ITR (Income Tax Return) Filing -Important Details

 

Oh, I just love the tax season!" No one has ever said that. But sometimes, you don't get what you want. And paying your taxes is one of those things. As they say, it is a civic duty for all responsible citizens who want to contribute to building a strong, healthy nation.

Now that we have satisfied all the categories of our readers, let's address some burning questions related to taxes. We hope that these answers will assist you in filing your returns and save you the extra money that you would otherwise hand over to your accountant every year.

First and foremost, who needs to file their Income Tax Return (ITR) by 31st July this year?

If your income exceeds the minimum exemption limit without any deductions, then it is essential for you to file your ITR.

If the previous statement sounds like gibberish, let me explain who needs to file their ITR to avoid penalties and severe consequences later on.

Old Tax Regime
Age	If Total Gross income exceeds	Do you need to file ITR?
Below 60	2.5 Lakh per year	Yes
60-80 age	3 Lakh per year	Yes
Above 80	5 Lakh per year	Yes

New Tax Regime
Age	If Total Gross income exceeds	Do you need to file ITR?
No age Benefit	3 Lakh per year	Yes

There are some special situations in which you must need to file your tax return, even if your total income is below the taxable bracket;

1. If you have spent more than 2 lakh rupees abroad.
2. If you have paid electricity bills exceeding 1 lakh rupees annually.
3. If you have deposited more than 1 crore rupees in one or more active bank accounts.
4. If you receive income from abroad.
5. If you have deposited more than 10 Lacs into your bank account.
6. If you wish to file a tax refund claim.
7. If you wish to carry forward losses to the next financial year.

Note - Businesspersons and professionals whose turnover or total receipts exceed 1 crore rupees and 50 lakh rupees, respectively, are not required to file their ITR by 31st July. They have a deadline of 31st October.

Which ITR form you need to fill ? 

Fill ITR-1 

1. If you are a resident individual and earning an income of up to ₹50 lakhs per year
2.  If your income comes from sources such as salary, pension, one house property, or other sources like interest and dividends,

Fill ITR-2 ;

1. If Your income exceeds ₹50 lakhs.
2. You are a salaried individual, an NRI, and have earned profits by selling equity investments or immovable property.
3. You have earned income from a foreign source.
4. You have income from more than one house property (both in India and abroad).
5. You are a director in a company.
6. You trade in unlisted shares.

Fill the ITR-3 if:

1. All your income is included in the ITR-2 form.
2. You or your HUF(HINDU UNDIVIDED FAMILY) earns income from a business or profession.
3. You are a salaried individual and earn income through derivatives and options trading.
4. You are a partner in a business firm.

ITR-4 form if:

1. You include all your income from ITR-1.
2. Your individual HUF, or firm's income is up to ₹50 lakhs per year.
3. Tax is calculated under Section 44AD, 44ADA, or 44AE for business and profession income.
4. There are other forms available as well, but they are mainly applicable to businesses, charitable trusts, colleges, news agencies, and more. Essentially, they do not apply to you.

Note - it's important to accurately fill out the appropriate ITR form based on your income sources and qualifications.

What if someone file ITR with incorrect details? Can it be revised ?

You it can be revised.

Step 1: Log in to the income tax portal.

Step 2: Check the dashboard Step.

Step 3: Click on 'File Revised Return.

By when someone can revise the ITR-filing changes?

If you realize your mistake, you should change it as soon as possible.

However, the law gives you time till December 31 or before it is assessed by the income tax department to make all your changes. For instance, if the tax department reviews your form in October, you won't be allowed to make any revisions after that.

What if someone miss the 31^st July ITR-filing deadline?

There is a penalty clause if someone fails to fill the ITR within deadline.

Income Slab	Penalty
If Income exceeds Rs.5 Lakh	Rs.5000
If income less than 5 lakh	RS.1000

 

Additionally, will be charged 1% interest every month on the outstanding tax amount.

For example; if the tax liability is Rs.5,000 and you don’t pay it on time, your penalty will keep on increasing by Rs.50 every month till you pay.

 

Benefits of ITR filings.

1. Most importantly Tax refund. you can get your money back from government if found you have paid more tax than expected.
2. Faster visa application processing.
3. Can get loans more smoothly.
4. You can offset investment losses in future, this way capital gain tax liability can be reduced.