Service Details

ITR Filing

What is ITR Filing?

Income Tax Return (ITR) filing is the process of declaring your income, expenses, and taxes paid to the Income Tax Department by Individual or businesses. This is usually done on an annual basis. Filing ITR is mandatory for individuals and entities whose income exceeds a certain threshold as specified by the tax authorities. It ensures that you have paid the correct amount of tax and allows you to claim refunds if you have overpaid. Filing ITR is crucial for staying compliant with tax laws and maintaining financial stability.

Benefits of ITR Filing :

  • Legal Requirement :
It is a legal obligation for eligible taxpayers if your income exceeds the basic exemption limit.
  • Enhanced Safety -
It is a legal obligation for eligible taxpayers if your income exceeds the basic exemption limit.
  • Proof of Income :

ITR serves as a documented proof of your income.

  • Loan Applications :
Banks often require ITR receipts to process for loans or schemes.
  • Claim Tax Refunds :
If you have paid excess tax, filing ITR allows you to claim a refund.
  • Carry Forward Losses :
You can carry forward losses to offset future income.
  • Visa Processing :
Foreign consulates may ask for ITR receipts for visa processing.

Types of ITR Forms:

  • ITR-1 :
Suitable for individuals with income from salaries, one house property, and other sources, with a total income up to INR 50 Lakh.
  • ITR-2 :
ITR-2 is applicable to individuals and Hindu Undivided Families (HUFs) having Salary, Rental Income and Capital Gains but not having income from Profits and gains of business or profession.
  • ITR-3 :
ITR-3 is designed for individuals and HUFs having income from profits and gains of business or profession who are not eligible to choose ITR-4.
  • ITR-4 :
ITR-4, also known as Sugam, is meant for assessees who choose to utilise the presumptive income scheme as per Sections 44AD, 44ADA, and 44AE of the Income Tax Act.
  • ITR-5 :
ITR-5 is for firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), and Body of Individuals (BOls).
  • ITR-6 :

ITR-6 is for companies other than companies claiming exemption under section 1l (Income from property held for charitable or religious purposes)

  • ITR-7 :
ITR-7 is for persons including companies required to furnish return under sections 139(4) or 139(4C) or 139(4D) including Trusts.

Steps to File ITR :

  • Collect Documents :
Firstly, gather necessary documents like Form 16, bank statements, investment proofs and basic requirements of the individual, etc
  • Register on the Income Tax Portal :
Then, create an account on the Income Tax Department’s e-filing portal if you don’t have one. Or if you have, then we can login with the same login credentials.
  • Choose the Correct ITR Form :
Select the appropriate ITR form based on your income sources like dividend, business income, capital gain or other sources of income.
  • Fill in the Details :
Enter personal information, income details including education loan, medical insurance, donation etc. and tax paid information including in the form.
  • Verify Information :
Cross-check the details like personal information, income details, tax paid information to ensure accuracy and effectiveness.
  • Upload the Form :
Upload the completed ITR form on the e-filing portal having all details of income and tax paid information
  • E-Verify the Return :
Verify your return using one of the available e-verification methods like DSC or otp.

Due Date for Filing ITR

  • Individuals and HUFs :

July 31st of the assessment year.

  • Businesses requiring audit :

September 30th of the assessment year.

Penalties for Non-Filing or Late Filing :

Filing your ITR after the due date can impose penalties and extra charges. The penalty amount varies based on the delay period and the taxpayer’s income.

FAQs

Common Questions About Our Consulting Services

Who needs to file an ITR?

Anyone with an income above the basic exemption limit, including salaried individuals, self-employed persons, companies, and firms.

Form 16 is a certificate issued by an employer showing the salary paid and TDS deducted during the financial year.

Yes, you can file a ITR after the due date but before the end of the assessment year, with possible penalties.

Failure to file ITR can result in penalties, interest on tax dues, and legal action.

You can verify your ITR through Aadhaar OTP, net banking, EVC, or by sending a signed physical copy to the Income Tax Department.

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