Complete Guide to Income Tax Filing in India FY 2025-26

Filing your income tax return might seem overwhelming, especially if you're doing it for the first time. But here's the good news – once you understand the process, it becomes much simpler than you'd think. I've been filing my own returns for over a decade, and I'm going to share everything I've learned to make this process smooth for you.

Understanding the Basics: Who Needs to File?

Let's start with the most common question: Do I need to file a return?

The Income Tax Act makes it mandatory to file an ITR if your total income crosses certain thresholds. For FY 2025-26, here's what you need to know:

• New Tax Regime: If your income exceeds ₹3 lakh, you must file
• Old Tax Regime: The limit is ₹2.5 lakh
• Multiple Income Sources: Even if you're below the limit but have income from multiple sources, filing is recommended
• Tax Refunds: Want to claim that refund? You'll need to file
• Foreign Assets: If you have any foreign assets or income, filing is mandatory

But here's a pro tip: Even if you're not legally required to file, doing so creates a record of your income, which can be helpful for loan applications, visa processes, and future financial planning.

The Document Checklist: What You'll Need

Before you dive into the filing process, gather these documents. Trust me, having everything ready makes the process 10x faster:

From Your Employer:

• Form 16 (this is your salary certificate)
• Form 16A (for any TDS deducted on other income)

Financial Documents:

• Bank statements for the entire financial year
• Investment proofs (ELSS, PPF, insurance premium receipts, etc.)
• Interest certificates from banks and FDs

If You're Claiming HRA:

• Rent receipts (make sure they're signed and dated)
• Rental agreement (if available)

For Home Loan Benefits:

• Interest certificate from your bank
• Principal repayment certificate

Capital Gains (if applicable):

• Broker statements showing your stock transactions
• Sale deeds for property transactions

I always recommend creating a folder on your computer with all these documents organized by category. It saves so much time when you're actually filing.

Choosing the Right ITR Form: A Quick Decision Guide

Selecting the wrong form is one of the most common mistakes. Here's how to pick the right one:

ITR-1 (Sahaj) – This is for you if:

• You're a salaried employee
• You have income from one house property (rental income)
• Your income from other sources is less than ₹5,000
• You don't have capital gains

ITR-2 – Choose this if:

• You have capital gains (from stocks, mutual funds, property)
• You own multiple properties
• You're an individual or HUF with income above ₹50 lakh

ITR-3 – This is for:

• Business owners
• Professionals (doctors, lawyers, consultants)
• Anyone with business income

ITR-4 (Sugam) – For:

• Small businesses using presumptive taxation
• Freelancers with income up to ₹50 lakh

Step-by-Step Filing Process

Step 1: Log In to the Income Tax Portal

Head to www.incometax.gov.in and log in with your PAN and password. If you haven't registered yet, do that first – it takes just a few minutes.

Step 2: Pre-fill Your Data

The portal has a "Pre-fill" option that automatically pulls data from Form 26AS, Form 16, and other sources. This is a huge time-saver, but always verify the data – I've seen errors in pre-filled information.

Step 3: Select the Correct ITR Form

Based on the guide above, select your form. The portal will guide you through each section.

Step 4: Fill in Your Income Details

Enter your salary details from Form 16. The portal will automatically calculate your taxable income. Double-check each figure – one wrong entry can mess up your entire return.

Step 5: Claim Your Deductions

This is where you can save money. Enter all your eligible deductions:

• Section 80C investments (ELSS, PPF, insurance, etc.)
• Section 80D (health insurance premiums)
• Section 24(b) (home loan interest)
• HRA exemption

Step 6: Verify Tax Calculation

The portal will show your tax liability. Compare it with what you've already paid (TDS + advance tax). If there's a difference, you'll either get a refund or need to pay the balance.

Step 7: Submit and E-Verify

After submitting, you MUST e-verify within 120 days. You can do this through:

• Aadhaar OTP
• Net banking
• Bank account details
• Demat account

Important: Your return is NOT complete until you e-verify. I've seen people forget this step and face issues later.

Critical Deadlines You Can't Miss

• July 31, 2026: Last date for filing ITR for FY 2025-26 (for most individuals)
• October 31, 2026: Extended deadline for audit cases
• January 31, 2026: Last date for advance tax payments

Missing the deadline can cost you – there's a penalty of ₹5,000 (or ₹1,000 if income is below ₹5 lakh) plus interest on any tax due.

Common Mistakes That Can Cost You

After years of filing returns and helping others, here are the mistakes I see most often:

1. Not Checking Form 26AS: This shows all TDS credits. If something's missing here, your refund will be delayed.

1. Wrong Bank Account: Double-check your bank account details. I once entered the wrong account number and had to wait months for my refund to be processed again.

1. Missing Deductions: People often forget about small deductions like health insurance premiums or ELSS investments. Every rupee counts.

1. Selecting Wrong ITR Form: This can lead to your return being rejected. Take time to understand which form applies to you.

1. Not E-Verifying: This is the most common mistake. Your return isn't valid until verified.

Pro Tips for Maximum Tax Savings

Here's what I've learned over the years:

Plan Early: Don't wait until March. Start planning your tax-saving investments in April itself. This gives you time to research and choose the best options.

Maximize Section 80C: You can invest up to ₹1.5 lakh in ELSS, PPF, NSC, or life insurance. ELSS mutual funds are my personal favorite – they give good returns and tax benefits.

Don't Forget Section 80D: Health insurance premiums are deductible. If you're paying for your parents' insurance too, you get additional deductions.

HRA Optimization: If you're paying rent, make sure you're claiming HRA correctly. The exemption is the minimum of:

• Actual HRA received
• Actual rent paid minus 10% of salary
• 50% of salary (metro cities) or 40% (non-metro)

Home Loan Benefits: If you have a home loan, you can claim:

• Interest deduction up to ₹2 lakh under Section 24(b)
• Principal repayment under Section 80C

Using Our Tax Calculator

Before filing, I always recommend using our Income Tax Calculator to get an estimate of your tax liability. It helps you:

• Understand your tax under both old and new regimes
• Plan your investments better
• Avoid surprises when filing

The calculator is updated with the latest tax rates for FY 2025-26, so you'll get accurate results.

What Happens After Filing?

Once you e-verify your return:

• You'll receive an acknowledgment (ITR-V)
• If you're due a refund, it typically takes 3-6 weeks to process
• If you owe tax, pay it immediately to avoid interest

Final Thoughts

Filing your tax return is not just a legal requirement – it's a financial habit that helps you understand your money better. The first time might take a couple of hours, but once you get the hang of it, you'll be done in 30-45 minutes.

Remember, if you're unsure about anything, it's always better to consult a chartered accountant. A small fee for professional help can save you from costly mistakes.

For the latest updates on tax rules and deadlines, keep checking the official Income Tax Department website. Tax laws change, and staying updated is crucial.

Good luck with your filing! If you have questions, feel free to use our calculators or reach out through our contact page.