How to File ITR Online in 2025 – Step-by-Step Guide

Filing your Income Tax Return (ITR) online can seem complicated, but it’s actually a simple process when done correctly. Whether you’re a salaried individual, freelancer, or business owner, this guide will walk you through the entire process for 2025. Learn about required documents, deadlines, and how to avoid common mistakes.

What is an Income Tax Return (ITR)?

An Income Tax Return (ITR) is a form where taxpayers declare their income, deductions, and taxes paid. The Income Tax Department uses this to assess whether additional tax is owed or a refund is due.

Who Needs to File an ITR?

You need to file an ITR if:

• Your annual income exceeds ₹2,50,000 (₹3,00,000 for senior citizens, ₹5,00,000 for super senior citizens)
• You earn income from more than one source (salary, freelancing, rental income, etc.)
• You have foreign assets or foreign income
• You want to claim a refund on excess TDS deducted

Documents Required for ITR Filing

Before filing your ITR, keep these documents handy:

• PAN Card
• Aadhaar Card
• Form 16 (For salaried individuals, provided by employer)
• Bank account statements
• Investment proofs (PPF, LIC, Mutual Funds, etc.)
• TDS Certificates (Form 16A, 26AS)

Old vs. New Tax Regime: Which One to Choose?

Old vs. New Tax Regime

The government offers two tax regimes: Old Regime and New Regime. Taxpayers must choose the one that benefits them the most.

Old Tax Regime

✅ Allows multiple deductions under Section 80C, 80D, HRA, LTA, and others ✅ Suitable for those with higher investments in tax-saving instruments ✅ Higher tax rates compared to the new regime

New Tax Regime

✅ Lower tax rates but no deductions for investments or expenses ✅ Suitable for those with fewer investments in tax-saving schemes ✅ Simplified tax structure with reduced compliance

Which One Should You Choose?

• If you have significant deductions (like PPF, insurance, home loan interest), the Old Regime is better.
• If you don’t claim many deductions, the New Regime may save more tax.

You can compare tax liability under both regimes using the Income Tax Calculator on the government’s portal.

Step-by-Step Guide to File ITR Online in 2025

Step 1: Visit the Income Tax e-Filing Portal

• Go to https://www.incometax.gov.in
• Click on Login and enter your PAN, password, and captcha code

Step 2: Select the Correct ITR Form

• ITR-1 (Sahaj) – For salaried individuals with income up to ₹50 lakh
• ITR-2 – For individuals with capital gains, multiple properties
• ITR-3 – For professionals and business owners
• ITR-4 (Sugam) – For presumptive taxation scheme

Step 3: Fill in Your Income Details

• Enter your salary, rental income, or business income
• Choose the Old or New Tax Regime
• Add deductions under Section 80C, 80D, 80G (insurance, ELSS, donations, etc.) if opting for the Old Regime
• Verify pre-filled data from Form 26AS and AIS

Step 4: Validate Tax Liability and Claim Deductions

• The system will automatically calculate your tax liability based on the selected regime
• If excess TDS is deducted, claim a refund

Step 5: Verify and Submit Your ITR

• Click Preview & Submit
• Verify using Aadhaar OTP, Net Banking, or Digital Signature
• You’ll receive an acknowledgment (ITR-V) in your registered email

Common Mistakes to Avoid While Filing ITR

• Missing the deadline (July 31, 2025)
• Entering incorrect income details
• Not verifying your ITR (leads to incomplete filing)
• Forgetting to report other income sources (e.g., FD interest, rental income)
• Choosing the wrong tax regime without comparison

FAQs on ITR Filing

Q: Can I file ITR without Form 16?
A: Yes, you can use salary slips and Form 26AS to calculate income and TDS details.

Q: What happens if I miss the ITR deadline?
A: You may have to pay a late fee of up to ₹5,000 and interest on tax due.

Q: How long does it take to get an ITR refund?
A: Refunds usually get processed within 7-30 days after verification.

Q: Can I switch between the Old and New Tax Regime every year?
A: Salaried individuals can switch between regimes each year, but businesses must stick to one after selection.

Final Thoughts

Filing your ITR online is easy if you follow the right steps. Ensure you choose the right tax regime, submit accurate details, and verify your return on time. If you need assistance, consider consulting a tax professional.

📢 Have questions? Drop them in the comments below!