Step-By-Step Guide To Income Tax E-Filing In India For Beginners

The traditional income tax filing process has been complex for many, particularly for those new to the process. 

However, a lack of awareness often acts as the leading reason behind any such problem.

Further, e-filing has largely replaced the traditional paper method.

Moreover, e-filing has now become the most preferred way for most people to file their returns. It makes the process quicker and far easier.

Moreover, people should think of it like booking a ticket online. People often find it tricky while doing it for the first time.

However, practice turns it into a routine. However, people should know where to start and what information they will need. 

This article seeks to inform readers about the benefits of Income Tax e-Filing. 

So, let’s start with who has to file returns and why.

Things That You Need To Learn About Income Tax E-Filing

Here is some of the most relevant information about income tax e-filing.

1. Who Should File Income Tax Returns In India? Income Tax e-Filing

• Individuals earning more than ₹2.5 lakh per year (below 60 years of age) should file for income tax.
• Senior citizens with income above their respective exemption limits decided by the government should file for income tax.
•  Moreover, Self-employed individuals, regardless of their income, should maintain accurate and official income records.
• Individuals who wish to claim a refund should also file for their income tax. Hence, people who had tax deducted at source (TDS) want to claim a refund.

2. Documents You Need Before Starting  Income Tax e-Filing

Here’s a simple checklist of what you’ll need:

• PAN Card – You will need your Permanent Account Number (PAN) to file your taxes.
• Aadhaar Card – Needed for verification and linking with PAN.
• Form 16 – If you are salaried, there will be a record of your income and tax deducted by your employer.
• Bank Account information (optional) – To receive refunds directly.
• Certificates for proof of investment – Such as life insurance premiums, PPF, ELSS, and particularly if you have taken term insurance (especially for self-employed). This can also avail tax benefits under Section 80C* (only under the old tax regime).
• TDS Certificates or Form 26AS (statement of tax deposited) – Shows tax deducted at source.
• Details of other income, such as rent, interest, or freelance work.

Once you have these in one place, the actual filing process becomes much smoother. The concerned person who is willing to file for the tax should create an account on the government e-filing portal after the toolkit is ready.

*Disclaimer: Tax deductions such as those under Section 80C are available only under the old tax regime. They are not applicable if you opt for the new tax regime. Please check the latest government rules or consult a tax professional before making any decisions.

3. Step-By-Step Process To File Your Income Tax Return Online

People should begin filing after their account is set up and ready to use. Moreover, the entire situation is not very complicated.

• Step 1: People will have to log in to the income tax portal. Moreover, users will require their PAN and password during the process.
  
• Step 2: Users should select the correct Assessment Year (e.g., AY 2025–26 for FY 2024–25). Moreover, users will then need to select the Online filing option.
  
• Step 3: The person opening the account will then have to pick their filing status – Individual, HUF, or Others.
  
• Step 4: Additionally, users should then select the correct ITR Form (e.g., ITR-1 for salaried individuals, ITR-2 for capital gains).
  
• Step 5: State the reason for filing – income above exemption, mandatory filing, or others.
  
• Step 6: Review pre-filled details, add income and deductions (like PPF, ELSS, or term insurance for self-employed), validate, pay any due tax, and submit.

That’s it, you’ve filed your return. But you’re not done yet. The final step is verification, without which your return will not be considered complete.

4. How To Verify Your Income Tax E-Filing Return

Filing your return is only half the job. The Income Tax Department accepts it as complete only after you verify it.  Here are the ways you can verify:

Aadhaar OTP

The quickest option. An OTP is sent to your Aadhaar-linked mobile number.

Net Banking 

Log in to your bank account and choose the “e-verify” option.

Demat Or Bank Account 

Pre-validate your account on the portal and verify through it.

Offline (By Post) 

If you can’t do it online, print the ITR-V form and send it to CPC, Bengaluru.

Most beginners find Aadhaar OTP or net banking the easiest. Once you verify, you’ll get a confirmation message, and your e-filing is officially done.

5. Common Mistakes To Avoid In Income Tax E-Filing

The portal makes things simpler. However, small mistakes often lead to significant trouble, such as delays in refunds or even notices from the tax department.

However, people should easily avoid errors when they are careful.

Here are the common ones:

Incorrect Personal Details

People should ensure their PAN, Aadhaar, and bank details remain accurate. Moreover, even a small error leads to the stop of refunds.

Choosing The Wrong ITR Form 

Salaried individuals typically file ITR-1. However, freelancers and self-employed individuals should file ITR-3 instead of filing ITR-1.

Skipping Income Sources 

Moreover, people should not forget to include rent, savings account interest, or freelance income in their calculations. However, the system often picks these from AIS, so match them carefully.

Not Claiming Eligible Deductions 

People often miss out on savings under Section 80C*, health insurance (80D), or even benefits from term insurance for self employed. Therefore, they should always track these things accordingly.

Forgetting To Verify The Return 

People should avoid filing without verification. Moreover, filing without verification is like sending an unsigned letter, which will not be processed.
People should double-check these areas. Moreover, this will allow them to save both time and stress in the future.

6. Tips For First-Time Filers

If you’re new to income tax e-filing in India, a few simple habits can make the process smoother every year.

• Start Early – Don’t wait until the last minute. The portal is usually relatively slow just ahead of deadlines.
• Handle Pre-Filled Information with Care – Some data is pre-filled by the system; ensure it matches what is on your Form 16 and verify it against the bank statements as well.
• Keep Your Records Secure – Moreover, people should keep their ITR-V acknowledgement and computation sheet safe for future reference.
• Be Aware of the Deadlines – the due date is often July 31 for individuals. However, individuals should please double-check, as this information is subject to change.
• Understand Deductions – Moreover, even just knowing the basics, like section 80C* or 80D, can save you a fair amount of tax. Therefore, self-employed people should invest in term insurance. Moreover, this could secure the future for your family. Even if you don’t use the insurance, it is still a tax-smart move.
• Ask for Help If You Feel Confused – If you’re still in doubt, always ask for help. A tax professional can assist you in avoiding mistakes. 

With these small steps, filing stops being scary and becomes just another yearly task you handle with confidence.

Things To Remember About Income Tax e-Filing

Filing income tax often feels difficult the first time. However, people find it easy once they go through it step by step.

It becomes simple. All you need are your documents, a portal login, and a quick check of the details you’ve entered. 

With practice, it soon feels routine. Filing on time also strengthens your financial record and makes it easier to claim refunds. If you’re self-employed, timely filing supports loan, visa, or even term insurance for self-employed applications. So don’t delay; file confidently and enjoy peace of mind.