Filing your Income Tax Return for the first time? This guide walks you through every step — from gathering documents to e-verifying your return — in plain Hindi-English.
Many salaried employees assume that since their employer deducts TDS (Tax Deducted at Source), they don't need to file an ITR. This is a common and costly mistake. Filing your ITR is mandatory if your gross income exceeds ₹2.5 lakh per year (₹3 lakh for senior citizens), regardless of whether TDS covers your entire tax liability.
Beyond compliance, ITR filing gives you several practical benefits:
⚠️ Penalty for late filing: Missing the July 31 deadline attracts a penalty of ₹5,000 (₹1,000 if total income ≤ ₹5 lakh). Belated returns cannot be filed after December 31 of the assessment year.
The Income Tax Department has different forms for different types of income. Choosing the wrong form can result in your return being marked defective. Here's a quick guide:
| Form | Who Should Use It |
|---|---|
| ITR-1 (Sahaj) | Salaried employees with income from salary + one house property + other sources (bank interest, dividends). Total income must be below ₹50 lakh. Most common form. |
| ITR-2 | Individuals with capital gains from stocks/MF/property, or income from more than one house property, or foreign income/assets. Also for directors of companies. |
| ITR-3 | Self-employed professionals and business owners with business/profession income (in addition to other sources). |
| ITR-4 (Sugam) | Individuals with income from business/profession under the Presumptive Taxation Scheme (Section 44AD/44ADA) with turnover below ₹2 crore. |
If you are a salaried employee with income only from salary, savings account interest, dividends, and maybe some rent from one property — use ITR-1. If you sold any stocks or mutual fund units in the year, switch to ITR-2.
Keep these ready before you log in to the income tax portal. Trying to find them mid-filing is frustrating and can lead to mistakes.
Go to incometax.gov.in. Log in with your PAN (as user ID) and password. If it's your first time, register using your PAN — you'll need Aadhaar OTP for verification. Once logged in, go to e-File → File Income Tax Return.
Select Assessment Year 2026-27 (for income earned in FY 2025-26). Choose "Online" mode for the easiest experience. The portal pre-fills many fields from Form 26AS and AIS — review them carefully for accuracy.
Choose ITR-1 for most salaried individuals. The system may suggest a form based on your income details. You'll also need to select your tax regime — New or Old. The portal will show your estimated tax under both — choose whichever results in lower tax. You can switch regime every year when filing the return (New Regime is the default from FY 2023-24 onwards).
The portal pre-fills salary income from Form 26AS. Cross-check with your Form 16. Add any other income — savings account interest, rental income, dividends. Under the Old Regime, fill in all deductions: 80C investments, HRA, home loan interest, 80D health insurance premiums, and NPS contributions under 80CCD(1B).
The portal calculates your tax automatically. If total tax payable is less than TDS already deducted, the difference is your refund amount — it will be credited to your bank account within 4–6 weeks of filing. If you owe additional tax, pay it via the Self-Assessment Tax option before submitting.
Review every section — personal details, income, deductions, tax paid. Once satisfied, click Preview Return and then Submit. You'll get an acknowledgement number (ITR-V) immediately. This proves your return has been filed.
Filing is NOT complete until you e-verify. You have 30 days from submission. Verification options: Aadhaar OTP (fastest), Net Banking, Bank Account EVC, Demat Account EVC, or Digital Signature Certificate. Alternatively, send the signed ITR-V printout by post to CPC Bengaluru — but this takes 4–5 weeks.
The New Tax Regime (default from FY 2023-24) has lower slab rates but no deductions. The Old Regime allows Section 80C, HRA, home loan interest, NPS, and other deductions. The choice depends on your deductions:
| Your Situation | Likely Better Regime |
|---|---|
| No investments, no home loan, paying rent in non-metro | New Regime |
| Maxing 80C (₹1.5L) + health insurance 80D + NPS (₹50k) | Old Regime (usually) |
| Home loan in metro city + HRA + 80C | Old Regime (calculate carefully) |
| Income below ₹7.75 lakh/year (after std deduction) | New Regime (zero tax) |
| Very high income (₹30L+) with limited deductions | New Regime (lower surcharge) |
The simplest rule: use our income tax calculator — enter your income and deductions and it instantly shows the tax under both regimes and which saves more.
Once you've e-verified your ITR, the Central Processing Centre (CPC) in Bengaluru processes it. You'll receive an intimation under Section 143(1) at your registered email — usually within 4–8 weeks. This intimation tells you if the return was processed correctly, if there are any discrepancies, or if a refund has been issued.
Check your Form 26AS periodically to confirm TDS credits match what your employer and banks have deposited. Mismatches must be resolved with the deductor before the return is processed.