Filing your Income Tax Return (ITR) is not just a legal requirement, but also an important financial responsibility. Whether you are salaried, self-employed, or a small business owner, filing ITR on time helps you stay compliant, claim refunds, and build a clean financial record.
In this guide, we explain how to file ITR in India step by step for Assessment Year (AY) 2026–27 in a simple and easy-to-understand way.
Note: AY 2026–27 means you are filing return for Financial Year (FY) 2025–26.
What is ITR and Why It Is Important?
ITR (Income Tax Return) is a form through which you declare your income, taxes paid, deductions, and savings to the Income Tax Department.
Benefits of filing ITR:
- It is legally mandatory if your income is above the exemption limit
- Helps in getting income tax refunds
- Required for bank loans, home loans, and visa applications
- Acts as official proof of income
- Helps avoid penalties and income tax notices
Who Should File ITR in India?
You should file ITR if:
- Your total income is above the basic exemption limit
- You want to claim income tax refund
- You have FD interest, savings interest, or capital gains
- You are a business owner or professional
- You want to carry forward losses
- You need ITR for loan or visa purposes
Documents Required for Filing ITR
Before starting, keep these documents ready:
- PAN Card
- Aadhaar Card
- Form 16 (for salaried persons)
- Bank statements
- Interest certificates (FD, savings account, etc.)
- Investment proofs (80C, 80D, etc.)
- Capital gains details (if any)
Step 1: Calculate Your Total Income
First, calculate your income from all sources:
- Salary or pension
- Business or profession
- House property
- Capital gains
- Other sources (interest, etc.)
Add all these to get your Gross Total Income.
Step 2: Calculate Deductions and Taxable Income
Claim deductions under sections like:
- Section 80C (LIC, PPF, ELSS, etc.)
- Section 80D (Health Insurance)
- Section 80G (Donations)
- Other applicable deductions
After subtracting deductions from your gross income, you get your Taxable Income.
Step 3: Choose the Correct ITR Form
Choosing the right ITR form is very important.
Some common ITR forms:
- ITR-1 (Sahaj): Salaried individuals with simple income
- ITR-2: For those having capital gains or more than one house property
- ITR-3: For business or profession income
- ITR-4: For presumptive taxation scheme
Warning: Choosing the wrong ITR form can make your return defective or rejected.
Step 4: Login to Income Tax Website
Go to the official website:
- Login using your PAN
- Click on “File Income Tax Return”
- Select Assessment Year 2026–27
- Choose Online mode
Step 5: Fill in ITR Details Carefully
Now:
- Confirm your personal details
- Enter income details from all sources
- Verify TDS details using Form 26AS / AIS
- Add deductions
- Check whether tax is payable or refund is due
Step 6: Review and Submit Your ITR
Before submitting:
- Carefully review all details
- Check bank account number and IFSC
- Make sure income and TDS figures are correct
Then click Submit.
Step 7: Verify Your ITR (Very Important)
Your ITR is NOT complete until it is verified.
You can verify using:
- Aadhaar OTP
- Net banking
- Bank account verification
- Or by sending signed ITR-V to CPC Bangalore
If you do not verify your ITR, it will be treated as invalid.
What Is the Last Date to File ITR for AY 2026–27?
Usually, for most individuals:
31st July 2026
If you file late, you may have to pay:
- Late filing fee
- Interest
- You may lose some benefits like carrying forward losses
Common Mistakes to Avoid While Filing ITR
- Choosing the wrong ITR form
- Not reporting interest income
- Not matching data with AIS / Form 26AS
- Not verifying ITR after submission
- Entering wrong bank details
Need Help in Filing Your ITR?
If you are confused or don’t want to take any risk, it is always better to take professional help.
IndiaServiceDesk provides simple, reliable, and compliant ITR filing services across India.
- Correct ITR form selection
- Error-free filing
- Personal guidance
- PAN India online support