How to file ITR in India is one of those things most salaried Indians do one of two ways.
Either they hand everything to a CA or a local tax consultant, pay ₹500 to ₹2,000, and never really understand what was filed on their behalf.
Or they open the income tax portal, see the complexity, quietly close the tab, and hope TDS has covered everything.
Both approaches leave significant money on the table — and in the second case, potentially create legal problems down the line.
I was firmly in the first category for years. My father’s accountant filed my returns. I signed wherever I was told. I had no idea what Form 16 was, what ITR-1 meant, or why I was getting a small refund every year.
When I finally decided to file my own return — I discovered it was genuinely far simpler than I had assumed. For most salaried Indians, the entire process takes under 30 minutes on the official income tax portal — completely free.
This post walks you through exactly how to file ITR in India as a salaried beginner — step by step, in plain language, with every document and decision explained clearly.
Why Filing Your Own ITR Matters
Before walking through exactly how to file ITR in India — let me address the most common objection salaried beginners have. “My employer deducts TDS, so I do not need to file.”
This is a misconception that costs many Indians money every year.
Reason 1 — You may be owed a refund
If your employer deducted more TDS than your actual tax liability — due to investments you declared late, deductions not accounted for, or changes in income — you are owed a refund. You only receive this refund by filing your ITR.
Reason 2 — ITR is a powerful financial document
ITR acknowledgments are required for visa applications, home loan and vehicle loan approvals, rental agreements, and many other financial processes. A consistent ITR filing history significantly strengthens your financial credibility.
Reason 3 — It may be legally mandatory
If your gross income exceeds ₹2.5 lakhs annually — filing is mandatory regardless of whether tax is payable. Non-filing can result in penalties and interest.
Reason 4 — Carry forward losses
If you have capital losses from investments — you can only carry them forward to offset future gains if you file your ITR before the due date.
Reason 5 — It takes under 30 minutes
For most salaried individuals with a single employer, straightforward investments, and no complex income sources — the entire process on the income tax portal is simpler than filing most government forms.
ITR Filing Deadline
Assessment Year 2025-26 (Financial Year 2024-25):
→ Due date for salaried individuals: July 31, 2025
Assessment Year 2026-27 (Financial Year 2025-26):
→ Due date for salaried individuals: July 31, 2026
Knowing how to file ITR in India on time is as important as knowing how to file correctly — missing July 31 has real costs.
Filing after the deadline attracts a late filing fee of ₹1,000 to ₹5,000 depending on income — and loss of certain benefits like carrying forward capital losses.
File before July 31. Every year. Without exception.
Documents You Need Before Starting
Before learning how to file ITR in India — gather these documents so the process takes under 30 minutes.
Mandatory:
→ PAN card number
→ Aadhaar number (linked to PAN)
→ Bank account details — account number, IFSC code
→ Form 16 from your employer (issued by June 15 every year)
→ Login credentials for incometax.gov.in
If applicable:
→ Form 16A — for TDS on income other than salary (bank interest, freelance income)
→ Form 26AS — your complete tax credit statement (available on the portal itself)
→ Annual Information Statement (AIS) — detailed record of all financial transactions reported against your PAN
→ Investment proofs — if you want to claim deductions not reflected in Form 16
→ Home loan interest certificate — for Section 24B deduction
→ Rent receipts — if claiming HRA not processed by employer
What is Form 16?
Form 16 is a certificate your employer issues every year showing:
→ Your total salary for the financial year
→ Total TDS deducted and deposited on your behalf
→ Deductions considered — HRA, standard deduction, investments declared
It is the single most important document for your ITR filing. If your employer has not issued Form 16 by June 15 — follow up immediately.
Which ITR Form Should You Use?
This is the question that confuses most beginners learning how to file ITR in India — but for salaried individuals the answer is almost always straightforward.
ITR-1 (Sahaj) — For most salaried beginners
Use ITR-1 if:
→ Your income is from salary only
→ You have income from one house property
→ You have other income like bank interest
→ Your total income does not exceed ₹50 lakhs
→ You do not have capital gains from investments
This covers the majority of Indian salaried millennials. ITR-1 is the simplest form — pre-filled with most information on the portal.
ITR-2 — If you have capital gains
Use ITR-2 if:
→ You have sold mutual funds, stocks, or property during the year
→ Your income exceeds ₹50 lakhs
→ You have income from more than one house property
→ You have foreign income or assets
If you have been investing in mutual funds through SIP as covered in Best Mutual Funds for Beginners in India and have redeemed any units during the year — use ITR-2.
ITR-3 — If you have business or professional income
Use ITR-3 if you have income from freelancing, consulting, or business alongside your salary.
For most Building Dhan readers — ITR-1 if no investments redeemed, ITR-2 if investments redeemed.
Old Regime vs New Regime — Choose Before Filing
One critical decision when learning how to file ITR in India is choosing between old and new tax regime before submitting.
I covered this in detail in How to Save Tax in India — the quick summary for filing purposes:
New regime:
→ Lower tax rates
→ Standard deduction of ₹75,000
→ No 80C, 80D, or other deductions available
→ If income under ₹12.75 lakhs — likely zero tax under new regime
Old regime:
→ Higher base rates
→ Deductions available — 80C (₹1.5 lakh), 80D, HRA, home loan interest
→ Better if total deductions exceed ₹2-3 lakhs
Calculate your tax under both before choosing. The income tax portal’s tax calculator makes this straightforward — use it before selecting your regime on the form.
Step by Step — How to File ITR in India Online
Here is the complete step by step process for how to file ITR in India — starting from the income tax portal login.
Step 1 — Register or Login to the Income Tax Portal
→ Go to incometax.gov.in
→ Click “Login” at the top right
→ Enter your PAN number as User ID
→ Enter password
First time registering:
→ Click “Register”
→ Select “Taxpayer”
→ Enter PAN, then personal details
→ Create password
→ Verify with Aadhaar OTP
Step 2 — Download and Review Form 26AS and AIS
Before filing — always review these two documents first.
Form 26AS:
→ Login to portal → e-File → Income Tax Returns → View Form 26AS
→ Shows all TDS deducted against your PAN — by employer, bank, and others
→ Verify your employer’s TDS amount matches your Form 16
Annual Information Statement (AIS):
→ Login → Services → AIS
→ Shows ALL financial transactions reported against your PAN
→ Bank interest, dividends, mutual fund transactions, property purchases
→ Review for accuracy — if anything is incorrect, you can submit feedback on the portal
Why this matters: Your ITR must be consistent with Form 26AS and AIS. Discrepancies trigger notices from the income tax department.
Step 3 — Navigate to File ITR
→ Login to incometax.gov.in
→ Click “e-File” in the top menu
→ Select “Income Tax Returns”
→ Click “File Income Tax Return”
→ Select Assessment Year — for FY 2025-26 income, select AY 2026-27
→ Select “Online” mode
→ Click “Continue”
Step 4 — Select ITR Form
→ The portal may suggest an ITR form based on your profile
→ Verify the suggestion matches your situation (ITR-1 or ITR-2 for most readers)
→ Select the correct form
→ Click “Let’s Get Started”
Step 5 — Verify Pre-filled Information
The portal pre-fills significant information from your employer’s filings, Form 26AS, and AIS. Review each section carefully:
Personal Information:
→ Name, PAN, Aadhaar, date of birth, address, bank account details
→ Verify everything is accurate
→ Add or verify bank account for refund — click “Validate” after entering details
Income Details:
→ Salary income pre-filled from employer’s TDS filing
→ Cross-check with your Form 16
→ Add any income not pre-filled — freelance income, rental income, bank interest not shown
Tax Deducted at Source:
→ TDS details pre-filled from Form 26AS
→ Verify total TDS matches your Form 16 and salary slips
Step 6 — Enter Deductions (Old Regime Only)
The most tax-saving step in how to file ITR in India is entering all eligible deductions correctly under the old regime.
Section 80C (up to ₹1,50,000):
→ EPF contribution (from Form 16 or salary slips)
→ PPF contribution
→ ELSS investments
→ Life insurance premiums
→ Home loan principal repayment
→ Children’s tuition fees
Section 80D:
→ Health insurance premium for self and family
→ Health insurance premium for parents
Section 80CCD(1B):
→ NPS contribution up to ₹50,000 (additional deduction) — covered in detail in EPF vs PPF vs NPS in India
Section 24B:
→ Home loan interest up to ₹2,00,000
Section 80E:
→ Education loan interest
HRA (House Rent Allowance):
→ If not processed by employer — calculate and enter manually
→ Requires rent receipts and landlord PAN (if annual rent exceeds ₹1 lakh)
Step 7 — Review Tax Computation
After entering all deductions — the portal computes your tax liability automatically.
This screen shows:
→ Gross total income
→ Total deductions claimed
→ Net taxable income
→ Tax payable at applicable rates
→ TDS already deducted
→ Balance tax payable OR refund due
If tax is payable: Pay the balance amount using Challan 280 before submitting. The payment option is available within the portal.
If a refund is due: Your refund will be credited to your verified bank account after processing — typically within 15-45 days of filing.
Step 8 — Validate and Submit
→ Review all sections once more
→ Click “Preview Return”
→ Read through the complete return
→ If everything is correct → click “Proceed to Validation”
→ Fix any errors flagged by the portal
→ Click “Submit”
Step 9 — E-Verify Your Return
Submitting is not the final step. You must e-verify your return within 30 days of submission for it to be considered valid.
E-verification options:
Aadhaar OTP (recommended — instant):
→ OTP sent to Aadhaar-linked mobile number
→ Enter OTP → verified immediately
Net banking:
→ Login to your bank → e-verify through bank portal
Demat account:
→ Through your broker’s platform
Bank account EVC:
→ Generate EVC through your bank
Physical verification (last resort):
→ Print and sign ITR-V
→ Post to CPC Bangalore within 30 days
Always e-verify using Aadhaar OTP — fastest and simplest.
Step 10 — Download ITR Acknowledgment
After successful e-verification:
→ Go to e-File → Income Tax Returns → View Filed Returns
→ Download ITR-V acknowledgment
→ Save this document — you will need it for visa applications, loan processing, and future reference
Common Mistakes to Avoid
These are the most expensive mistakes Indians make when learning how to file ITR in India for the first time.
Not verifying Form 26AS before filing
Discrepancies between your filing and Form 26AS trigger automated notices. Always reconcile before submitting.
Claiming deductions without proof
Section 80C, 80D, and other deductions require supporting documents. Do not claim deductions you cannot substantiate if asked.
Wrong bank account for refund
Ensure your bank account is pre-validated on the portal before filing — refunds go to the validated account.
Not e-verifying after submission
An unverified ITR is treated as if not filed. E-verify within 30 days without fail.
Filing under the wrong regime
Once submitted — changing the tax regime for that year becomes difficult. Calculate carefully before selecting.
Missing the July 31 deadline
Late filing fees of ₹1,000 to ₹5,000 apply after the deadline — and you lose the ability to carry forward capital losses.
What Happens After Filing?
Processing: The income tax department processes your return — typically within 15-60 days for straightforward returns.
Refund: If a refund is due, it is credited to your validated bank account after processing. You can track refund status at incometax.gov.in.
Intimation under Section 143(1): You receive an intimation after processing — confirming acceptance of your return as filed, or highlighting discrepancies. Read this carefully when it arrives.
Notice: If the department has queries — they send notices through the portal and your registered email. Always respond to notices within the specified deadline.
The Tax Filing Platform Option
If after reading this guide you would still prefer a guided filing experience — several platforms offer assisted ITR filing for a small fee:
Tax2Win: Simple interface, CA-assisted filing available, particularly good for salaried individuals with straightforward returns. I have reached out to explore a partnership — will update this post with more details soon.
ClearTax: One of India’s most widely used tax filing platforms with both DIY and CA-assisted options.
myITreturn: Another established platform offering step-by-step guided filing.
Note: For most salaried readers — the free official portal at incometax.gov.in is entirely sufficient. Paid platforms add value primarily for complex situations, multiple income sources, or if you simply want a guided experience.
Connecting This to Your Building Dhan Journey
Knowing how to file ITR in India completes your annual tax cycle — the final piece of your Building Dhan financial system.
- Plan your taxes in April → How to Save Tax in India
- Invest in 80C instruments throughout the year → Best Mutual Funds
- Manage your EPF, PPF, NPS → EPF PPF NPS Guide
- File your ITR before July 31 → this post
The complete tax cycle — planned, executed, and filed. Every year.
Your Action This Week
Two things.
First: Collect your Form 16 from your employer if you have not received it yet. It should arrive by June 15 — follow up if it has not.
Second: Login to incometax.gov.in this week and review your AIS and Form 26AS. Verify the information is accurate before filing season rush.
Filing your own ITR for the first time is genuinely simpler than it feels from the outside. This post has given you everything you need. The rest is simply doing it.
Let’s build wealth together.
— Madhu Vijay
Disclaimer: Tax laws and portal processes change regularly. Always verify current rules, forms, and deadlines on the official Income Tax India website at incometax.gov.in before filing. This post is for educational purposes only and does not constitute tax advice. Consult a qualified CA for complex tax situations.