Mumbai: Filing your Income Tax Return (ITR) is important for most earning individuals in India. Whether you are salaried, self-employed, or run a business, filing your return correctly helps you stay tax-compliant and avoid penalties. For income earned in Financial Year (FY) 2025–26, the relevant Assessment Year (AY) is 2026–27.
What Is ITR?
Income Tax Return, or ITR, is a form used to report your yearly income, tax payments, investments, deductions, and refunds. Filing ITR helps the government assess your tax liability and process refunds if extra tax has been paid.
ITR filing is mandatory if your income exceeds the basic exemption limit. It is also compulsory in certain cases such as foreign travel spending above Rs 2 lakh, electricity bills above Rs 1 lakh, high-value bank deposits, foreign assets, or large business and professional receipts.
Documents You Need
Before starting, keep all important documents ready. These include PAN, Aadhaar, bank statements, Form 16, salary slips, donation receipts, insurance premium receipts, and stock trading statements.
You should also download Form 26AS and Annual Information Statement (AIS) from the tax portal. These help you verify tax credits and reported financial transactions.
Cross-check all details carefully to avoid errors later.
Choose The Right ITR Form
Selecting the correct ITR form is very important. Using the wrong form may make your return defective.
ITR-1 is mainly for salaried individuals with simple income. ITR-2 is for taxpayers with capital gains, foreign assets, or multiple properties. ITR-3 applies to business or professional income, while ITR-4 is for presumptive taxation.
Choose based on your income sources and filing status.
How To File Online?
Start by logging into the Income Tax e-filing portal using your PAN or Aadhaar and password. New users must register first.
After login, go to the income tax return filing section and select AY 2026–27. Choose online filing mode and continue.
Next, select your filing category such as Individual or HUF. Then choose the correct ITR form and mention the reason for filing, such as income above exemption limit or refund claim.
Fill in income details, deductions, tax payments, and exemptions. Most details may already be pre-filled, but verify everything carefully before submission.
Final Step: Verification
After submitting the return, you must verify it within 30 days. Without verification, your return becomes invalid.
Verification can be done using Aadhaar OTP, net banking, bank EVC, demat EVC, or digital signature.
Mistakes To Avoid
Common mistakes include choosing the wrong ITR form, entering the wrong assessment year, claiming unsupported deductions, and forgetting e-verification.
A careful review before submission can save time, prevent notices, and ensure faster refunds.
