How To File ITR Online For FY 2025-26 (AY 2026-27): Step-by-Step Guide
Taxpayers in India now find e-filing income tax returns online a convenient process. This method involves submitting your Income Tax Return (ITR) electronically over the Internet using the income tax department's e-filing website, overtaking traditional paper filing.
However, before we proceed and look at how one can file an income tax return online, let us understand what ITR is.
What Is New In Income Tax Filing For FY 2025-26
Here are some changes you should know before e-filing income tax returns online. Careful attention will help avoid unnecessary delays and costs.
Filing Timeline and Penalties
The official deadline for filing ITR online is 31 July 2026 for individual and HUF taxpayers not subject to tax audit (ITR-1 & ITR-2). For non-audit cases filing ITR-3 & ITR-4 (business/profession), the due date is 31 August 2026. Should the government announce an extension, the revised deadline will supersede these dates.
E-filing income tax after the prescribed period is still accepted until 31 December 2026 as a belated return, but it attracts an additional late fee under Section 234F. Individuals with annual income above INR 5 lakh are liable to pay INR 5,000, while those earning up to INR 5 lakh face a reduced penalty of INR 1,000
Key Updates in ITR Forms
The following table summarises the changes in the ITR forms required in the online tax filing.
| Change | Details |
| ITR-1 and ITR-4 eligibility | Permitted for those with long-term capital gains up to ?1,25,000 from listed shares and equity funds, if no losses are carried forward |
| Aadhaar usage | Only an actual Aadhaar number is valid; enrolment ID is no longer accepted |
| Small business owners | ITR-4 seeks confirmation of earlier filing of Form 10-IEA and whether opting out of the new tax regime continues |
| TDS details | TDS section under which deduction was made must be reported |
| Capital gains reporting | Sale transactions before and after 23 July 2024 require separate declaration (applicable from AY 2025-26 onwards, continues in AY 2026-27) |
| Buy-back income | Proceeds from buy-back of listed shares (from October 2024) must be reported as deemed dividends |
| Disability deductions | Disability Certificate acknowledgement number required for Sections 80DD and 80U |
| Asset reporting | Threshold revised; disclosure in Schedule AL only if income exceeds ?1 crore |
| HRA disclosure | Must provide city of work, HRA received, rent paid, and basic pay |
| Home loan disclosure | Lender name, sanction date, loan account number, year-end balance, and annual interest need reporting |
| Deductions under Sections 80C, 80D, 80DDB, 80E, 80EEB | Specific document numbers, lender details, policy numbers, or receipt numbers are mandatory |
Revised Tax Slabs
The government continues with two regimes. The new regime is the default, while the old regime must be opted for specifically. The following are the applicable slabs and deduction changes for e-filing your income tax return for FY 2025-26.
New Regime for FY 2025-26
| Taxable Earnings (INR ) | Rate (%) |
| Up to 4,00,000 | Exempt |
| 4,00,001 to 8,00,000 | 5 |
| 8,00,001 to 12,00,000 | 10 |
| 12,00,001 to 16,00,000 | 15 |
| 16,00,001 to 20,00,000 | 20 |
| 20,00,001 to 24,00,000 | 25 |
A flat standard deduction of INR 75,000 is available to salaried taxpayers under the new regime. Significantly, the Section 87A rebate limit has been raised to INR 12 lakh, meaning individuals with net taxable income up to INR 12,00,000 have zero tax liability under the new regime. For salaried individuals, this effectively extends to INR 12,75,000 after the standard deduction.
Old Regime for FY 2025-26
Category | Range (INR) | Rate |
Below 60 years and HUF | Up to 2,50,000 | Exempt |
2,50,001 to 5,00,000 | 5% | |
5,00,001 to 10,00,000 | 20% | |
Above 10,00,000 | 30% |
Category | Range (INR) | Rate |
Senior citizens 60 to 80 | Up to 3,00,000 | Exempt |
3,00,001 to 5,00,000 | 5% | |
5,00,001 to 10,00,000 | 20% | |
Above 10,00,000 | 30% |
Category | Range (INR) | Rate |
Super senior citizens above 80 | Up to 5,00,000 | Exempt |
5,00,001 to 10,00,000 | 20% | |
Above 10,00,000 | 30% |
The tax slabs mentioned above are applicable for FY 2025-26, i.e., income earned from April 1, 2025 – March 31, 2026. Returns for this period are to be filed by July 31, 2026 (AY 2026-27). The restructured new regime slab framework, featuring zero tax up to INR 12 lakh under Section 87A and a revised 7-slab structure starting from INR 4 lakh is already in effect from FY 2025-26 itself.
Also Read: How To Save Tax For Salary Above INR 20 Lakhs
What Is ITR?
Income Tax Return (ITR) is a form that individuals or businesses submit to the Income Tax Department of India, declaring their income and tax applicable on the same.
The main types of ITR forms available for filing ITR online are:
ITR Form | Eligibility | Restrictions | Typical filer |
ITR-1 Sahaj | Domestic taxpayer with total earnings up to INR 50 lakh from salary or pension, one residential unit, interest or dividend, small farm income up to INR 5,000, and limited capital gains under section 112A not above INR 1,25,000 | Excludes directors, holders of unlisted equity, RNOR or non-resident, foreign assets or overseas receipts, ESOP deferral, section 194N cases, multiple homes, deferred or carried losses, or annual proceeds above INR 50 lakh | Salaried individual with one home and savings account interest.
|
ITR-2 | Individuals and HUFs with no commercial activity, but with salary, more than one property, any scale of capital gains, overseas holdings, agricultural earnings above INR 5,000, or directorships | Restricted for those engaged in business or professional practice | NRI investor with rent, dividends, and capital gains |
ITR-3 | Individuals or HUFs deriving profits from a trade, consultancy, or proprietary practice, partners’ share in firms, derivative trading, unlisted shares, along with salary and real estate income | Not applicable to companies, trusts, or associations | Sole proprietor, consultant, partner in a small firm |
ITR-4 Sugam | Domestic individual, HUF, or non-LLP firm under presumptive taxation rules (sections 44AD, 44ADA, 44AE) with receipts not above INR 50 lakh, including salary, one dwelling, and section 112A gains capped at INR 1,25,000 | Barred for directors, RNOR or non-resident, foreign income or assets, ESOP deferral, section 194N, multiple dwellings, deferred losses, or turnover exceeding presumptive ceiling | Freelancer or trader declaring under presumptive method |
ITR-5 | Partnership firms, LLPs, associations, bodies of individuals, co-operatives, estates, business trusts, and other collective entities not covered under ITR-7 | Excludes individuals, HUFs, and companies | LLP offering services, co-operative body |
ITR-6 | Companies liable to tax that are not seeking exemption under section 11 | Restricted for entities claiming relief under section 11 | Domestic company reporting taxable profits |
Benefits Of Filing ITR
- Claim refunds: Any surplus collected through TDS is returned only when ITR is filed.
- Proof of income: A filed return is accepted globally for loan requests, visa clearances, and insurance assessments.
- Carry forward losses: Losses in capital assets may be balanced against future profits when the declaration is lodged within schedule.
- Avoid penalties: Meeting deadlines helps you escape late fees under Section 234F and interest levied on unsettled liabilities.
- Compliance record: Consistent filings create a clean history, reinforcing trust with institutions and tax authorities.
Documents To Keep Handy Before Filing ITR
The documents needed while filing a tax return will vary depending on the tax bracket. Here’s a list of the essential documents one must keep handy before filing ITR:
- Pan Card
- Form 26AS
- Form 16
- Salary Pay slips
- Bank statements
- Interest certificates
- TDS certificate
- Proof of tax saving investments
The income tax department provides an e-filing facility through its online portal. To e-file your returns, you need to register on this portal using your PAN. The e-filing ITR process requires your PAN card, basic details, income proof documents, and internet access.
E-filing offers taxpayers a quick, paperless way to file their ITR comfortably from home. This article will guide you through the e-filing process.
‘File Now, Pay Later’ Option
Last year (FY 2022-23), the Income Tax Department introduced a new 'File Now, Pay Later' facility. This allows taxpayers to complete the e-filing process without paying taxes at the time of submission. The tax payment can be made later after filing returns.
This makes filing quicker as you don't have to wait for tax payment processing to complete e-filing. The taxes due can be paid by the specified dates even after return filing.
Step By Step Guide On How to E-file ITR On Income Tax Portal
Here is how to file ITR online with these 8 easy steps:
Step 1: Login
Visit https://www.incometax.gov.in/iec/foportal/ and click on 'Login.' For user ID, enter your PAN number. Check the 'I Agree' box and enter the captcha code. Click 'Continue'. Enter your password and log in.
New users must register by entering details, PAN, and password creation.
Step 2: Go To ‘File Income Tax Return’
On the menu bar, click 'e-File.' From the drop-down, select 'Income Tax Return'.
Step 3: Select the right ‘Assessment Year’
Select 'Assessment Year' as '2026-27' for FY 2025-26. Choose the filing type 'Original Return' for first-time filing and 'Revised Return' for corrections.
Step 4: Select Status
Based on your taxpayer status, choose from ‘Individual,’ ‘Hindu Undivided Family,’ or ‘Company’. Salaried employees and freelancers must choose ‘Individual’ to file the return.
Step 5: Select ITR Type
Choose the applicable ITR form number based on your income sources and eligibility. There are 7 ITR forms- ITR 1 to ITR 7.
You can also read: Which ITR Should I File? Type Of ITR Forms For FY 2025-26 (AY 2026-27)
Step 6: Choose The Reason For Filing ITR
Select the reasons for filing ITR from options like 'Taxable income above exemption limit,' 'Mandatory filing,' 'Filing for refund,' etc.
Step 7: Add Bank Account Details And Other Information
On clicking ‘Continue’ on the previous step, the online ITR form will open. Most fields will be auto-filled with your PAN and Aadhaar-linked data. Fill in the remaining mandatory fields accurately and compute tax liabilities.
Step 8: e-Verify ITR
The final step is to e-verify your ITR within 30 days of filing using Aadhaar OTP, net banking, Electronic Verification Code (EVC), Digital Signature Certificate (DSC), or by sending a signed physical ITR-V to CPC Bengaluru.
Failure to verify within this window will render your return invalid and it will not be processed.
Deadlines And Fees
Deadlines shape the entire e-filing process. Missing them does not only cost money but can also block future benefits. Staying on top of the calendar makes compliance far easier.
- Filing due date: For FY 2025–26 (AY 2026–27), the official cut-off for return submission is 31 July 2026 for most individual taxpayers (non-audit cases). Taxpayers with business or professional income subject to tax audit have an extended deadline of 31 October 2026.
- Belated and revised return window: If the original window is missed, a belated or revised return may still be lodged up to 31 December 2026 under Section 139(4) and 139(5) respectively.
- Late fee under Section 234F: The law specifies a levy of INR 5,000 when income exceeds INR 5 lakh. If taxable income is at or below INR 5 lakh, the charge is capped at INR 1,000. Even taxpayers eligible for refunds are required to pay this fee when submission occurs after the deadline.
Timelines matter not only for avoiding financial penalties but also for ensuring uninterrupted carry forward of eligible losses and smooth processing of refunds. Filing within the prescribed schedule safeguards your compliance history and reduces the likelihood of scrutiny.
Common Mistakes / Pitfalls
Accuracy is critical while e-filing income tax. Overlooking details leads to rework, penalties, or forfeited refunds.
1. Not e-verifying within 30 days: Once done with filing ITR online, you must complete e-verification within 30 days through net banking, Aadhaar OTP, or electronic verification code. Skipping this step renders the submission void and forces you to repeat the entire exercise.
2. Choosing an incorrect form: Every form in online tax filing matches a distinct profile of assessee and source of receipts. Choosing wrongly attracts a defect notice and requires correction. Always check your income heads before choosing.
3. Overlooking pre-filled information in AIS or Form 26AS: The e-filing income tax portal reflects tax credits, bank interest, securities transactions, and high-value items. Ignoring these details causes mismatch and affects refund or tax demand.
4. Bank details not authorised: Refunds are released only to an account confirmed on the portal. If the credentials are not authenticated, the transfer will not be executed.
5. PAN and Aadhaar left unlinked: The e-filing income tax returns online portal demands a valid link between PAN and Aadhaar. Without it, the return may not be processed. Linking early avoids technical errors close to the deadline.
Conclusion
We have presented the end-to-end process of e-filing income tax returns online. Efiling ITR is a simple process. You should follow these steps diligently for error-free filing. Keeping all documents handy before you begin also makes the process faster.
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Frequently Asked Questions On How To File ITR
References:
1. Income Tax Department, accessed from: https://incometaxindia.gov.in/news/press-release-cbdt-further-extends-the-due-date-of-filing-of-itrs-which-were-due-for-filing-by-31-july-2025.pdf
2. Income Tax Department, accessed from: https://www.incometax.gov.in/iec/foportal/help/e-filing-itr1-form-sahaj-faq
3. Live Mint, accessed from: https://www.livemint.com/market/stock-market-news/bonus-shares-dividend-to-share-buyback-income-tax-return-rule-you-must-know-during-itr-filing-11757915879735.html
4. The Economic Times, accessed from: https://www.livemint.com/market/stock-market-news/bonus-shares-dividend-to-share-buyback-income-tax-return-rule-you-must-know-during-itr-filing-11757915879735.html
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Author: Grip Invest Editorial Team The Grip Invest Editorial Team is a group of Chartered Accountants, MBA (Finance) graduates, and Qualified Research Analysts dedicated to helping you invest smarter. We dive deep into India's fixed income landscape to deliver content that is accurate, up-to-date, and easy to understand. Whether you're exploring bonds, fixed deposits, or other fixed income opportunities, our guides cut through the noise and give you the clarity to make better financial decisions. |
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