Refund Due: Great! You will get money back.

Step 7: Verification (Crucial!)

Filing is incomplete without verification.

• Choose "e-Verify Now".
• Use Aadhaar OTP.
• Enter OTP and Submit.

Congratulations! You have filed your ITR.

Common Mistakes to Avoid

1. Not Reporting Savings Interest: Interest up to ₹10,000 is tax-free (Section 80TTA), but you MUST report it.
2. Ignoring AIS: If AIS shows high-value transactions (stock sales) and you don't report them, you will get a notice.
3. Wrong Bank Account: Ensure the bank account for refund is "Validated".
4. Missing Deadline: Late fee is ₹5,000. Deadline is usually 31st July.

7-Day Action Plan

Day 1: Login to Income Tax Portal and check if your profile is 100% complete.
Day 2: Download your AIS (Annual Information Statement). Review it.
Day 3: Collect Form 16 from your employer.
Day 4: Collect Interest Certificates from your Bank (Netbanking > Services > Tax Certificate).
Day 5: Decide: Old Regime vs New Regime? (Use an online calculator).
Day 6: File the ITR (or send documents to your CA).
Day 7: e-Verify immediately. Don't wait.

Quiz

💡 Final Wisdom: Paying tax is a duty. Filing ITR is a responsibility. Do both honestly to sleep peacefully.