Filing an income tax return can feel intimidating, especially for those who are new to the process or worried about missing deadlines. However, understanding the steps, forms, and calculations involved can make it much easier. This guide breaks down income tax filing in India, explains the income tax slabs, provides practical tips, and answers common questions — including what to do if the income tax return extended deadline applies.
What is income tax filing
Income tax filing refers to the annual submission of one’s income details to the Income Tax Department. This return summarises earnings, deductions, taxes paid, and any refund or balance payable. It is a legal obligation for individuals, businesses, and entities that cross certain income thresholds, ensuring the government collects revenue fairly.
The amount of tax payable depends on the applicable
income tax slab for the financial year. These slabs categorize taxpayers based on their income levels and prescribe different tax rates accordingly.
Even if the tax liability is zero, filing an income tax return can help carry forward losses, claim tax refunds, and serve as proof of income when applying for loans, visas, or government benefits.
Step 1: Check if you need to file
Not every citizen needs to file, but most salaried individuals, self-employed professionals, and businesses do. You should file if:
- your gross income exceeds the basic exemption limit defined by the income tax slabs
- you want to claim a refund on taxes deducted at source (TDS)
- you have foreign assets or income
- you need to carry forward capital or business losses
- you want to apply for certain loans or visas
The income tax slabs define how much tax is paid at different income levels. Under the new regime (introduced from FY 2020–21), tax rates are lower but without many exemptions, while under the old regime, taxpayers can claim exemptions and deductions.
Step 2: Gather necessary documents
- Before sitting down to file, collect all relevant paperwork, including:
- Form 16 from the employer (salary details)
- Form 26AS (tax credit statement)
- bank account and interest statements
- investment proofs (PPF, ELSS, NSC, etc.)
- home loan and insurance premium details
- capital gains statements (if applicable)
- Aadhaar, PAN, and bank account details
Having everything ready ensures you do not miss key deductions or make errors.
Step 3: Understand your income tax slab
For FY 2024–25, the income tax slabs under the new regime are:
- up to Rs. 3 lakh: no tax
- Rs. 3–6 lakh: 5%
- Rs. 6–9 lakh: 10%
- Rs. 9–12 lakh: 15%
- Rs. 12–15 lakh: 20%
- above Rs. 15 lakh: 30%
Under the old regime, the basic exemption is Rs. 2.5 lakh (Rs. 3 lakh for senior citizens), with 5%, 20%, and 30% rates above that, but taxpayers can claim deductions like Section 80C, 80D, HRA, and others.
Before filing, decide which regime works better for you, based on your eligible deductions.
Step 4: Choose the right ITR form
Depending on the income type, you will need to select one of the following:
- ITR-1 (Sahaj): salaried individuals with income up to Rs. 50 lakh
- ITR-2: individuals with capital gains or foreign income
- ITR-3: self-employed individuals
- ITR-4 (Sugam): presumptive income (small businesses, freelancers)
- ITR-5, 6, 7: partnerships, LLPs, companies, trusts
Selecting the correct form is crucial, or the return might be rejected.
Step 5: Fill in the details online
Go to the official Income Tax e-Filing portal. You can log in using your PAN (which acts as your user ID). The platform has user-friendly features, including:
- pre-filled forms with salary, TDS, and interest data
- automatic validation checks
- real-time tax calculations
Review each section carefully, update missing details, and ensure all income sources are reported, including freelance work, rent, and capital gains.
Step 6: Claim deductions and tax credits
This step is where preparation pays off. Under the old regime, you can reduce taxable income by claiming:
- Section 80C: up to Rs. 1.5 lakh (ELSS, PPF, life insurance)
- Section 80D: health insurance premiums
- Section 24(b): home loan interest (up to Rs. 2 lakh)
- Section 80G: donations to charity
- Section 80TTA: savings account interest (up to Rs. 10,000)
Also, ensure all advance tax, self-assessment tax, and TDS amounts reflect correctly in your Form 26AS.
Step 7: Review and submit your return
After filling everything, review the summary:
- check income details match Form 16 and bank statements
- ensure all deductions are claimed
- verify tax liability or refund amount
Once satisfied, submit the return electronically. You will receive an acknowledgment (ITR-V), which must be e-verified using Aadhaar OTP, net banking, or by sending a signed physical copy to CPC, Bengaluru.
Step 8: Track your refund or outstanding tax
If eligible for a refund, you can track its status on the e-Filing portal. Refunds are usually processed within four to six weeks but can take longer, especially if the
income tax return extended deadline applies or if the department has a large processing backlog.
If you owe taxes, pay them immediately through online banking or the tax payment portal to avoid penalties.
What happens if the income tax return extended deadline applies
Sometimes, the government extends the ITR filing deadline due to system issues, natural disasters, or administrative delays. If the income tax return extended deadline is announced:
- you get extra time to file without a late fee (usually Rs. 5,000 under Section 234F)
- you should still aim to file early to avoid last-minute rushes and server overload
- you can correct any reporting errors or update tax payments before final submission
However, if the extended deadline is also missed, you may have to file a belated return, which attracts penalties and limits the ability to carry forward losses.
Common mistakes to avoid
While filing, watch out for these frequent errors:
- using the wrong ITR form
- mismatching income or tax details with Form 16 or Form 26AS
- missing out on reporting interest, capital gains, or freelance income
- failing to claim eligible deductions under the old regime
- not e-verifying the return, which leads to an invalid submission
Double-checking entries can save time, money, and stress later.
Benefits of timely filing
Filing an income tax return on time offers several advantages:
- quicker refunds for overpaid taxes
- smooth loan or visa applications
- ability to carry forward capital and business losses
- avoidance of penalties and legal notices
Even if no taxes are owed, filing helps build a compliant financial history.
Using online tools and calculators
Today, there is no need to calculate taxes manually. Many online tools can help, including:
- income tax calculators: estimate tax liability under old versus new regimes
- deduction finders: suggest possible Section 80 deductions
- advance tax calculators: compute tax instalments
- refund trackers: check refund progress online
These tools help taxpayers plan better and minimise errors.
Final thoughts
Filing an income tax return may seem complex, but by breaking it into clear steps — understanding income, using the right forms, claiming deductions, and submitting correctly — the process can become smooth and stress-free. Keep an eye on official updates, especially if the income tax return extended deadline is announced, and always understand which income tax slabs apply.
If you are unsure or have complex income (such as foreign assets, business income, or capital gains), it is wise to consult a tax professional to avoid costly mistakes. With good preparation and the right tools, you can navigate income tax season confidently and responsibly.
