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How to File Income Tax Return (ITR) - A Step-by-Step Guide

CA Mitul PujaraFebruary 10, 202610 min read

Filing your Income Tax Return (ITR) is a legal obligation for every individual and entity meeting certain income thresholds. Beyond compliance, timely ITR filing helps you claim refunds, apply for loans, and maintain a clean financial record. This guide covers everything from choosing the right form to e-verification.

Which ITR Form Should You Use?

ITR-1 (Sahaj)

Salaried individuals with income up to Rs. 50 lakhs from salary, one house property, and other sources

ITR-2

Individuals & HUFs with income from capital gains, multiple house properties, or foreign income

ITR-3

Individuals & HUFs with business/professional income

ITR-4 (Sugam)

Individuals, HUFs & firms with presumptive business income (44AD/44ADA/44AE)

ITR-5

Partnership firms, LLPs, AOPs, BOIs

ITR-6

Companies other than those claiming exemption under Section 11

ITR-7

Trusts, political parties, institutions claiming exemption

Documents Needed for ITR Filing

  • PAN Card & Aadhaar Card
  • Form 16 (from employer, for salaried individuals)
  • Form 16A / 16B / 16C (TDS certificates)
  • Bank statements & interest certificates
  • Investment proofs (PPF, ELSS, LIC, NPS, etc.)
  • Home loan interest certificate (Section 24)
  • Health insurance premium receipts (Section 80D)
  • Rent receipts (for HRA exemption)
  • Capital gains statements (mutual funds, shares, property)
  • Form 26AS / AIS (Annual Information Statement)

Key Tax Deductions & Exemptions

Section 80CRs. 1,50,000

PPF, ELSS, LIC, EPF, NSC, tuition fees, home loan principal

Section 80DRs. 25,000 / 50,000

Health insurance premium for self, family, and parents

Section 80ENo limit

Interest on education loan (for 8 years)

Section 80G50% / 100%

Donations to approved charitable institutions

Section 80TTARs. 10,000

Interest on savings bank account

Section 24(b)Rs. 2,00,000

Interest on home loan for self-occupied property

Step-by-Step ITR Filing Process

1

Gather All Documents & Form 26AS

Collect Form 16, bank statements, investment proofs, and download Form 26AS/AIS from the income tax portal. Cross-verify TDS credits with Form 26AS.

2

Choose the Correct ITR Form

Select the appropriate ITR form based on your income sources. Salaried individuals with simple income use ITR-1, business owners use ITR-3 or ITR-4, and so on.

3

Compute Total Income

Calculate income under all heads: salary, house property, capital gains, business/profession, and other sources. Include all taxable income and exempt allowances.

4

Claim Deductions & Exemptions

Apply eligible deductions under Section 80C (up to 1.5 lakhs), 80D (health insurance), 80E (education loan), HRA exemption, standard deduction, and more.

5

Calculate Tax Liability

Compute tax under Old or New regime (whichever is beneficial), add cess and surcharge, and deduct TDS/advance tax already paid to arrive at net tax payable or refund.

6

Fill & Verify the ITR Form Online

Log in to incometax.gov.in, select the assessment year, fill the ITR form, upload if applicable, and verify all pre-filled data before submission.

7

E-Verify Your Return

E-verify within 30 days using Aadhaar OTP, net banking, bank account EVC, or Demat account. Without e-verification, your return is considered not filed.

8

Download ITR-V Acknowledgement

After successful e-verification, download and save the ITR-V acknowledgement. Track your refund status (if any) on the income tax portal.

Important Tip

The due date for filing ITR for individuals (non-audit cases) is usually July 31 of the assessment year. For audit cases, the deadline is October 31. Late filing attracts a penalty of up to Rs. 5,000 under Section 234F.

Need Help Filing Your IT Return?

Let our experienced team at Pujara & Co handle your ITR filing accurately and on time. We ensure maximum deductions and zero hassle.