Income Tax
How to File ITR Online in 2025: A Complete Guide for Salaried Employees
Every salaried person earning above ₹4 lakh (new regime, FY 2025-26) must file an ITR. Here is exactly how to do it step by step, which form to pick, and the most common mistakes to avoid.
Filing your Income Tax Return (ITR) online doesn't have to be stressful. With a bit of preparation and the right guidance, most salaried employees can get it done in under an hour. Here's a simple, plain-English walkthrough of the entire process.
Who must file ITR?
If your gross income exceeds ₹4 lakh under the new tax regime for FY 2025-26 (or ₹2.5 lakh under the old regime), you are legally required to file an ITR — even if no tax is owed. Additionally, if you have foreign assets, multiple sources of income, or want to carry forward a capital loss, filing is mandatory regardless of income.
Which ITR form should you use?
For most salaried employees with one employer, one house property, and no business income, ITR-1 (Sahaj) is the right form. If you have capital gains from stocks or mutual funds, you'll need ITR-2. Freelancers and consultants earning professional income should file ITR-3 or ITR-4 (Sugam).
Documents you'll need
Before you start, keep these ready: your Form 16 from your employer, AIS (Annual Information Statement) from the income tax portal, bank statements, investment proofs under Section 80C (LIC, PPF, ELSS), 80D (health insurance premiums), home loan interest certificate, and your PAN and Aadhaar.
Step-by-step filing process
Visit incometax.gov.in and log in with your PAN. Go to e-File → Income Tax Returns → File Income Tax Return. Select Assessment Year 2025-26 and choose Online mode. Select the appropriate ITR form. The portal pre-fills most of your data — verify it against your Form 16 and AIS carefully. Enter your deductions, compute tax, verify using Aadhaar OTP or Net Banking, and submit. You'll receive an acknowledgment (ITR-V) in your email within minutes.
Deadlines and penalties
The usual last date is July 31 for individuals. Filing after this attracts a late fee of ₹1,000 (if income ≤ ₹5 lakh) or ₹5,000. More importantly, late filing means you cannot carry forward losses from stocks or business, and you may face interest under Section 234A.
Pro tip: Always download and cross-check your AIS before filing. Many clients get notices simply because they forgot to report a fixed deposit interest or mutual fund redemption that already appears in the AIS.
If you have capital gains, NRI income, foreign assets, or received a tax notice — it's best to get professional help. The cost of getting it wrong is always higher than the professional fees.