How to File ITR Online in India: Complete Step-by-Step Guide

Filing an Income Tax Return is not merely about entering the figures appearing in Form 16.

Before filing your ITR, you should identify all sources of income, select the correct return form, reconcile tax credits, compare information appearing in AIS and Form 26AS, calculate the applicable tax and verify the return after submission.

Missing interest income, using the wrong ITR form, reporting capital gains incorrectly or claiming deductions without checking the applicable tax regime may result in a defective return, tax demand or future income tax notice.

This detailed guide explains how to file ITR online in India, which documents you need, how to select the correct ITR form and which mistakes should be avoided.

What Is an Income Tax Return?

An Income Tax Return, commonly called ITR, is a prescribed form through which a taxpayer reports information such as:

• Salary or pension
• Income from house property
• Business or professional income
• Capital gains
• Bank interest
• Dividend income
• Foreign income
• Exempt income
• Deductions claimed
• Taxes already paid
• Final tax payable or refund due

The return is filed electronically through the Income Tax e-Filing Portal in most cases.

Filing the return does not end with uploading it. The taxpayer must also verify the return through an approved verification method. An unverified return may be treated as invalid and may not be processed by the Income Tax Department. ([Etds][1])

Financial Year and Assessment Year: Understand the Difference

Before learning how to file ITR, you should understand the difference between a Financial Year and an Assessment Year.

Financial Year

The Financial Year is the year in which income is earned.

For example:

```text Financial Year 2025-26: 1 April 2025 to 31 March 2026 ```

Assessment Year

The Assessment Year is the year in which the income of the previous financial year is assessed and the return is filed.

Therefore:

```text Income earned during FY 2025-26 ITR filed for AY 2026-27 ```

For income earned during FY 2025-26, taxpayers must select Assessment Year 2026-27 while filing the return. Although the Income Tax Act, 2025 became effective from 1 April 2026, returns relating to FY 2025-26 continue to be filed under the Income Tax Act, 1961 using the applicable AY 2026-27 forms. ([Income Tax Department][2])

Selecting the wrong Assessment Year may cause:

• Tax payment to appear in the wrong year
• TDS mismatch
• Refund delay
• Incorrect return filing
• Difficulty in correcting the challan
• Tax demand despite payment

Always confirm the Financial Year and Assessment Year before beginning the return.

Who Should File an Income Tax Return?

An individual may be required to file an ITR where:

• Total income exceeds the applicable basic exemption limit
• Business or professional income is earned
• Capital gains arise
• Foreign assets or foreign income are held
• The person is a director in a company
• Specified high-value transactions have taken place
• A refund of excess tax is being claimed
• A loss needs to be carried forward
• Income tax provisions otherwise require filing
• A notice requires the taxpayer to file a return

Even where filing is not compulsory, voluntary filing may be useful for:

• Claiming an income tax refund
• Maintaining financial records
• Applying for a bank loan
• Applying for a visa
• Obtaining business finance
• Providing income proof
• Carrying forward eligible losses
• Maintaining consistency in tax history

The requirement should be determined after considering total income, residential status, transaction history and applicable statutory conditions.

Documents Required to File ITR

The exact documents depend on the taxpayer’s income sources.

Commonly required documents include:

Basic Documents

• PAN
• Aadhaar
• Income Tax Portal login details
• Bank account details
• Previous year’s ITR
• Previous tax computation
• Current address and contact details

Salary Documents

• Form 16
• Salary slips
• Details of salary from all employers
• Bonus and incentive details
• Arrears of salary
• Leave encashment details
• Gratuity or pension details
• Information about employer-provided benefits
• Form 12BA, where applicable

TDS and Tax Information

• Form 26AS
• Annual Information Statement
• Taxpayer Information Summary
• Form 16A
• Advance tax challans
• Self-assessment tax challans
• TDS certificates
• Foreign tax payment evidence

Bank and Interest Documents

• Bank statements
• Savings account interest
• Fixed deposit interest certificates
• Recurring deposit interest
• Post office interest
• Interest on income tax refund
• Interest received from loans

House Property Documents

• Rent received
• Municipal tax receipts
• Housing loan interest certificate
• Home loan repayment certificate
• Property ownership details
• Co-owner details
• Tenant information
• Pre-construction interest working

Capital Gain Documents

• Broker capital gain statement
• Demat statement
• Mutual fund capital gain statement
• Sale and purchase contract notes
• Property purchase deed
• Property sale deed
• Improvement expense records
• Stamp duty value
• Valuation report, where applicable
• Securities transaction tax details
• FMV information for eligible old investments

Business or Professional Documents

• Profit and loss account
• Balance sheet
• Trial balance
• Sales register
• Purchase register
• Expense ledgers
• Bank statements
• GST returns
• TDS returns
• Fixed asset schedule
• Stock details
• Tax audit report
• Partnership deed
• Presumptive income calculation

Deduction Documents

• Life insurance premium receipts
• Public Provident Fund details
• Employees’ Provident Fund details
• ELSS investment statement
• Tuition fee receipts
• Home loan principal certificate
• Health insurance premium
• Donation receipts
• Education loan interest certificate
• National Pension System contribution
• Disability-related certificates
• Other eligible investment documents

Foreign Income and Asset Documents

• Overseas bank statements
• Foreign salary information
• Foreign shareholding
• Foreign retirement accounts
• Foreign property details
• Foreign tax payment certificates
• Tax Residency Certificate
• Overseas broker statement
• Details required for foreign asset schedules

ITR forms are generally annexure-less, which means documents are not ordinarily attached to the return. However, taxpayers should retain supporting documents because they may later be required during assessment, inquiry or notice proceedings. ([Income Tax Department][3])

Download and Review Form 26AS, AIS and TIS

Before filing your ITR, review three important tax records.

Form 26AS

Form 26AS generally contains information relating to:

• Tax deducted at source
• Tax collected at source
• Advance tax
• Self-assessment tax
• Refunds
• Specified tax information

Check whether TDS appearing in Form 16 or Form 16A is also reflected in Form 26AS.

Annual Information Statement

AIS may contain a broader range of financial information, such as:

• Salary
• Interest
• Dividend
• Securities transactions
• Mutual fund transactions
• Property transactions
• Foreign remittances
• GST-related information
• Tax payments
• TDS and TCS
• High-value transactions

The Income Tax Department’s guidance confirms that AIS can contain TDS/TCS, SFT transactions, tax payments, demand or refund information and information received from other sources. ([Income Tax Department][4])

Taxpayer Information Summary

TIS provides a summarised category-wise view of information appearing in AIS.

Do Not File ITR Solely from AIS

AIS is an information statement—not your final taxable income computation.

A transaction appearing in AIS may represent:

• Gross sale value rather than capital gain
• Jointly owned property
• Transfer between your own accounts
• Reversed transaction
• Duplicate information
• Exempt income
• Incorrect information reported by another party
• Business receipt requiring expense adjustment

Similarly, income may be taxable even when it does not appear in AIS.

Therefore, AIS should be reconciled with:

• Books of account
• Bank statements
• Broker reports
• Form 16
• Form 26AS
• Property documents
• Investment records
• Actual income information

How to Select the Correct ITR Form

Selecting the wrong ITR form is one of the most common return-filing mistakes.

For AY 2026-27, the primary return forms include ITR-1 to ITR-7. The correct form depends on the taxpayer’s legal status, residential status, income sources and other prescribed conditions. ([Income Tax Department][4])

ITR-1 – Sahaj

ITR-1 is a simplified return for eligible resident individuals having specified income within the prescribed limit.

For AY 2026-27, eligible taxpayers may report income such as:

• Salary or pension
• Income from up to two house properties
• Specified income from other sources
• Agricultural income up to ₹5,000
• Eligible long-term capital gain under Section 112A up to ₹1.25 lakh
• Total income within the prescribed ₹50 lakh limit

ITR-1 cannot be used in several situations, including where the taxpayer:

• Has business or professional income
• Has short-term capital gains
• Has long-term capital gain under Section 112A exceeding ₹1.25 lakh
• Has total income exceeding ₹50 lakh
• Is a director in a company
• Held unlisted equity shares
• Has foreign assets
• Has foreign income
• Has signing authority in an overseas account
• Has brought-forward losses or losses to carry forward

For AY 2026-27, ITR-1 has been expanded to allow eligible income from up to two house properties. ([Income Tax Department][3])

ITR-2

ITR-2 is generally applicable to individuals and HUFs who:

• Are not eligible for ITR-1
• Do not have income from business or profession

It may be relevant where the taxpayer has:

• Capital gains
• More complex house property income
• Foreign assets or income
• Total income exceeding the ITR-1 threshold
• Directorship in a company
• Unlisted equity shares
• Agricultural income beyond the ITR-1 limit
• Brought-forward capital losses

ITR-3

ITR-3 is generally applicable to individuals and HUFs having income from business or profession who are not eligible for ITR-4.

It may apply to:

• Proprietors
• Freelancers
• Consultants
• Professionals
• Partners receiving remuneration or interest
• F&O traders
• Intraday traders
• Individuals maintaining regular business books
• Taxpayers subject to tax audit
• Businesses not opting for eligible presumptive taxation

The Income Tax Department describes ITR-3 as the return applicable to individuals and HUFs having business or professional income along with other permitted heads of income. ([Income Tax Department][5])

ITR-4 – Sugam

ITR-4 is an optional simplified return for eligible resident individuals, HUFs and resident firms other than LLPs declaring business or professional income under eligible presumptive taxation provisions.

For AY 2026-27, ITR-4 may include:

• Presumptive business income under Section 44AD
• Presumptive professional income under Section 44ADA
• Presumptive transport income under Section 44AE
• Salary or pension
• Income from up to two house properties
• Specified other-source income
• Agricultural income up to ₹5,000
• Eligible Section 112A long-term capital gain up to ₹1.25 lakh
• Total income within ₹50 lakh

It cannot be used in various circumstances, including by an NRI, RNOR, company director, person with short-term capital gains, person holding unlisted equity shares or person not satisfying its other eligibility conditions. ([Income Tax Department][6])

ITR-5

ITR-5 is generally used by:

• Partnership firms
• LLPs
• Association of Persons
• Body of Individuals
• Cooperative societies
• Business trusts
• Investment funds
• Certain other non-company taxpayers

ITR-6

ITR-6 is generally applicable to companies other than companies claiming exemption under the provisions applicable to charitable or religious income.

ITR-7

ITR-7 is generally applicable to specified:

• Charitable or religious trusts
• Political parties
• Institutions
• Universities
• Research organisations
• Other persons required to file under the applicable special provisions

The Income Tax Department’s return guidance identifies ITR-5, ITR-6 and ITR-7 according to these broad taxpayer categories. ([Etds][1])

How to File ITR Online: Step-by-Step Process

The Income Tax Department permits return filing through online and offline modes. In online filing, the information is entered directly on the portal. In offline filing, the applicable utility is used to prepare a JSON file that is uploaded to the portal. ([Etds][7])

Step 1: Register on the Income Tax Portal

First-time users must register on the Income Tax e-Filing Portal.

Commonly required details include:

• PAN
• Name
• Date of birth
• Mobile number
• Email address
• Address
• Password
• Security questions

For most individual taxpayers, PAN functions as the user ID.

Ensure that your:

• PAN is active
• PAN and Aadhaar details are consistent
• Mobile number is accessible
• Email address is active
• Bank account is correctly entered
• Name and date of birth match official records

Step 2: Log in to the Portal

Log in using:

• PAN or applicable user ID
• Password
• Secure access confirmation
• OTP, where required

After login, check whether any alerts appear relating to:

• PAN-Aadhaar status
• Pending e-verification
• Outstanding demand
• Defective return
• Profile completion
• Bank validation
• Pending notices

Step 3: Update Your Profile

Before filing, verify:

• Name
• Date of birth
• Residential status
• Address
• Mobile number
• Email address
• Bank accounts
• Demat accounts, where relevant
• Authorised signatory details
• Nature of employment
• Passport details, where applicable

Incorrect profile information can flow into the prefilled return.

Step 4: Pre-Validate the Bank Account

Add and pre-validate the bank account in which you want to receive the income tax refund.

Check:

• Account number
• IFSC
• Bank name
• Account type
• PAN linkage
• Validation status

A wrong or closed bank account can delay the refund.

Step 5: Open the Income Tax Return Filing Section

After logging in, navigate to:

```text e-File → Income Tax Returns → File Income Tax Return ```

The official filing guidance prescribes this navigation for online ITR filing. ([Etds][7])

Step 6: Select the Correct Assessment Year

For income earned during FY 2025-26, select:

```text Assessment Year 2026-27 ```

Do not select Tax Year 2026-27 for income earned before 1 April 2026.

During the transition to the Income Tax Act, 2025, the portal supports earlier Assessment Year filings and new Tax Year compliances separately. ([Income Tax Department][2])

Step 7: Select the Mode of Filing

Choose:

• Online mode; or
• Offline utility mode

Online Mode

Online filing may be convenient for comparatively straightforward returns.

Offline Utility

The offline or Excel utility may be useful for:

• Detailed ITR-2
• ITR-3
• Business returns
• Capital gain schedules
• Multiple income sources
• Foreign asset reporting
• Bulk or professional preparation
• Complex validation requirements

Step 8: Select Your Status

Select the applicable taxpayer status, such as:

• Individual
• HUF
• Firm
• Company
• Other

The available ITR forms will depend on the selected status.

Step 9: Select the Correct ITR Form

Select ITR-1, ITR-2, ITR-3, ITR-4 or another applicable form after reviewing your complete income and transaction profile.

Do not select a form merely because:

• It was used in the previous year
• The portal recommends it
• Your employer gave Form 16
• Your income is below ₹50 lakh
• Someone with similar income used that form

A small change—such as becoming a company director, selling shares, beginning freelancing or acquiring a foreign asset—can change the applicable ITR form.

Step 10: Select the Reason for Filing

The portal may ask why you are filing the return.

Possible reasons may include:

• Income exceeds the applicable exemption limit
• Filing because of specified transactions
• Filing in response to a notice
• Claiming a refund
• Filing a return of loss
• Voluntary filing
• Other applicable statutory requirement

Select the reason that accurately reflects your case.

Step 11: Review Prefilled Personal Information

Check:

• Name
• PAN
• Aadhaar
• Date of birth
• Address
• Residential status
• Employment category
• Contact information
• Bank details

Do not assume that prefilled information is automatically correct.

Step 12: Report Salary Income

Salary income should be prepared using:

• Form 16
• Salary slips
• Full and final settlement
• Arrear information
• Details from previous employers
• Perquisite information
• Pension documents

Where a person changed employment during the year, income from all employers must be considered.

Review:

• Gross salary
• Exempt allowances
• Perquisites
• Standard deduction
• Professional tax
• Entertainment allowance, where applicable
• Tax deducted by employers

Do not file the return using only the latest employer’s Form 16.

Step 13: Report Income from House Property

House property information may include:

• Self-occupied property
• Let-out property
• Deemed let-out property
• Rent received
• Municipal taxes
• Home loan interest
• Co-ownership percentage
• Pre-construction interest
• Unrealised rent
• Tenant details, where required

For AY 2026-27, the simplified ITR-1 and eligible ITR-4 forms permit reporting of income from up to two house properties, subject to their remaining eligibility conditions. ([Income Tax Department][3])

Step 14: Calculate and Report Capital Gains

Capital gains may arise from the sale of:

• Equity shares
• Mutual funds
• Property
• Land
• Bonds
• Unlisted shares
• Gold
• Digital assets
• Other capital assets

Capital gain calculation may require:

• Purchase date
• Sale date
• Sale consideration
• Cost of acquisition
• Improvement cost
• Transfer expenses
• Holding period
• Indexation, where applicable
• Fair market value
• Stamp duty value
• Securities transaction tax
• Exemption investment
• Capital loss adjustment

Do not report only the net figure shown in a broker’s summary without checking transaction-level details.

Broker Statement and AIS May Show Different Figures

Differences may arise because of:

• Gross sale value being reported in AIS
• Different cost allocation
• Bonus shares
• Corporate actions
• Grandfathering calculations
• Multiple demat accounts
• Mutual fund consolidation
• Expenses and transaction charges
• Incorrect taxpayer mapping

Prepare a security-wise or transaction-wise reconciliation where required.

Step 15: Report Business or Professional Income

Business and professional income may include:

• Proprietorship profit
• Freelancing receipts
• Consultancy fees
• Professional fees
• Commission
• Online income
• E-commerce business
• Intraday trading
• Futures and options
• Partnership remuneration
• Partner interest
• Other commercial receipts

Depending on the applicable form and method, the taxpayer may need to report:

• Turnover
• Gross receipts
• Expenses
• Profit
• Assets and liabilities
• Capital account
• Bank balances
• Inventory
• Debtors and creditors
• Depreciation
• Tax audit information
• GST turnover
• Presumptive income

A credit in the bank account should not automatically be treated as income, and every debit should not automatically be claimed as an expense.

Step 16: Report Income from Other Sources

Other-source income may include:

• Savings bank interest
• Fixed deposit interest
• Recurring deposit interest
• Dividend
• Family pension
• Interest on income tax refund
• Interest on loans
• Gifts taxable under applicable provisions
• Winnings
• Other residual income

Bank interest is taxable according to the applicable provisions even where the bank has not deducted TDS.

Check all active and closed bank accounts instead of relying only on AIS.

Step 17: Report Exempt Income

Certain exempt income may still require disclosure.

Examples may include:

• Eligible agricultural income
• Specified exempt interest
• Exempt allowances
• Share of profit from partnership firm
• Other exempt receipts

Disclosure of exempt income helps explain transactions that may otherwise appear in AIS or bank statements without corresponding taxable income.

Step 18: Report Foreign Assets and Foreign Income

Resident taxpayers may have additional reporting requirements for:

• Foreign bank accounts
• Foreign shares
• Foreign brokerage accounts
• Foreign retirement accounts
• Foreign property
• Signing authority outside India
• Foreign trusts
• Foreign income
• Beneficial ownership in overseas assets

Foreign asset reporting should not be ignored merely because:

• The asset produced no income
• The account has a small balance
• Tax was paid outside India
• The investment was made while the taxpayer was an NRI
• The employer opened the account
• The information does not appear in AIS

ITR-1 cannot be used by a person having specified foreign assets, foreign income or overseas signing authority. ([Income Tax Department][3])

Step 19: Select the Tax Regime

Taxpayers should compare the old and new tax regimes according to their actual income and deductions.

Factors may include:

• Salary
• House rent allowance
• Home loan interest
• Section 80C investments
• Health insurance
• NPS
• Donations
• Business income
• Capital gains
• Other deductions
• Applicable surcharge and cess

Taxpayers Without Business Income

Individuals filing ITR-1 or ITR-2 can generally exercise the applicable regime option directly in the return according to the current form requirements.

Taxpayers Having Business Income

Individuals and HUFs having business income who wish to opt out of the default new regime may need to file Form 10-IEA within the prescribed timeline. The AY 2026-27 ITR guidance specifically distinguishes business-income taxpayers from taxpayers filing ITR-1 or ITR-2. ([Income Tax Department][3])

Do not select the regime based only on whether your employer deducted tax under that regime. The final eligible option should be reviewed at the time of filing.

Step 20: Claim Eligible Deductions

Depending on the applicable regime and conditions, deductions may relate to:

• Section 80C investments
• Health insurance
• NPS contribution
• Education loan interest
• Donations
• Savings account interest
• Interest for senior citizens
• Disability-related deductions
• Specified medical treatment
• Other eligible payments

Before claiming a deduction:

• Confirm that the deduction is available under the selected tax regime
• Check the payment date
• Verify the eligible amount
• Confirm the mode of payment
• Retain supporting proof
• Enter correct recipient information where required
• Avoid duplicate claims

A deduction is not automatically allowable merely because it appears in Form 16.

Step 21: Reconcile TDS and Tax Credits

Compare:

• Form 16
• Form 16A
• Form 26AS
• AIS
• TDS claimed in the return
• Advance tax challans
• Self-assessment tax challans

For every TDS credit, check:

• Deductor name
• Deductor TAN
• Income amount
• TDS amount
• Assessment Year
• Status of credit

Do not claim tax credit that does not belong to you or is not reflected against your PAN without first investigating the mismatch.

Where genuine TDS is missing, contact the deductor for correction.

Step 22: Calculate the Final Tax Liability

After entering all income, deductions and tax credits, calculate:

• Gross total income
• Eligible deductions
• Total taxable income
• Normal-rate tax
• Special-rate tax
• Rebate, where eligible
• Surcharge, where applicable
• Health and education cess
• Interest
• Late filing fee
• Advance tax
• TDS and TCS
• Self-assessment tax
• Refund or balance payable

Special-rate income such as capital gains, lottery income and virtual digital asset income may require separate computation.

Step 23: Pay Self-Assessment Tax

Where tax remains payable, pay it before submitting the return.

While making payment, select the correct:

• PAN
• Assessment Year
• Tax type
• Major head
• Minor head
• Amount

For taxes relating to FY 2025-26, the Income Tax Department instructs taxpayers to select AY 2026-27. Taxpayers should distinguish this from tax payments relating to Tax Year 2026-27 under the new Act. ([Income Tax Department][8])

After payment:

• Save the challan
• Verify CIN details
• Allow time for portal reflection, where required
• Enter the challan manually if not prefilled
• Recalculate tax payable

Do not submit the return showing unpaid tax unless the specific filing situation legally permits it.

Step 24: Preview the Return

Before submission, review the complete return.

Check:

• Assessment Year
• ITR form
• Filing section
• Residential status
• Income under every head
• Capital gains
• Business income
• Deductions
• Foreign assets
• Exempt income
• TDS and tax payments
• Bank account for refund
• Refund or tax payable
• Verification details

Download or save the preview for your records.

Step 25: Validate the Return

The portal or utility may identify:

• Errors
• Missing mandatory fields
• Inconsistent schedules
• Tax mismatch
• Incomplete bank information
• Incorrect income mapping
• Missing capital gain data
• Invalid challan information

Resolve all errors before submission.

The official online filing process requires previewing the return, proceeding to validation, correcting the displayed errors and then proceeding to verification. ([Etds][7])

Step 26: Submit the ITR

After completing the review and validation, submit the return.

An acknowledgement number is generated after successful submission.

Save:

• ITR acknowledgement
• Complete filed return
• Tax computation
• Tax challans
• Working papers
• Supporting documents
• Capital gain statement
• Deduction records

Step 27: E-Verify the Return

E-verification completes the filing process.

Available methods may include:

• Aadhaar OTP
• Net banking
• EVC through a pre-validated bank account
• EVC through a demat account
• Digital Signature Certificate
• Existing EVC
• Physical ITR-V sent to CPC Bengaluru

The Income Tax Department’s filing guidance recognises Aadhaar OTP, DSC, net banking, bank account, demat account and ITR-V as verification methods. ([Income Tax Department][9])

Time Limit for E-Verification

The return should ordinarily be verified within 30 days of filing under the current verification timeline.

Where verification is not completed within the applicable period, the return may be treated as invalid. A condonation request may be required, and its acceptance is not automatic. ([Etds][1])

Aadhaar OTP Verification

For Aadhaar OTP verification:

• Aadhaar should be linked with PAN
• Mobile number should be registered with Aadhaar
• OTP is entered on the portal
• Successful verification generates a transaction ID

Verification through ITR-V

Where physical verification is selected:

• Download ITR-V
• Print it
• Sign it in the prescribed manner
• Send it to CPC Bengaluru
• Use the permitted postal mode
• Dispatch it within the applicable verification period

E-verification is generally faster and easier to track.

Step 28: Check ITR Processing Status

After filing and verification, monitor the return status.

Possible statuses may include:

• Successfully e-verified
• Under processing
• Processed
• Refund issued
• Demand determined
• Defective return
• Transferred to Assessing Officer
• Pending for verification

Check:

• Registered email
• Income Tax Portal
• SMS communication
• Pending action section
• e-Proceedings
• Outstanding demand
• Refund status

Do not assume that filing is complete merely because the acknowledgement has been generated.

ITR Due Dates for AY 2026-27

Due dates depend on the taxpayer category, applicable ITR form, audit requirement and other statutory conditions.

As of July 2026, official portal communications indicate:

• 31 July 2026 for many non-audit individual returns
• 31 August 2026 for eligible ITR-4 returns according to the current ITR-4 FAQ
• 30 September 2026 for tax audit reports where the corresponding ITR is due on 31 October
• 31 October 2026 for specified audit-case ITRs
• 31 October 2026 for specified transfer pricing reports
• 30 November 2026 for corresponding transfer pricing ITRs

Because official due dates can differ by return category and may be extended, taxpayers should check the form-specific due date applicable to their case before filing. ([Income Tax Department][6])

What Is a Belated Return?

A return filed after the original due date is called a belated return.

For AY 2026-27, the official Income Tax Department guidance states that a belated return may generally be filed up to 31 December 2026, unless the assessment is completed earlier. Late filing fees and interest may apply. ([Income Tax Department][2])

Possible consequences of late filing include:

• Fee under Section 234F
• Interest on unpaid tax
• Delay in refund
• Loss of certain deductions
• Inability to carry forward certain losses
• Reduced time for correction
• Additional compliance risk

Business loss and capital loss generally require timely filing for carry-forward, subject to the applicable provisions.

What Is a Revised Return?

A revised return is filed to correct an error or omission in an earlier return.

It may be required where:

• Income was missed
• Wrong ITR form was used
• Deduction was incorrectly claimed
• Bank account was incorrect
• Capital gain was wrongly calculated
• TDS credit was omitted
• Foreign asset information was missed
• Business income was incorrectly reported
• Tax regime was incorrectly selected
• Personal information was wrong

A revised return replaces the earlier return for the relevant purposes. The applicable statutory timeline should be checked before filing. ([Etds][1])

What Is an Updated Return or ITR-U?

An updated return allows eligible taxpayers to report additional income after the ordinary belated or revised return timelines have expired.

Under the current framework, an updated return may be filed within the prescribed period of up to 48 months from the end of the relevant assessment year, subject to conditions and additional tax.

An updated return generally cannot be used to:

• Declare a loss
• Reduce tax liability
• Increase a refund
• Claim a new refund
• File a second updated return for the same year
• Circumvent specified assessment, search or prosecution restrictions

Additional tax increases depending on how late the updated return is filed. ([Etds][1])

ITR-U should be evaluated carefully because it is not a general replacement for a revised return.

Common Mistakes While Filing ITR

1. Selecting the Wrong Assessment Year

For FY 2025-26, select AY 2026-27.

2. Choosing the Wrong ITR Form

A director, capital-gain taxpayer or business owner may not be eligible for ITR-1.

3. Reporting Only Form 16 Income

Interest, rent, dividend, capital gains and other income must also be considered.

4. Ignoring AIS

AIS should be reviewed and reconciled before filing.

5. Treating AIS Sale Value as Capital Gain

Capital gain is calculated after considering cost and other eligible adjustments.

6. Missing Savings or Fixed Deposit Interest

Interest may be taxable even when no TDS was deducted.

7. Not Reporting Income from a Previous Employer

Salary from all employers must be included.

8. Claiming an Ineligible Deduction

Check payment, supporting proof, statutory limit and selected tax regime.

9. Claiming Incorrect TDS

TDS should match the income and tax records attributable to the taxpayer.

10. Ignoring Foreign Assets

Foreign asset reporting may apply even where no foreign income was earned.

11. Reporting F&O as Capital Gains

Futures and options are generally examined under business-income provisions rather than being reported automatically as capital gains.

12. Not Reconciling GST Turnover

Business turnover in books, GST returns and ITR should be reconciled.

13. Entering the Wrong Bank Account

The refund account should be active and pre-validated.

14. Paying Tax under the Wrong Assessment Year

An incorrect challan may not automatically appear as credit in the correct return.

15. Forgetting to E-Verify

An uploaded but unverified ITR may be treated as invalid.

16. Filing at the Last Moment

Last-minute filing increases the risk of:

• Portal issues
• Missing documents
• Wrong tax payment
• Unreconciled AIS
• Incorrect capital gains
• Missed verification
• Delayed correction by deductors

How to File ITR for Salaried Employees

A salaried taxpayer should review:

• Form 16
• Salary slips
• Income from all employers
• Bank interest
• Dividend
• House property
• Capital gains
• Deductions
• AIS
• Form 26AS
• Tax regime
• Refund bank account

A salary return is not always simple.

Professional review may be useful where the taxpayer has:

• Multiple employers
• ESOPs
• RSUs
• Foreign assets
• Capital gains
• Rental income
• Multiple properties
• Salary arrears
• High-value investments
• Tax demand or notice

How to File ITR for Freelancers and Professionals

Freelancers and professionals should consider:

• Gross receipts
• TDS
• Business expenses
• GST turnover
• Foreign remittances
• Bank receipts
• Fixed assets
• Depreciation
• Presumptive taxation
• Books-of-account requirements
• Tax audit applicability
• Advance tax
• Form 10-IEA, where relevant

Do not report only the amount credited after TDS. Gross professional income and related TDS should ordinarily be reconciled.

How to File ITR for F&O Traders

F&O taxpayers may need to prepare:

• Broker-wise profit and loss
• Turnover working
• Expense details
• Charges and brokerage
• Bank reconciliation
• Multiple broker consolidation
• Balance sheet
• Business income computation
• Tax audit applicability review
• Set-off and carry-forward of losses

A large contract value is not by itself the taxable income. Turnover and profit should be calculated using the appropriate methodology.

How to File ITR after Selling Property

Property sellers should collect:

• Purchase deed
• Sale deed
• Purchase date
• Sale date
• Stamp duty value
• Brokerage
• Registration expenses
• Improvement expenses
• Home loan details
• Co-owner percentage
• TDS details
• Exemption investment documents
• Valuation information

Capital gain should not be calculated only from the amount credited to the bank.

How to File ITR for NRIs

NRI returns may require review of:

• Residential status
• Indian salary
• Indian rent
• Bank interest
• NRO and NRE accounts
• Property sale
• Capital gains
• TDS
• Double taxation agreement
• Foreign tax credit
• Return form eligibility
• Repatriation documents

NRIs are not eligible to use ITR-1 or ITR-4 merely because their income is below ₹50 lakh. ([Income Tax Department][3])

Frequently Asked Questions

How can I file my ITR online?

Log in to the Income Tax e-Filing Portal, select e-File → Income Tax Returns → File Income Tax Return, choose the Assessment Year and applicable ITR form, enter the required information, validate the return, submit it and complete e-verification. ([Etds][7])

Which Assessment Year should I select for FY 2025-26?

Select Assessment Year 2026-27.

Which ITR form should a salaried person use?

An eligible resident salaried individual may use ITR-1. A salaried taxpayer with capital gains, foreign assets or other disqualifying conditions may need ITR-2 or another applicable form.

Can ITR-1 be used for capital gains?

For AY 2026-27, ITR-1 allows eligible long-term capital gain under Section 112A up to ₹1.25 lakh, subject to all other eligibility conditions. It cannot be used for short-term capital gains. ([Income Tax Department][3])

Can ITR-1 include two house properties?

Yes. For AY 2026-27, eligible taxpayers can report income from up to two house properties in ITR-1. ([Income Tax Department][3])

Which ITR form is used for business income?

Individuals and HUFs with business or professional income generally use ITR-3 or eligible ITR-4.

Which ITR form is used for F&O income?

F&O income is generally reported as business income through ITR-3, subject to the facts and applicable provisions.

Is Form 16 sufficient for filing ITR?

No. You should also review AIS, Form 26AS, bank interest, capital gains, rent, dividends and other income.

Do I need to attach documents with my ITR?

ITR forms are generally annexure-less. Documents are not ordinarily attached, but they should be retained for future verification or assessment. ([Income Tax Department][3])

What happens if AIS is incorrect?

Reconcile the information with your records and use the available feedback mechanism where appropriate. Report the correct taxable information in the return based on supporting documents.

Can I claim TDS that is not showing in Form 26AS?

First verify whether the TDS belongs to you and ask the deductor to correct the TDS return. Unsupported tax credit can result in a demand.

Is ITR filing complete without e-verification?

No. Verification is required to complete the filing process.

How much time is available for e-verification?

Under the current timeline, the return should ordinarily be verified within 30 days of filing. ([Etds][1])

Can I revise my ITR after filing?

Yes, an eligible return may be revised within the applicable statutory timeline where an error or omission is discovered.

What is the last date for filing a belated return for AY 2026-27?

The official guidance states 31 December 2026, unless the assessment is completed earlier. ([Income Tax Department][2])

Can I claim a refund through ITR?

Yes. Excess eligible TDS, advance tax or self-assessment tax may result in a refund after the return is filed, verified and processed.

How long does an income tax refund take?

The processing period varies according to verification, return processing, bank validation, refund checks, mismatches and departmental review. A fixed refund date cannot be guaranteed.

Can I file ITR without a CA?

Eligible taxpayers may file their own returns through the Income Tax Portal. Professional assistance may be useful for business income, capital gains, foreign assets, notices, multiple properties, F&O, NRI taxation or complex deductions.

What happens if I file the wrong ITR form?

The return may become defective or require revision. Review the error and file the correct return within the available statutory timeline.

Can I file ITR after the due date?

A belated return may be filed within the permitted period, but late fee, interest and restrictions on losses or deductions may apply.

Is a bank account required for filing ITR?

Bank account information is required in the return, and an active pre-validated account should be selected for receiving a refund.

Need Help with ITR Filing in Gurgaon?

CA Hemant Garg provides professional income tax return filing and tax consultation services for:

• Salaried employees
• Pensioners
• Proprietors
• Freelancers
• Professionals
• Company directors
• Partners
• Stock market investors
• F&O traders
• Property sellers
• NRIs
• Partnership firms
• LLPs
• Private Limited Companies

Our ITR filing services may include:

• Correct ITR form selection
• Form 16 review
• AIS and Form 26AS reconciliation
• Bank interest reconciliation
• Capital gain calculation
• F&O and business income computation
• House property income
• Old and new regime comparison
• Deduction review
• Foreign income and asset reporting
• Tax calculation
• Self-assessment tax assistance
• Return filing
• E-verification support
• Revised and belated return assistance
• Post-filing demand and refund review

CA Hemant Garg HGMR & Associates, Chartered Accountants 3rd Floor, Innov8, Orchid Centre, near Sector 54 Chowk Metro Station, Sector 53, Gurugram, Haryana 122011 Call or WhatsApp: +91 83688 37889 Email: cahemantgarg@gmail.com

You focus on your business, we will manage your compliance.

*ITR forms, tax regimes, due dates and filing requirements are subject to the applicable income tax law, notifications, portal updates and the taxpayer’s individual facts.*

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