How to File Income Tax Return Online: A Step-by-Step Guide

How to File Income Tax Return Online: A Step-by-Step Guide
How to File Income Tax Return Online: A Step-by-Step Guide
15 July 2025
If you are a salaried person, freelancer, or business owner, you would know that submitting your ITR correctly and on time is important. It spares you penalties and ensures your compliance. A lot of individuals do the filing offline, but with the world going digital, you can now easily file ITR online. But many people don’t know the process.

Most people assume the online process to be confusing and are scared that if anything goes wrong, what will they do? The good thing is that this process isn’t complicated at all. Once you know the steps, you can easily file ITR whenever you want.

In this blog, we are going to tell you how to file income tax return online in very easy and clear steps. So, let’s dive in!

What is an Income Tax Return?
An Income Tax Return (ITR) is a formal declaration of your annual earnings, taxes paid, and eligible deductions that you submit to the tax authorities. Essentially, it’s a detailed statement showing:

Your total income from all sources (salary, business, investments, etc.)
The tax you’ve already paid (through TDS, advance tax, etc.)
Any deductions or exemptions you’re claiming under tax laws.
The government uses this information to decide whether you’ve paid the correct amount of tax or if you should pay more or get a refund. There are different ITR forms depending on your source of income and level, so choosing the right one based on your status is required.

Documents Required to File Income Tax Return Online
Filing your ITR becomes much easier when you have all the necessary documents ready. We have provided a list of documents that you should collect before you start filing your income tax return online:

PAN Card
Aadhaar Card
Bank Account Details
Form 16
Donation receipts
Interest certificates from banks
Stock trading statements from the broker platform
Insurance policy paid receipts related to life and health
Aadhaar registered mobile number for e-verifying the return
Keep digital copies of all documents for easy reference. Having these documents ready will make your e-filing process smooth and error-free.

Steps to File Income Tax Return Online
Filing income tax online is not difficult incase you are aware of basics of

Step 1: Login to the Income Tax Portal
Simply enter your PAN card number, which is your user ID. Then click Continue. You will be asked to enter your password and captcha code.

You have to register yourself on the e-filing portal if you haven’t done that previously.

Step 2: Click on File Income Tax Return
Once you are logged in, you need to go to the ‘File Income Tax Return’ section under e-File > Income Tax Returns.

Step 3: Choose Your Assessment Year
Now, you will be asked to select the assessment year for which you want to file ITR. If you’re filing for the Financial Year 2024-2025, you need to select your assessment year as ‘AY 2025-2026.’

You also need to select the filing type as original return or revised return.

Step 4: Select the filing status
Now, you will be asked to choose your filing status. You will have three options to choose from: Individual, HUF, and Others.

Let us look at what these options mean

Individuals

This means any person, whether male, female, young, or old. The tax law considers every natural person as an individual taxpayer. Even minors can file returns if they have taxable income.

Hindu Undivided Families (HUF)

An HUF is a special family unit recognized by tax laws. It includes:

Multiple generations living together.
All male descendants, their wives, and unmarried daughters.
Has its own PAN and files separate tax returns.
Think of an HUF as a family business entity that’s taxed separately from its members.

Choose the correct option and click on Continue.

Step 5: Choose the ITR Type
You should first understand which ITR form you will fill before your file returns. There are 7 different ITR forms available. ITR Form 1 to ITR Form 4 are applicable for individuals and HUFs.

Let us discuss all 7 ITR forms to give you a better idea:

ITR-1 – For resident individuals with income from salary, one house property, other sources (like interest), and agricultural income up to ₹5,000. Income limit: ₹50 lakh.
ITR-2 – For individuals and HUFs without business income but having capital gains, multiple house properties, or foreign income/assets.
ITR-3 – For individuals and HUFs earning income from business or profession.
ITR-4 – For individuals, HUFs, and firms (except LLPs) with presumptive income (up to ₹50 lakh) under sections 44AD, 44ADA, or 44AE.
ITR-5 – For firms, LLPs, AOPs (Association of Persons), and BOIs (Body of Individuals).
ITR-6 – For companies not claiming tax exemption under Section 11.
ITR-7 – For entities like trusts, political parties, charities, and others required to file under special sections (139(4A) to (4F)).
Step 6: Choose the Reason to File ITR
In this section, you will be asked to specify the reason for filing ITR. Choose the options based on your situation. The three options to choose from are:

Taxable income is more than the basic exemption limit
Meets specific criteria and is mandatorily required to file ITR
Others
Step 7: Check the Pre-filled Form
You will now see a pre-filled form with most of the basic details like your PAN, Aadhaar, name, date of birth, contact information, and bank details. Validate these details carefully. If you have provided your bank account information, please do so.

As you move ahead, make sure you provide all income, exemptions, and deduction details. Validate all the pre-filled information.

Confirm the summary of all the returns and make the payment if there is anything outstanding.

Step 8: Verify your Return
This is the last and a very important step. You need to verify your ITR, as not doing so is equivalent to not filing one. You will have 30 days to do so.

You have the option to e-verify your ITR. There are different methods like Aadhaar OTP, electronic verification code (EVC), Net Banking, or sending a physical copy of ITR-V to CPC, Bengaluru.

Why is it Important to File ITR?
Filing your Income Tax Return (ITR) is more than just an annual obligation. It is a major part of maintaining your financial health and credibility. Here’s why it’s essential:

Legal Compliance: Filing your ITR fulfills your responsibility as a taxpayer. It ensures transparency with tax authorities and keeps you in good standing with the law.
Claiming Refunds: If you’ve overpaid taxes through deductions, exemptions, or advance payments, filing your return is the only way to reclaim what you’re owed.
Financial Documentation: Your ITR serves as official proof of income, which is often required for loans, visas, rental agreements, and other significant financial transactions.
Avoiding Penalties: Timely filing helps you steer clear of unnecessary fines, interest charges, or scrutiny from tax authorities.
Loss Management: Filing your return allows you to carry forward certain financial losses, which can be offset against future income, a key benefit for long-term tax planning.
Strengthening Financial Credibility: Regular ITR filing builds a verifiable financial history, making it easier to secure credit, investments, or even government approvals when needed.
Facilitating Major Transactions: Whether you’re applying for a visa, purchasing high-value assets, or entering into business contracts, a history of filed returns simplifies the process.
Filing your ITR helps in protecting your financial interests and ensuring smooth transactions in both personal and professional life. By staying compliant, you safeguard your future financial opportunities.

Who Should File Income Tax Return?
You must file your Income Tax Return (ITR) if your total income exceeds the basic exemption limit. However, there are certain situations where filing is compulsory regardless of income level:

Foreign Travel: If you spent over ₹2 lakh on foreign travel (for yourself or others) in a financial year.
Large Bank Deposits: If you deposited more than ₹1 crore in one or multiple cooperative bank current accounts.
High Electricity Bills: If your electricity payments exceeded ₹1 lakh (either in a single bill or cumulatively).
Foreign Income/Assets: If you earned foreign income, hold overseas assets, or have signing authority for foreign bank accounts.
Capital Gains Exemptions: If your income (before claiming exemptions under Sections 54, 54B, 54F, etc.) crosses the taxable threshold.
Even if your income seems below the taxable limit, these conditions make ITR filing mandatory. Staying compliant helps avoid penalties and ensures smooth financial transactions.

FAQs on Filing Income Tax Return Online
Q.1: What happens if I file my ITR after the deadline?
Missing your ITR filing deadline can cost you in two ways: you’ll likely pay late fees and wait longer for any refunds. While the tax department does accept late returns in some cases, filing on time is always the smarter move. It saves you money, avoids headaches, and gets your refund to you faster.

Q.2: How do I pay income tax online?
Use the Income Tax e-filing portal and select ‘e-Pay Tax.’ Choose the relevant options, enter details, and pay via net banking/UPI/debit card. Save the payment receipt for filing.

Q.3: How to file an income tax return for previous years?

You can file returns for previous years using the ITR-U (updated return) form, subject to certain eligibility conditions and time limitations.

Q.4:After filing ITR, how long will it take to get a refund?
Refunds typically process in 30-90 days after e-verification. Delays may occur if your return gets selected for scrutiny. Track status via ‘Refund Status’ on the e-filing portal.

Q.5: How long should I keep ITR documents after filing?

Hold onto your documents for at least 3 years from when you filed your return or 2 years from when you paid the tax – whichever date comes later. This applies if you need to claim a refund or tax credit later. If you’re claiming deductions for worthless stocks or bad debts, you’ll need to keep those records for 7 years.

Let’s Summarize
Filing your income tax return doesn’t need to feel overwhelming. Whether you’re a taxpayer in Delhi, Mumbai, Bangalore, Chennai, Kolkata, Lucknow or any other Indian city, you simply require the right documents, proper ITR form, and proper understanding of timelines, and you’re ready to go. Timely filing keeps you from being penalized, receiving refunds earlier, and enjoying a good financial record. If you ever feel stuck, the tax department’s e-filing portal offers helpful tools and guidance across all cities. Facing issues filing ITR? Contact our experts today!