Filing income tax returns (ITR) is a mandatory annual process for individuals earning above the basic exemption limit. The process involves disclosing income from various sources (salary, house property, business/profession, capital gains, and other sources), claiming eligible deductions, calculating tax liability, and submitting the return to the Income Tax Department. Filing accurately and on time helps avoid penalties and enables quicker refunds.

Step-by-Step Income Tax Filing Process for Individuals:

1. Gather Documents:

   • PAN, Aadhaar

   • Form 16 (for salaried individuals)

   • Form 26AS and AIS/TIS

   • Bank statements, interest certificates

   • Investment proofs for deductions (80C, 80D, etc.)

2. Choose the Right ITR Form:

   • ITR-1 (Sahaj) for salaried individuals with income up to ₹50 lakh

   • ITR-2/3/4 for other cases based on income type

3. Compute Total Income:

   • Include income from salary, rent, capital gains, interest, etc.

4. Claim Deductions and Exemptions:

   • Under Sections 80C (LIC, PPF, ELSS), 80D (medical insurance), HRA, etc.

5. Calculate Tax Liability:

   • Use applicable income tax slabs (old or new regime)

6. Pay Due Tax (if any):

   • Through Challan 280 before filing the return

7. File Return on Income Tax Portal:

   • https://www.incometax.gov.in

   • Use login credentials or through authorized intermediaries

8. Verify ITR:

   • e-Verify using Aadhaar OTP, net banking, or send ITR-V by post