How to File an Income Tax Return (ITR) in India: Complete ITR Filing Guide

Filing your Income Tax Return (ITR) doesn’t have to be confusing or stressful. With the income tax e-filing system and a clear process, you can now file your income tax return from home in just a few steps.

Whether you’re a salaried individual, a freelancer, a small business owner, or earning rental income or interest income, you may be required to file an ITR if your income is above the basic exemption limit as per the Income Tax Act. Even if your income is below the limit, you may still file an ITR to claim a tax refund, carry forward losses, or keep your records clean with the Income Tax Department.

This guide will walk you through how to file an ITR in India for 2026 which ITR form to choose, how to file ITR online, pay any balance tax, and verify your ITR so that your filing is complete.  If you need expert help during the process or want to ensure accuracy, consulting an experienced income tax consultant Gurgaon can make filing easier and error-free.

Step 1: Understand What an ITR Is and Why You Must File

An Income Tax Return (ITR) is a form where you report your total income, tax paid, and tax liability for a particular assessment year. In simple words, it tells the tax authorities:

• How much you earned
• From which sources of income (salary, business income, house property, capital gains, etc.)
• How much tax was already deducted (TDS, advance tax)
• Whether you have tax payable or excess tax paid (refund)

Why Should You File ITR?

You must file your ITR if:

• Your taxable income is above the basic exemption limit
• You want to claim tax deduction or refund
• You have foreign income or foreign assets
• You are covered under any specific conditions under the provisions of the Income Tax Act

Even if your income is below the limit, you may want to still file your return of income because:

• It helps in visa processing and loan approvals
• It builds a financial track record with the Government of India
• It allows you to claim refunds if excess tax has been deducted

Step 2: Know Your Income Sources and Tax Regime

Before you start the ITR filing process, list down your income sources:

• Salary income
• Income from a business or profession
• Rental income from house property
• Interest income (savings, FDs, RDs)
• Capital gains (shares, mutual funds, property)
• Agricultural income (if applicable)
• Any other details of exempt income (e.g., PPF interest, certain allowances)

Old vs New Tax Regime (2026)

From recent years, the new tax regime is the default option unless you choose the old tax regime.

• Under the old tax regime, you get deductions like 80C, 80D, HRA, etc.
• Under the new tax regime, you get lower tax rates but fewer deductions.

Your tax liability computed as per the old or new regime may differ. Many taxpayers now compare both and choose whichever gives lower total tax liability. If you're unsure which regime benefits you more, a tax consultant in Gurgaon can help you evaluate and pick the most tax efficient option.

Step 3: Choose the Appropriate ITR Form

Selecting the appropriate ITR form is crucial. If you select the wrong form, your return may be treated as defective.

Here are some common forms used by individuals:

ITR 1 (Sahaj)

Use ITR 1 if:

• You are a resident individual
• You have salary income, one house property, and other income like interest income
• Your total income is up to ₹50 lakh
• You do not have business income or capital gains

In simple terms, if you’re a salaried person with basic investments and interest, you will likely file ITR-1.

ITR 4 (Sugam)

Use ITR 4 if:

• You are an individual or HUF having business income under the presumptive scheme (Sections 44AD, 44ADA, 44AE)
• Your gross total income is up to ₹50 lakh
• You have income from business or profession on a presumptive basis

This is common for small traders, professionals, freelancers, and some small businesses.

👉 Tip: On the income tax portal, you can use the “select ITR” help tool to check which ITR form applies to you.

Read This: What Happens If You Don’t Disclose Foreign Income in Your ITR?

Step 4: Collect All Required Documents

Before you file ITR, keep these details ready:

• Form 16 from your employer (for salary income)
• Form 16A / 26AS / AIS / TIS for TDS and other income
• Bank statements and bank account details
• Details of rental income (if any)
• Capital gains statements from brokers/mutual funds
• Details of tax saving investments and deductions
• Details of advance tax or self assessment tax paid

Having everything in one place makes filing income tax returns faster and error-free.

Step 5: Go to the Income Tax e-Filing Portal

To file your tax online:

• Go to the Income Tax e-Filing portal (new portal).
• Log in using your PAN (which also acts as your user ID).
• If you’re new, complete the registration process with your mobile number, email, and bank account details.

Once logged in, you can start the return filing process for the relevant assessment year (for example, AY 2026–27 for income earned in FY 2025–26).

Step 6: Start the Online ITR Filing Process

On the portal:

• Click on “File Income Tax Return”.
• Select the correct assessment year.
• Choose online mode of filing (recommended for most individuals).
• Choose the type of taxpayer – Individual / HUF / Company, etc.
• Select ‘Income Tax Return’ as the filing type.
• Now, select ITR form – for example, ITR 1 or ITR 4.

The portal may also suggest the form based on your income source, but it’s good to know the basics.

Step 7: Fill in Your Personal and Income Details

Once you start the form:

• Confirm your name, PAN, Aadhaar, and contact details.
• Enter your bank account details (for tax refund, if any).

Then, start reporting your income:

Income Section

• Salary income – imported automatically in many cases from employer data
• Income from house property – rental income, interest on housing loan, etc.
• Income from business or profession – if using ITR 4, you’ll fill presumptive details
• Other income – like interest income, dividends, etc.
• Details of exempt income, if any

The portal will help compute your gross total income and taxable income.

Step 8: Add Deductions and Tax Details

Next, you enter:

• Deductions under sections like 80C (LIC, ELSS, PF), 80D (medical insurance), etc. – mostly in the old tax regime
• Any other eligible tax saving investments or payments

Your tax details section will show:

• TDS deducted by employer or bank
• Any advance tax already paid
• Any self-assessment tax paid via e-pay tax option

The system will now show a summary of your tax computation:

• Total income
• Taxable income
• Total tax liability
• Tax paid so far
• Balance tax payable or tax refund due

Step 9: Pay Self-Assessment Tax (If Needed)

If your total tax liability is more than the tax paid (through TDS or advance tax), you’ll have to:

• Use the e-Pay Tax feature on the portal
• Pay the remaining tax payable under self-assessment tax

After payment, enter the challan details in your ITR under the self-assessment tax section.

If you have excess tax paid, the system will calculate your tax refund, which will be credited to your bank account after processing.

Step 10: Preview and Submit Your Return

Before you preview and submit your return:

• Check all details carefully
• Ensure your income source, deductions, and tax details are correctly entered
• Make sure the ITR form is based on correct income type (e.g., don’t use ITR 1 if you have business income)

If everything is correct, click on:

• Preview and submit your return
• Confirm the details

This completes the filing process, but your job isn’t over yet you still need to verify your return.

Step 11: Verify Your ITR (Very Important!)

Your ITR filing is only considered complete when you verify your ITR.

You can verify your income tax return through:

• Aadhaar OTP
• Net banking
• Bank account or Demat account EVC
• Or by sending a signed ITR-V form by post (though online verification is faster and easier)

You must verify your return within 30 days of filing. If you don’t, it will be treated as if you did not file the return.

Once you verify your return, the portal will show the status as “Verified” and later as “Processed” when the Income Tax Department completes the assessment.

Recommended: Income Tax Notice Reply Format : A Comprehensive Guide To ITR

Step 12: Track Your Return and Refund Status

After filing and verifying:

• You can check the status of your ITR on the income tax portal.
• You can also track your tax refund status through the portal or NSDL refund tracking page.

If there is a mismatch in data or any issue, you may receive an intimation under Section 143(1) in your email and on your account.

Due Dates, Late Filing, and Fees

The due date for filing income tax returns for most individual taxpayers is usually 31st July of the assessment year, unless extended by the government.

Late Filing

If you miss the last date for filing:

• You can still file a belated return, but:
• You may have to pay late filing fees under Section 234F
• You may have to pay interest on tax due
• You cannot carry forward certain losses

So, it’s always better to file your ITR within time.

Simple Tips for Error-Free ITR Filing

• Start early, don’t wait for the last date for filing
• Reconcile all TDS and tax details with Form 26AS, AIS, and TIS
• Choose the correct ITR form – ITR 1, ITR 4, etc.
• Double check your bank account details for faster refunds
• Make sure your return of income matches your actual income source and documents
• Remember that tax laws are subject to change, so always check the latest rules

Conclusion

Filing an Income Tax Return in India in 2026 is no longer a complicated, paper heavy task. With the income tax e-filing portal, a clear step-by-step process, and the right ITR form, you can file your ITR, pay any balance tax, and claim your refund completely online.

The key is to:

• Understand your income and tax regime
• Choose the correct ITR (like ITR 1 or ITR 4)
• Follow the filing process carefully
• Verify your ITR within the allowed time

If you feel unsure at any stage, it’s wise to take support from a professional.

💼 At DSRV India, our tax experts can guide you on how to file your ITR correctly, optimise your tax liability, and stay compliant with the latest tax laws.