How to File Income Tax Return (ITR) in India: A Step-by-Step Guide
Filing your ITR isn’t complicated, but the official IT Department portal (incometax.gov.in) can be intimidating the first time. Here’s the practical step-by-step for salaried individuals filing ITR-1 or ITR-2.
Which ITR form should you file?
| Form | Best for |
|---|---|
| ITR-1 (Sahaj) | Salary income up to ₹50L + one house property + interest income |
| ITR-2 | Salary + multiple properties + capital gains + foreign income (no business) |
| ITR-3 | Business or professional income + everything else |
| ITR-4 (Sugam) | Presumptive business (44AD/44ADA) + simple income |
Documents to gather before starting
- Form 16 from employer (download from your HR/payroll portal)
- Form 26AS / AIS (download from incometax.gov.in)
- Bank account statements (for interest income)
- Investment proofs (mutual fund statements, PPF passbook, ELSS folios)
- Home loan certificate (if claiming Section 24 interest)
- Rent receipts + landlord PAN (if claiming HRA above ₹1L/year)
- Capital gains statements (broker P&L for equity, bank certificates for debt MF)
Step-by-step ITR filing
Step 1: Login to IT portal
Go to https://www.incometax.gov.in. Login with PAN as user ID and password (or via Aadhaar OTP for first-timers).
Step 2: Verify pre-filled data
Click “File Return” → select AY 2027-28 (for FY 2026-27 income) → the portal pre-fills your salary, TDS, and known interest from Form 26AS / AIS. Verify each line against your Form 16 and bank statements.
Step 3: Add deductions
Old regime: enter 80C (PF, ELSS, etc.), 80D, HRA exemption (compute via our HRA calculator), 24(b) home loan interest, 80E education loan interest, 80G donations.
New regime: only 80CCD(2) employer NPS — nothing else applies.
Step 4: Capital gains
If you sold equity, mutual funds, or property: enter under “Capital Gains” schedule. Use our LTCG calculator to compute the tax separately. Equity LTCG above ₹1.25L is taxed at 12.5%.
Step 5: Verify tax payable
The portal computes tax automatically. Compare with your Form 16 — if you owe more (additional tax), you must pay via challan ITNS 280 BEFORE submitting the return. If you’re due refund, no payment needed.
Step 6: Submit + e-verify
Submit the return. Within 30 days, e-verify via Aadhaar OTP, net banking, or DSC. Returns not e-verified within 30 days are treated as not filed.
Step 7: Track refund
Refund (if any) typically arrives in 3–6 weeks via direct credit to the bank account you specified in the return.
Filing deadlines
- Salaried individuals (without audit): 31 July of AY (so 31 July 2027 for FY 2026-27)
- Audit cases (business with high turnover): 31 October of AY
- Belated return: up to 31 December of AY (with ₹5,000 late fee for income above ₹5L)
- Updated return (ITR-U): up to 24 months from end of AY (with additional tax + interest)
Common mistakes to avoid
- Forgetting to declare interest from savings account / FD (it’s in your AIS — IT will catch you)
- Claiming HRA without rent receipts / valid landlord PAN
- Not e-verifying within 30 days
- Picking wrong ITR form (ITR-1 doesn’t allow capital gains — use ITR-2)
- Not reporting foreign assets (Schedule FA mandatory if you hold any)
This is independent commentary, not tax advice. Consult a CA for complex returns.