What is ITR filing and why everyone talking about it every year, here’s your answer: ITR filing simply means submitting your income details to the Income Tax Department of India. It’s a way of informing the government how much you earned in a financial year and whether you’ve paid the correct amount of tax on it. It’s mandatory for many, and even if it’s not, filing your ITR can save you from future hassles and even help you get refunds or loans approved faster.
What is ITR Filing?
ITR stands for Income Tax Return, and ITR filing is the process of submitting this return to the government. You disclose your total income, tax deductions, investments, and any tax paid during the financial year (April 1 to March 31). The Income Tax Department uses this data to calculate if you’ve paid the correct taxes or if you owe more or deserve a refund.
Who Should File ITR?
You should file an ITR if:
- Your total income in a year is more than ₹2.5 lakh (₹3 lakh for senior citizens).
- You want to claim a tax refund.
- You have foreign income or assets.
- You earned from freelancing, cryptocurrency, or stock trading.
- You want to carry forward losses.
- You are applying for a visa, loan, or credit card (many institutions ask for ITR copies).
Even if your income is below the taxable limit, ITR filing is still beneficial. It serves as proof of income, and can be handy when applying for bank loans or during visa processing.
When is the ITR Filing Deadline?
For most salaried individuals and those not requiring audit, the deadline to file ITR for FY 2024-25 (AY 2025-26) is July 31, 2025. If you miss it, you can still file a belated return by December 31, 2025, but you may have to pay a late fee.
So, it’s best to get your ITR filing done on time to avoid penalties and unnecessary stress.
Documents You Need for ITR Filing
Here’s a checklist of what you’ll need before starting your ITR filing:
- PAN card
- Aadhaar card
- Form 16 from your employer (for salaried individuals)
- Form 26AS (a tax credit statement)
- Bank account details
- Details of all investments, deductions (like under Section 80C, 80D, etc.)
- Proof of home loan, education loan, or insurance premiums (if claiming deductions)
- Details of income from other sources like rent, capital gains, FD interest, etc.
How to File Your ITR Online
You can file your ITR online in two ways:
- Using the Income Tax Department’s e-filing portal (incometax.gov.in)
- Through third-party platforms like ClearTax, TaxBuddy, or myITreturn
Here’s a step-by-step for filing on the Income Tax site:
- Log in using your PAN and password.
- Select “File Income Tax Return.”
- Choose the correct Assessment Year (2025-26).
- Select the type of return applicable to you (usually ITR-1 for salaried individuals).
- Enter all income and deduction details.
- Preview the form and click submit.
- Verify using Aadhaar OTP or other methods.
And you’re done! You’ll get an acknowledgement (ITR-V) which you can download for future use.
What Happens After You File ITR?
After ITR filing, the IT department processes your return. If everything is in order, they issue a refund if applicable. This usually comes within 1-3 weeks if e-verification is completed successfully.
If there’s a mismatch or issue, they may send you a notice, but don’t panic! Most issues can be resolved by responding with the correct documents.
Penalties for Missing the Deadline
Missed the July 31 deadline? You can still file a belated ITR until December 31, but with these consequences:
- Late fee of ₹1,000 to ₹5,000 depending on your income.
- You may not be able to carry forward losses.
- Delayed refunds, if any.
So the best advice? Don’t delay ITR filing!
Final Thoughts
Whether you’re salaried, self-employed, or even a student with some side income, ITR filing is a responsible financial habit. It keeps your records clean, builds your financial credibility, and keeps you on the right side of the law. With the government making it easier every year through online portals and simplified forms, there’s really no excuse not to file your ITR on time.
