ITR filing

The tax department allows taxpayers to file their returns through both online and offline modes. Taxpayers can log in to the e-filing portal of the tax department and follow the necessary steps to complete filing of their tax returns. Alternatively, they can download the offline utility from the department’s website to file their tax returns.

Income Tax Return (ITR) Filing: Key Points

• What is ITR Filing?
  
  
  
  • ITR filing is the process of submitting a report to the Income Tax Department of India detailing your annual income, deductions, and taxes paid.
  
  
  
  


• Who Should File?
  
  
  
  • Mandatory for individuals, businesses, and entities that earn taxable income, including salaries, business profits, property income, capital gains, and more.
  
  
  • Required even for individuals with an annual income above the basic exemption limit (e.g., ₹2.5 lakh for individuals below 60 years).
  
  
  
  


• Types of ITR Forms:
  
  
  
  • There are several types of ITR forms (e.g., ITR-1, ITR-2, ITR-3), each tailored to different types of income and taxpayers (individuals, businesses, etc.).
  
  
  
  


• Due Date for Filing:
  
  
  
  • Generally, July 31st for individual taxpayers and non-audit cases.
  
  
  • Companies and entities that require audit usually have a due date of September 30th or later, subject to extensions.
  
  
  
  


• Online and Offline Filing Options:
  
  
  
  • ITRs can be filed electronically (e-filing) through the Income Tax Department’s official website.
  
  
  • Manual paper filing is allowed in certain cases, but e-filing is mandatory for most taxpayers.
  
  
  
  


• Importance of Filing on Time:
  
  
  
  • Timely filing helps avoid penalties, late fees, and potential prosecution for non-compliance.
  
  
  • Late filing can attract penalties up to ₹10,000 and may result in restricted access to some deductions.
  
  
  
  


• Verification of ITR:
  
  
  
  • After filing, taxpayers must verify their ITR, which can be done electronically (using Aadhaar OTP, bank OTP, etc.) or by sending a signed ITR-V form to the Income Tax Department.
  
  
  
  


• Refunds and Processing:
  
  
  
  • If taxes paid exceed the actual tax liability, refunds are processed after ITR verification.
  
  
  • The refund amount, if any, is credited to the taxpayer’s bank account directly.
  
  
  
  


• Benefits of Filing ITR:
  
  
  
  • Filing ITR builds financial credibility, helping with loan approvals, visa applications, and as proof of income.
  
  
  • Allows individuals to claim deductions and exemptions under various sections, such as 80C, 80D, and 80G, reducing overall tax liability.
  
  
  
  


• Consequences of Non-Compliance:
  
  
  
  • Failure to file ITR can lead to penalties, prosecution, and inability to carry forward losses for future tax adjustments.