Filing Your Income Tax Return Online in India: A Comprehensive Guide for FY 2025-2026

Introduction

What is E-Filing?

E-filing refers to the electronic submission of income tax returns through the Income Tax Department’s online portal. This method has become the standard approach for taxpayers in India due to its convenience, speed, and enhanced security features.

When is Filing Mandatory?

Filing an income tax return is mandatory if your income exceeds:

• ₹3 lakh under the new tax regime
• ₹2.5 lakh under the old tax regime (for general individual taxpayers)

⠀Other scenarios requiring mandatory filing include:

• Business receipts exceeding ₹60 lakhs
• Professional receipts exceeding ₹10 lakhs
• Income from foreign assets
• Desire to claim a tax refund
• Need to carry forward losses to subsequent years

⠀For firms and companies, filing is mandatory every year regardless of profit or loss.

Before You Begin: Essential Prerequisites and Documents

Before embarking on the online tax filing process, it is imperative to ensure that certain fundamental prerequisites are met and all necessary documents are readily available.

PAN-Aadhaar Linking Requirement

One of the most critical requirements is the linking of your Permanent Account Number (PAN) with your Aadhaar number. This linkage has been made mandatory by the Indian government, and failure to comply can render your PAN inoperative. An inoperative PAN can lead to significant hurdles during the online tax filing process, potentially preventing the submission of your return and restricting access to other tax-related services. To ascertain whether your PAN and Aadhaar are already linked, you can visit the official Income Tax e-filing portal or utilize the services provided by platforms like iNRI. If the linking is not yet complete, the Income Tax portal provides a straightforward process to link your PAN with your Aadhaar.

Bank Account Pre-validation

Another essential step to undertake before filing your return is the pre-validation of your bank account on the Income Tax e-filing portal. Pre-validating your bank account is crucial for ensuring the smooth and efficient processing of any tax refunds that you may be eligible for. The Income Tax Department typically credits refunds directly to the taxpayer’s pre-validated bank account. This process involves adding your bank account details to your user profile on the portal and then verifying these details through methods like Net Banking or by using a One-Time Password (OTP).

Essential Documents Checklist

To facilitate a seamless online tax filing experience for the financial year 2025-2026, it is advisable to gather all the necessary documents beforehand. A comprehensive checklist of essential documents includes:

• PAN card: Serves as your primary tax identification
• Aadhaar card: Important not only for linking with your PAN but also as a key mode of e-verification for your tax return
• Form 16: For salaried individuals, issued by your employer, containing details of income earned and TDS
• Bank statements: For all your active bank accounts to track interest income and for pre-validating your account
• Investment proofs: For investments qualifying for tax deductions under various sections like 80C or 80D
• Interest certificates: From banks and post offices to report interest income accurately
• Salary slips: Can serve as an alternative source of income details if Form 16 is not available
• Capital gains statements: If you have earned income from the sale of assets like stocks or property
• Donation receipts: For claiming deductions under Section 80G if you’ve made donations to eligible charitable organizations
• Passport: Particularly important for NRIs to determine citizenship status for tax purposes
• Form 26AS and AIS/TIS: Provides a consolidated summary of all taxes deducted and financial transactions

While some online platforms offer the convenience of auto-filling many of these details using just your PAN, having the original supporting documents for verification remains crucial for an accurate and hassle-free filing process.

Step-by-Step Guide to Filing Your Income Tax Return Online

Step 1: Accessing the Income Tax Portal

• Visit the official website: https://www.incometax.gov.in/iec/foportal/
• Ensure you’re accessing the correct, secure website to protect your financial information

Step 2: Logging In or Registering

• Existing Users: Log in using your PAN (User ID), password, and captcha
• New Users: Click ‘Register Yourself’ and provide your PAN, name, DOB, contact information, and set a password

Step 3: Navigating to File Return Section

• Click on the ‘e-File’ tab in the main menu
• Select ‘Income Tax Returns’ and then ‘File Income Tax Return’

Step 4: Selecting Assessment Year and Filing Status

• Choose ‘AY 2025-26’ for financial year 2024-25
• Select your filing status (Individual, HUF, etc.)

Step 5: Choosing the Right ITR Form

Select the appropriate form based on your income sources:

Table 2: Comparison of ITR Forms (ITR 1 - ITR 7)

ITR Form Number	Applicable Taxpayers	Key Income Sources Covered
ITR-1 (Sahaj)	Individuals who are residents and have total income up to ₹50 lakh, income from salary, one house property (excluding cases where there is carried forward loss or loss to be set off under the Income Tax rules), other sources (like interest), and agricultural income up to ₹5,000. It is important to note that ITR-1 cannot be used by directors of a company, individuals who have held unlisted equity shares at any time during the year, or those who have income from more than one house property, capital gains, or income from business and profession.	Income from salary or pension; Income from one house property; Income from other sources like interest; Agricultural income up to ₹5,000.
ITR-2	Individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession and who are not eligible to file ITR-1. This form is applicable for individuals having income from salary, more than one house property, capital gains, foreign assets, and agricultural income exceeding ₹5,000.	Income from salary or pension; Income from more than one house property; Income from capital gains; Income from other sources; Agricultural income exceeding ₹5,000; Income as a partner in a firm; Income from foreign assets.
ITR-3	Individuals and HUFs who have income from business or profession. This form is also applicable to individuals who are partners in a firm.	Income from business or profession; Income from salary, interest, commission, bonus, or remuneration received from a firm in which the individual is a partner; Income from house property; Income from other sources.
ITR-4 (Sugam)	Individuals, HUFs, and firms (other than Limited Liability Partnerships - LLPs) who have opted for the presumptive income scheme as per sections 44AD, 44ADA, and 44AE of the Income Tax Act. This form is for those with a total income up to ₹50 lakh and income from business or profession that is computed on a presumptive basis.	Income from business or profession (where income is computed on a presumptive basis as per section 44AD, 44ADA, or 44AE); Income from salary or pension up to ₹50 lakh; Income from one house property (excluding cases where loss is brought forward or to be carried forward); Income from other sources up to ₹50 lakh.
ITR-5	This form is for firms, LLPs, Associations of Persons (AOPs), Body of Individuals (BOIs), artificial juridical persons, cooperative societies, and local authorities. It is not for individuals, HUFs, companies, or persons claiming exemption under section 10(13A) or 10(32).	Income from business or profession; Income from house property; Income from capital gains; Income from other sources.
ITR-6	Companies, other than those claiming exemption under section 10(1) (relating to agricultural income) or section 10A (relating to newly established units in free trade zones, etc.).	Income from business or profession.
ITR-7	Persons, including companies, who are required to furnish returns under sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F). These sections pertain to income derived from property held under trust or other legal obligation (139(4A)), income of a political party (139(4B)), income of research associations, news agencies, educational or medical institutions, trade unions, etc. (139(4C)), income of universities, colleges, or other institutions (139(4D)), income of business trust (139(4E)), and income of investment fund (139(4F)).	Income as specified under the relevant sections of the Income Tax Act (139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F)).

Once you have identified the correct ITR form applicable to you, select it from the options provided on the portal.

Step 6: Selecting the Mode of Filing

• Choose ‘Online’ for e-filing through the portal
• Select either ‘New Return’ (first filing) or ‘Revised Return’ (correcting previous submission)

Step 7: Filling Income Details

Enter information in these categories:

• Personal information (PAN, name, address, contact)
• Income details (salary, house property, business, capital gains, other sources)
• Tax already paid (TDS, advance tax, self-assessment tax)

For salaried individuals, the portal can auto-fill some details, but always verify against your documents.

Step 8: Claiming Deductions and Exemptions

• Enter eligible deductions under various sections (80C, 80D, 80E, 80G, etc.)
• Provide accurate amounts and ensure you have supporting documents

Step 9: Verifying Tax Liability and Making Payments

• Review the calculated tax liability
• Pay any balance due via Net Banking, credit/debit card, or UPI
• Keep the challan (ITR-Challan) as payment proof
• For refunds, ensure your bank account is pre-validated

Step 10: Previewing and Submitting

• Review all entered information for accuracy
• Check for errors in personal information, income details, deductions claimed
• Submit and note down your acknowledgment number

Step 11: E-Verifying Your Return

Verify your return using one of these methods:

• Aadhaar OTP: Most convenient if your PAN is linked with Aadhaar
• Digital Signature Certificate (DSC): Preferred for those requiring audited accounts
• Electronic Verification Code (EVC) through:
  • Net Banking (pre-validated bank account)
  • Bank ATM
  • Demat Account (linked with PAN)
• Physical ITR-V: Download, sign in blue ink, and mail to CPC Bengaluru within 30 days

Once verified, you’ll receive confirmation via email and SMS. You can track your return status through the portal using your acknowledgment number.

Understanding the Old vs. New Tax Regime (Brief Comparison)

When filing your income tax return, you have the option to choose between the old tax regime and the new tax regime. It is crucial to understand the key differences between these two regimes to make an informed decision that is most beneficial for your financial situation. Here is a brief comparison:

Table 3: Old Tax Regime vs. New Tax Regime - Key Differences

Feature	Old Tax Regime	New Tax Regime
Tax Rates	Higher tax rates with multiple slabs based on age.	Lower tax rates with streamlined slabs, no age-based differentiation.
Standard Deduction	₹50,000 for salaried individuals.	₹75,000 for salaried individuals (from FY 2024-25).
Major Exemptions & Deductions	Over 70 exemptions and deductions allowed (e.g., HRA, LTA, 80C, 80D).	Most exemptions and deductions disallowed, with some exceptions (e.g., standard deduction, employer’s NPS contribution).
Tax Rebate under Section 87A	Full tax rebate on income up to ₹5 lakhs.	Full tax rebate on income up to ₹7 lakhs (for FY 2024-25) and ₹12 lakhs (for FY 2025-26 with increased rebate).
Default Regime (from FY 2023-24)	Taxpayers need to choose this regime if preferred.	This is the default option; taxpayers need to opt-out for the old regime.

The Old Tax Regime

Under the old tax regime, taxpayers can avail a wide range of exemptions and deductions, such as:

• House Rent Allowance (HRA)
• Leave Travel Allowance (LTA)
• Deductions under Section 80C for investments like Provident Fund and life insurance premiums
• Deductions under Section 80D for medical insurance premiums

The tax rates under the old regime are generally higher, but the ability to claim these exemptions and deductions can significantly reduce your taxable income.

The New Tax Regime

The new tax regime, on the other hand, offers lower tax rates across various income slabs. However, in this regime, most of the commonly claimed exemptions and deductions are not allowed. Some of the exemptions and deductions that are still available under the new tax regime include:

• Standard deduction for salaried individuals
• Employer’s contribution to the National Pension Scheme (NPS)
• Deductions under Section 80CCD(2) (employer’s contribution to NPS)
• Deductions under Section 80JJA (for employment of new employees)

Starting from the financial year 2023-24, the new tax regime has become the default tax regime. This means that when you file your return, the system will automatically consider your tax liability under the new regime. If you wish to opt for the old tax regime, you will need to explicitly choose it while filing your return.

Making the Right Choice

The choice between the old and the new tax regime depends on various factors, such as:

• Your income level
• The amount of investments and expenditures you make that qualify for deductions under the old regime
• Your overall financial planning

⠀It is advisable to calculate your tax liability under both regimes before making a choice. The Income Tax Department’s website and various online tax calculators can help you in making this comparison and deciding which regime is more beneficial for you in the financial year 2024-25 (Assessment Year 2025-26).

Common Errors to Avoid While Filing Online

To ensure a smooth and successful online filing experience, avoid these common mistakes:

Incorrect Basic Details

• Wrong Assessment Year: For FY ending March 31, 2025, select AY 2025-26
• Incorrect ITR Form: Choose the form that matches your income sources
• Personal Detail Errors: Ensure name, address, DOB match your PAN card
• PAN-Aadhaar Issues: Verify your PAN is linked with Aadhaar

Income and Deduction Errors

• Incomplete Income Reporting: Report all income sources accurately
• Deduction Mistakes: Claim only eligible deductions with proper documentation
• Unreported Exempt Income: Report tax-exempt income even though it’s not taxable
• Bank Detail Errors: Provide correct pre-validated bank account information for refunds

Verification Failures

• Skipping E-Verification: Remember to verify your return after submission
• Not Maintaining Records: Keep copies of your filed ITR and supporting documents

Troubleshooting Common Issues with the Income Tax Portal

Issue	Quick Fix
Login Problems	• Check PAN and password entries • Use ‘Forgot Password’ option if needed • Contact orm@cpc.incometax.gov.in with your PAN and mobile number
Aadhaar OTP Failures	• Verify mobile is registered with Aadhaar • Confirm PAN-Aadhaar linking • Try alternate verification methods
Navigation Issues	• Check internet connection • Try different browser • Clear cache and cookies • Access during non-peak hours
Pre-Filled Data Missing	• Manually verify and enter data from source documents • Double-check employer has uploaded Form 16
Can’t Download 26AS/AIS	• Try different browser • Verify PAN linkage • Check for portal maintenance notices • Contact helpdesk if persistent
Form Submission Failures	• Check for validation errors in red • Ensure all mandatory fields are complete • Try during off-peak hours • Save progress frequently

Deadlines and Penalties for Late Filing

Key Deadlines for FY 2024-25 (AY 2025-26)

• July 31, 2025: Regular filing deadline for individuals not requiring tax audit
• October 31, 2025: Extended deadline for business taxpayers requiring tax audit
• November 30, 2025: Final extended deadline for companies with transfer pricing requirements

Penalties for Missing Deadlines

• Late Filing Fee (Section 234F):

  • ₹5,000 for filing after deadline but before December 31
  • ₹10,000 for filing after December 31
  • ₹1,000 for taxpayers with income under ₹5 lakh

• Interest Penalties (Section 234A):

  • Simple interest at 1% per month on unpaid tax amount
  • Calculated from due date until actual payment date

• Additional Consequences:

  • Loss of certain carry-forward benefits
  • Delayed processing of any refund due
  • Potential scrutiny by tax authorities
  • Difficulty in obtaining bank loans or visa approvals requiring ITR proof

Conclusion: Best Practices for Smooth Tax Filing

Filing your income tax return online can be a straightforward process if approached systematically. Here are key best practices to ensure a smooth and efficient filing experience:

Start Early

• Begin gathering documents at least 1-2 months before deadline
• Avoid last-minute rush and potential system overloads

Stay Organized

• Maintain dedicated folders for tax documents (physical and digital)
• Track income from all sources throughout the year
• Keep investment and expense records for deduction claims

Verify After Filing

• Complete e-verification within 30 days of submission
• Download and save your ITR-V acknowledgment
• Track your return status on the portal

Seek Professional Help When Needed

• Consider consulting a tax professional if:
  • You have complex income sources
  • You’ve had major life changes affecting tax status
  • You’re unsure about deduction eligibility
  • You’re filing for the first time

The online tax filing process in India continues to evolve with technological advancements and policy changes. By staying informed, organized, and proactive, you can fulfill your tax obligations efficiently while maximizing legitimate benefits available to you.

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Disclaimer: This guide is for informational purposes only and should not be construed as professional tax advice. Tax laws and procedures are subject to change. Readers are advised to consult with qualified tax professionals for advice specific to their individual circumstances.