Introduction: Why Filing Tax Online Matters
I still remember my first few years of filing taxes. It meant long queues at the bank, running after accountants, and carrying files thicker than my textbooks. If you’ve grown up in India in the 90s or early 2000s, you probably have the same memory — tax filing felt like a punishment.
But today, thanks to India’s digital transformation, filing Income Tax Returns (ITR) online is not only possible, but also surprisingly simple. The Income Tax Department has made the entire process available on the Income Tax e-Filing portal, where salaried individuals, self-employed professionals, and even NRIs can file their returns without middlemen.
In this blog, I’ll take you through:
The basics of income tax filing in India
Step-by-step process of filing ITR online
Key documents you need before filing
Common mistakes to avoid
My personal learnings as a wealth manager
Whether you’re a first-time filer or someone who’s been doing this for years, this guide will help you save time, avoid penalties, and even build wealth through smart tax planning.
Table of Contents
Step 1: Understand Why You Need to File ITR
First, let’s answer the question: Why bother filing taxes at all?
Here are 4 strong reasons:
Legal Requirement
If your income exceeds ₹2.5 lakh (basic exemption), you must file ITR.
Even if you’re below the exemption limit, filing builds a financial record.
Financial Proof for Loans/Visas
Banks ask for past 2–3 years of ITR when you apply for loans.
Foreign embassies often require ITR for visa applications.
Claiming Refunds
If excess TDS has been deducted by your employer/bank, you can only get it back by filing ITR.
Wealth Transparency
It helps you track your assets, investments, and income sources in one place.
My tip: Think of ITR not as a burden, but as a personal financial report card that reflects your discipline.
Step 2: Collect Your Documents Before Filing
Here’s a simple checklist:
PAN Card (mandatory for filing)
Aadhaar Card (linking PAN with Aadhaar is compulsory)
Form 16 (for salaried employees, issued by employer)
Form 26AS (download from TRACES portal; shows TDS details)
Annual Information Statement (AIS/TIS) (new statement showing all incomes & investments)
Bank Account Details (for refunds)
Investment Proofs (ELSS, PPF, LIC, NPS, etc. if you claim deductions under 80C, 80D, etc.)
Other Income Proofs (rent, capital gains, FD interest, freelance income, etc.)
💡 Pro Tip: Keep all documents scanned in a single folder before you begin. It makes the filing process smooth.
Step 3: Register or Login to Income Tax Portal
Visit incometax.gov.in.
Click Login (use PAN as your User ID).
If you’re a first-time user → click Register.
Enter PAN, name, DOB, and validate with Aadhaar & OTP.
My experience: The new portal is much faster and more user-friendly than the old one. Don’t get scared by the many menus — most steps are guided.
Step 4: Choose the Right ITR Form
One of the biggest confusions is choosing the right form. Here’s the breakdown:
ITR-1 (Sahaj): Salaried income up to ₹50 lakh + one house property + interest income.
ITR-2: Income from multiple properties, capital gains, foreign income.
ITR-3: If you have income from business/profession.
ITR-4 (Sugam): Presumptive taxation for small businesses/professionals.
For most salaried individuals, ITR-1 is sufficient.
Step 5: Filing the Return Online (Step by Step)
Login to portal → Dashboard → File Income Tax Return.
Select the Assessment Year (for FY 2024-25, AY = 2025-26).
Choose filing type → Online.
Select the correct ITR Form (system also recommends).
Fill details →
Personal Information (PAN, Aadhaar, bank details auto-filled).
Gross Income (salary, house property, capital gains, etc.).
Deductions (80C, 80D, etc.).
Taxes Paid (TDS auto-imported from Form 26AS).
Preview tax computation → Portal shows whether you owe tax or get refund.
Validate → Submit with Aadhaar OTP or EVC (Electronic Verification Code).
Download acknowledgment (ITR-V).
Congratulations! You’ve filed your ITR online.
Step 6: Verification (Very Important)
Filing is complete only after verification. You can verify via:
Aadhaar OTP
Net banking login
Bank account pre-validation
Sending signed ITR-V (physical copy) to CPC Bengaluru
I always recommend Aadhaar OTP or net banking — instant and hassle-free.
Step 7: Smart Tax Planning (Personal Tip)
Now that you’ve filed your tax, let’s talk about saving tax and building wealth.
Here are some smart moves:
Invest in ELSS Funds – Dual benefit of tax saving (80C) + long-term wealth growth.
Use NPS (80CCD) – Extra ₹50,000 tax benefit beyond 80C.
Buy Adequate Health Insurance (80D) – Protects health + reduces tax.
Track AIS/TIS regularly – Ensure all your incomes are correctly reported.
👉 Filing is compliance, but planning is wealth creation.
Common Mistakes to Avoid
Using wrong ITR form.
Not reporting interest income from savings/FD.
Claiming wrong deductions.
Not verifying the return.
Missing the deadline → attracts penalty of ₹1,000–₹5,000.
My Personal Journey with Filing Taxes
When I filed my first tax return as a banker, I was overwhelmed by the jargon: Form 16, 26AS, 80C, HRA exemptions. But over time, I realised — the Income Tax process is not about numbers alone.
It is about:
Being financially transparent.
Planning smartly to reduce liability.
Building a record for future goals like loans, visas, and investments.
Today, as a Certified Financial Planner, I help clients not only file taxes but also plan them — using ELSS, PPF, NPS, and insurance to balance compliance and wealth.
So, my advice to you: Don’t look at tax filing as a headache. Look at it as a yearly financial checkup.
Conclusion: Filing ITR Online Is Simpler Than Ever
Filing taxes online in India is no longer a nightmare. The portal is efficient, Aadhaar OTP has made verification seamless, and refunds now arrive faster.
Take it as an opportunity to:
Stay compliant
Save money
Build wealth
And if you’re ever in doubt, remember — help is just a few clicks away. Either through the Income Tax portal helpdesk, or with a professional advisor like me.
Key Takeaways
Filing ITR is mandatory above ₹2.5 lakh income.
Use the Income Tax portal for online filing.
Keep documents ready (PAN, Aadhaar, Form 16, 26AS, AIS/TIS).
Choose correct ITR form (ITR-1 for most salaried).
Verify your ITR to complete the process.
Use tax-saving investments like ELSS, PPF, NPS to grow wealth.
If you want a personalised consultation on tax planning or investment strategies, feel free to connect with me through basanagouda.com.