Decoding Your Income Tax Return (ITR): A Step-by-Step Guide for AY 2025-26
Filing your Income Tax Return (ITR) is a crucial annual responsibility. For the Assessment Year (AY) 2025-26, which corresponds to the Financial Year (FY) 2024-25, being prepared can make the process smooth and stress-free. This guide will walk you through the essential steps.
Step 1: Gather Your Documents
Before you log in to the e-filing portal, make sure you have all the necessary documents handy. This is the most important step to ensure accuracy.
- PAN and Aadhaar Card: These are mandatory. Ensure they are linked.
- Form 16/16A: Your TDS certificate from your employer or other deductors.
- Bank Statements: To check interest income and cross-verify transactions.
- Form 26AS and Annual Information Statement (AIS): Download these from the e-filing portal. They summarize the tax deducted and high-value transactions reported on your PAN.
- Proof of Investments: Receipts for investments in PPF, ELSS, insurance premiums, etc., to claim deductions under Section 80C.
- Home Loan Statement: To claim deductions on interest and principal repayment.
- Details of Capital Gains: Statements from your broker for stock market transactions or property sale documents.
Step 2: Choose the Right ITR Form
Selecting the correct ITR form is critical. Here’s a quick summary:
- ITR-1 (Sahaj): For resident individuals with total income up to ₹50 lakh from salary, one house property, and other sources (like interest).
- ITR-2: For individuals and HUFs not having income from business or profession, but who may have capital gains or more than one house property.
- ITR-3: For individuals and HUFs having income from business or profession.
- ITR-4 (Sugam): For individuals, HUFs, and firms with presumptive income from business or profession.
Step 3: Reconcile with Form 26AS and AIS
Log in to the income tax portal and carefully review your Form 26AS and AIS. Ensure that all the income and TDS details reported there match your records. If there are discrepancies, you should get them corrected by the deductor before filing.
Step 4: Fill the Return and Verify
The portal will pre-fill a lot of your information from your PAN, employer filings, and AIS. Your job is to verify this data, fill in the missing details, and claim all eligible deductions. Double-check everything before submission. After you submit, you must e-verify your return, typically using an Aadhaar OTP, within 30 days. Your filing is not complete until it's verified.
"Do not wait until the last date (July 31, 2025, for most individuals) to file. Filing early gives you time to revise your return if you find any errors."
ITR filing can be complex. For personalized assistance and to ensure you maximize your tax savings, it's always advisable to consult a professional.