How to File Income Tax Returns Step-by-Step in India (2025 Guide)

How to File Income Tax: Filing income tax returns (ITR) is a legal obligation for all eligible taxpayers in India. More importantly, it is a financial discipline that helps individuals maintain accurate records, claim refunds, and avoid penalties. Whether you’re a salaried professional, a freelancer, or a business owner, this comprehensive 2025 guide will walk you through the exact steps to file your ITR online with ease.

Who Should File Income Tax Returns in India?

You are required to file an ITR if your total annual income exceeds the basic exemption limit. This applies to:

• Salaried individuals
• Self-employed professionals and freelancers
• Businesses and firms
• Senior and super senior citizens (with different exemption thresholds)

Documents Required for ITR Filing

Before filing your income tax return, make sure you gather the following:

• PAN Card
• Aadhaar Card
• Form 16 from your employer (for salaried individuals)
• Form 26AS (Tax Credit Statement)
• Bank account details
• Investment proofs (for claiming deductions)
• Details of other income sources (interest, rent, capital gains, etc.)
• TDS certificates and advance tax receipts (if applicable)

Step-by-Step Guide to File ITR Online in 2025

Step 1: Register/Login on the Income Tax Portal

Visit the official e-filing website (https://www.incometax.gov.in) and log in using your PAN, password, and OTP (if required). If you’re a new user, complete the registration process.

Step 2: Choose the Appropriate ITR Form

Depending on your income source, choose the correct ITR form. For example:

• ITR-1: For salaried individuals with income up to ₹50 lakh
• ITR-2: For those with capital gains or multiple properties
• ITR-3: For self-employed professionals
• ITR-4: For presumptive income taxpayers

Step 3: Download Pre-Filled Data

The portal auto-fills data from Form 26AS and AIS/TIS. Review this data and cross-verify with your records.

Step 4: Fill in Your Income Details

Provide details of your salary, house property, capital gains, other sources of income, and foreign income (if any). Make sure all entries match your documents.

Step 5: Claim Deductions Under Relevant Sections

Enter eligible deductions such as:

• Section 80C: PPF, ELSS, LIC, etc.
• Section 80D: Health insurance premiums
• Section 80G: Donations
• Section 80TTA/80TTB: Savings account interest

Step 6: Verify Tax Computation

Ensure that the tax liability is computed correctly based on the old or new regime, and check if you have any outstanding tax to pay.

Step 7: Pay Any Remaining Tax (If Applicable)

Use the e-pay tax facility to pay the remaining tax dues. Keep the challan receipt safe.

Step 8: Verify and Submit the Return

Once you’ve filled in all details and paid dues, preview your return and click ‘Submit.’ Verification can be done via:

• Aadhaar OTP
• Net banking
• EVC via bank ATM
• Sending signed ITR-V to CPC Bengaluru

Step 9: Acknowledgement Receipt

Once your ITR is successfully filed and verified, you’ll receive an acknowledgment via email and SMS. Save a copy for future reference.

Benefits of Filing ITR

• Easy loan approvals
• Claiming tax refunds
• Acts as proof of income
• Carry forward capital losses
• Visa applications

Penalties for Late Filing

If you fail to file your ITR by 31st July 2025 (non-audit cases), you may face a penalty of ₹1,000 to ₹10,000 under Section 234F.

FAQs

Q1: Can I file ITR without Form 16? Yes, you can. Use your salary slips, bank statements, and Form 26AS to calculate your income.

Q2: Which ITR form should a freelancer use? Freelancers usually file ITR-3 or ITR-4 depending on their income model and deductions.

Q3: Is it mandatory to verify the ITR after filing? Yes, unverified returns are considered invalid. Always complete the verification process.

Q4: What happens if I enter incorrect details in my ITR? You can file a revised return before the deadline for that assessment year.

Q5: Can I switch between old and new tax regimes every year? Yes, salaried individuals can switch annually. Business owners must stick to one regime unless they stop claiming presumptive income.

Conclusion

Filing your income tax return correctly and on time ensures financial transparency, helps avoid legal troubles, and improves your financial credibility. Follow this guide to file your ITR smoothly for FY 2024–25 and stay compliant with Indian tax laws.

Related Articles:

• Common Tax Deductions Everyone Should Know
• How Advance Tax Payment Works
• Filing Tax Returns Online: Tools You Can Use

Related Article: Capital Gains Tax in India (2025): Short-Term & Long-Term, Rates & Exemptions