Filing your Income Tax Return (ITR) can feel like a daunting task, but at its core, it is simply a formal way of telling the government how much you earned and how much tax you paid.

Here is a simple, professional guide to understanding the ITR filing process.

What is ITR Filing?

An Income Tax Return (ITR) is a form used to declare your annual income to the Income Tax Department. Even if your income is below the taxable limit, filing an ITR is considered a sign of a responsible citizen and helps in building a clean financial record.

Why Should You File an ITR?

Beyond staying compliant with the law, filing an ITR offers several personal benefits:

  • Easy Loan Approval: Banks ask for the last 3 years of ITR for home or car loans.
  • Visa Processing: Most embassies require ITR receipts for travel visas.
  • Claiming Refunds: If more tax was deducted (TDS) than necessary, you can only get it back by filing an ITR.
  • Carry Forward Losses: It allows you to adjust future investment losses against your gains.

Step-by-Step Filing Process

1. Gather Your Documents

Before you log in, keep these ready:

  • PAN and Aadhaar Card.
  • Form 16: Provided by your employer (for salaried individuals).
  • Bank Statements: To track interest earned on savings accounts.
  • Investment Proofs: Details of LIC, PPF, ELSS, or Home Loan interest.

2. Choose the Right Form

The form you use depends on your source of income. The most common ones are:

  • ITR-1 (Sahaj): For individuals with salary income, one house property, and interest income (Total income up to ₹50 Lakhs).
  • ITR-2: For those with capital gains (stock market/property sales) or more than one house.
  • ITR-3/4: For professionals or business owners.

3. Calculation and Verification

The system will automatically calculate your tax liability based on the “New” or “Old” tax regime.

  • Old Regime: Allows deductions (like Section 80C).
  • New Regime: Offers lower tax rates but fewer deductions.

4. E-Verification (The Final Step)

Your ITR is not complete until it is verified. The easiest way is e-Verify using an OTP sent to your Aadhaar-linked mobile number.

Important Deadlines

For most individual taxpayers in India, the deadline to file the ITR for a financial year is usually July 31st. Filing after this date may attract a late fee or interest.

Pro Tip: Always cross-check your AIS (Annual Information Statement) and Form 26AS on the Income Tax portal. These documents show all the taxes already linked to your PAN, ensuring your filing is 100% accurate.

Choosing the right tax regime is the most important decision you’ll make when filing your ITR. In India, you have two options: the Old Tax Regime and the New Tax Regime.

As of the 2025-26 financial year, the New Regime is the default, but the Old Regime remains optional. Here is a clear comparison to help you decide.

The Old vs. New Tax Regime: At a Glance

FeatureOld Tax RegimeNew Tax Regime (Default)
Tax RatesHigher rates (up to 30% quickly)Lower, more gradual rates
DeductionsAllowed (80C, 80D, HRA, etc.)Mostly NOT allowed
Standard Deduction₹50,000₹75,000
Tax-Free LimitUp to ₹5 Lakh (after deductions)Up to ₹12.75 Lakh (with rebate)
PhilosophyRewards those who invest & saveHigher take-home salary & simplicity

1. The Old Tax Regime: “The Investor’s Choice”

This regime is best if you actively invest in tax-saving schemes. It allows you to reduce your “taxable income” by subtracting your investments and expenses.

  • Best For: People with home loans, high house rent (HRA), or those who maximize the ₹1.5 lakh limit in Section 80C (PPF, LIC, ELSS).
  • Key Benefit: If your total deductions (80C + 80D + HRA + Home Loan Interest) exceed ₹3.75 – ₹4 Lakhs, you likely save more here.
  • Complexity: High. You must keep all receipts and proofs for your investments and insurance.

2. The New Tax Regime: “The Simple Choice”

This regime was designed to be “hassle-free.” You pay tax at a lower rate, but you lose the ability to claim most deductions.

  • Best For: Individuals with fewer investments or those who don’t want the headache of managing investment proofs.
  • Key Benefit: In 2026, if your income is up to ₹12.75 Lakhs, your effective tax becomes zero (thanks to a ₹75k standard deduction and a generous tax rebate).
  • Complexity: Low. No need to track HRA, insurance, or school fees for tax purposes.

How to Decide? (The “Break-Even” Rule)

There isn’t a “one-size-fits-all” answer, but here is a simple rule of thumb:

  1. If your total deductions are LOW (< ₹1.5 Lakh): The New Regime is almost always better because of the lower tax rates.
  2. If your total deductions are HIGH (> ₹3.75 Lakh): The Old Regime usually results in a lower tax bill.
  3. If you are in between: You should use an online tax calculator to compare the exact numbers.

Which one should you pick?

  • Pick Old if you are disciplined with long-term savings (PPF, Insurance, Home Loan).
  • Pick New if you want more cash in hand every month and a paperless filing experience.

Bilkul, agar aap Old Tax Regime chunne ka soch rahe hain, toh aapko ye pata hona chahiye ki aap kin-kin cheezon par tax bacha sakte hain. Niche di gayi checklist aapko ye samajhne mein madad karegi ki kya aapka total deduction ₹3.75 – ₹4 Lakh ke upar ja raha hai ya nahi.

Old Tax Regime: Tax Bachane ki Checklist

1. Section 80C: Sabse Popular (Limit: ₹1.5 Lakh Tak)

Isme aap kai tarah ke investments par tax bacha sakte hain:

  • EPF/PPF: Salary se katne wala PF ya Public Provident Fund mein jama paisa.
  • ELSS: Tax-saving Mutual Funds.
  • Life Insurance: Apne ya pariwar ke liye bhara gaya premium (LIC, etc.).
  • School Fees: Bachon ki tuition fees.
  • Home Loan Principal: Ghar ke loan ki mool rashi (principal amount).

2. Health & Medical (Section 80D)

  • Self & Family: Khud ke aur pariwar ke health insurance premium par ₹25,000 tak ki chhoot.
  • Parents: Agar parents senior citizen hain, toh unke insurance ya medical kharch par alag se ₹50,000 tak ki chhoot.

3. House Rent Allowance (HRA)

  • Agar aap rent ke makan mein rehte hain aur aapko salary mein HRA milta hai, toh aap iska ek bada hissa tax-free karwa sakte hain. (Iska calculation rent aur city par depend karta hai).

4. Home Loan Interest (Section 24b)

  • Agar aapne ghar kharidne ke liye loan liya hai, toh saal bhar mein bhare gaye byaj (interest) par ₹2 Lakh tak ki badi chhoot milti hai.

5. National Pension Scheme (NPS – Section 80CCD(1B))

  • 80C ke ₹1.5 lakh ke alawa, NPS mein invest karke aap ₹50,000 ki extra chhoot le sakte hain.

6. Anya Zaruri Chhootein

  • Standard Deduction: Sabhi salaried logo ke liye flat ₹50,000.
  • Education Loan (Section 80E): Higher education ke liye liye gaye loan ke interest par koi limit nahi, pura interest tax-free ho sakta hai.
  • Savings Bank Interest (80TTA): Savings account ke ₹10,000 tak ke byaj par tax nahi lagta.

Faisla Kaise Karein?

Ek paper par in sabka total karein:

  1. 80C (Max ₹1.5L) +
  2. 80D (Avg ₹25k-50k) +
  3. NPS (Optional ₹50k) +
  4. HRA/Home Loan Interest +
  5. Standard Deduction (₹50k)

Nateeja:

  • Agar ye total ₹3.75 Lakh se zyada hai ⮕ Old Regime aapke liye behtar hai.
  • Agar ye total ₹3.75 Lakh se kam hai ⮕ New Regime mein aapko zyada fayda hoga.