An Income Tax Return is the formal declaration you file with the Income Tax Department after each financial year, reporting your total income from all sources, the deductions and exemptions you are claiming, and the tax you have already paid through TDS, advance tax or self-assessment tax. The Department uses it to assess whether you owe more tax or are due a refund.
Who must file an ITR
Filing is mandatory if any of these apply: - Your gross total income before deductions exceeds the basic exemption limit (Rs 3,00,000 under the new regime for most individuals). - You want to claim a tax refund. - You have assets or financial interests outside India. - You have deposited more than Rs 1 crore in a current account, spent more than Rs 2 lakh on foreign travel, or paid more than Rs 1 lakh in electricity bills during the year. - Your TDS/TCS credit exceeds Rs 25,000 in a year.
Even if not mandatory, filing a nil return creates a clean record and is often needed for visa applications, loan approvals and address proof.
ITR forms
| Form | Who files it |
|---|---|
| ITR-1 (Sahaj) | Salaried individuals with income up to Rs 50 lakh from salary, one house property and other sources |
| ITR-2 | Individuals with capital gains, multiple house properties, foreign income or assets |
| ITR-3 | Individuals with business or professional income |
| ITR-4 (Sugam) | Individuals opting for presumptive taxation under Sections 44AD/44ADA |
Most salaried employees with straightforward finances file ITR-1 or ITR-2.
Key documents you need
- Form 16 from your employer.
- Form 26AS and Annual Information Statement (AIS) from the Income Tax portal.
- Bank interest certificates and TDS certificates (Form 16A).
- Proof of investments for Section 80C, 80D and other deductions.
- Capital gains statements from brokers and mutual fund houses.
Due date
For individuals not subject to audit, the due date is usually 31 July of the assessment year. For FY 2024-25, the return is due by 31 July 2025 unless extended by notification. Filing after the due date attracts a late fee under Section 234F of up to Rs 5,000 and interest under Section 234A.
The filing process
- Log in to the Income Tax e-filing portal.
- Select the correct ITR form and assessment year.
- Pre-filled data from Form 26AS, AIS and TIS will auto-populate many fields. Verify each item.
- Add income, deductions and tax payments not captured in the pre-fill.
- Compute and pay any remaining tax via self-assessment challan.
- Submit and e-verify using Aadhaar OTP, net banking or a signed ITR-V.
Common mistakes
- Not reconciling Form 26AS. If your return shows different TDS figures than what is on the portal, you will get a demand notice.
- Forgetting to report all bank interest. The AIS lists every interest credit across all your accounts, and the Department sees it.
- Not disclosing capital gains from equity or mutual fund redemptions. Brokers report these separately and the Department cross-matches.
Use our Income Tax calculator to estimate your liability before filing.