Filing your income tax return (ITR) in India for the first time can feel confusing. Many first-time taxpayers are unsure about which form to use, what documents are required, and how to avoid mistakes that might lead to penalties. The good news is that the process has become much simpler with the government’s e-filing portal.
In this guide, we’ll explain everything you need to know about how to file income tax return in India, step by step.
📌 What is an Income Tax Return (ITR)?
An Income Tax Return (ITR) is a form where taxpayers declare their income, expenses, investments, and tax liabilities to the Income Tax Department of India. Filing is mandatory if your total income exceeds the basic exemption limit.
- FY 2024-25 exemption limits:
- Up to ₹3,00,000 → No tax (under new regime)
- Above this limit → Tax slabs apply
Who Should File an ITR in India?
You must file ITR if:
- Your annual income exceeds ₹2.5 lakh (old regime) or ₹3 lakh (new regime).
- You want to claim a tax refund.
- You have earned income from investments, freelancing, or property.
- You are applying for a visa or loan (ITR is often required as proof).
- You have foreign income or assets.
Documents Required to File Income Tax Return in India
Before you start filing, keep these documents ready:
- PAN Card & Aadhaar Card (mandatory for linking)
- Form 16 (if salaried)
- Form 26AS & AIS (tax credit statement from portal)
- Bank statements
- Investment proofs (80C, 80D, etc.)
- Capital gains details (if applicable)
Step-by-Step Guide: How to File Income Tax Return in India
1. Register on the e-Filing Portal
- Visit https://www.incometax.gov.in
- Log in using PAN and Aadhaar-based OTP.
2. Choose the Correct ITR Form
- ITR-1 (Sahaj): Salaried individuals with income up to ₹50 lakh.
- ITR-2: If you have income from capital gains, multiple properties, or foreign assets.
- ITR-3: If you are self-employed or a business owner.
3. Fill in Your Income Details
- Salary, house property, and other income.
- Cross-check with Form 26AS and AIS (Annual Information Statement).
4. Claim Deductions & Exemptions
- Section 80C: Investments (PPF, ELSS, LIC, etc.) up to ₹1.5 lakh.
- Section 80D: Health insurance premium.
- Section 24(b): Home loan interest.
5. Verify Tax Payable / Refund
- Portal automatically calculates your final liability.
- If extra tax is paid → refund request.
- If tax is due → pay via Challan 280.
6. Submit and e-Verify ITR
- Options: Aadhaar OTP, Net Banking, or Demat account.
- Important: If not e-verified, return is considered invalid.
Common Mistakes to Avoid While Filing ITR
- Entering wrong bank account details (refund won’t come).
- Forgetting to report interest income from savings accounts.
- Not matching income with Form 26AS / AIS.
- Missing deadline (for FY 2024-25 → 31st July 2025).
Latest Updates (FY 2024-25)
- New tax regime is now default; taxpayers must opt out if they prefer the old regime.
- Pre-filled ITR forms include salary, interest, and investment data.
- Penalty for late filing: ₹5,000 (before Dec 31), ₹10,000 (after Dec 31).
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FAQs Section (Schema-Ready)
Q1. Is it mandatory to file income tax return in India?
Yes, if your income exceeds the basic exemption limit or you want to claim refunds.
Q2. Can I file ITR without Form 16?
Yes, by using your salary slips, Form 26AS, and AIS statement.
Q3. What happens if I don’t file ITR?
You may face penalties, lose refund eligibility, and get notices from the IT Department.
Q4. Can students or freelancers file ITR?
Yes, anyone earning above the exemption limit must file. Even below, filing is useful as proof of income.
Q5. Which ITR form should a salaried employee file?
Most salaried individuals use ITR-1, but if they have multiple properties or capital gains, ITR-2 applies.
Filing your income tax return in India for the first time may feel overwhelming, but the government’s online e-filing portal has simplified the process. With the right documents, correct ITR form, and awareness of deadlines, you can file your return in just a few minutes.
👉 Start early, avoid last-minute rush, and always verify your ITR.
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