The income tax portal was built to make filing straightforward, and for most salaried taxpayers it is. Pre-filled data cuts the typing. Utilities work offline if the connection drops. Verification takes less than a minute. The part that still causes trouble is preparation, and the handful of decisions that have to be made before the first field is filled.
documents to gather before filing
Form 26AS and the Annual Information Statement are the two documents worth downloading first. The department uses both to cross-check the return. Form 26AS shows tax deducted at source. The AIS captures interest, dividends, and securities transactions reported by banks, registrars, and brokers. Any income visible in these statements that does not appear in the return is the most common reason for a notice.
Form 16 comes from every employer during the year, not just the last one. Bank statements support interest income. Investment receipts cover Section 80C instruments such as ELSS, PPF, and life insurance premiums. Where shares or mutual funds were sold, the capital gains statement from the broker or CAMS/KFintech is needed to compute the gain. Home loan interest certificates and health insurance receipts apply where those deductions are claimed.
choosing the correct itr form
The wrong form is treated as a defective return under Section 139(9). If it is not corrected within the notice period, it is treated as though no return was filed, which removes the ability to carry forward losses.
ITR-1 (Sahaj) covers resident individuals with salary or pension income, one house property, and other sources such as interest. Total income must stay within ₹50 lakh, long-term capital gains under Section 112A cannot exceed ₹1.25 lakh, and agricultural income must remain below ₹5,000.
ITR-2 applies where those limits are crossed. Capital gains beyond ₹1.25 lakh, more than one house property, foreign assets or income, and non-resident status all push the return into ITR-2. For most salaried investors holding equity mutual funds or shares, this is the form that applies.
ITR-3 covers individuals with income from a proprietary business or profession, including partners in a firm. ITR-4 (Sugam) is for those opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE, with income up to ₹50 lakh.
the step-by-step e-filing process
The portal supports two filing modes. Online through the portal itself, or offline using downloadable utilities for ITR-1 through ITR-4, with separate utilities for ITR-5, 6, and 7.
step 1: log in. The incometax.gov.in portal accepts PAN or Aadhaar along with the password. Where the e-Filing Vault Higher Security option is enabled, a second factor through net banking, bank EVC, or DSC is required before the account opens.
step 2: select the assessment year and filing mode. Under the ‘e-File’ menu, ‘Income Tax Returns’ and then ‘File Income Tax Return’ are the relevant options. Assessment Year 2026-27 applies to income earned in FY 2025-26, and ‘Online’ is the filing mode.
step 3: select the itr form. The portal lists applicable forms based on the taxpayer’s profile. For a salaried individual with capital gains, that is ITR-2.
step 4: fill in the details. Personal information, gross total income, deductions, taxes paid, and tax liability are the five sections. Pre-filled data from Form 26AS and AIS populates some fields. Each entry should be matched against the source documents. For capital gains, Schedule CG captures transaction details across asset types including listed equity, mutual funds, and property.
step 5: validate and calculate tax. After filling the sections, the ‘Validate’ option surfaces errors. The system computes the tax liability or refund. Where tax is payable, the challan forms on the portal handle the payment before submission.
step 6: preview and submit. Preview the return once more, then submit.
e-verification: the final step
Submitting is not filing. A return that is not verified within 30 days is treated as invalid, and everything that follows from not filing applies. Aadhaar OTP is the route most people use, with the code sent to the mobile number registered with UIDAI and valid for 15 minutes. Net banking generates an EVC through the bank’s portal. Bank account EVC and demat account EVC work the same way through pre-validated accounts. A Digital Signature Certificate is the option for those who already use one.
If verification cannot be completed immediately, the portal allows ‘e-verify later’. The return stays invalid until verification goes through. Past 120 days, a condonation of delay request has to be filed separately.
what happens if the deadline is missed
For AY 2026-27, salaried individuals filing ITR-1 and ITR-2 had until 31 July 2026. Non-audit business and professional taxpayers filing ITR-3 and ITR-4 had until 31 August 2026.
A belated return can still be filed until 31 December 2026 under Section 139(4). The late fee under Section 234F is ₹1,000 if total income is up to ₹5 lakh and ₹5,000 if it exceeds that. Interest under Section 234A runs at 1% per month on unpaid tax.
The cost that is harder to reverse is capital losses. If shares or mutual funds were sold at a loss and the return is filed late, those losses cannot be carried forward to offset future gains. House property losses are the exception and remain eligible.
what retail investors should keep in mind
The filing process is not where most mistakes happen. It is in the preparation. A taxpayer who checks Form 26AS and AIS before opening the return, picks the right form, and verifies within the deadline will rarely face a notice.
Frequently Asked Questions
1. What documents are needed to file ITR online?
PAN and Aadhaar, linked. Form 16 from every employer during the year. Bank statements for interest income. Investment receipts for any deduction claimed. A capital gains statement if shares or mutual funds were sold. Form 26AS and AIS, downloaded separately and checked against the return before submitting.
2. Which ITR form should a salaried investor with mutual fund gains use?
ITR-2, in almost every case. ITR-1 caps long-term capital gains under Section 112A at ₹1.25 lakh. Once that figure is crossed, the return moves to ITR-2. Getting this wrong triggers a defective return notice under Section 139(9), and if it is not corrected, the department treats it as no return filed at all.
3. Is e-verification mandatory after filing ITR?
It is, and it is the step that gets skipped most often. A return submitted but not verified within 30 days is invalid. Aadhaar OTP is the fastest method. Net banking and bank account EVC are alternatives. If 120 days pass without verification, a condonation request has to be submitted separately.
4. Can ITR be filed without a CA?
Yes. The portal is built for self-filing. Pre-filled data, downloadable utilities, and guided forms make the process manageable for salaried individuals and retail investors. A CA becomes worth the fee only in cases involving business income that requires audit, foreign assets, or a capital gains computation complex enough that the risk of an error is high.
