BAJAJ BROKING
July 25, 2024
11 mins read
Filing your income tax return is a crucial process every citizen must follow annually. Though people usually take the help of their chartered accountant or CA to do the job, they need to be aware of the intricacies of the process. Take a look at everything you need to know here.
Filing your income tax return (ITR) is a crucial responsibility that ensures compliance with tax laws while optimizing your financial planning. Whether you’re a salaried professional, business owner, or investor, timely income tax return filing helps you avoid penalties and claim eligible deductions.
For the financial year 2024-25, the due date for ITR filing is July 31, 2025, for individuals not requiring an audit. Early filing can prevent last-minute stress and system errors. Additionally, meeting the last date for ITR filing safeguards you from late fees and allows a smoother tax refund process.
Understanding eligibility for income tax filing is essential to ensure proper compliance. From salaried individuals to businesses and NRIs, several categories of taxpayers must adhere to the tax filing mandate. The advantages of income tax e filing include accuracy, speed, and convenience in your submission.
An income tax return (ITR) is a mandatory document that taxpayers must file to report their income, deductions, and tax liabilities for a given financial year. The income tax return filing process ensures transparency and compliance with tax laws while enabling taxpayers to claim refunds on excess taxes paid.
There are multiple ITR forms, each applicable to different taxpayer categories based on income sources and financial activities. Selecting the correct form is crucial for accurate ITR filing. Understanding the process and requirements helps individuals and businesses meet deadlines and avoid penalties.
Filing an income tax return (ITR) is mandatory for individuals and entities meeting specific income and transaction criteria. Here’s who must complete income tax return filing:
Salaried Individuals
Anyone with a total income exceeding the basic exemption limit before deductions must file an ITR as per tax regulations.
Businesses and Firms
Companies, LLPs, and partnership firms must complete income tax return filing annually, regardless of profit or loss.
Directors and Partners
Individuals serving as directors or LLP partners must file ITR reflecting their financial activities.
High-Value Transaction Holders
Those making substantial deposits, high-value purchases, or incurring significant expenses are required to file an income tax return.
NRIs and Investors
Non-resident Indians (NRIs) and individuals earning dividends, capital gains, or rental income in India must comply with ITR filing regulations.
Filing an income tax return (ITR) is mandatory for individuals and entities meeting specific income and transaction criteria. Below are the key eligibility criteria for income tax return filing for the financial year 2024-25:
Based on Income Limits
Individuals under 60 years: Taxable income above ₹2.5 lakh.
Senior citizens (60-80 years): Taxable income above ₹3 lakh.
Super senior citizens (80+ years): Taxable income above ₹5 lakh.
Based on Financial Transactions
Bank deposits: Deposits of ₹1 crore or more in current accounts.
Foreign travel expenses: Exceeding ₹2 lakh in a financial year.
Electricity bills: Exceeding ₹1 lakh annually.
Based on Business and Professional Income
Businesses: Turnover exceeding ₹1 crore.
Professionals: Gross receipts exceeding ₹50 lakh.
Based on Tax Deducted or Collected at Source
TDS/TCS: ₹25,000 or more (₹50,000 or more for senior citizens).
The Income Tax Department offers a variety of forms for income tax return filing, each designed to cater to different taxpayer profiles. Choosing the correct ITR form is essential for compliance and ensures a smooth filing process for the financial year 2024-25.
ITR-1 (Sahaj) – For Salaried Individuals
This form is tailored for resident individuals with straightforward income sources such as salary, pension, or income from a single house property. It applies when the total income is up to ₹50 lakh. Note that those with additional income like foreign earnings, dividends, or multiple property incomes must opt for a different form.
ITR-2 – For Individuals and HUFs with No Business Income
ITR-2 is designed for individuals and Hindu Undivided Families earning income from salary, capital gains, or owning more than one house property. It also covers cases involving foreign assets or income. This form is not suitable for those with income from business or profession.
ITR-3 – For Individuals and HUFs with Business Income
This form caters to taxpayers whose income stems from business or professional activities, including proprietorships and partnerships. It is used when the income sources extend beyond simple salary or property income, making ITR-1 or ITR-2 inapplicable.
ITR-4 (Sugam) – For Presumptive Taxation
ITR-4 is available for resident individuals, HUFs, and firms (excluding LLPs) who choose the presumptive taxation scheme. It is applicable when income from business or profession is computed using presumptive provisions, provided the total income does not exceed ₹50 lakh.
ITR-5 – For Partnership Firms and LLPs
Designed for entities like partnership firms, limited liability partnerships, associations of persons, and bodies of individuals, ITR-5 is the correct choice for these groups. It is not intended for individual taxpayers, HUFs, or companies that are covered under other ITR forms.
ITR-6 – For Companies
This form is exclusively for companies registered in India that do not qualify for exemptions under section 11. ITR-6 must be filed electronically, ensuring that corporate income is reported accurately.
ITR-7 – For Trusts and Non-Profit Organizations
ITR-7 is used by entities such as charitable and religious trusts, political parties, and research institutions. These organizations are required to file returns under specific sections of the Income Tax Act, making this form the appropriate choice.
Filing your Income Tax Return (ITR) within the stipulated deadlines is essential to ensure compliance with tax laws and to avoid penalties. The due dates for ITR filing vary based on the taxpayer's category and the necessity of an audit.
Individuals and Entities Not Requiring Audit:
Due Date: July 31, 2025
Details: This applies to salaried individuals, Hindu Undivided Families (HUFs), and others whose accounts do not require auditing.
Businesses and Professionals Requiring Audit:
Due Date: October 31, 2025
Details: Applicable to entities mandated to have their accounts audited under the Income Tax Act.
Entities Involved in Transfer Pricing:
Due Date: November 30, 2025
Details: Pertains to taxpayers engaged in international or specified domestic transactions requiring transfer pricing reports.
Belated or Revised Returns:
Due Date: December 31, 2025
Details: Taxpayers who miss the original deadline or need to amend their returns can file by this date.
Note on Date Extensions:
As of March 1, 2025, there have been no official announcements regarding extensions of these deadlines for the current assessment year. However, it's advisable to stay updated through official channels, as extensions can occur due to unforeseen circumstances. For instance, in the previous assessment year, the deadline for filing belated and revised returns was extended to January 15, 2025, for resident individuals.
Timely filing of your ITR is crucial to avoid penalties and ensure compliance with tax regulations. Always verify the latest updates from the Income Tax Department to stay informed about any changes to these deadlines.
Filing your income tax return (ITR) online offers convenience, accuracy, and faster processing. Income tax return filing through digital platforms streamlines tax compliance and minimizes errors. Below are the key benefits of income tax e filing:
1. Faster Processing and Refunds
Online filing ensures quicker verification and processing.
Refunds are processed faster compared to paper filings.
2. Accuracy and Error Reduction
Automated calculations minimize mistakes.
Pre-filled forms reduce the chances of incorrect entries.
3. Convenience and Accessibility
File from anywhere using a secure online portal.
Available 24/7, eliminating the need for physical paperwork.
4. Legal Compliance and Penalty Avoidance
Timely ITR filing prevents penalties under tax laws.
Late filing fees and interest charges can be avoided.
5. Essential for Financial Transactions
Required for loan approvals and visa applications.
Serves as proof of income for investments and high-value transactions.
Embracing income tax e filing ensures a seamless, secure, and hassle-free tax compliance experience.
Preparing the necessary documents in advance ensures a smooth income tax return filing process. Below is a checklist of essential documents for ITR filing based on income type and applicable deductions.
1. General Documents
PAN Card – Mandatory for filing income tax return.
Aadhaar Card – Required for verification and linking with PAN.
Bank Account Details – Necessary for tax refunds and verification.
2. Income-Related Documents
Salary Slips – Confirms salary earnings for salaried individuals.
Form 16 – Issued by employers detailing TDS deducted from salary.
Form 26AS – A tax credit statement showing taxes paid or deducted.
Rent Receipts – For claiming House Rent Allowance (HRA) deductions.
3. Investment and Deduction Proofs
Interest Certificates – From banks for fixed deposits and savings accounts.
Home Loan Interest Certificate – Required for tax benefits on home loans.
Tax-Saving Investment Proofs – PPF, ELSS, life insurance, and other deductions under Section 80C.
4. Business and Other Income Documents
Balance Sheet and Profit & Loss Account – Mandatory for businesses and professionals.
Capital Gains Statement – For stock market or property transactions.
Rental Income Details – Lease agreements and receipts for property owners.
Gathering these documents beforehand ensures an accurate and seamless ITR e filing process.
Filing your Income Tax Return (ITR) after the due date can lead to financial penalties and interest charges. For the Financial Year (FY) 2024-25, the following penalties apply:
Late Filing Fee Under Section 234F:
₹5,000 if the return is filed after the due date but on or before December 31 of the Assessment Year (AY).
₹1,000 if the total income does not exceed ₹5,00,000.
Interest Under Section 234A:
An interest of 1% per month or part thereof is levied on the unpaid tax amount from the original due date until the date of filing.
Restriction on Loss Carry Forward:
Taxpayers who file late are not permitted to carry forward certain losses, such as business or capital losses, to subsequent years.
Timely filing of your ITR ensures compliance with tax laws and helps avoid these additional charges.
The income tax return (ITR) filing process can be completed online through the official Income Tax Department portal. Filing electronically ensures faster processing, fewer errors, and quick verification. Follow these steps for seamless ITR e filing:
1. Log in to the Income Tax Portal
Visit the official income tax e filing website.
Enter your PAN, password, and captcha to access your account.
2. Select the Relevant Assessment Year and ITR Form
Choose the assessment year (AY 2025-26) for ITR filing for FY 2024-25.
Select the correct income tax return form based on your income type.
3. Verify and Pre-Fill Details
Review pre-filled data from Form 16, salary details, and TDS information.
Modify or update income, deductions, and exemptions where required.
4. Compute Tax Liability and Make Payments
Calculate total tax payable after deductions.
If tax is due, pay using Challan 280 and update payment details.
5. Submit and e-Verify the ITR
Review all details carefully before submission.
e-Verify using Aadhaar OTP, net banking, or Digital Signature Certificate (DSC).
Successfully completing income tax return filing before the due date for ITR filing ensures compliance and avoids penalties.
Failing to file your income tax return (ITR) on time can result in penalties and loss of tax benefits. However, there are still ways to comply with tax regulations if you miss the due date for ITR filing.
1. File a Belated Return
Taxpayers who miss the income tax return filing deadline can submit a belated return under Section 139(4). The last date to file a belated ITR for FY 2024-25 (AY 2025-26) is December 31, 2025. A late filing fee applies.
2. Pay Applicable Penalties and Interest
Late ITR filing incurs penalties under Section 234F and interest under Section 234A. Ensure all outstanding taxes are paid to avoid additional interest.
3. File an Updated Return (ITR-U)
If you fail to file even a belated return, you can submit an updated return (ITR-U) under Section 139(8A) within two years from the end of the relevant assessment year. This attracts an additional tax liability.
4. Avoid Future Non-Compliance
To prevent penalties and delays, it is advisable to complete income tax return filing well before the last date for ITR filing in the next financial year.
Taking immediate action ensures compliance and minimizes financial consequences.
Errors in income tax return filing can lead to delays, penalties, or even rejection of returns. Avoid these common mistakes to ensure smooth ITR e filing:
Choosing the Wrong ITR Form – Filing with an incorrect form can result in rejection or incorrect tax calculations.
Incorrect PAN or Personal Details – Errors in PAN, name, or date of birth can lead to verification issues.
Omitting Additional Income – Not reporting interest income, capital gains, or rental income can trigger tax notices.
Incorrect Tax Deductions and Exemptions – Claiming ineligible deductions under Section 80C, 80D, etc., may lead to scrutiny.
Not Paying Self-Assessment Tax – Any unpaid tax must be cleared before income tax return filing to avoid penalties.
Skipping e-Verification – Failure to e-verify within the deadline makes the ITR filing invalid.
Missing the Due Date – Filing after the last date for ITR filing results in penalties and loss of benefits like carrying forward losses.
Carefully reviewing details before submission ensures error-free income tax e filing.
Filing your income tax return (ITR) on time is essential for compliance, financial planning, and avoiding penalties. Understanding eligibility for income tax filing, choosing the right ITR form, and ensuring accurate documentation simplify the process. Timely income tax return filing not only helps in claiming tax benefits but also prevents unnecessary late fees and interest charges.
By leveraging income tax e filing, taxpayers can ensure a faster, more efficient, and error-free submission. Avoiding common mistakes and staying ahead of the due date for ITR filing safeguards financial stability. Plan early, verify details carefully, and complete your ITR filing well before the last date for ITR filing for a stress-free experience.
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Income tax return (ITR) filing is the process of submitting tax details to the Income Tax Department. It involves reporting income, deductions, and tax liability. Timely income tax return filing ensures compliance and helps claim refunds if excess tax is paid.
Eligibility for income tax filing depends on income levels and financial activities. Individuals earning above ₹2.5 lakh, businesses, and professionals must complete income tax return filing. Those with high-value transactions or tax deductions at source must also comply with ITR filing requirements.
Income tax return filing is mandatory if income exceeds the taxable limit. Businesses, salaried individuals, and professionals must ensure timely ITR filing. Non-filing can lead to penalties, loss of refunds, and non-compliance issues with tax authorities.
The due date for ITR filing for FY 2024-25 (AY 2025-26) is July 31, 2025, for non-audit cases. Businesses requiring audits must complete income tax return filing by October 31, 2025. Transfer pricing cases have a deadline of November 30, 2025.
Income tax return filing is done online through the e-filing portal. Taxpayers log in, choose the correct form, enter details, compute tax, and verify submission. Completing income tax return filing on time avoids penalties and ensures accurate tax assessment.
Choosing the right income tax return form depends on income sources. ITR-1 suits salaried individuals, ITR-2 covers multiple incomes, while ITR-3 is for business owners. ITR-4 applies to presumptive taxation. Correct income tax return filing ensures compliance.
To check income tax return filing status, log in to the e-filing portal, go to ‘View Returns/Form,’ and track the ITR status. Proper income tax return filing and verification ensure successful processing and timely refunds, if applicable.
Yes, belated income tax return filing is possible until December 31 of the assessment year. Late ITR filing attracts penalties under Section 234F. Filing income tax return within the due date avoids fines and ensures compliance with tax laws.
Income tax return filing charges vary based on service providers and complexity. Professional assistance ensures accurate ITR filing. Costs depend on taxpayer category, income complexity, and additional services required for income tax return filing support.
Early income tax return filing prevents last-minute errors, ensures quicker refunds, and avoids system glitches. Timely ITR filing helps in financial planning, reduces stress, and ensures compliance with tax deadlines, preventing penalties under tax laws.
In India, individuals, Hindu Undivided Families (HUFs), companies, firms, associations of persons (AOPs), bodies of individuals (BOIs), local authorities (LAs) and any other artificial juridical person are liable to pay income tax if their total income exceeds the minimum exemption limit
Yes, there is a difference in how an individual’s income is taxed and how a firm or company’s income is taxed. While an individual’s tax rates vary according to income slabs, for firms, it is a flat rate ranging from 22% – 40%.
For FY 2023-24, under the old regime, the minimum threshold limit above which one becomes liable to file a return is ₹2.5 lakh for individuals below 60 years; ₹3 lakh in case of senior citizens (aged between 60-80 years) and ₹5 lakhs for super senior citizens (above 80 years). In the new regime, it is ₹3 lakh for all individuals.
Tax liability represents the total amount of taxes which should be paid by you on your earnings, whereas tax payable refers to the actual outflow after considering deductions, TDS, advance taxes, etc.
A tax asset can be described as something that will reduce future payments such as prepaid or overpaid taxes. On the other hand, tax liability is the amount of tax owed to the government based on your income and other taxable activities.
Yes, if the taxpayer pays more than the tax liability, meaning the amount you paid is more than the amount you owe, then a refund may be claimed by filing an ITR.
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