How to file your income tax return online: A step-by-step guide

Filing your Income Tax Return (ITR) is a mandatory requirement for most earning individuals in India. Whether you are a salaried employee, a business owner, or a professional, understanding the process can save you time and help you avoid costly errors.

Here is everything you need to know about filing your ITR online for Financial Year (FY) 2025–26, corresponding to Assessment Year (AY) 2026–27.

What is an ITR?

An ITR, or Income Tax Return, is a form in which a taxpayer declares all details related to their income, assets, taxes paid, losses, and refunds for a given assessment year. Filing it accurately ensures you remain compliant with tax laws and are eligible for any refunds owed to you.

When is ITR filing mandatory?

ITR filing is compulsory for individuals whose income exceeds the basic exemption limit. Beyond that, filing becomes mandatory if any of the following conditions apply:

• Expenditure on foreign travel exceeds ₹2 lakh
• Electricity consumption amounts to ₹1 lakh or more
• Deposits above ₹1 crore have been made in one or more current accounts
• Business receipts exceed ₹60 lakh
• Professional receipts exceed ₹10 lakh
• TDS and TCS amounts exceed ₹25,000
• You are a resident with assets located outside India, or hold signing authority over an account based abroad

Documents you will need

Before you begin, gather the following:

• PAN and Aadhaar
• Bank statements
• Form 16 (issued by your employer)
• Donation receipts
• Stock trading statements from your broker platform
• Insurance premium payment receipts (life and health)
• Bank account information linked to your PAN
• Aadhaar-registered mobile number (for e-verification)
• Interest certificates from banks

It is also advisable to download your Form 26AS (Tax Credit Statement) and Annual Information Statement (AIS) from the e-filing portal before you start. Cross-check every entry against your bank statements, Form 16, broker capital gains statements, and rent receipts. If any AIS entry appears incorrect, submit feedback within the AIS itself , this preserves your audit trail and helps prevent notices later.

Which ITR form should you use?

Selecting the correct ITR form is one of the most important steps. Choosing the wrong form may result in your return being treated as defective. The key forms are:

• ITR-1 — For salaried individuals with straightforward income sources
• ITR-2 — For individuals with capital gains, foreign assets, or multiple properties
• ITR-3 — For individuals with business or professional income
• ITR-4 — For taxpayers opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE

The Central Board of Direct Taxes (CBDT) has enabled online e-filing and Excel utility for ITR-1, ITR-2, ITR-3, and ITR-4 for FY 2025–26.

How to file ITR online: step by step

Step 1: Log in to the Income Tax portal

Visit the Income Tax e-Filing portal and click on Login. Existing users can sign in using their PAN (or Aadhaar), password, and captcha code.

If you are filing for the first time, click Register and create an account using your PAN, Aadhaar, mobile number, and email ID. Once registered, navigate to e-File > Income Tax Returns > File Income Tax Return to begin.

Step 2: Select the assessment year and filing mode

Choose AY 2026–27 for income earned during FY 2025–26. Select Online as the mode of filing and click Continue.

If you have previously started a return but did not complete it, the portal may offer a Resume Filing option. Otherwise, select Start New Filing for a fresh return.

Note: For FY 2025–26, the Income Tax Act 1961 still applies. The concept of “tax year” is relevant only for income earned from FY 2026–27 onwards.

Step 3: Select your filing status

Choose the category under which you are filing — Individual, HUF, or another applicable status. Your filing status determines the applicable ITR forms, tax provisions, and reporting requirements.

Step 4: Choose the correct ITR form

Based on your sources of income, residential status, and whether you have business or professional income, select the appropriate ITR form (see the guide above). Proceed after making your selection.

Step 5: Select the reason for filing

The portal will ask why you are filing. Select the option that best applies:

• Total income exceeds the basic exemption limit
• Claiming a tax refund
• Carrying forward losses
• Meeting specific filing requirements due to high-value transactions, foreign assets, or other prescribed conditions

Step 6: Fill in income, deduction, and tax details

Keep your Form 16, AIS, Form 26AS, salary slips, bank statements, capital gains statements, and proof of deductions handy. Verify the pre-filled information carefully and ensure all income and tax credits are accurately reported before proceeding.

Step 7: Review, submit, and e-verify

Review all details thoroughly before submitting. Once you are satisfied, submit the return.

After filing, you must e-verify your return within 30 days, failing to do so will render the return invalid. You can e-verify using:

• Aadhaar OTP
• Net Banking
• Bank Account EVC
• Demat Account EVC
• Digital Signature Certificate (DSC)

Alternatively, you may send the signed ITR-V form by post to CPC, Bengaluru.

Your filing is considered complete only after successful verification. Once verified, the Income Tax Department will process your return and issue any eligible refund.

How to file ITR offline

For those who prefer the offline route:

1. Visit the Income Tax e-Filing portal and go to the Downloads section.
2. Download and install the common offline utility on your system.
3. Open the utility and select the File Return option.
4. Choose Download Pre-fill, enter your PAN and assessment year, then click Proceed.
5. Log in using your credentials within the offline utility.
6. Your name, PAN, assessment year, and downloaded date will be displayed. Click File Return.
7. Select your status (Individual, HUF, or Others) and choose the appropriate ITR form.
8. Fill in general information including personal details and bank account information.
9. Enter your income details. Particulars from Form 26AS are fetched automatically — add any income that has been missed.
10. Preview your income, TDS, and tax details, then proceed to validation.
11. After providing a declaration, download the JSON file generated by the utility.
12. Log in to your account on the Income Tax portal and click File Now.
13. Select the assessment year, filing type, and ITR type.
14. Attach the JSON file and proceed to verification.

Common mistakes to avoid

• Selecting the wrong ITR form can lead to a defective return, penalties, and delays in receiving refunds.
• Quoting the wrong assessment year, income earned in FY 2025–26 must be declared in AY 2026–27.
• Claiming deductions without valid supporting documents may attract a notice from the Income Tax Department.
• Not e-verifying within 30 days of filing will make your return invalid.