| Overview: Filing income tax returns online has become essential for Indian taxpayers. This guide covers step-by-step processes, deadlines, required documents, common mistakes, and how proper tax filing can improve your eligibility for financial products like personal loans and credit cards. |
Tax season in India brings both opportunities and challenges for millions of taxpayers. With over 7 crore Indians filing their returns digitally each year, the process to return taxes online has become streamlined yet requires careful attention to detail. The Income Tax Department’s e-filing portal makes it easier than ever to comply with tax obligations, but many taxpayers still struggle with the technical aspects.
When you return taxes correctly and on time, you not only avoid penalties but also strengthen your financial profile. Banks and financial institutions, including those offering personal loan products, often require ITR documents as proof of income. A well-maintained tax filing history can significantly improve your chances of loan approval and better interest rates.
Understanding the Tax Return Filing Process
The process to return taxes online begins with proper preparation. You’ll need your PAN card linked to Aadhaar, Form 16 from your employer, bank statements, and investment proofs. The Central Board of Direct Taxes (CBDT) has extended the deadline for Assessment Year 2025-26 to 15th September 2025, giving taxpayers ample time to organise their documents.
Essential Documents for Tax Filing
Before you return taxes, gather these crucial documents:
- Form 16: Your employer’s certificate showing salary and TDS deducted
- Form 26AS: TDS statement from the Income Tax Department
- Bank statements: All accounts including savings, current, and fixed deposits
- Investment proofs: Section 80C, 80D, and other eligible deductions
- Property documents: For house property income or home loan interest claims
| Pro Tip: Download Form 26AS from the e-filing portal to cross-verify TDS credits before you return taxes. This prevents discrepancies and processing delays. |
Step-by-Step Guide to File ITR Online
Accessing the E-Filing Portal
Visit the official Income Tax e-filing portal at incometax.gov.in. Use your PAN as the User ID and create a strong password. The portal’s dashboard provides easy navigation to begin the process when you’re ready to return taxes.
Selecting the Correct ITR Form
Choosing the right ITR form is crucial when you return taxes:
| ITR Form | Applicable For | Income Limit |
| ITR-1 (Sahaj) | Salaried individuals | Up to ₹50 lakh |
| ITR-2 | Capital gains, multiple properties | No limit |
| ITR-3 | Business/professional income | No limit |
| ITR-4 | Presumptive income | Up to ₹2 crore |
Filling Your Tax Return Details
The portal auto-fills most information from your previous returns and Form 26AS. When you return taxes, verify each section carefully:
- Personal Information: Confirm address, bank account details, and contact information
- Income Details: Enter salary, business income, capital gains, and other sources
- Deductions: Claim eligible deductions under various sections
- Tax Computation: The system calculates your tax liability automatically
E-Verification and Compliance
After you return taxes successfully, verification within 30 days is mandatory. The portal offers multiple verification methods:
- Aadhaar OTP: Most convenient for instant verification
- Net Banking: Through your registered bank account
- Electronic Verification Code (EVC): Generated through demat account or bank
- ITR-V: Physical form sent by post (least recommended)
| Mistake to Avoid: Many taxpayers forget to verify their returns within the 30-day window, making their filing invalid and attracting penalties. |
Impact on Financial Products
When you return taxes properly and maintain a good filing history, it directly impacts your eligibility for financial products. Lenders use ITR documents to assess your income stability and repayment capacity. This documentation becomes particularly important when applying for products like the Airtel Finance Personal Loan, where verified income proof can expedite approval processes.
Common Mistakes and How to Avoid Them
Now let’s take a look at the most common mistakes that you can make while filing your ITR and how you can avoid them:
- Mismatched Bank Account Details: Ensure your bank account information matches exactly with your records
- Incorrect Income Reporting: Cross-verify salary figures with Form 16
- Missing TDS Claims: Don’t forget to claim TDS deducted by banks on fixed deposits
- Wrong Assessment Year Selection: Always select AY 2025-26 for current filing
Deadline Management
The extended deadline to return taxes for AY 2025-26 is 15th September 2025. Late filing attracts penalties:
- Section 234F Penalty: Up to ₹5,000 for delayed filing
- Section 234A Interest: Calculated on outstanding tax from due date
- Section 271F Penalty: Up to ₹10,000 for very late filing
Strengthening Your Financial Profile
Successfully filing your tax returns online not only ensures legal compliance but also opens doors to better financial opportunities. The process to return taxes has been simplified significantly, making it accessible to taxpayers across urban and semi-urban India. By following the step-by-step process outlined above, maintaining proper documentation, and meeting deadlines, you create a strong foundation for your financial health.
Remember that when you return taxes consistently and accurately, you’re building a valuable financial track record. This documentation becomes crucial when you need quick access to financial products. Banks increasingly rely on ITR data for quick loan processing. Whether it’s education, upskilling, or a dream purchase—get instant access to a loan offer up to ₹900000 at 12.75% p.a. with Airtel Finance Personal Loan: no paperwork, 100% online, and flexible EMI tenure.
FAQs
1. Can I return taxes online without a Form 16 from my employer?
Yes, you can file using salary slips, bank statements, and Form 26AS. The portal accepts alternative income proofs when Form 16 is unavailable from employers.
2. What happens if I miss the deadline to return taxes for AY 2025-26?
Late filing after 15th September 2025 attracts penalties up to ₹5,000 under Section 234F, plus interest on outstanding tax amounts from the due date.
3. How does timely tax filing improve my chances for personal loan approval?
Consistent ITR filing demonstrates stable income and financial discipline to lenders, often resulting in faster approvals and better interest rates for credit products.
4. Which ITR form should I use if I have both salary and rental income?
Use ITR-2 for salary plus house property income. ITR-1 (Sahaj) is only for salaried individuals without additional income sources or capital gains.
5. Can I revise my tax return after filing and verification online?
Yes, you can file a revised return before the due date or within the extended deadline, but not after the original deadline expires.
