Each taxpayer whose annual income is more than the basic exemption limit under the Income Tax Act needs to file their Income Tax Returns in India so that they can ensure compliance and avoid paying penalties and fines. The IT Department revises the income slabs and rates in each financial year so that the taxpayers can have updated benefits. As the income increases, taxes are imposed by the increased rates. ITR filing in India ascertains that taxpayers enjoy such benefits that non-taxpayers miss out on. As the sources of income are different and wide, the forms for filing ITR also vary. To know complete details about what form to file for a particular source of income, browse the page, or you can reach out to tax professionals at TaxDunia for expert guidance.
Who Must File an ITR in India?
Anyone residing in India, whether HUF, individual, firm, company, business entity, or any other entity, and earning income more than the basic exemption limit, has to file an ITR. You must file an ITR if any of the following apply to you
- Annual income is more than Rs 3,00,000 under the new tax regime (applicable for FY 2024-25, AY 2025-26)
- You are a company or a firm
- Want to carry forward capital losses for the next financial year
- Own financial assets outside the country
- Have a signing authority in a foreign account
- You are a political party, university, college, or other institution
- Receive income from a property held under a trust (charitable or religious)
- You are an infrastructure investment trust, a real estate investment trust, or an alternative investment fund
What Documents Needed for ITR Filing?
- PAN, Aadhaar, and bank details
- Bank statement for the financial year, details of investment made in LIC, Mutual Funds, Shares, Medical Insurance, etc.
- Details of expenses
- House loan details like interest certificates, repayment schedules, property details, etc., if getting a house property income
- Rent receipt and agreement if receiving rental income
- Form 16A for salary receipts
Comprehensive Guide to File ITR in India
Step 1: Go to the Income Tax e-filing website and log in with valid credentials, and click on “income tax return.”
Step 2: Enter the details like assessment year, ITR form number, filing type whether revised or original return, and submission mode.
Step 3: Select your status as a taxpayer and begin with an appropriate form. Now the details depend on the type of return form you have selected.
Step 4: Proceed for validation and submit with an electronic verification code or one-time password. Once verified, you will receive an acknowledgement number on the registered mail ID or mobile number.
Why You Must File ITR?
Taxpayers who opt to file your Income Tax Returns, whether they have taxable income or not, enjoy several benefits. After filing an ITR, accessing refunds becomes possible. In case you have already paid advance tax or TDS/TCS Rates, but it is more than your overall tax liability, you can claim a refund. To claim the refunds, applicants must have to file their ITR before the due date.
To get access to loans, a bank or any other financial institution approves loans when the person files returns to the income tax department. The institutions inspect whether the person getting loans has good financial well-being or not.
To carry forward capital losses incurred in the previous financial years, one must file an income tax return, that too before the due date. The incurred losses can be set off from the income in the upcoming years if one has filed the returns on time. This way, you can also reduce the total taxable income, decreasing overall tax liability.
Why Seek Professional Assistance?
Seeking professional assistance related to taxation and finance, you can ensure that you are tax compliant and updated with the latest laws. It makes sure that your financial activity remains unaffected due to legal bottlenecks and financial hurdles. Real-time monitoring and comprehensive support enable you to navigate the future securely.
