ITR Filing
What is ITR Filing?
IRT Filing refers to the process by which an individual, business, or organization submits a declaration of income, deductions, and taxes paid (or owed) to the relevant tax authority for a financial year.
Key Objectives of ITR Filing
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Declare annual income
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Disclose taxes paid/deducted (TDS, advance tax, etc.)
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Claim refunds, if excess tax paid
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Comply with legal obligations
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Avoid penalties and interest
Who Should File ITR?
| Category | Required to File If… |
|---|---|
| Salaried individuals | Income exceeds the basic exemption limit |
| Freelancers / Consultants | Income exceeds limit or TDS is deducted |
| Businesses & Startups | Mandatory under most tax laws |
| Senior citizens | Above exemption threshold, or seeking refund |
| NRIs | If they have income taxable in the country |
| Companies & LLPs | Must file regardless of profit/loss |
Types of Income to Report
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Salary or Wages
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House Property Income (rent, home loan interest)
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Business or Professional Income
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Capital Gains (stocks, mutual funds, property)
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Other Sources (interest, dividends, crypto, lottery)
Documents Required for ITR Filing
| Document | Purpose |
|---|---|
| PAN / Tax Identification Number | Unique taxpayer ID |
| Aadhaar / National ID (if applicable) | For verification |
| Form 16 / Wage slips | Proof of salary income |
| TDS Certificates (Form 16A, 26AS) | Tax already deducted at source |
| Bank Statements | Interest income, verification |
| Investment Proofs (80C, 80D, etc.) | Tax deduction claims |
| Capital Gains Statements | From brokers or mutual funds |
| Loan Interest Certificates | For home or education loan benefits |
Step-by-Step Process of ITR Filing
1. Collect Income and Deduction Information
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Download Form 16 (for salaried)
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Collect business income statements (for proprietors, freelancers)
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Retrieve interest/dividend/capital gains reports
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Keep records of tax-saving investments
2. Choose the Correct Tax Form
| Form Name | Applicable To |
|---|---|
| ITR-1 | Salaried, pensioners (simple cases) |
| ITR-2 | Capital gains, more than 1 property |
| ITR-3 | Business/professional income |
| ITR-4 | Presumptive income (small businesses) |
3. Compute Total Taxable Income
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Sum all sources of income
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Subtract exemptions (like HRA, LTA)
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Deduct eligible investments and expenses
4. Calculate Tax Liability
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Apply income tax slabs
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Add cess and surcharge (if any)
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Adjust for:
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TDS already deducted
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Advance taxes paid
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5. Pay Remaining Tax (if applicable)
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Use Challan or online payment
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Enter payment reference in the return
6. File the Return Online
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Visit the tax authority’s e-filing portal (like incometax.gov.in for India)
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Upload the filled form or use guided filing
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Verify all entries before final submission
7. Verify the Return
Mandatory step:
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E-verify using:
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Aadhaar OTP
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Net banking
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Bank account/Demat account
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OR send a signed physical ITR-V (verification form)
Refunds
If your TDS or advance tax is greater than the tax due, a refund will be initiated to your pre-validated bank account after processing.
Due Dates for Filing ITR
| Category | Due Date |
|---|---|
| Individual (non-audit) | July 31 |
| With Audit (businesses) | October 31 |
| Transfer Pricing Cases | November 30 |
| Belated/Revised Return | December 31 |
Note: These are typical dates. Always check the current year’s official notification.
Penalties for Late Filing
| Delay | Consequence |
|---|---|
| After due date | ₹1,000 to ₹5,000 penalty |
| Refunds delayed | No interest on late refund |
| Continued default | Prosecution and higher penalties |
Benefits of Timely ITR Filing
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Eligible for refunds
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Avoids penalties and interest
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Mandatory for visa, loans, tenders
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Helps build income proof
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Legal compliance under tax laws
Tools & Services You Can Use
| Tool/Service | Use Case |
|---|---|
| Taxbala / ClearTax / TaxBuddy | Guided IRT Filing |
| Government E-filing Portals | Direct submission |
| Chartered Accountants | Complex tax situations |
| Tax Calculators | Estimate your liability |