How to File Your Income Tax Return (ITR): A Step-by-Step Guide for Salaried People
Filing your return is easier than most people fear. Learn the documents you need, the steps on the income tax portal, and the one step that is often forgotten: e-verification.
Filing an income tax return can feel intimidating. But for most salaried people, much of the information is already filled in for you. Here is a clear process you can follow.
Why file even if tax is already cut?
- Your employer deducts tax at source (TDS), but filing is how you claim refunds of excess tax.
- A filed return is proof of income for loans, visas, and credit cards.
- Some people must file by law based on income or transactions. Check the current rules each year.
Documents to keep ready
- PAN and Aadhaar, linked together.
- Form 16 from your employer, showing salary and TDS.
- Annual Information Statement (AIS) and Form 26AS, available on the income tax portal. They show income and tax reported against your PAN by banks and others.
- Bank interest certificates and statements.
- Proofs for deductions and exemptions, such as insurance premiums, rent receipts, and home loan statements.
- Details of capital gains, if you sold shares or mutual funds.
Steps to file
Log in to the portal
Go to the official income tax e-filing website and log in with your PAN and password.
Start a new return
Select the assessment year, and choose "online" filing.
Choose the right form
Salaried people with simple income usually use ITR-1. If you have capital gains or other complex income, you may need ITR-2. The portal guides you based on your answers.
Check the pre-filled data
Much of your salary, interest, and TDS information is already filled in. Compare it with Form 16 and AIS.
Fill in the rest
Add other income, such as interest, and choose the tax regime that suits you.
Preview the tax computation
See whether you owe tax or are due a refund. Pay any balance tax online before submitting.
Submit and e-verify
Submit the return, then verify it, for example using Aadhaar OTP, net banking, or a demat account.
Important dates and penalties
- For most salaried individuals, the usual due date is 31 July after the financial year ends. For the assessment year 2026-27, the portal shows 31 July 2026. The date is sometimes extended, so check each year.
- Filing after the due date can attract a late fee and loss of some benefits. The fee has been up to ₹5,000, or ₹1,000 if total income is not above ₹5 lakh. Check current rules.
Common mistakes
- Not matching income in AIS with what you report.
- Forgetting interest from savings accounts and fixed deposits.
- Claiming deductions without proofs.
- Entering the wrong bank account, which delays refunds.
- Forgetting to e-verify.
What most people miss
- Refund status can be tracked online. Log in and check the status of your return.
- You can file a revised return if you spot a mistake, within the time allowed.
- Check your bank account is pre-validated on the portal before expecting a refund.
