Why You Must File — Even If Tax Is Already Deducted
Many salaried Indians assume that since their employer deducts TDS every month, they do not need to file an ITR. This is wrong in almost every case. Filing an ITR is mandatory if your gross income exceeds ₹2.5 lakh (₹3 lakh if you are a senior citizen). Even below that threshold, filing has benefits: it is required for visa applications, home loan processing, and any government tender. A missed deadline after July 31 costs you ₹5,000 in late fees under Section 234F.
What You Need Before You Start
Gather these before opening the income tax portal: your PAN card and Aadhaar number linked to your PAN, Form 16 issued by your employer (this is the single most important document for salaried employees), your bank account details including IFSC code for refund, and Form 26AS / Annual Information Statement (AIS) downloaded from the IT portal — this shows all TDS deducted on your behalf.
Step 1: Log In to the Income Tax Portal
Go to incometax.gov.in. Click “Login” in the top right corner. Enter your PAN as the User ID and your password. If you have never logged in before, click “Register” and follow the process using your PAN and Aadhaar for e-verification.
Step 2: Choose the Right ITR Form
For most salaried employees with income from salary, one house property (or rent), and interest income only — select ITR-1 (Sahaj). If you have capital gains from mutual funds or stocks, or income from more than one house property, use ITR-2. The portal will help you select if you are unsure.
Step 3: Pre-Fill and Verify Your Data
Click “File Income Tax Return” → Assessment Year 2026-27 → Online mode. The portal will pre-fill your name, PAN, and salary figures from your Form 16 and Form 26AS. Go through every section carefully. Check that your salary income matches Form 16. Verify bank interest income — banks report this to the tax department, so it shows in your AIS even if you forgot about it.
Step 4: Claim Your Deductions
This is where most people leave money on the table. Under the old tax regime: Section 80C (up to ₹1.5 lakh) — covers PPF, EPF, ELSS, life insurance premiums, and home loan principal repayment. Section 80D — health insurance premiums (up to ₹25,000 for self, ₹50,000 for senior citizen parents). Section 24(b) — home loan interest (up to ₹2 lakh). HRA exemption if you pay rent and your employer has included HRA in your salary structure. Under the new tax regime (default from 2024), most deductions are not available but the tax slabs are lower.
Step 5: Review Tax Payable and Pay if Needed
The portal will calculate your total tax liability and compare it to TDS already paid. If there is additional tax to pay, pay it through Challan 280 before filing. If TDS exceeds your tax liability, you will get a refund — typically within 15-30 days of filing.
Step 6: E-Verify Your Return
Filing without e-verification is like submitting an application without signing it. The easiest method is Aadhaar OTP — an OTP is sent to your Aadhaar-linked mobile number and you enter it on the portal. Your return is then fully submitted. You will receive an acknowledgement number — save it.
