Income Tax return (ITR) Filing
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ITR (Income Tax Return) Filing in India - Overview, Documents ,Checklist , due dates, benefits of filing ITR & More
Every responsible Indian citizen is required by law to file income taxes with the government. You may quickly file your income tax online using today's technologies. This procedure is quick and precise, with no time limits.
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However, submitting an income tax return in India via the official website necessitates the completion of ITR forms. Individuals must complete a different ITR form than salaried employees. This is an important activity since the income tax agency has a variety of documents designated ITR 1 through ITR 7. Each form serves a unique purpose and belongs to a distinct category.
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Even if you skip a single field on the form or make any mistakes, your income tax will be late. This is when professional assistance is required. Accubucks Solution submits income taxes on a regular basis for both individuals and businesses. As a result, you may rely on us to file your income tax return online. You must furnish us with the following papers in order to do so.
What is Income Tax?
Income tax is a sort of tax levied by the central government on the income produced by people and corporations during a fiscal year. The government generates income through taxes. The government spends this money for infrastructure development, healthcare, education, agricultural subsidies, and other government welfare programs. Taxes are classified into two types: direct taxes and indirect taxes. Direct tax, for example, is a tax applied directly on earned income. Income tax is a type of direct tax. The tax calculation is based on the income slab rates that were in effect during that fiscal year.
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Direct taxes can be characterized as follows:
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Income tax
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This is the tax on income paid by an individual, a Hindu Undivided Family, or any taxpayer other than a corporation. The legislation specifies the rate at which such income is taxed.
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Corporate Tax
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This is the tax that corporations pay on their company profits. Again, the income tax rules of India have imposed a certain rate of tax for corporations.
ITR (Income Tax Return) E-Filing Due date
Filing your Income Tax Return (ITR) on time is crucial to avoid penalties and legal complications. Below is a details on the ITR filing due dates for different categories of taxpayers for Financial Year (FY) 2024-25 / Assessment Year (AY) 2025-26.
ITR Due Date for Salaried Individuals & Non-Audit Taxpayers – 31st July 2024
The due date for filing ITR is 31st July 2024 for:
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Salaried individuals
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Freelancers
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Small business owners who do not require an audit
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ITR Due Date for Businesses Requiring Audit – 31st October 2024
Assessee who must get their accounts audited under Section 44AB of the Income Tax Act.
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The audit report must be submitted by 30th September 2024, a month before the ITR deadline.
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The final ITR filing due date for such taxpayers is 31st October 2024.
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ITR Due Date for Taxpayers Under Transfer Pricing Audit – 30th November 2024
Taxpayers having international transactions with related parties must comply with Transfer Pricing (TP) regulations.
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The TP audit report must be submitted by 31st October 2024.
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The final ITR filing deadline for such taxpayers is 30th November 2024.
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Due Date for Revised or Belated ITR – 31st December 2024
If you miss the original due date, you can still file a belated return by 31st December 2024, but a late fee will apply.
Additionally, if you made errors in your original ITR, you can revise and refile it by this date without penalties.
Income Tax Law
The Income Tax Act
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The Income Tax Act contains all of the provisions governing the country's taxation. Every year in February, the Finance Minister delivers a budget. The Union Budget amends the Income Tax Act in a number of ways. The current Finance Minister's most recent Union Budget featured the implementation of a new tax framework.
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Aside from the IT Act, the income tax law also includes income tax rules, circulars, notifications, and case laws. All of this aids in the application of income tax legislation and the collection of taxes.
Benefits of e-Filing of Income Tax Return
E-filing your income tax return offers various benefits that might make your financial life easier. Here's how it can assist you:
Compliance with the Law & Avoiding Penalties
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Filing an ITR ensures you are complying with the Income Tax Act. If your income exceeds the basic exemption limit, non-filing can lead to penalties, legal notices, and prosecution.
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Late filing attracts a penalty of ₹1,000 to ₹5,000 under Section 234F.
Non-filing may also result in higher scrutiny from the Income Tax Department.
Tip: Even without taxable income, filing an ITR helps build a financial record.
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Income Tax Refunds
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If excess TDS (Tax Deducted at Source) has been deducted from your salary, fixed deposits, or other income, you can claim a refund only by filing an ITR.
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The sooner you file, the faster you receive your refund.
The Income Tax Department usually processes refunds within a few weeks if the ITR is filed early.
Tip: Filing your ITR early avoids unnecessary delays in getting your tax refund.
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Carry Forward Losses:
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If you've incurred losses in the past, you can utilize them to reduce your taxes in the future if you file electronically.
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Proof of Income for Loans & Credit Cards
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When applying for home loans, car loans, or personal loans, banks and NBFCs ask for past ITR records as proof of income.
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Salaried employees – ITR is required for high-value loans.
Self-employed individuals & businesses – ITR acts as official income proof, as they do not have Form 16.
Credit card companies also consider ITR while approving premium credit cards.
Tip: At least 3 years of ITRs improve your chances of loan approvals.
Essential for Visa Applications
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When applying for Schengen, US, UK, Canada, or other foreign visas, embassies often ask for ITR proofs of the last 2-3 years.
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Helps prove financial stability and source of income.
Some countries may reject visa applications if the ITR is not filed.
Tip: Keep ITR copies handy when planning international travel.
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Carry Forward Losses & Save Tax in Future
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If you incur capital losses from stocks, mutual funds, property, or business, you can carry forward these losses to set them off against future profits.
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Short-term & long-term capital losses can be adjusted against future gains if the ITR is filed on time.
Business losses can also be carried forward for up to 8 years, reducing future tax liability.
Tip: Even if you have zero tax liability, filing ITR helps in future tax savings.
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Avoid Higher TDS Deductions
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If you don’t file an ITR, banks and other institutions may deduct higher TDS on your income.
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Under Section 206AB, non-filers may face double the TDS rate.
For bank FDs, insurance maturity, or professional fees, TDS can be deducted at a higher rate.
Tip: Filing an ITR ensures TDS deductions remain at standard rates.
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Helps in Starting a Business or Applying for Tenders
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For entrepreneurs, filing an ITR is essential for:
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Getting bank loans to start or expand a business.
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Applying for government tenders (many require ITR proof).
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Establishing financial credibility with suppliers and investors.
Tip: Regular ITR filing helps in business growth & financial credibility.
Penalties for Failure to File an Income Tax Return in India
Late Filing Fees:
If you fail to file your Income Tax Return (ITR) by the due date, you will be charged a late filing cost. The amount of these costs varies depending on the date of filing. For example, if you file your ITR after the due date but before 31 December of the relevant assessment year, you must pay a 5,000 late charge. If you file after December 31, the late charge increases to Rs 10,000.
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Interest on Outstanding Taxes:
Failure to fulfill the ITR deadline results in interest charges on the outstanding tax amount, in addition to late filing costs. This interest is calculated at a rate of 1%/1.5% per month or a part of the month thereof.
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Legal Action and Potential Imprisonment:
If you fail to file your ITR despite receiving reminders from the IRS, you may face legal action under Section 276CC of the Income Tax Act. If you are convicted, you may face jail for a least of 3 months and a maximum of 7 years, as well as penalties. It is worth mentioning that prosecution is often reserved for situations involving intentional tax avoidance.
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Forfeiture of Deductions:
Claiming deductions and exemptions requires submitting your income tax return on time. Delays in submitting ITRs may result in the loss of these benefits, potentially increasing your tax burden and reducing your tax savings.
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Impact on Loan financing:
The timeliness of your ITR files might have an impact on your credit score. When analyzing loan applications, financial institutions and banks analyze your credit score. Timely ITR submissions demonstrate responsible tax compliance, which improves your creditworthiness. Late or non-filings, on the other hand, might result in a poorer credit score, making it more difficult to get loans at favorable interest rates.
Who Is Required to File an Income Tax Return?
According to earnings:
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Salaried people whose gross income exceeds the exemption limit before deductions under Sections 80C to 80U
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Every company, whether a private limited, limited liability partnership, or partnership, is obliged to file an IT return regardless of profit or loss.
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Individuals who hold the position of Director in a Private Limited Company or Partner in a Limited Liability Partnership.
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Individuals who get dividends through mutual funds, bonds, stocks, fixed deposits, interest, and other investments.
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Individuals that receive income from charitable trusts or religious foundations, as well as money from voluntary donations
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Individuals and enterprises looking for tax refunds, as well as NRIs and tech professionals
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If income is above Rs 2.5 Lakhs for the year.
​The Income Tax Form 10BD
Form 10BD is a statement of gifts received by a trust, institution, or non-governmental organization that are deductible under Section 80G of the Income Tax Act of 1961. The form must be electronically filed with the Income Tax Department by May 31 of the fiscal year in which the gifts were received.
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The following information is included in the form:
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The donee's name and address​
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The donee's Permanent Account Number (PAN)
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Donation amount received
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Date of contribution receipt
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Donation payment methods
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If available, the donor's PAN
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Failure to file Form 10BD may result in a fine of Rs 200 for each day of delay, up to a maximum of one lakh rupees.
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Here are the instructions for filing Form 10BD online:
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Go to the website of the Income Tax Department.
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Select the e-File tab.
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Select Form 10BD.
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Enter your PAN and password.
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Enter the information about the donations you received.
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Carefully check the specifics.
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Fill out and submit the form.
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Form 10BD has to be filed offline.
What Are Tax Benefits in terms of 80D?
The payment of medical insurance premiums and preventative health checkup charges is deductible from taxable income under Section 80D of the Income Tax Act of 1961. Individuals and Hindu Undivided Families (HUFs) are eligible for the deduction.The following is the amount of deduction allowable under Section 80D:
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In terms of health insurance premiums:
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Up to Rs 25,000 for yourself, your spouse, and any dependant children.​
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Parents can get up to Rs 50,000 if they are under the age of 60.
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Up to one lakh rupees for parents (if they are 60 or older).
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Expenses for preventative health checkups: Up to ₹5,000
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Section 80D deductions are only possible if the medical insurance policy or preventative health checkup charges are really spent. If the coverage is purchased but the premiums are not paid, or if the checkup is performed but the expenses are not paid, the deduction is not accessible.
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Section 80D deductions are claimed when submitting an income tax return. The deduction is applicable for the fiscal year in which the medical insurance premiums or preventive health checkup charges are paid.
Which ITR Form to File?
In India, there are seven distinct ITR forms, each with its own qualifying criteria and restrictions. The ITR form you must file is determined by your income, sources of income, and whether you are an Indian resident or a non-resident.
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Here are the various ITR forms and their qualifying requirements:
ITR-1 (Sahaj):
This form is for those earning up to 50 lakhs. It is the most basic ITR form and may be completed by anyone with no complicated income sources.
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ITR-2:
This form is for those whose total income exceeds 50 lakhs. It is more complicated than ITR-1 and asks taxpayers for additional information about their income and deductions.
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ITR-3:
This form is for those who make a living through a company or profession. Individuals who have capital gains also utilize it.
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ITR-4:
This form is for salaried persons who have chosen the presumptive taxation arrangement. This method permits taxpayers to pay a flat rate of 5% of their whole revenue.
ITR-5:
Hindu Undivided Families (HUFs) use this form. It is comparable to ITR-1 in that HUFs must disclose information about their members
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ITR-6:
This form is for businesses. It is the most complicated ITR form, requiring businesses to disclose specific information about their income, spending, and taxes.
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ITR-7:
This form is for those who are not Indian residents. It is comparable to ITR-1 in that non-residents must supply information about their overseas income.
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If you are not sure which ITR form to file, you can always consult with a tax advisor. Choose Accubucks Solution for your ITR Returns.
What is income computation?
Computation of income refers to the process of computing taxable income after accounting for income from all five categories (salary, residential property, capital gains, business or profession, and other sources), exemptions, deductions, rebates, set off of losses, and so on. Following the computation of income, the person can determine his or her income tax due under the Income Tax Act.
Rebate under Section 87A
The Section 87A rebate helps taxpayers to lower their income tax bill. If you are a resident individual and your total income after subtracting Chapter VI-A deductions (Section 80C, 80D, 80U, and so on) does not exceed Rs 5 lakh in a fiscal year, you can claim a tax rebate of up to Rs 12,500. This implies you won't have to pay any tax if your total tax payable is less than Rs 12,500.
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​Under the new tax regime, a tax refund of Rs 7 lakhs was introduced in Budget 2023. As a result, under the new tax regime, you do not have to pay tax if your taxable income is less than 7 lakhs.
What is ITR -V?
Form ITR-V is an income tax return verification document created when the taxpayer files and submits his or her income tax return to the income tax department. The ITR-V must be e-verified or mailed to the CPC in Bangalore at "Income Tax Department - CPC, Post Box No - 1, Electronic City Post Office, Bangalore - 560100, Karnataka" for verification. Only when its verification is complete can the ITR processing begin.
Some other considerations to make when selecting an ITR form
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You must use the right ITR form for your income and sources of revenue.
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In the ITR form, you must include all the needed information.
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The ITR form must be signed and dated.
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The ITR form must be submitted by the due date.
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The deadline for submitting income tax returns for the fiscal year 2024-25 is July 31, 2025. There are, however, several exceptions to this deadline. Senior citizens and those with impairments, for example, have an extended deadline to file their taxes.
Penalty for Late Filing of ITR
The penalty for submitting an ITR late is calculated based on the taxpayer's total income and if they have any outstanding tax due.
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The penalty for the late filing of ITR is Rs 1,000 for persons with a total income of less than 5 lakh.
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The penalty for late filing of ITR is 5,000 Rs for those with a total income of 5 lakh or more.
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If the taxpayer has an outstanding tax due, they will also be required to pay interest on the amount owed. From the due date of submitting the ITR to the date of payment of the tax, the interest rate is 1% each month or part of a month.
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In addition to the penalty and interest, the taxpayer may risk prosecution for filing the ITR late.