tax11 min read5 August 2024

How to File ITR Online: Step-by-Step Guide for Beginners

Q: Can I file ITR myself without a CA?

Yes, most salaried individuals can easily file ITR-1 or ITR-2 themselves on the e-filing portal. The portal pre-fills most data from Form 26AS and AIS. You only need a CA for complex cases like business income, multiple properties, or foreign income.

Q: What is the penalty for late ITR filing?

If you file after July 31 (for non-audit cases), you pay a late fee of ₹5,000 under Section 234F. If your total income is below ₹5 lakh, the late fee is reduced to ₹1,000. Additionally, you lose the ability to carry forward certain losses and may face interest under Section 234A.

Q: How long does it take to get an ITR refund?

Typically 30-45 days after e-verification. The CPC processes your return, compares your tax computation, and if a refund is due, credits it to your pre-validated bank account. You'll receive an intimation under Section 143(1) via email before the refund is processed.

Q: What if I forgot to report some income?

You can file a revised return under Section 139(5) before December 31 of the assessment year. If the deadline has passed, you can file an Updated Return (ITR-U) within 2 years from the end of the assessment year, but you'll need to pay additional tax of 25-50% on the shortfall.

Complete step-by-step guide to file Income Tax Return online on the e-filing portal. Learn which ITR form to use, documents needed, and common mistakes.

Filing your Income Tax Return (ITR) online is mandatory for most taxpayers in India. Whether you're a salaried employee, freelancer, or business owner, the e-filing process on the Income Tax Department's portal (incometax.gov.in) is straightforward once you understand the steps. This guide walks you through the entire process — from choosing the right ITR form to verification — so you can file confidently without paying a CA.

Who Must File an Income Tax Return?

You must file ITR if any of these apply:

Gross total income exceeds ₹2,50,000 (₹3,00,000 for senior citizens, ₹5,00,000 for super senior citizens)
You want to claim a tax refund (excess TDS deducted)
You have foreign assets or income from foreign sources
You deposited more than ₹1 crore in current accounts
You spent more than ₹2 lakh on foreign travel
Your electricity bill exceeds ₹1 lakh in a year
You earned from capital gains (even if below exemption limit)
Your TDS/TCS exceeds ₹25,000 (₹50,000 for senior citizens) even if income is below taxable limit

Even if your income is below the taxable limit, filing ITR is recommended. It serves as income proof for loans, visa applications, and helps carry forward losses for future set-off.

Which ITR Form Should You Use?

Choose the correct ITR form based on your income sources:

ITR-1 (Sahaj): Salaried individuals with income up to ₹50 lakh from salary, one house property, and other sources (interest, etc.). Most common for salaried employees.
ITR-2: Individuals with income above ₹50 lakh, capital gains, foreign income/assets, or more than one house property. No business income.
ITR-3: Individuals with business or professional income (freelancers, consultants, traders with F&O income).
ITR-4 (Sugam): Individuals opting for presumptive taxation under Section 44AD/44ADA (small businesses, professionals with gross receipts up to ₹75 lakh).
ITR-5: For partnership firms, LLPs, AOPs, BOIs.
ITR-6: For companies (other than those claiming Section 11 exemption).
ITR-7: For trusts, political parties, institutions claiming exemption.

Documents Required Before Filing

Gather these documents before starting:

Form 16 (from employer) — salary details and TDS
Form 26AS / AIS (from income tax portal) — all TDS credits
Bank statements (all accounts) — interest income details
Investment proofs: PPF passbook, ELSS statements, LIC receipts
Home loan interest certificate (from bank)
Rent receipts and rental agreement (for HRA claim)
Capital gains statements (from broker/mutual fund)
Health insurance premium receipts (Section 80D)
Aadhaar card and PAN card
Bank account details (for refund credit)

Step-by-Step Guide to File ITR Online

Visit incometax.gov.in and login with your PAN as User ID and your password. If you're a first-time user, register using your PAN, Aadhaar, and mobile number. After login, navigate to 'e-File' → 'Income Tax Returns' → 'File Income Tax Return'.

Step 2: Select Assessment Year and Filing Mode

Select the Assessment Year (AY 2024-25 for income earned in FY 2023-24). Choose 'Online' mode for filing directly on the portal. Select the applicable ITR form — for most salaried individuals, this is ITR-1. Choose 'Original' if filing for the first time, or 'Revised' if correcting a previously filed return.

Step 3: Choose Tax Regime

Select whether you want to file under the Old Tax Regime or New Tax Regime. The new regime is the default from FY 2023-24. If you want the old regime, you must actively opt for it. This choice determines which deductions you can claim. Use our Income Tax Calculator to compare both before deciding.

Step 4: Fill Income Details

Enter income from all sources:

Salary: Auto-populated from Form 16 / AIS. Verify and correct if needed.
House Property: Rental income or home loan interest (self-occupied property shows loss)
Capital Gains: STCG, LTCG from shares, mutual funds, property sale
Other Sources: Bank interest, FD interest, dividends, gifts received
Business Income: If applicable (ITR-3 or ITR-4)

Step 5: Claim Deductions (Old Regime Only)

Enter deductions under Chapter VI-A:

Section 80C: PPF, ELSS, EPF, LIC, tuition fees, home loan principal (max ₹1.5 lakh)
Section 80CCD(1B): NPS contribution (additional ₹50,000)
Section 80D: Health insurance premium (₹25,000 self + ₹25,000-50,000 parents)
Section 80E: Education loan interest (no limit, up to 8 years)
Section 80G: Donations to approved charities
Section 80TTA/80TTB: Savings account interest (₹10,000 / ₹50,000 for seniors)

Step 6: Verify Tax Computation

The portal auto-calculates your tax liability based on entered income and deductions. Compare this with your Form 16 tax computation. Check that TDS credits from Form 26AS are correctly reflected. If there's a refund due, verify your bank account details (pre-validated account required for refund).

Step 7: Verify and Submit ITR

Verification options (choose one):

Aadhaar OTP: Instant verification via OTP sent to Aadhaar-linked mobile (most popular)
Net Banking: Login through your bank's net banking to verify
Digital Signature Certificate (DSC): For professionals and businesses
Bank Account EVC: Generate EVC through pre-validated bank account
Demat Account EVC: Generate through pre-validated demat account
Physical ITR-V: Send signed copy to CPC Bangalore within 120 days (not recommended)

Always e-verify your ITR immediately after filing. An unverified ITR is treated as not filed. Aadhaar OTP is the fastest method — takes just 30 seconds.

Important Deadlines for ITR Filing

Key dates to remember:

July 31: Due date for individuals (non-audit cases) — ITR-1, ITR-2, ITR-4
October 31: Due date for businesses requiring audit — ITR-3, ITR-5, ITR-6
November 30: Due date for transfer pricing cases
December 31: Belated/revised return deadline (with ₹5,000 late fee)
March 31: Updated return (ITR-U) deadline for AY-1 (with additional 25% tax)
Late fee: ₹5,000 if filed after due date (₹1,000 if income < ₹5 lakh)

Common Mistakes While Filing ITR

Avoid these frequent errors:

Choosing wrong ITR form (e.g., using ITR-1 when you have capital gains)
Not reporting all bank accounts and interest income
Forgetting to include savings account interest (check all accounts)
Not matching income with Form 26AS/AIS (leads to notices)
Claiming deductions in New Tax Regime (not allowed)
Not reporting exempt income like agricultural income or LTCG below ₹1.25 lakh
Wrong bank account for refund (must be pre-validated)
Not e-verifying within 30 days of filing

After Filing: What to Expect

Post-filing timeline:

Acknowledgment (ITR-V): Generated immediately after e-verification
Processing by CPC: Usually 15-45 days after verification
Intimation under Section 143(1): Email/SMS with tax computation comparison
Refund (if applicable): Credited to bank within 30-45 days of processing
Refund interest: 0.5% per month under Section 244A (from April 1 or filing date)
Notice (if any): Respond within the specified timeline

How to File Revised Return

If you discover an error after filing, you can file a revised return under Section 139(5) before December 31 of the assessment year. Common reasons include: missed income, wrong deduction claimed, incorrect bank account, or choosing wrong tax regime. There's no limit on the number of revisions, but each revision must reference the original filing acknowledgment number.

Calculate your exact tax liability before filing ITR

Use Income Tax Calculator

Frequently Asked Questions