I earned less than ₹3 lakh. Do I need to file ITR?

Legally, no — if your gross income is below the basic exemption limit (₹3L for both regimes), filing is not mandatory. However, it's highly recommended because: (1) You can claim refund of any TDS deducted, (2) ITR serves as income proof for loans and visa, (3) You can carry forward losses to offset against future income. Filing a 'Nil return' is free and takes 10 minutes.

What if I miss the July 31 deadline?

You can still file a 'belated return' until December 31 of the assessment year (December 31, 2026 for FY 2025-26). Penalty: ₹5,000 (₹1,000 if income < ₹5L). You also lose the ability to carry forward certain losses and cannot file revised returns. File on time to avoid penalties and preserve your rights.

I received a notice from the IT department. What do I do?

Don't panic. Most notices are auto-generated under Section 143(1) for minor mismatches (like unreported bank interest or TDS differences). Login to the e-filing portal → 'Response to Outstanding Demand' → view the notice → respond within the given time. For simple mismatches, you can agree or disagree online. For complex notices (scrutiny under Section 143(2)), consult a CA.

Can I file ITR myself or do I need a CA?

For salaried individuals with ITR-1 (income up to ₹50L, one house, no capital gains), filing yourself is easy — the portal auto-fills most data. For ITR-2 (capital gains), ITR-3/4 (business income), or complex situations (foreign income, multiple properties), hiring a CA is recommended. CA fees range from ₹500-5,000 depending on complexity.

How long does tax refund take?

If you e-verify immediately after filing, refunds are typically processed within 15-45 days. The refund is credited directly to your bank account linked with PAN. If it's been more than 60 days, check status at incometax.gov.in → 'View Refund/Demand Status'. Ensure your bank account is pre-validated on the portal for faster refund processing.

Updated: Mar 2026

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How to File ITR — Income Tax Return Guide

Q: I received a notice from the IT department. What do I do?

Don't panic. Most notices are auto-generated under Section 143(1) for minor mismatches (like unreported bank interest or TDS differences). Login to the e-filing portal → 'Response to Outstanding Demand' → view the notice → respond within the given time. For simple mismatches, you can agree or disagree online. For complex notices (scrutiny under Section 143(2)), consult a CA.

Q: Can I file ITR myself or do I need a CA?

For salaried individuals with ITR-1 (income up to ₹50L, one house, no capital gains), filing yourself is easy — the portal auto-fills most data. For ITR-2 (capital gains), ITR-3/4 (business income), or complex situations (foreign income, multiple properties), hiring a CA is recommended. CA fees range from ₹500-5,000 depending on complexity.

Q: How long does tax refund take?

If you e-verify immediately after filing, refunds are typically processed within 15-45 days. The refund is credited directly to your bank account linked with PAN. If it's been more than 60 days, check status at incometax.gov.in → 'View Refund/Demand Status'. Ensure your bank account is pre-validated on the portal for faster refund processing.

Complete step-by-step guide to filing your Income Tax Return online on the e-filing portal — with form selection, deductions, and deadline reminders

Deadline

July 31, 2026

Portal

incometax.gov.in

Free Filing

Yes (direct on portal)

Penalty

₹5,000 if late

📖Overview

Filing an Income Tax Return (ITR) is a legal obligation for every Indian whose income exceeds the basic exemption limit (₹3 lakh under Old Regime, ₹3 lakh under New Regime for FY 2025-26). Even if your income is below the limit, filing ITR is recommended — it serves as income proof for loans, visa applications, and claiming tax refunds.

There are 7 ITR forms: ITR-1 (Sahaj) for salaried with income up to ₹50 lakh, ITR-2 for capital gains/multiple properties, ITR-3 for business income, ITR-4 (Sugam) for presumptive income, and ITR-5/6/7 for firms and companies. Most salaried employees use ITR-1 or ITR-2.

The income tax e-filing portal (incometax.gov.in) allows free online filing. Most of your data (salary, TDS, bank interest) is pre-filled from Form 16, Form 26AS, and AIS (Annual Information Statement). For simple salaried cases, filing takes just 15-20 minutes.

The deadline for individuals is July 31 of the assessment year (for income earned in the previous financial year). Filing after the deadline attracts a penalty of ₹5,000 (reduced to ₹1,000 if income is below ₹5 lakh). You also lose the ability to carry forward certain losses if you file late.

📋Key Details

DeadlineJuly 31, 2026 (for FY 2025-26 / AY 2026-27)

Portalincometax.gov.in — free filing, no charges

Who must fileAnyone with gross income above ₹3 lakh (before deductions) in a financial year

ITR-1Salaried individuals with income up to ₹50 lakh, one house property, other sources (interest). Most common form.

ITR-4For freelancers/self-employed under presumptive taxation (Section 44AD/44ADA)

Late filing penalty₹5,000 if filed after July 31. Reduced to ₹1,000 if total income < ₹5 lakh.

Documents neededForm 16 (from employer), bank statements, investment proofs, Aadhaar, PAN

📝Step-by-Step: Filing ITR-1 Online (for Salaried)

Visit the e-filing portal. Login with PAN number as User ID and your password. If first time, register using PAN, Aadhaar, and mobile number. Complete profile setup.

Go to e-File → Income Tax Returns → File ITR

Select Assessment Year 2026-27 (for income earned in FY 2025-26). Select ITR-1 (if salaried with income ≤₹50 lakh, one house property). Select 'Online' filing mode.

Choose tax regime — Old vs New

Critical choice: Old regime allows deductions (80C, 80D, HRA) but has higher tax rates. New regime has lower rates but almost no deductions. The portal shows a comparison. Generally: If deductions > ₹3-4 lakh, Old regime is better. Otherwise, New regime saves more tax.

Verify pre-filled data

The portal auto-fills your salary, TDS deducted, bank interest, and other income from Form 26AS and AIS. VERIFY every number against your Form 16 and bank statements. If anything is wrong, edit it. Common error: Bank interest income is pre-filled but often missed by people.

Enter deductions (if Old Regime)

Claim deductions under: 80C (PPF, ELSS, EPF, insurance — up to ₹1.5L), 80D (health insurance premium — up to ₹25K self + ₹25K parents), 80CCD(1B) (NPS — extra ₹50K), HRA exemption, home loan interest (Section 24 — up to ₹2L). Enter investment amounts in the respective fields.

Review and calculate tax

The portal calculates your total tax liability, compares it with TDS already deducted, and shows either 'Tax Due' (you owe more) or 'Refund' (excess TDS — money comes back to you). If tax is due, pay via Challan 280 (net banking or UPI) before submitting.

Submit and e-Verify

Submit the ITR. Then e-Verify immediately — this is MANDATORY. Options: Aadhaar OTP (simplest — 6-digit OTP on Aadhaar-linked mobile), Net Banking, DSC, or send signed ITR-V to Bangalore CPC by post within 30 days. Without verification, your ITR is considered NOT FILED.

⚖️Old Regime vs New Regime — Which Saves More Tax?

The New Tax Regime (default from FY 2023-24) has lower tax rates: 0% up to ₹3L, 5% for ₹3-7L, 10% for ₹7-10L, 15% for ₹10-12L, 20% for ₹12-15L, 30% above ₹15L. Plus standard deduction of ₹75,000.

The Old Tax Regime has higher rates (5% above ₹3L, 20% above ₹5L, 30% above ₹10L) but allows ALL deductions: 80C (₹1.5L), 80D, HRA, LTA, 80CCD(1B) NPS, home loan interest, etc.

Quick rule of thumb: If your total deductions (80C + 80D + HRA + others) exceed approximately ₹3.75 lakh, the Old Regime likely saves more tax. If deductions are less, the New Regime is better. The e-filing portal has a 'Compare' feature — use it before choosing.

You can switch between regimes every year (for salaried employees). For self-employed/business income, switching is allowed only once in a lifetime. Choose carefully for business income.

⚠️Common Mistakes That Cost You Money

Mistake 1: Not filing ITR because 'no tax is due'. Even with zero tax liability, file ITR — it serves as income proof for home loans, car loans, visa applications, and credit card approvals. Banks ask for last 2-3 years' ITR. No ITR = difficulty getting loans.

Mistake 2: Not reporting bank interest and FD interest. The income tax department automatically gets this data from banks. If you don't report it in your ITR but they have it in their records, you'll get a notice under Section 143(1) with demand for tax + interest. Always check your AIS (Annual Information Statement) for all income sources.

Mistake 3: Missing the e-Verification step. Submitting ITR is not enough — you MUST e-verify it within 30 days. Many people submit and forget. An unverified ITR is treated as if you never filed. E-verify immediately using Aadhaar OTP — takes 30 seconds.

Mistake 4: Not claiming all eligible deductions. Common missed deductions: Section 80D (health insurance premium for self + parents), Section 80TTA (₹10,000 savings interest deduction), NPS employer contribution (even in New Regime), education loan interest (Section 80E — no upper limit). Check all sections before submitting.

Mistake 5: Filing the wrong ITR form. ITR-1 is only for salaried with income ≤₹50L and one house. If you have capital gains (from stocks, mutual funds, property sale), you need ITR-2. If you have business income, you need ITR-3/4. Wrong form = notice from IT department.

🚀How to Get Started

Collect documents: Form 16, bank statements, investment proofs

Get Form 16 from your employer (usually available by June 15). Download Form 26AS and AIS from the e-filing portal to cross-verify TDS and income data.

Choose ITR form, tax regime, and fill/verify pre-filled data.

Claim deductions and calculate tax

Enter all eligible deductions. Pay any remaining tax due via Challan 280.

Submit and e-Verify immediately

Submit ITR and verify via Aadhaar OTP. Download acknowledgment (ITR-V) for your records.