Income Tax Return: How to file ITR as salaried individual — A step-by-step guide

Income Tax Return: Filing income tax returns (ITR) is a crucial financial task every year. It is not just a legal obligation but also an important part of handling your finances. For salaried individuals, ITR filing offers a chance to accurately report income, claim deductions they qualify for, and get refunds for any overpaid taxes.

The Income Tax Department has tried to streamline and simplify the process with the online utility, which was often considered daunting. Please note that before filing income tax returns, cross-check all the reported income in Form 26AS and Annual Information Statement (AIS) to avoid errors. These documents are available on the income tax portal under the ‘e-file’ tab.

Here’s the step-by-step guide to file ITR —

Step 1: Log in to the portal

Log in to the Income Tax portal with your PAN details. You will be directed to the ‘secure access message’ displaying the security sentence you used during registration. Confirm the sentence, enter the password to your account and click ‘Continue.’

Step 2: Assessment year and mode of filing

Choose the applicable assessment year and mode of filing returns. To file an ITR for FY 2024-25, choose ‘AY 2025-26’ as the assessment year, click on Online, and then “Continue”.

Step 3: Fresh filing

You will be directed to the‘File Income Tax Return’ page. Click on ‘Start New Filing’ for a fresh filing of ITR.

Step 4: Filing status

Choose the relevant filing status, such as Individual, HUF, or others and select “Continue”.

Step 4: Choose the applicable ITR Form

Before filing your income tax return, it’s important to choose the correct ITR form based on your income sources. For salaried individuals earning up to ₹50 lakh, ITR 1 will be applicable.

Step 5: Select the reason for filing ITR

You will now need to specify the reason for filing your returns. Choose the appropriate option relevant to your situation, which includes ‘Taxable income is more than the basic exemption limit’, ‘Conditions specified under 7th provision’, and ‘Others’. After selecting the reason for filing returns, click ‘Continue.’

Step 6: Enter personal details, confirm, and submit

The portal will now guide you to verify your pre-filled return. The first option listed is personal information. Some personal information, such as PAN, Aadhaar, name, contact details, and bank information, is pre-filled in your ITR. Review and verify this information carefully.

You will also be required to enter the ‘Nature of Employment’ and ‘Filing Section.’ On this page, you will get an option to opt out of the new tax regime. Select the relevant tax regime.

Following this, provide your bank account details, such as your bank account number, IFSC code, and other information, to validate your bank account. In order to validate the bank account, you will receive an OTP to your registered phone number. Please note that it may take some time to validate your bank account.

Once you’ve entered all your personal details, detail all income sources, exemptions, and deductions. Review the pre-filled information from your employer, bank, and others. Now, verify the return summary.

Finally, check and pay the remaining tax or check the refund amount and submit.

Step 7: E-Verify ITR

After filing the returns, it is essential to verify your ITR within 30 days. If your return is not verified, it will be considered as not filed. E-verification of ITR can be done through Aadhaar OTP, Electronic Verification Code (EVC), Net Banking, or by mailing a signed physical copy of the ITR-V.

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Taxpayers are advised to consult a qualified tax professional or refer to the official website of the Income Tax Department for accurate and up-to-date guidance before filing their returns.