How to File Your ITR — A Beginner’s Guide
Filing your income tax return is simpler than it looks once you know the steps. Here’s a plain-English walkthrough.
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Filing your ITR (Income Tax Return) is a yearly declaration of your income and taxes to the government. It sounds daunting but is straightforward once you understand the flow. This is general education, not tax advice.
Why file (even if tax is deducted)
- It’s mandatory above the basic exemption limit, and often needed even below it (for refunds, visas, loans).
- Claim refunds of excess TDS.
- Carry forward losses — capital/F&O losses can only be carried forward if you file on time.
- Proof of income for loans and visas.
The basic steps
- Gather documents — Form 16, AIS/Form 26AS, bank/interest statements, capital-gains statements from your broker, proofs for deductions.
- Pick the right ITR form — e.g. ITR-1 for simple salary income; ITR-2 if you have capital gains; ITR-3 for business/F&O income.
- Choose your regime — compare the old vs new tax regime and pick what’s lower for you.
- Fill and reconcile — enter income, claim deductions, and ensure it matches your AIS.
- Verify — e-verify (Aadhaar OTP/net-banking) to complete filing; an unverified return is invalid.
Common beginner mistakes
- Missing interest/dividend income shown in AIS.
- Forgetting to report (and carry forward) capital/F&O losses.
- Not e-verifying within the deadline.
- Choosing the wrong form or regime.
File before the due date to avoid penalties and keep loss-carryforward rights. For capital gains or business income, a tax professional is worth it. See how to save income tax. Education only, not tax advice.
