Step-By-Step ITR E-Filing, Choosing Right Tax Regime

Master the online ITR filing process and then learn the differences between the old and new tax regimes to pick your best option.

E-filing your income tax return is easier than ever, but the process still has its nuances -- especially after you've gathered all your documents. This sections starts with a clear, step-by-step guide to e-filing your ITR, from registration to submission and e-verification, with practical tips for avoiding common pitfalls.

But your job isn't done just yet: after submitting your return, you'll need to decide which tax regime -- old or new -- works better for you, depending on your deductions, income, and financial goals.

Both steps are essential for maximising your savings and minimising hassles.

How to File Your ITR Online, Step by Step

E-filing has made tax returns much easier, but the process can still seem daunting. Here's a step-by-step walkthrough:

a. Register or Log In

• Visit the Income Tax Department's e-filing portal.
• Register with your PAN (first time) or just log in (if already done).
• Provide your name, date of birth, and contact details if registering.

b. Choose the Correct ITR Form

• The portal may suggest a form based on your profile, or you can select it from a drop-down menu.
• Read prompts carefully -- choosing the right form reduces the risk of mistake notices.

c. Download or Use Online ITR Form

• For simpler ITRs (1 or 4), use the online (web-based) form -- entered directly on the site.
• For complex returns (such as ITR-2 and ITR-3, but not ITR-4), download and use the JSON-based offline utility from the income tax portal. For ITR-4, the Excel utility is still available.

d. Pre-fill and Complete Details

• Some data (personal info, TDS, salary) will auto-populate from your PAN/Aadhaar.
• Fill missing information: income, deductions, bank details (for refund), etc.
• Cross-check especially: TDS, bank/investment earnings, HRA, allowances.

e. Upload Documents (if required)

• You do not need to upload any documents while filing. However, keep proofs handy in case the tax department requests them later during verification or scrutiny.

f. Submit and E-Verify

• Submit the form and file online.
• E-verification can be done via Aadhaar OTP, net banking, bank account, Demat account, or NSDL e-sign (using Aadhaar).

g. Confirmation and Acknowledgement

• After e-verifying, a receipt will be issued -- download and save as proof.
• Track your return's processing status on the portal's dashboard.

Common Questions

Do I need to print and send anything?

No physical forms for most e-filings -- e-verification makes the process complete.

What if I make a mistake?

File a 'revised return' to correct errors.

Tips for Smooth Filing:

• File early to avoid server rush, last-minute errors, or 'system heavy' delays.
• Double-check all pre-filled entries against your documents.
• Keep your bank account details updated for speedy refunds.

Now that you are all set to file your income tax return, would you not like to know if you should opt the old tax regime or the new tax regime

~ Understanding Old and New Tax Regimes

India offers two parallel tax regimes: one 'old' with deductions and one 'new' with lower rates but almost no deductions. Understanding these choices is the key to picking the lower-tax route.

The Old Tax Regime:

• Higher tax rates at each income slab, but allows a wide range of deductions and exemptions.
• Exemptions: House Rent Allowance (HRA), Leave Travel Allowance (LTA), etc.
• Deductions: Section 80C (LIC, PPF, ELSS), Section 80D (health insurance), 80E (education loan), home loan interest, etc.

The New Tax Regime:

• Lower tax rates at most slabs.
• Most exemptions and deductions are not available (except NPS, employer provident fund).
• Useful for those who don't, or can't, claim many deductions.

To know more about who saves how much tax after Finance Minister Nirmala Sitharaman introduced significant changes in the Union Budget 2025-26 aimed at simplifying the tax structure and providing relief to taxpayers across various income brackets, read the Rediff story.

Which to Choose?

Want to claim many exemptions (HRA, 80C, 80D, etc.)?

Old regime is likely better.

Don't want any big deductions?

While the new regime doesn't allow most traditional deductions (like 80C, 80D, or HRA), it still permits a few such as standard deduction, NPS employer contribution, and family pension relief.

Switching Regimes:

• Salaried employees: Opt in/out each year via employer.
• Business owners/professionals: Switch only once in a lifetime (unless business is discontinued).

Decision Checklist:

• List out all possible exemptions/deductions you can claim.
• Calculate your tax under both regimes.
• Choose the one with the lowest tax liability for your profile.