Filing an Income Tax Return (ITR) is a vital responsibility for every eligible taxpayer in India. It not only ensures compliance with the Income Tax Act, 1961, but also streamlines financial transactions like securing loans, applying for visas, or obtaining credit cards. For the Financial Year (FY) 2024-25, corresponding to the Assessment Year (AY) 2025-26, the Central Board of Direct Taxes (CBDT) has extended the ITR filing deadline to September 15, 2025, providing taxpayers ample time to file accurately. This comprehensive guide will walk you through the step-by-step process of filing your income tax return in India for 2025, whether online or offline, with practical tips to ensure a hassle-free experience.
Why Filing ITR is Important
Filing your ITR is more than a legal obligation—it’s a cornerstone of financial planning. Here’s why it matters:
- Legal Compliance: Filing ITR is mandatory for individuals whose income exceeds the basic exemption limit or who meet specific criteria, such as foreign travel expenses exceeding ₹2 lakh or deposits above ₹1 crore in current accounts.
- Financial Transparency: It provides a record of your income and taxes paid, which is essential for loan approvals, visa applications, or other financial transactions.
- Claim Refunds: If excess tax has been deducted (e.g., TDS), filing an ITR allows you to claim refunds.
- Avoid Penalties: Late or non-filing can lead to penalties, interest, or invalidation of your return.
With the extended deadline for AY 2025-26, now is the perfect time to get organized and file your ITR accurately. Let’s dive into the step-by-step process.
Step-by-Step Guide to Filing ITR Online
The Income Tax Department’s e-filing portal (www.incometax.gov.in) offers a user-friendly platform for online ITR filing. Follow these steps to file your ITR for FY 2024-25 (AY 2025-26):
Step 1: Register or Log In to the E-Filing Portal
- Visit the official Income Tax e-filing portal (www.incometax.gov.in).
- If you’re a new user, register using your Permanent Account Number (PAN) as your user ID.
- For existing users, log in with your PAN, password, and CAPTCHA code.
- Ensure your PAN is linked to Aadhaar for seamless access.
- Once logged in, click on the e-File tab on the homepage.
- Select Income Tax Returns > File Income Tax Return.
- Choose Assessment Year (AY) 2025-26 for FY 2024-25 and select Online as the mode of filing. Click Continue.
Step 3: Select Your Filing Status
- Choose your status: Individual, Hindu Undivided Family (HUF), or Others.
- Most taxpayers will select Individual. Click Continue.
Step 4: Choose the Appropriate ITR Form
Selecting the correct ITR form is crucial. The form depends on your income sources and taxpayer category. Here’s a quick overview:
- ITR-1 (Sahaj): For salaried individuals, pensioners, or those with income from one house property and other sources (e.g., interest) with total income up to ₹50 lakh.
- ITR-2: For individuals or HUFs with income from capital gains, foreign assets, or agricultural income above ₹5,000, but no business/profession income.
- ITR-3: For individuals or HUFs with income from a proprietary business or profession.
- ITR-4 (Sugam): For individuals or HUFs with presumptive income from business or profession.
- ITR-5, ITR-6, ITR-7: For firms, companies, trusts, or other entities.
Select the ITR form applicable to you and click Proceed. The portal will display a list of required documents.
Also Read: Beginner’s Guide to Mutual Funds in India: Start Investing Smartly
Step 5: Start Filing
- If you have a saved draft, click Resume Filing. To start anew, select Start New Filing.
- Review the pre-filled data (e.g., PAN, Aadhaar, bank details, salary, and TDS from Form 16/Form 26AS).
- Select the reason for filing (e.g., income above exemption limit, foreign assets, etc.) and click Continue.
Step 6: Choose Your Tax Regime
- For AY 2025-26, the New Tax Regime is the default. It offers lower tax rates but fewer deductions.
- To opt for the Old Tax Regime (with deductions like 80C, 80D), select Yes in the Personal Information section.
- Note: For taxpayers with business/profession income, opting out of the new regime requires filing Form 10-IEA before the due date.
Step 7: Fill in Income and Deduction Details
- Personal Details: Verify pre-filled details like PAN, Aadhaar, and contact information.
- Income Details: Enter income from salary, house property, capital gains, or other sources. Cross-check with Form 16 and Form 26AS.
- Deductions: Claim deductions under sections like 80C (e.g., LIC, PPF), 80D (health insurance), or 80CCD(2) (NPS employer contribution). For the old regime, ensure you have supporting documents.
- Tax Paid: Confirm taxes paid (TDS, TCS, advance tax, or self-assessment tax) as per Form 26AS.
Step 8: Compute Tax Liability
- Review the total tax liability based on your income, deductions, and chosen tax regime.
- If there’s a tax payable, click Pay Now to use the e-Pay Tax service. After payment, click Back to Return Filing.
- If there’s no tax liability or you’re eligible for a refund, proceed to the next step.
Step 9: Preview and Validate
- On the Preview and Submit Your Return page, review all entries, including tax computation and deductions.
- Select the declaration checkbox (confirming no involvement of a Tax Return Preparer if applicable).
- Click Proceed to Validation to check for errors.
Step 10: Submit and E-Verify
- After validation, click Submit.
- E-verify your return within 30 days using one of these methods:
- Aadhaar OTP: Receive an OTP on your Aadhaar-linked mobile.
- Electronic Verification Code (EVC): Generate via pre-validated bank accounts or Demat accounts.
- Digital Signature Certificate (DSC): For specific taxpayers.
- Physical ITR-V: If e-verification isn’t possible, send a signed ITR-V to CPC, Bengaluru, within 30 days at: Income Tax Department – CPC, Post Box No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka.
- E-verification is quick, paperless, and recommended.
Filing ITR Offline Using Excel Utility
For those preferring offline filing, the Income Tax Department provides Excel utilities for ITR-1, ITR-2, ITR-3, and ITR-4. Here’s how to file offline:
- Download the Utility: Visit the Downloads section of the e-filing portal and download the Common Offline Utility for AY 2025-26.
- Install and Access: Install the utility, launch it, and click File Return.
- Download Pre-filled Data: Enter your PAN and AY 2025-26, log in, and download pre-filled data.
- Fill the Form: Select your status and ITR form. Enter income, deductions, and tax details. Verify accuracy against Form 16 and Form 26AS.
- Validate and Generate JSON: Preview the return, validate it, and generate a JSON file.
- Upload to Portal: Log in to the e-filing portal, go to File Now, select AY 2025-26, and upload the JSON file.
- E-Verify: Complete e-verification as described above.
Key Deadlines for FY 2024-25 (AY 2025-26)
- ITR Filing Deadline: September 15, 2025 (extended from July 31, 2025).
- Belated Return: File by December 31, 2025, if you miss the deadline.
- Form 10-IEA: Submit by September 15, 2025, for taxpayers with business income opting for the old regime.
- Form 10-IA: File before ITR submission if claiming deductions under sections 80DD or 80U.
Documents Required for Income Tax in India
Gather these documents before filing:
- PAN and Aadhaar Card: Ensure they are linked.
- Form 16: From your employer, detailing salary and TDS.
- Form 26AS: Tax credit statement showing TDS/TCS.
- Bank Statements: For interest income and bank account validation.
- Investment Proofs: For deductions (e.g., PPF, LIC, health insurance).
- Capital Gains Details: For property or share sales.
- Foreign Income/Assets: If applicable, for ITR-2 or ITR-3.
No documents need to be uploaded, but keep them handy for potential scrutiny.
Common Mistakes to Avoid Income Tax in India
- Choosing the Wrong ITR Form: Double-check eligibility to avoid rejection.
- Incorrect Tax Regime Selection: Confirm whether the new or old regime suits your needs.
- Missing Pre-filled Data: Verify auto-populated data for accuracy.
- Not E-Verifying: Failure to e-verify within 30 days invalidates the return.
- Ignoring Form 26AS: Cross-check TDS details to avoid discrepancies.
Benefits of Early Filing Income Tax in India
- Avoid Last-Minute Rush: Filing early ensures ample time to correct errors.
- Faster Refunds: Refunds typically take 30-40 days post-filing.
- Peace of Mind: Stay compliant and avoid penalties or interest under Section 234A.
Take Control of Your Taxes with CashMints
Filing your ITR doesn’t have to be daunting. With the extended deadline of September 15, 2025, and the user-friendly e-filing portal, now is the time to take charge of your tax obligations. At CashMints, we’re committed to empowering you with the knowledge and tools to manage your finances effectively. Don’t wait until the last minute—start gathering your documents, choose the right ITR form, and file your return today. For personalized guidance, explore our tax planning resources or consult a chartered accountant to maximize your deductions. Visit CashMints for more financial tips and make tax season stress-free!
Ready to file your ITR effortlessly? Head to www.incometax.gov.in now, follow our step-by-step guide, and ensure compliance before the September 15, 2025 deadline. Subscribe to CashMints for expert financial advice and stay ahead of your tax game!
FAQs – Income Tax in India
1. Who needs to file an ITR for FY 2024-25?
Individuals with income above the basic exemption limit, foreign travel expenses over ₹2 lakh, electricity bills above ₹1 lakh, or deposits exceeding ₹1 crore in current accounts must file an ITR.
2. What is the difference between the old and new tax regimes?
The old regime allows deductions like 80C and 80D but has higher tax rates. The new regime has lower tax rates but limited deductions, and it’s the default for AY 2025-26.
3. Can I file a belated return after September 15, 2025?
Yes, you can file a belated return by December 31, 2025, but penalties or interest may apply.
4. What happens if I don’t e-verify my ITR?
Failure to e-verify within 30 days invalidates your return, treating it as unfiled.
5. How long does it take to receive a tax refund?
Refunds typically take 30-40 days after e-verification.
6. Do I need to upload documents while filing ITR?
No, documents aren’t uploaded, but keep them ready for potential scrutiny.
7. Which ITR form should I use if I have capital gains?
Use ITR-2 if you have capital gains but no business income, or ITR-3 if you have business income.
8. How do I opt for the old tax regime?
Select “Yes” in the Personal Information section for the old regime. For business income, file Form 10-IEA before the due date.
9. What is Form 26AS, and why is it important?
Form 26AS is a tax credit statement showing TDS/TCS details. Cross-check it to ensure accurate tax reporting.
10. Can I file ITR offline?
Yes, use the Excel utility available on the e-filing portal, generate a JSON file, and upload it online.
