How to Do Online Income Tax Return (ITR) Filing in India?
Filing your income tax return (ITR) is no longer the paperwork-heavy nightmare it used to be. With the Income Tax Portal 2.0, the Government of India has streamlined the process, making it possible for millions to complete their e-filing of income tax in India from the comfort of their homes. At My Finance Gyan, we believe in empowering you with the latest legal updates. For the current Assessment Year (AY) 2026-27, several significant changes—including the New Tax Regime becoming the default—make it more important than ever to understand the ITR filing process clearly.
An Income Tax Return (ITR) is a form used to declare your annual income, tax-saving deductions, and taxes paid to the Income Tax Department. Filing ITR is a sign of financial discipline and is mandatory for those whose income exceeds the basic exemption limit. Today, online ITR filing is the primary method, ensuring faster processing, quicker refunds, and a paperless experience.
Step-by-Step Process to File Income Tax Return Online:
Here is the detailed procedure for ITR filing on the official e-filing portal:
1. Log in to the Portal:
Visit the official Income Tax India e-filing website. Log in using your PAN (User ID) and your secure password.
2. Start the Filing Process:
Navigate to ‘e-File’ > ‘Income Tax Returns’ > ‘File Income Tax Return’.
- Select Assessment Year: 2026-27.
- Select Mode of Filing: Online.
- Select Status: Individual.
3. Select the Correct ITR Form:
Choosing the right form is vital.
- ITR-1 (Sahaj): For salaried individuals with income up to ₹50 Lakh and one house property.
- ITR-2: For individuals with capital gains or more than one house property.
- ITR-4 (Sugam): For those opting for presumptive taxation (small businesses).
4. Validate Pre-filled Information:
The portal now uses AIS (Annual Information Statement) to pre-fill your data. You must verify:
- Personal Info: Ensure your Aadhaar is linked and your bank account is pre-validated.
- Gross Total Income: Check salary, interest, and dividend income.
- Total Deductions: If you are opting for the Old Tax Regime, manually enter deductions like 80C, 80D, etc. Note that the New Tax Regime is now the default.
5. Tax Computation and Payment:
The system will automatically calculate your tax liability.
- If Tax is Owed: You must pay it using the ‘Pay Now’ option via UPI, Net Banking, or Credit Card.
- If Refund is Due: The amount will be calculated automatically for credit to your bank.
6. E-Verify the Return (The Most Important Step):
Your return is not considered “filed” until it is verified. You have 30 days to e-verify using:
- Aadhaar OTP (Sent to your registered mobile number).
- EVC via Net Banking or Bank Account.
- Physical copy: Mailing a signed ITR-V to CPC, Bengaluru (only if e-verification is not possible).
Who Should File Income Tax Return in India?
According to the latest rules for AY 2026-27, you must file an ITR if:
- Income Threshold: Your total income exceeds the basic exemption limit (₹3 Lakh under the New Regime; ₹2.5 Lakh under the Old Regime for those below 60 years).
- Tax Refund: You want to claim a refund of excess TDS (Tax Deducted at Source).
- Foreign Assets: You own foreign assets or have signing authority in a foreign account.
- High Expenditure: You deposited >₹1 Crore in current accounts, spent >₹2 Lakh on foreign travel, or paid >₹1 Lakh in electricity bills during the year.
- Business/Profession: Your business turnover exceeds ₹60 Lakh, or professional income exceeds ₹10 Lakh.
Documents Required for Online ITR Filing:
To ensure your IT filing steps are accurate, keep these documents ready:
- PAN & Aadhaar Card: Must be linked to avoid a higher TDS rate.
- Form 16: Your salary TDS certificate provided by your employer.
- Form 26AS & AIS: To verify all taxes deducted and high-value transactions.
- Interest Certificates: From banks/post offices for savings and FD interest.
- Investment Proofs: Receipts for LIC, PPF, ELSS, and health insurance (if using the Old Regime).
- Home Loan Statement: To claim interest deduction under Section 24.
Benefits of Filing Income Tax Return Online:
Beyond legal compliance, there are several benefits of filing an income tax return online:
- Easy Loan Approvals: Banks require the last 3 years of ITR for home and car loans.
- Visa Processing: Embassies of countries like the US, UK, and Canada often ask for ITR copies to verify financial stability.
- Carry Forward Losses: You can carry forward capital losses to offset future gains only if you file before the deadline.
- Legal Income Proof: ITR serves as the most credible document for income verification for self-employed individuals.
Conclusion:
Understanding how to file an income tax return online is a vital skill for every Indian citizen. By following this guide, you can ensure your filing for AY 2026-27 is accurate and timely. Remember, the last date for filing an income tax return for individuals is July 31, 2026 (unless extended).
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