📘 Table of Contents
Introduction: Why Filing ITR Is Important in 2025
Who Should File ITR in India (AY 2025-26)?
Latest Changes in ITR Filing Rules for AY 2025-26
Types of ITR Forms – Which One Should You Use?
Documents Required for ITR Filing
Step 1: Register/Login to the Income Tax e-Filing Portal
Step 2: Link PAN and Aadhaar (If Not Already Done)
Step 3: Choose the Correct Assessment Year (2025–26)
Step 4: Select the Right ITR Form Based on Your Income Source
Step 5: Prefill Your Details Automatically or Manually
Step 6: Declare Your Income – Salary, Interest, Capital Gains, etc.
Step 7: Claim Deductions Under 80C, 80D, 80G, and More
Step 8: Verify Tax Paid – TDS, Advance Tax, and Self-Assessment Tax
Step 9: Preview Your ITR Form and Confirm All Details
Step 10: Submit the ITR Online and Choose e-Verification Method
How to e-Verify ITR Using Aadhaar, Net Banking, or Bank Account
What Happens After You Submit and e-Verify Your ITR?
How to Track Your ITR Filing Status
Common Mistakes to Avoid While Filing ITR Online
Penalties and Consequences of Not Filing ITR on Time
When and How to File a Revised Return (If You Made a Mistake)
How to Claim Income Tax Refund (And When You’ll Receive It)
FAQs: Income Tax Return Filing for AY 2025–26
Conclusion: Filing ITR Online Is Easy If You Follow This Guide
1. Introduction: Why Filing ITR Is Important in 2025
Filing your income tax return (ITR) isn’t just a duty — it’s your financial identity. For AY 2025-26, the Indian government continues to push for digital compliance and transparency. Whether you’re a salaried employee, freelancer, or business owner, filing ITR on time helps you claim refunds, secure loans, and maintain a clean financial record. It acts as proof of income and is often requested when applying for loans, visas, or credit cards.
Filing also ensures that any tax deducted at source (TDS) can be refunded appropriately. Delays or failures in filing can attract penalties and may lead to future complications with the tax department. This comprehensive and personalized step-by-step guide to filing income tax returns online in India for AY 2025-26 ensures you don’t miss anything important. By following these steps and preparing in advance, you can make tax filing a stress-free experience.
2. Who Should File ITR in India (AY 2025-26)?
You must file ITR if:
- Your total income exceeds ₹2.5 lakh (or ₹3 lakh for senior citizens).
- You want to claim a refund on excess tax deducted.
- You earn income from multiple sources (salary + interest + investments).
- You’re a company director or hold foreign assets.
Filing income tax returns online in India (AY 2025-26) is also mandatory if you:
- Deposited more than ₹1 crore in one or more bank accounts.
- Spent more than ₹2 lakh on foreign travel.
- Paid electricity bills exceeding ₹1 lakh.
Additionally, freelancers, consultants, and gig economy workers should file returns to report their income properly and stay compliant. Even if your income is below the taxable limit, filing ITR
builds a financial history that benefits you in the long run. It also helps in easy processing of visa applications, applying for loans, and maintaining transparency in your finances. In short, if you have any source of income, it’s good practice to file your return, even if you’re not legally bound to.
3. Latest Changes in ITR Filing Rules for AY 2025-26
Tax rules are updated yearly, and for AY 2025-26, several new features aim to make compliance easier:
- Updated ITR forms: The government has rolled out updated versions of ITR-1 and ITR-2 that include auto-populated fields based on your PAN and bank data.
- e-Verification Deadline: Returns must now be verified within 30 days instead of 120 days.
- AIS (Annual Information Statement): Now compulsory to review before submission, it helps ensure full disclosure.
- 80C and 80D Limits: Slight changes in deduction ceilings under the Union Budget 2025.
The changes also include simplifications in prefilled forms and the mandatory reporting of certain income types. These initiatives aim to simplify the tax filing experience and reduce the margin of human error. Awareness of these changes ensures better accuracy and may help you avoid common errors that lead to notices from the IT Department. Regularly visiting incometax.gov.in keeps you up-to-date with such announcements.
4. Types of ITR Forms – Which One Should You Use?
Choosing the correct ITR form is one of the most critical steps when filing your tax return. The form depends on your income sources:
ITR Form | Suitable For |
ITR-1 | Salaried individuals, 1 house property, income < ₹50L |
ITR-2 | Individuals/HUFs with capital gains or foreign income |
ITR-3 | Professionals or business owners |
ITR-4 | Individuals under presumptive taxation scheme |
If you pick the wrong form, your return could be considered defective, leading to penalties or notices. Salaried individuals with capital gains or rental income from more than one property should not use ITR-1. Filing income tax returns online in India (AY 2025-26) starts by understanding these forms well. Choosing the correct form is essential because it directly impacts how your return is processed. You can also use the ‘Help Me Decide’ feature on the official portal to choose the correct form.
5. Documents Required for ITR Filing
Preparation is key when it comes to tax filing. Collect these essential documents before you start:
- PAN Card & Aadhaar Card: Mandatory for identity verification.
- Form 16: Provided by your employer; shows salary and TDS details.
- Bank Interest Certificates: Shows interest earned on savings accounts or FDs.
- Investment Proofs: For 80C deductions like ELSS, PPF, LIC.
- Rent Receipts: For HRA claims.
- Capital Gains Statements: If you’ve sold stocks or property.
- TDS Certificates/Form 26AS: For cross-verification of tax paid.
- Bank Details: Ensure your bank is pre-validated for refunds.
Keeping these documents ready avoids last-minute stress. It also ensures you don’t miss out on deductions that can reduce your tax liability. The more organized your documentation is, the easier and faster the filing process will be. If you have foreign income, capital gains, or rental property, be especially meticulous with your documents. You can store digital copies in a secure cloud drive for easier access during filing.
6. Step 1: Register/Login to the Income Tax e-Filing Portal
To begin filing income tax returns online in India for AY 2025-26, visit https://www.incometax.gov.in and log in. If you haven’t registered yet, click on the “Register” button. Use your PAN as your User ID and follow the steps to generate a password. Make sure your email and mobile number are updated and accessible.
Two-factor authentication (using OTP sent to your registered mobile/email) is required for security. After logging in, you’ll reach your dashboard where you can view past filings, notices, and begin new returns. Bookmark the site and avoid third-party websites that may look similar. This portal is the starting point for your digital tax journey, and you’ll use it every year, so get familiar with its interface.
7. Step 2: Select the Appropriate Assessment Year (AY 2025-26)
Once you’re on the dashboard of the Income Tax e-Filing Portal, the first thing you need to do is choose the correct assessment year. For income earned between 1st April 2024 and 31st March 2025, the assessment year is 2025–26. This step is critical because selecting the wrong year will result in filing under the incorrect period, which may lead to rejection of your return or future compliance issues.
While filing income tax returns online in India AY 2025–26, make sure to double-check the dates. It’s easy to confuse assessment year with financial year, especially for first-time filers. If you’re unsure, the portal usually shows a brief explanation. Select AY 2025–26 from the dropdown before proceeding to the next step. Once selected, your choices for forms and filing types will be based on this year’s rules and structures. This sets the base for the rest of the process.
8. Step 3: Choose the Correct ITR Form Based on Income Source
After selecting the assessment year, you’ll be asked to choose the appropriate ITR form. As discussed earlier, this selection is based on your income sources. For example:
- Salaried employees with income under ₹50 lakh should use ITR-1 (Sahaj).
- Freelancers and professionals may use ITR-3.
- Individuals using presumptive income schemes should go with ITR-4 (Sugam).
The portal usually guides you with hints, but be careful while selecting. Filing income tax returns online in India AY 2025–26 becomes a lot smoother when you choose the correct form initially, as changing the form later may require you to start from scratch. Choosing the wrong form may result in a defective return notice from the IT department, which needs rectification within a limited timeframe. When in doubt, consult the ITR Form Guide available on the official site.
9. Step 4: Select Mode of Filing (Online or Offline)
There are two primary modes of filing your ITR:
- Online Mode: Suitable for ITR-1 and ITR-4. Best for salaried individuals and small businesses. User-friendly interface.
- Offline Mode (Java or Excel Utility): Suitable for complex returns like ITR-2 or ITR-3. You fill the form offline and upload the JSON file on the portal.
Most users today prefer online filing because it’s convenient, auto-fills much of your data, and reduces errors. If you choose offline mode while filing income tax returns online in India AY 2025–26, ensure you’re downloading the updated utility for AY 2025–26. Online mode also offers quick calculations and validation. Choose based on your comfort and the complexity of your return. Online is recommended for first-time or salaried filers.
10. Step 5: Pre-fill Data from PAN, Aadhaar & Form 26AS
Once you proceed, the portal will allow you to pre-fill the return using data linked to your PAN, Aadhaar, and Form 26AS. This includes:
- Basic personal information
- Salary and TDS details
- Interest income from banks
- Advance tax/self-assessment tax
Using this feature helps save time and reduces data entry errors. While filing income tax returns online in India AY 2025–26, this step ensures that all information already available with the tax department is matched with what you enter manually. You should cross-check all entries with your documents like Form 16, bank statements, and AIS (Annual Information Statement) to ensure accuracy. Pre-filled data is helpful, but don’t depend on it blindly — always verify!
11. Step 6: Manually Add Additional Income (if any)
Even though the system auto-fills much of your data, you must manually add any income not reported in Form 26AS or AIS. Common examples include:
- Freelancing/consulting income
- Capital gains from stocks, mutual funds, or real estate
- Rental income from second properties
- Crypto profits
While filing income tax returns online in India AY 2025–26, overlooking these sources could lead to under-reporting, which may result in notices or penalties. Use your bank statements, brokerage statements, and transaction records to compute these figures. Accurate disclosure also improves your credibility with banks and financial institutions. Don’t forget to check whether such income is taxable or exempt, and under which section you should declare it.
12. Step 7: Claim Deductions under Section 80C to 80U
The Indian Income Tax Act offers several deductions under Sections 80C to 80U that can reduce your taxable income. Popular deductions include:
- Section 80C: Investments in ELSS, PPF, LIC, EPF (limit ₹1.5 lakh)
- Section 80D: Medical insurance premium
- Section 80TTA/80TTB: Interest income
- Section 80E: Education loan interest
- Section 80G: Donations to charitable institutions
When filing income tax returns online in India AY 2025–26, properly declaring these deductions is key to saving taxes. Attach proper documentation if needed. The portal usually provides a dedicated section to enter deduction details. Salaried individuals can cross-check this with the deductions shown in Form 16. Use the deductions wisely, and keep proofs for future audits.
13. Step 8: Review Tax Payable and Refund Status
Once all your income and deduction details are filled, the Income Tax portal will auto-calculate your tax liability or refund. This step is critical in filing income tax returns online in India AY 2025–26. The summary shows if you owe any additional tax or are eligible for a refund.
It’s crucial to carefully review this computation. Compare the tax summary against your Form 16, AIS (Annual Information Statement), and investment proofs. If your employer has already deducted enough TDS and you’ve claimed proper deductions under sections like 80C and 80D, you may be eligible for a refund. If there’s a shortfall, the system will prompt you to pay the balance using challan ITNS 280. Errors in this step may delay your return processing or result in demand notices. Always cross-check everything and ensure your bank account details are accurate for refund credit.
14. Step 9: Submit the Return and e-Verify
After verifying all entries and confirming the tax calculation, click on the “Submit” button to file your ITR. However, the process isn’t complete yet. To fully complete filing income tax returns online in India AY 2025–26, you must e-verify your return within 30 days.
There are multiple options to e-verify:
Aadhaar OTP: Most convenient and instant.
Net Banking: Log in and approve via your bank’s site.
Digital Signature Certificate (DSC): For companies or audit cases.
Bank ATM or Demat Account Verification: Less commonly used.
If you do not e-verify within the deadline, your return is treated as not filed. Aadhaar OTP is the simplest method. After successful e-verification, an acknowledgment (ITR-V) will be emailed to you. Save this for your records — it’s your legal proof of ITR submission.
15. Step 10: Download and Save the ITR-V Acknowledgement
Once your ITR is successfully submitted and e-verified, you’ll receive an ITR-V Acknowledgement from the Income Tax Department. This confirmation document is sent to your registered email and is also available in your portal dashboard.
Save the ITR-V PDF:
Digitally (cloud and local drive)
As a printed copy with your financial records
Filing income tax returns online in India AY 2025–26 officially ends with the issuance of this ITR-V. It is frequently required when applying for:
Home loans
Education loans
Business credit
Visa applications
Make sure the acknowledgment is clear and shows “Successfully Verified.” If not, check your e-verification status again. This document is your ticket to a transparent and compliant financial history.
16. How to Check Refund Status Online
To check your refund status while filing income tax returns online in India AY 2025–26:
Go to incometax.gov.in
Log in → Dashboard → View Returns/Forms
Select AY 2025–26 → Click “Check Refund Status”
Alternatively, visit the NSDL Refund Status Portal with your PAN and assessment year.
Refunds are usually processed within 7–15 working days post-verification. If delayed:
Check for bank validation errors
Confirm your PAN is linked to the bank account
Review Form 26AS for discrepancies
Make sure to check refund status regularly. Refunds are processed by CPC Bengaluru and credited directly to your account. Stay alert for email or SMS updates about refunds or any notices.
17. Common Mistakes to Avoid While Filing
Avoiding common mistakes can save you time, money, and hassle. Some frequent errors while filing income tax returns online in India AY 2025–26 include:
Using the wrong ITR form: Leads to defective return notices
Not declaring full income: Side hustles, interest, or capital gains
Mismatch with Form 26AS: TDS not reflected properly
Incorrect bank details: Refunds may fail
Missing deductions: Not claiming eligible 80C/80D benefits
Solution? Take your time. Don’t rush. Use the validation tool on the portal to spot red flags before submission. Use the preview option to double-check everything before filing. Filing isn’t just about paying tax — it’s a chance to organize your entire financial record. Avoid these mistakes and you’ll sail through the process.
18. ITR for Freelancers, Creators & Gig Workers
Freelancers, influencers, and gig workers must declare income even if it’s irregular. Platforms like Upwork, YouTube, or freelance clients pay you digitally — all of it is traceable.
Filing income tax returns online in India AY 2025–26 as a freelancer:
Use ITR-3 (or ITR-4 under presumptive taxation).
Declare income under “Profits and Gains from Business or Profession.”
Keep digital invoices, bank statements, and platform payment proofs.
Freelancers can opt for Section 44ADA (50% flat expense deduction) if eligible. Also consider declaring foreign remittances and GST registration, if applicable. A clear record helps during:
Loan applications
Visa interviews
Securing business investments
Freelancers often skip ITR thinking they won’t be caught. But with UPI and digital trails, all transactions are visible. Stay compliant and grow your financial credibility.
19. ITR for Pensioners and Senior Citizens
Senior citizens and pensioners enjoy several benefits when filing income tax returns online in India AY 2025–26. Firstly, those aged 60+ get a higher exemption limit. For example, senior citizens can earn up to ₹3 lakh tax-free, while those above 80 can earn up to ₹5 lakh tax-free.
If your only income is pension and interest from savings, you can typically file using ITR-1 (Sahaj). You may also be eligible for Section 80TTB deductions, allowing up to ₹50,000 deduction on interest income. Remember, Form 26AS and AIS will show interest income from banks. Declare it even if TDS was not deducted.
E-verification via Aadhaar OTP or bank account is simple. Senior citizens above 75 who meet specific criteria might be exempt from filing, but it’s always good to check your eligibility. Accurate return filing also helps with loan applications and avoids future legal complications.
20. Which Documents to Keep After Filing
Though you don’t need to upload documents while filing income tax returns online in India AY 2025–26, maintaining proper documentation is important in case of scrutiny.
Essential documents to keep:
Form 16 (from employer)
Form 26AS & AIS statement
TDS certificates (Form 16A)
Interest certificates from banks
Investment proofs (LIC, PPF, ELSS)
Rental agreements (if claiming HRA)
Keep both digital and physical copies for at least 6 years. You never know when a notice or assessment might arise. In addition, organized documents make it easy for future filings and help maintain a healthy credit and financial profile.
21. What Happens After Filing? (Processing Timeline)
Once you finish filing income tax returns online in India AY 2025–26 and complete e-verification, your ITR goes through processing by CPC Bengaluru.
Processing stages:
Filed & Verified → ITR submitted & verified successfully
Under Processing → Data matching with AIS/Form 26AS
Processed with refund → Refund sent to bank
Processed with no demand/refund → No action needed
Processed with demand → Outstanding tax to be paid
Typically, processing takes 7–30 days, but it can be longer during peak season. You’ll be notified via SMS and email. Refunds are credited directly to the bank account provided during filing. You can check the ITR status under your e-Filing account dashboard at any time.
22. Filing Revised Returns (If You Made a Mistake)
If you made a mistake while filing income tax returns online in India AY 2025–26, don’t worry. The Income Tax Department allows you to file a revised return.
Key facts:
Use Section 139(5)
Deadline: Before 31st December 2025 or completion of assessment, whichever is earlier
Reason: Incorrect income, deductions, wrong form, etc.
Go to your dashboard, choose the “File Revised Return” option, and re-enter the correct information. You’ll receive a new acknowledgment number. This ensures your records stay compliant and helps avoid penalties.
23. Consequences of Not Filing ITR on Time
Missing the deadline for filing income tax returns online in India AY 2025–26 can result in consequences like:
Late filing penalty: ₹1,000 to ₹5,000 under Section 234F
Interest on tax dues under Sections 234A, 234B, 234C
Loss of refund eligibility if taxes already paid
Delay in visa or loan applications
It may also increase scrutiny in future filings. Always file on time, even if you don’t owe taxes. Filing shows financial discipline and helps build a clean financial track record. If you’ve missed it, file a belated return immediately.
24. Useful Links and Resources
While filing income tax returns online in India AY 2025–26, the following links are extremely helpful:
Official portal: https://www.incometax.gov.in
Refund tracking: https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
ITR Form Guide: https://www.incometax.gov.in/iec/foportal/help/how-to-download-itr-form
AIS Portal: https://report.insight.gov.in
Tax Calculator: https://www.incometax.gov.in/iec/foportal/tax-calculator
Bookmark these for quick access. They’re all free and official. Use them to check refund, validate returns, and understand the filing process in more detail. Being informed is the first step toward filing confidently and accurately.