manager

In India, filing an Income Tax Return (ITR) is mandatory for individuals earning above the basic exemption limit. The specific rules and deadlines for ITR filing can vary depending on your income level and type of income.

Who Needs to File an ITR?

  • Individuals: If your total income exceeds the basic exemption limit, you are generally required to file an ITR.
  • Businesses: Companies, partnerships, and trusts must file ITRs regardless of their income level.

Basic Exemption Limit:

The basic exemption limit for individuals is subject to change annually. Currently, it’s Rs. 2.5 lakhs for individuals below 60 years of age, Rs. 3.0 lakhs for senior citizens (60-80 years), and Rs. 5.0 lakhs for super senior citizens (80 years and above).

Types of ITR Forms:

Depending on your income source and filing status, you’ll need to choose the appropriate ITR form. Common ITR forms include:

  • ITR-1: For individuals and Hindu Undivided Families (HUFs) with income from salary, interest, and house property.
  • ITR-2: For individuals and HUFs with income from salary, interest, house property, capital gains, and other sources.
  • ITR-3: For individuals and HUFs with income from business or profession.
  • ITR-4: For individuals and HUFs under the presumptive taxation scheme.
  • ITR-5: For partnerships, associations, and artificial juridical persons.
  • ITR-6: For companies.
  • ITR-7: For trusts, religious institutions, and other non-profit organizations.

Deadlines for ITR Filing:

The deadline for ITR filing typically falls on July 31st of the assessment year. However, there may be extensions or revised deadlines announced by the government.

Important Documents for ITR Filing:

  • PAN Card: Permanent Account Number is mandatory for filing ITRs.
  • Form 16: Salary income certificate issued by your employer.
  • Form 26AS: Tax credit statement.
  • Investment proofs: Documents for investments like PPF, EPF, NSC, etc.
  • Capital gains statements: If you’ve sold any assets.
  • Business income documents: If you’re self-employed or have a business.

Penalties for Non-Filing or Late Filing:

Failure to file ITR within the deadline can result in penalties, including late fees, interest on unpaid taxes, and in some cases, prosecution.

Seeking Professional Help:

If you’re unsure about which ITR form to use or need assistance with the filing process, consulting with a tax professional can be beneficial. They can help ensure that your ITR is filed accurately and on time.