Income Tax eFiling Guide – How to File ITR Online Free

Updated on June 18, 2026

Filing your income tax return has become much simpler since the launch of the new income tax portal at incometax.gov.in. For most salaried employees, the ITR-1 form is pre-filled with data from your employer, bank, and investments. The entire process can take as little as 15 minutes if your documents are in order.

Who Must File an Income Tax Return?

You must file an ITR if any of the following apply to you:

• Your total income exceeds Rs. 2.5 lakh per year (Rs. 3 lakh for senior citizens, Rs. 5 lakh for super senior citizens above 80).
• You have deposited more than Rs. 1 crore in a bank account during the year.
• You have spent more than Rs. 2 lakh on foreign travel.
• You have paid electricity bills exceeding Rs. 1 lakh in a year.
• You have a foreign asset or income, or signing authority in a foreign account.
• You want to claim a refund on TDS already deducted from your income.

Which ITR Form Should You Use?

Your Situation	Form to Use
Salaried employee with one house property and interest income	ITR-1 (Sahaj)
Income from salary plus capital gains (shares, mutual funds)	ITR-2
Business or freelance income (presumptive scheme)	ITR-4 (Sugam)
Partnership firm or LLP	ITR-5
Company	ITR-6

Most salaried government and private employees should use ITR-1.

Before You Start: Documents to Gather

• Form 16 from your employer (issued by July every year).
• Form 26AS: Your annual tax credit statement available on the income tax portal under “e-File > Income Tax Returns > View Form 26AS”.
• Annual Information Statement (AIS): Shows all financial transactions reported against your PAN. Available on the portal under “e-File > Income Tax Returns > View AIS”.
• Interest certificates from your savings accounts and FDs.
• Proof of deductions you want to claim: LIC premium receipts, PPF deposit, home loan interest certificate, medical insurance premium, HRA proof.

Step-by-Step: How to File ITR-1 Online

1. Go to incometax.gov.in and log in with your PAN as User ID and your password.
2. If you are a first-time user, register with your PAN, confirm your date of birth and mobile number, and set a password.
3. On the dashboard, click “e-File” in the top menu, then “Income Tax Returns”, then “File Income Tax Return”.
4. Select the Assessment Year (AY 2026-27 for income earned in FY 2025-26) and choose “Online” mode.
5. Select ITR-1 if you are a salaried individual.
6. The portal loads pre-filled data from your Form 16, AIS, and 26AS. Cross-check every field, especially your salary figure, TDS deducted, and bank interest income.
7. Enter any income not already pre-filled: rental income, other interest income, etc.
8. Fill in the deductions section (Schedule VI-A): 80C investments, 80D health insurance, 80TTA bank interest deduction, HRA, home loan interest under Section 24.
9. The portal calculates your tax liability or refund automatically.
10. If there is tax payable, pay it via the “Pay Now” option using net banking or UPI (this creates a Challan 280 receipt).
11. Review the full return summary on the preview page.
12. Click “Proceed to Verification”.

How to Verify Your ITR (Mandatory Step)

Filing without verification is like posting a letter without sealing the envelope. Your return is not complete until it is verified. The easiest methods are:

• Aadhaar OTP: An OTP is sent to your Aadhaar-linked mobile number. Enter it on screen. Instant.
• Net banking EVC: Log in to your bank’s portal, go to income tax EVC option, and generate a code. Enter it on the ITR portal.
• Demat EVC: Same process through your demat/trading account.
• Physical ITR-V: Print, sign, and post to CPC Bengaluru (takes longer, use only as a last resort).

Important Deadlines and Penalties

Category	Last Date (AY 2026-27)
Individuals (non-audit cases)	31 July 2026
Businesses requiring audit	31 October 2026
Belated return (with penalty)	31 December 2026

Filing after 31 July but before 31 December attracts a penalty of Rs. 5,000 (Rs. 1,000 if your total income is under Rs. 5 lakh). After 31 December, you cannot file a return for that year at all unless the tax department issues a special notice.

Frequently Asked Questions

My employer already deducted TDS. Do I still need to file?

Yes, if your income is above the basic exemption limit. TDS deduction by your employer does not replace filing the return. Filing allows you to claim any excess TDS as a refund and declare all other income sources correctly.

Can I file ITR without Form 16?

Yes. Use your salary slips to calculate your gross salary. Cross-reference with your Form 26AS to confirm TDS deducted. The pre-filled data on the portal also helps fill in the figures.

What is the difference between Form 26AS and AIS?

Form 26AS shows TDS deducted and advance tax paid against your PAN. AIS is broader: it includes bank interest, dividend, property purchase/sale, foreign remittances, mutual fund transactions, and other financial activity. Always check both before filing.

I made an error in my filed return. What should I do?

File a revised return. Under Section 139(5), you can revise your return any number of times before the end of the assessment year (31 March 2027 for AY 2026-27). The process is identical to original filing: go to e-File, select “Revised Return”, and update the incorrect information.

📩 If you notice any incorrect data in this guide or wish to share additional information, please write to us at info@indiansouls.in.