An Income Tax Return (ITR) is a form that is majorly utilised to file the details of your income and the applicable tax to the Income Tax Department of India. It was cited by the Indian income tax laws that every person and business earning an income must file the Income tax return. The same supports in showing the taxable income, tax liability, and tax deduction claims, if any.
Under the income tax rules and regulations, it is important to file taxes for every citizen of India. Whether you are an individual, an association or a firm, LLP, a local authority, or a Hindu undivided family, your income for each fiscal year is charged to tax as per the Income Tax laws. Therefore filing the ITR yearly is crucial. At your convenience, you may choose to file an income tax return online or offline.
Income Tax Return (ITR) is a form which an individual is needed to submit to the Income Tax Department of India. The same secures the details of the income of the person and the tax that is required to get paid on it in the year. The data furnished in ITR filing last date must be related to a specific fiscal year i.e. starting on 1st April and ending on 31st March of the next year.
Latest update for Extended Audit Reports on the e-filing Portal: The Central Board of Direct Taxes (CBDT), the deadline for submitting various audit reports for the Previous Year 2023-24 has been extended from 30 September 2024 to 7 October 2024 for assessees who fall under clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act. official notification
What Does an Income Tax Return mean?
A person with the ITR form is required to submit it to the Income Tax Department of India. It comprises of the details of the income of the person along with the due taxes on it in the year. It computes your net income tax obligation for a financial year. For the specific fiscal year between 1st April to 31st March of the subsequent year, the information furnished in an ITR must be applicable.
A person under 60 years of age should file tax returns if a part of their income is charged to tax, as per the Income Tax Act of 1961. If the income taxable is more than Rs 5 lakh in a fiscal year or you have filed advance tax then you would indeed required to submit an ITR. While ITR filing you are required to pay your obligated taxes as per your applicable income tax slabs. The Income Tax Department has defined 7 types of ITR forms – ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7 and applicability of the form will be as per the nature and amount of income and the type of taxpayer.
What is E-filing of Income Tax?
An electronic submission of ITRs is called an e-filing of income tax. The same could be performed via the official website of the income tax department or validated third-party websites. Assesses can choose for income tax e-filing. A PAN is important for tax return filing.
Who Needs to File Income Tax Returns?
As per the income tax act the income tax would be required to get paid merely via individuals or businesses who comes under the specific income slabs. Below are the entities or businesses that are mandated to file their ITRs in India:
- All individuals up to the age of 59, whose total income for a Fiscal year surpasses Rs 2.5 lakh. The limit for senior citizens (aged 60-79) would surge to Rs 3 lakh and for the super senior citizens (aged 80 and above) the limit is Rs. 5 lakhs. On using the income tax calculator learn to input your gross income before applying deductions u/s 80C to 80U and exemptions u/s 10. Based on your total earnings this ensures accurate tax calculations.
- All registered companies that generate income, irrespective of whether they have made any profit or not in the year.
- Those who claim a refund on the excess tax deducted/income tax they have submitted.
- Individuals who hold the assets or financial interest entities that are located outside India.
- Foreign companies that attain treaty advantages on transactions made in India.
- NRIs who earn more than Rs. 2.5 lakh in India in a fiscal year.
Types of (Income Tax Retrun) ITR Forms
For distinct categories of individuals and sources of income, there are 7 distinct sorts of ITR forms. As per the class of income generation, the Income tax department has different forms for each assessment. As per the Central Board of Direct Taxes in India, you should utilize the pertinent form to furnish your income tax. Below is the brief for the forms-
Income Tax is further subdivided into many categories but there are three main categories of income tax based on the category of the payee and time of payment.
These are:
- TDS (Tax Deducted at Source)
- Advance Tax
- Self-Assessment Tax
1. Tax Deducted at Source (TDS)
TDS, as it is commonly known as Tax Deducted at Source. The tax is paid by a third person/corporation who/which happens to be the source of income for the taxpayer if the payment exceeds certain threshold limits at the rate prescribed by the government of India.
The other person/corporation must, however, abide by the prevalent IT laws. TDS is an ideal mechanism for the government to ensure timely Income Tax payment as well as curb tax evasion.
2. Advance Tax
Also referred to as the ‘pay as you earn Scheme’ in contrast to the scheduled annual tax payment tax procedures, Advance Tax is paid on a Presumptive basis.
Taxpayers, Businesses, Salaried Individuals, and freelancers with tax liabilities during the current financial year greater than Rs 10,000 need to pay advance tax in four instalments throughout the financial year in which they earn income.
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Budget 2024: Updated Tax Slabs Under the New Regime
the tax slabs are been revised in the Budget 2024 in the new regime furnishing the taxpayers with a chance to save Rs 17,500 in taxes. Also, the standard deduction has been raised to Rs. 75,000 under the same regime and the family pension deduction has been surged to Rs 25,000 from Rs. 15,000. It has been applicable for FY 2024-25. The comparison between the tax slabs after and before the budget is stated as-
Advance Taxes of Income Tax slab for FY 2023-24 (AY 2024-25)
Payment of Advance Tax: Self-employed and businessmen
| New Tax Slab for FY 2024-25 | Tax Rate |
|---|---|
| Upto ₹ 3 lakh | Nil |
| ₹ 3 lakh – ₹7 lakh | 5% |
| ₹ 7 lakh – ₹ 10 lakh | 10% |
| ₹ 10 lakh – ₹ 12 lakh | 15% |
| ₹ 12 lakh – ₹ 15 lakh | 20% |
| More than 15 lakh | 30% |
Payment of Advance Tax: Companies
| Due Date | Pay Advance Tax |
|---|---|
| On or Before 15th June | 15% |
| On or Before 15th September | 45% |
| On or Before 15th December | 75% |
| On or Before 15th March | 100% |
Note: The Assessee who are covered under 44AD and 44ADA (i.e. Presumptive Income) are also required to pay Advance Tax on or before 15th March of the previous year. However, any tax paid till 31st March will be treated as Advance Tax.
3. Self-Assessment Tax
This is the balance or remaining tax paid by an individual or taxpayer after taking into account the TDS and Advance Tax.
What is meant by Assessment year and Financial Year?
Financial Year is the current working year in which an individual or corporation earns income. The Assessment Year is, on the other hand, the succeeding year in which an evaluation of the previous year’s income has to be made.
Assessment Year involves:
- Income Evaluation.
- Paying Taxes on the evaluated income as per the rate(progressive) and time ( regular or periodical or occasional) notified by the IT Department.
- For FY 2023-24, the AY is 2024-25.
- The due Date for filing Income Tax Returns for FY 2023-24 (AY 2024-25) by the assessee whose accounts are not required to be audited is 31st July 2024.
- The due date for filing Income Tax Returns for FY 2023-24 (AY 2024-25) by assessees whose accounts are required to be audited is 31st October 2024.
- The due date for all the categories of assesses in UTs of J&K and Ladakh who are required to file ITR and accounts not required to be audited is 31st July 2024 while for those whose accounts are required to be audited is 31st October 2024.
Income Tax Returns (ITR)
ITR are forms that are mandatorily filled by individuals whose annual income is greater than a pre-set threshold limit set by the Finance Department. For distinct categories of individuals and sources of income, there are 7 distinct sorts of ITR forms. As per the class of income generation, the Income tax department has different forms for each assessment. As per the Central Board of Direct Taxes in India, you should utilize the pertinent form to furnish your income tax.
In simple terms, ITR forms are taxpayers’ statements detailing/her earnings Salary, interest, dividends, capital gains, or other profits, the total tax paid on earnings, and the appropriate refunds to be repaid to him/her by the Government. Below is the brief for the forms
ITR 1 or Sahaj
ITR 1 or Sahaj is a form for those individuals who hold an income of up to Rs 50 lakh from pension, salary, income from additional sources, and one house property. Though, all salaried persons can not use the same form to file taxes.
ITR 2
Resident individuals or Hindu Undivided Families (HUF) who cannot file the ITR 1 or Sahaj form can use such form. However, if you have a business or professional income, then you cannot use ITR-2.
ITR 2A
For HUFs and individuals who own more than one house property without any capital gains income and have salary income, this is a newly launched ITR form for them. The same form is for you if you have long-term capital gains and you have paid Securities Transaction Tax.
ITR 3
The ITR 3 form belongs to the individuals or HUFs having income from proprietary business or profession. Or it can be said that Hindu Undivided Families or individuals who are not eligible for ITR 1, ITR 2, and ITR 4, can file ITR 3. Indeed ITR 3 should also needed to get filed by those who are obtaining interest, bonus, salary, or commission from a partnership firm as business income.
ITR-4 or Sugam
ITR 4 or Sugam is for all sorts of professions, businesses, HUFs, and undertakings. You are enabled to file the ITR-4 if your total income comprises business or professional income under sections 44AD, 44ADA, or 44AE, income from one house property, salary income, and income from additional sources. You could not furnish the same form if your income surpasses Rs 50 lakh in a financial year.
ITR-4S
ITR-5 is for LLPs (Limited Liability Partnerships), firms, business trusts, Artificial Juridical Persons (AJP), Estate of deceased, BOIs (Body of Individuals), AOPs (Association of Persons), estates of insolvents, and investment funds.
ITR 5
Co-operative societies, firms, Artificial Juridical Persons, Associations of Persons, local authorities, and Bodies of Individuals are qualified to furnish their income taxes with the same form.
ITR 6
Only via online mode the same form could get filed. Firms and organizations can use the form merely when they are not asserting tax exemption u/s 11.
ITR 7
To claim tax exemption this form can be used only by political parties, religious or charitable trusts, colleges, universities, etc.
Income Tax Return Due Date for FY 2023-24 (AY 2024-25)
The Income Tax Return Filing Due Date for the FY 2023-24 (AY 2024-25) for all the categories of taxpayers are specified below:
| Particulars AY 2024-25 | Due Date |
|---|---|
| Individuals, HUF, BOI, AOP (Income Tax Return by Assesse whose Books of Account are not required to be audited) | 31st July 2024 |
| Filing ITR Due Date for (Assessee who are required to furnish report under sec 92E) | 30th November 2024 | 15th December 2024 (Extended) |
| Due date for eligible taxpayers to submit income tax audit reports on the e-filing portal | 7th october 2024 |
| Due date of filing the Income Tax Return by businesses whose Books of Account are required to be audit | 31st October 2024 |
| Due Dates for Tax Audit Report (3CA-3CD/3CB-3CD) (“filing of Tax Audit Report for all categories of assessees whose account are required to be audited”) | The date one month prior to the due date for furnishing the return of income under sub-section (1) of section 139 |
| The due date of furnishing of belated/revised Return of Income for the AY 2024-25, under sub-section | 31st December 2024 |
| Revised Return/ Belated Return | 31st December 2024 |
| Revised Return (ITR-U) | 31st March 2026 |
Latest notification
- The CBDT has revised the due date for filing income tax returns to provide reports under Section 92E to December 15, 2024. Read Notification
- Income tax audit reports for FY 2023-24 must be submitted by September 30, 2024, on the e-filing portal.
- The income tax department extended the last date to link PAN with Aadhaar is May 31, 2024. Read Also
Which ITR Form should you fill out?
The official website of the Income Tax Department provides a list of forms that taxpayers may need to complete based on their income. Some forms are straightforward, while others require additional information such as profit and loss statements. To help you understand the available forms better, here is a list of the most commonly used ITR forms:
ITR-1: Sahaj or ITR-1 is to be filed by individuals being a resident (other than not ordinarily resident) holding a total income up to Rs.50 lakh, including Income from Salaries, one house property, other sources (Interest etc.), and agricultural income up to Rs.5000.
ITR-2: The same form must be filed via Individuals and HUFs that do not have the income from profits and gains of business or profession.
ITR-3: ITR-3 Form is for individuals and HUFs holding income from profits and gains of business or profession.
ITR-4 (Sugam): If your business draws a presumptive income for you then you are required to fill the same form. The same form is needed to get filled via individuals, HUFs, and Firms (other than LLP) being a resident containing total income up to Rs.50 lakh and having income through the business and profession which is calculated u/s 44AD, 44ADA, or 44AE.
Rebate
The Interim Budget for FY 2019-20 has introduced full tax rebates under section 87A for individuals earning net taxable income up to Rs 5Lakh which means that the maximum rebate allowed under section 87A is 12,500. However, if the individual earns more than Rs 5 Lakh as net taxable income then no rebate will be allowed.
Late Fee
Late filing of tax returns for the financial year 2023-24 was notified to taxpayers by the income tax department, which imposed a penalty of Rs 5000. In the case of incomes below Rs 5 lakh, the penalty will not exceed Rs 1000.
| Late Income Tax Filing Fee Details | ||
| E-Filing Date | Total Income Rs 5,00,000 | Total income more than Rs 5,00,000 |
| Before 31st July 2024 (Non-audit) and 31st october 2024 (Audit cases) | Rs 0 | Rs 0 |
| After 31st July 2024 (Non-audit) and 31st october 2024 (Audit Cases) | Rs 1000 | Rs 5000 |
-> Limit In Donations
Previously, cash donations of up to Rs. 10,000 were permitted in terms of deduction.
-> Section 194-IB For HUF and Individuals Paying Rent Exceeding Rs 50,000 a Month
HUF and Individuals who pay Rs. 50,000 and more in rent per month, 5% TDS will be deducted on such rent amount.
-> Cess
The government charges 4% Health and Education Cess on the direct income tax liability of individuals
-> Income from Salaries
From the salaried income, a standard deduction at a fixed price of Rs. 50,000 for reimbursement and Transport of various medical spendings will be permitted. This deduction is also exercisable to Pensioners who presently do not obtain those benefits.
Moreover, the medical reimbursement advantages in hospitalization cases will be available along with the standard deduction as mentioned above.
What is the Process for filing an ITR online?
From both online and offline channels income tax filing can be completed. Below are some ways to file your Income tax return. ITR online filing steps-
Step 1: Go to the official page of income tax e-filing.
Step 2: Using your PAN number and password log in to your account. If you do not have an account, you are mandated to make a new account using the correct details.
Step 3: Proceed to ‘File Income Tax Return’ from the ‘e-file’ tab.
Step 4: Choose the correct income category from the list. (individual, HUF, and so on).
Step 5: Select the accurate ITR form and proceed by entering your bank account details.
Step 6: Review the preview of your income tax return by inspecting the prefilled form. You can make modifications if needed.
Step 7: Confirm the form and take a printout. Send a hard copy to the Income Tax Department for verification. In another way, you can e-verify your Income Tax Returns by Aadhaar OTP or prevalidated bank account.
How to File an ITR with the Necessary Documents
The Income Tax department requires taxpayers to provide a breakdown of their gross salary income and income made via additional sources at the time of filing their ITR. This is why both taxpayers and tax professionals aim to collect their income tax documents on time.
Therefore it is effective to maintain all the income tax documents needed for ITR.
The needed ITR e-filing documents lists are specified below-
Form-16: It is a TDS certificate that would be furnished via your employer when the TDS gets deducted from your salary. It comprises two portions that have Part A comprising the employer’s and employee’s information, including the name and address, Permanent Account Number (PAN), and TDS details. Part B comprises the information on salary paid, exemptions allowed, deductions claimed, and tax payable on the income of the employee.
Bank/Post Office Interest Certificates: The earned interest from post office savings accounts, savings bank accounts, recurring deposits, and fixed deposits are imposed to tax as per the Income Tax Act. Therefore you are required to furnish the breakup of the interest obtained from distinct sources.
Form-16A and Other TDS Certificates: The salaried individuals need to collect other TDS certificates if applicable. The banks ought to deduct TDS if your total fixed deposit income exceeds Rs 40,000 (50,000 for senior citizens). It is crucial that mutual fund houses need to deduct TDS on dividend payments that surpass Rs 5,000 in a fiscal year. Collect Form- 16A in both cases.
Annual Information Statement (AIS): Income Tax Department introduced the Annual Information Statement (AIS) in 2021. It is a complete document compared to Form 26AS and consists of all the information on your financial transactions in a fiscal year.
Form 26AS: Form 26AS is similar to the tax passbook which comprises the details of the taxes deposited and deducted against your PAN. You can download the same via the new income tax portal.
Proof of Investment and Expenditure: One is needed to maintain documents like deposit certificates, demat account statements, investment receipts, etc., as proofs of investment and expenditure.
Capital Gains: If you does have the investments in shares, mutual funds debentures, and property and your realized gains surpass Rs 1 lakh in a fiscal year then it is imposed to tax as per the long-term capital gains. Hence it is significant to make the pertinent documents to display your capital gains income.
Elements of Foreign Assets: You are required to cite all the assets that you have in any foreign country, along with the bank accounts property, etc in your ITR.
Aadhaar number: It is crucial to cite your Aadhaar card number in your ITR under section 139AA of the Income-tax Act, 1961.
Bank Account Details: You are mandated to specify the account number, bank name, account type, and IFSC code of all the bank accounts that you own. If you have closed your account in the middle of the fiscal year even then it is needed.
Tax-saving Investment Proofs: The tax-saving investments incurred via you can assist in decreasing the tax obligation under sections 80C, 80CCC, and 80CCD(1) in FY 2019-20. The investments proofs in the Employee Provident Fund (EPF), Public Provident Fund (PPF), and Life Insurance therefore form part of the income tax documents that you require to submit the ITR.
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