What is Income Tax Return (ITR) Filing?
Income Tax Return (ITR) filing is the process by which taxpayers declare their income, deductions, and tax payments to the Income Tax Department of India. It's a mandatory annual compliance for individuals and businesses meeting certain income criteria.
When you file your ITR, you:
- Report your total income from all sources
- Claim eligible deductions and exemptions
- Calculate your tax liability
- Claim refunds if excess tax was paid
- Maintain financial records with the government
Key Benefits of Timely ITR Filing
Filing your income tax return on time offers numerous advantages beyond just compliance:
Visa Processing
Many countries require ITR receipts as proof of income for visa applications.
Loan Approval
Banks and financial institutions ask for ITR copies for home, car, and personal loans.
Credit Card Approval
Higher limit credit cards often require ITR as income proof.
Tax Refunds
Claim refunds if excess TDS was deducted from your income.
Carry Forward Losses
Report losses to carry them forward for future tax benefits.
Who Needs to File ITR?
ITR filing is mandatory for:
- Individuals with gross income > ₹2.5 lakhs (₹3 lakhs for senior citizens)
- Companies and firms regardless of profit/loss
- Those claiming tax refunds
- Residents with foreign assets/income
- Those who deposited > ₹1 crore in bank accounts
- Spent > ₹2 lakhs on foreign travel
- Paid > ₹1 lakh in electricity bills
- Businesses with turnover > ₹60 lakhs
Documents Required for ITR Filing
The documents needed vary based on your income sources:
For Salaried Individuals:
Form 16
From your employer
Salary Slips
All monthly slips
House Rent Receipts
If claiming HRA
Investment Proofs
80C, 80D deductions
For Business/Professionals:
Profit & Loss Statement
Audited if applicable
Balance Sheet
With schedules
Expense Bills
Major business expenses
Bank Statements
All business accounts
Our Simple 5-Step ITR Filing Process
We make tax filing quick and hassle-free:
1. Document Collection
Our tax expert will guide you on required documents based on your income sources.
2. Income Calculation
We analyze all your income sources and calculate taxable income accurately.
3. Deduction Optimization
We identify all eligible deductions to minimize your tax liability legally.
4. ITR Preparation
We prepare your return using the correct ITR form based on your income profile.
5. Filing & Verification
We e-file your return and guide you through the verification process.
Transparent Pricing
Our ITR filing packages include:
| Service | For Income Up To | Our Fee | Best For |
|---|---|---|---|
| Basic ITR-1 | ₹50 lakhs | ₹999 | Salaried individuals |
| Standard ITR-2 | ₹1 crore | ₹1,499 | House property, capital gains |
| Premium ITR-3/4 | No limit | ₹2,999 | Businesses, professionals |
| Revised Return | - | ₹799 | Correction of filed returns |
Important ITR Filing Deadlines
Know the crucial dates to avoid penalties:
For Individuals
July 31: Normal due date
Dec 31: Late filing deadline
March 31: Belated/revised return
For Businesses
Oct 31: Audit cases
Nov 30: Transfer pricing cases
March 31: Revised returns
Penalties
₹5,000: Late filing penalty
₹10,000: If filed after Dec 31
1% interest: On unpaid tax
Best Practices
File early: Avoid last-minute rush
Verify: Within 120 days of filing
Keep records: For 6 years
Frequently Asked Questions
Common queries about ITR filing answered by our tax experts:
You may face penalties up to ₹10,000, interest on unpaid tax, and lose right to carry forward losses. Late filing also delays refunds.
ITR-1 for salaried individuals, ITR-2 for capital gains/house property, ITR-3 for business income, ITR-4 for presumptive taxation.
Yes, using salary slips and bank statements, but Form 16 makes the process easier and more accurate.
Typically 20-45 days after e-verification, but may take longer for scrutiny cases.
Yes, your return is not complete until verified via Aadhaar OTP, EVC, or signed physical copy.