How to File ITR Online: Step-by-Step Guide to E-File Income Tax Return (2025-26)

What Is ITR E-Filing?

Income Tax Return (ITR) e-filing is the process of submitting your annual income declaration and tax computation to the Income Tax Department of India through the official online portal — incometax.gov.in. E-filing replaced the physical submission of paper returns and is mandatory for most taxpayers in India.

E-filing is required for:

• Individuals with total income above ₹2.5 lakh (or above ₹3 lakh under the new regime)
• All companies and firms (irrespective of income)
• Taxpayers claiming a tax refund
• Taxpayers with foreign assets or foreign income
• Individuals subject to tax audit under Section 44AB
• Individuals filing ITR-2 or ITR-3 (regardless of income level)

Step 1 — Gather Documents Before Filing

Collect the following before you start:

• PAN card and Aadhaar number (linked to PAN)
• Form 16 — from your employer (salary, TDS details)
• Form 26AS — Tax Credit Statement (download from portal)
• Annual Information Statement (AIS) — comprehensive income and TDS summary
• Bank statements — for interest income, FD interest
• Investment proofs — for Section 80C, 80D, HRA, LTA deductions
• Capital gain statements — from your broker or mutual fund house
• Home loan interest certificate — from the lender (for Section 24(b))
• Rental income details — rent received, municipal tax paid, home loan interest

Step 2 — Select the Correct ITR Form

Choosing the wrong form is a common mistake. Here is a quick guide:

Step 3 — Log In to the Income Tax Portal

1. Visit incometax.gov.in
2. Click Login in the top right
3. Enter your PAN as User ID
4. Enter password (or use Aadhaar OTP if registered)
5. If you are a new user: Register using PAN, mobile number, and Aadhaar

Step 4 — Verify Pre-Filled Data

From AY 2021-22 onwards, the Income Tax portal pre-fills your return with data from:

• Form 26AS — TDS/TCS credits, advance tax paid, self-assessment tax
• AIS — salary, interest, dividends, mutual fund transactions, property purchases
• Form 16 data uploaded by your employer

Steps to verify pre-filled data:

1. Go to e-File  Income Tax Returns  File Income Tax Return
2. Select Assessment Year: 2026-27 (for FY 2025-26)
3. Select mode: Online
4. Select the applicable ITR form
5. Review pre-filled data — compare with Form 26AS and AIS
6. Correct any discrepancies (missing income, wrong amounts)

Step 5 — Fill in Income Details

Salary Income (Schedule S)

• Enter gross salary as per Form 16 Part A
• Exemptions: HRA, LTA, standard deduction (₹75,000 for FY 2025-26 under new regime)
• Include all allowances and perquisites taxable in your hands

House Property Income (Schedule HP)

• For self-occupied: Annual value = Nil; deduct home loan interest (max ₹2 lakh under old regime)
• For let-out property: Enter actual rent received; deduct 30% standard deduction + home loan interest (no limit under old regime)

Capital Gains (Schedule CG)

• Enter short-term capital gains from stocks, MFs, property
• Enter long-term capital gains (separate schedules for 111A, 112A, 112)
• Upload capital gain statement from broker (SEBI-registered) or MF house

Income from Other Sources (Schedule OS)

• FD interest, savings account interest, dividends
• Peer-to-peer lending income, gifts exceeding ₹50,000 (from non-relatives)
• Any income not covered by other heads

Step 6 — Claim Deductions (Old Regime Only)

If you opt for the old tax regime, claim applicable deductions in Part C — Deductions and Taxable Total Income:

Step 7 — Choose Tax Regime (New vs Old)

The ITR portal asks you to select the tax regime. From FY 2023-24, the new regime is the default. You can opt for the old regime by filing a declaration (Form 10-IEA for those with business income — only once; others can switch every year).

Compare your tax liability under both regimes using the portal's built-in tax calculator before making the choice.

Step 8 — Tax Payment (if any)

If your total tax liability exceeds TDS credits and advance tax paid, you need to pay the remaining amount as Self-Assessment Tax before filing:

1. Calculate balance tax payable in the ITR portal
2. Go to e-Pay Tax  create challan for Self-Assessment Tax (Challan 280)
3. Pay via net banking or debit card
4. Note the BSR code and challan serial number
5. Enter these details in the ITR before submitting

Step 9 — Preview and Submit

1. Review the complete ITR — check all schedules, deductions, and tax computation
2. Verify income declared vs AIS/Form 26AS — resolve mismatches
3. Click Preview Return to see the full computation
4. Click Submit
5. The portal generates an Acknowledgement Number (ITR-V)

Step 10 — Verify the Return

Your ITR is not complete until it is verified. You must verify within 30 days of filing. Verification options:

• Aadhaar OTP — instant, most convenient
• Net banking EVC — via bank portal login
• Demat account EVC — via CDSL/NSDL
• Bank ATM EVC — generate EVC at ATM
• Digital Signature Certificate (DSC) — mandatory for companies
• Physical ITR-V — print, sign, and send by speed post to CPC Bengaluru (takes 120 days)

After Filing — What Happens Next?

1. Processing — CPC Bengaluru processes the return (typically 15'45 days)
2. Intimation under Section 143(1) — you receive an intimation by email/SMS confirming the computed tax vs declared tax
3. Refund — if tax paid exceeds liability, refund is issued to your pre-validated bank account (usually within 4'8 weeks of processing)
4. Scrutiny — a small % of returns are selected for scrutiny assessment under Section 143(3) or 148

Late Filing Penalty

Frequently Asked Questions — ITR E-Filing

Can I file ITR without Form 16?

Yes. Form 16 is not mandatory for filing ITR — it is only a TDS certificate issued by the employer. You can file your return using your salary slips, bank statements, and Form 26AS/AIS to determine income and TDS. However, Form 16 simplifies the process significantly and is advisable to collect from your employer.

What is the difference between ITR-1 and ITR-2?

ITR-1 (Sahaj) is for resident individuals with income up to ₹50 lakh from salary, one house property, and other income (interest only). ITR-2 is for individuals and HUFs without business income but with capital gains, more than one house property, income above ₹50 lakh, or foreign assets/income.

Is it mandatory to link Aadhaar with PAN for ITR filing?

Yes. Aadhaar-PAN linkage is mandatory. If your PAN is not linked to Aadhaar, your PAN becomes inoperative and you will face issues with TDS deduction (higher rates) and refunds. Link via the income tax portal under Profile  Link Aadhaar.

How to check ITR refund status?

Log in to incometax.gov.in  e-File  Income Tax Returns  View Filed Returns. You can see the processing status and refund status. Alternatively, check at tin.tin.nsdl.com using your PAN and assessment year.

Can I revise my ITR after filing?

Yes. You can file a Revised Return under Section 139(5) before the end of the relevant assessment year (31 March 2027 for AY 2026-27) or before the assessment is completed, whichever is earlier. There is no penalty for filing a revised return as long as the original was filed within the due date.

Summary

E-filing your ITR on the income tax portal (incometax.gov.in) involves ten key steps: gather documents, select the correct ITR form, log in, verify pre-filled data, declare all income heads, claim deductions (if using old regime), choose tax regime, pay any balance tax, submit, and verify within 30 days. The new tax regime is the default from FY 2023-24, and comparing both regimes before filing is essential to minimise tax outgo. Always file before 31 July to avoid the late filing penalty and carry-forward restrictions on losses.