Money Basics for Indians Part 8: How to File Your Income Tax Return

This is Part 8 of Money Basics for Indians, our 12-part series on the everyday money systems every Indian should understand. New here? Start with Part 1: Bank Accounts and Deposit Insurance, or read the previous part, Part 7: TDS, Advance Tax and AIS.

Filing an income tax return (ITR) is required if your income is above the basic exemption limit, and useful even when it is not: it is how you claim refunds, and banks and embassies often ask for ITR copies as income proof.

Deadlines for tax year 2026-27

For income earned between April 2026 and March 2027, the deadlines after Budget 2026 are:

• 31 July 2027: Most salaried people and pensioners (ITR-1 and ITR-2).
• 31 August 2027: Business and professional income without a tax audit (ITR-3 and ITR-4).
• 31 October 2027: Cases requiring a tax audit.

The government sometimes extends deadlines, so check the e-filing portal each year.

Choosing the right form

• ITR-1 (Sahaj): Residents with income up to ₹50 lakh from salary or pension, one house property, interest and small long-term capital gains on listed shares.
• ITR-2: Individuals with larger capital gains, more than one house property, foreign assets or income above ₹50 lakh, but no business income. See our capital gains tax guide.
• ITR-3: Individuals with business or professional income.
• ITR-4 (Sugam): Those using presumptive taxation for business or profession. See Part 9: Taxes for Freelancers.

Step by step

1. Collect Form 16 from your employer, interest certificates, and capital gains statements.
2. Download Form 26AS and your AIS from the e-filing portal and check them. See Part 7: TDS, Advance Tax and AIS.
3. Log in to the Income Tax e-filing portal with your PAN and choose the tax year.
4. Pick your form and tax regime. Most details are pre-filled; check every number against your documents.
5. Add any missing income and deductions, then review the tax calculation.
6. Pay any tax due online, then submit the return.
7. E-verify within 30 days, most easily with an Aadhaar OTP. An unverified return is treated as not filed.

Refunds

Refunds are paid directly into a pre-validated bank account linked to your PAN. Make sure your bank account is validated on the portal before filing.

Missed the deadline or made a mistake?

• You can still file a belated return, but a late fee of up to ₹5,000 applies (₹1,000 if income is up to ₹5 lakh), and you may lose some benefits.
• Errors can be corrected with a revised return. After Budget 2026, revisions are allowed until 31 March after the tax year ends, with a fee for revisions after 31 December.

Notices

If you get a notice, read it carefully on the portal, respond within the time given, and seek professional help for anything complex. Never respond to "tax notices" received through random links or WhatsApp. See Part 11: Financial Scams and Digital Arrest.

This article is for general information and education only. It is not financial, tax or legal advice. Rules, rates and limits change often, so check official sources such as the RBI, the Income Tax Department or India Post, or speak to a qualified adviser, before acting.

Next in the series: Part 9: Taxes for Freelancers.