Individual ITR Filing
Introduction
Filing an Individual Income Tax Return (ITR) in India is a crucial responsibility for every taxpayer. Whether you are a salaried employee, a business owner, or a freelancer, complying with direct taxation laws ensures smooth financial transactions and avoids legal complications. This comprehensive guide will help you understand the types of ITR registration, the step-by-step filing process, required documents, timelines, and much more.
What is an Individual ITR?
An Individual Income Tax Return (ITR) is a form used by individuals to report their income and tax liabilities to the Income Tax Department of India. The tax return details sources of income, deductions, exemptions, and the final tax amount payable or refundable.
Who needs to File an ITR in India?
Individuals must file an ITR if:
-
Their annual income exceeds the basic exemption limit (₹2,50,000 for individuals below 60 years, ₹3,00,000 for senior citizens, and ₹5,00,000 for super senior citizens).
-
They have income from multiple sources, including salary, rental income, business profits, capital gains, or foreign assets.
-
They wish to claim a tax refund or carry forward losses.
-
They have deposited over ₹1 crore in a bank account, incurred expenses of ₹2 lakh on foreign travel, or spent ₹1 lakh on electricity bills.
Types of ITR Forms for Individuals
Step-by-Step Process to File Individual ITR
1. Register on the Income Tax e-Filing Portal
-
Click on 'Register' and select 'Individual' as the user type.
-
Provide your PAN, name, date of birth, and contact details to create an account.
2. Gather Required Documents
Before starting the filing process, ensure you have:
-
PAN card
-
Aadhaar card
-
Form 16 (for salaried individuals)
-
Bank statements
-
Investment proofs (PPF, NSC, LIC, ELSS, etc.)
-
Loan repayment certificates (home loan, education loan)
-
Capital gains statements (if applicable)
-
Rental income details
-
Business income details (if applicable)
3. Choose the Correct ITR Form
Select the appropriate ITR form based on your income sources.
4. Fill in the Details Online or via Utility Tool
-
Login to the e-filing portal and choose ‘File Income Tax Return’.
-
Select the applicable assessment year and mode of filing (online or offline utility tool).
-
Provide income details, deductions, and tax liability calculations.
5. Verify and Submit the ITR
After filling in the details, verify the return using:
-
Aadhaar OTP
-
Net banking
-
Electronic verification code (EVC)
-
Sending a signed ITR-V to CPC Bengaluru
6. Track Your ITR Status
Post submission, track your ITR status on the portal using your acknowledgment number.
Timeline for ITR Filing
-
Due Date for Individuals (Without Audit Requirement): July 31st of the assessment year.
-
Due Date for Individuals Requiring Audit: October 31st of the assessment year.
-
Revised Return Filing Deadline: December 31st of the assessment year.
Benefits of Timely ITR Filing
-
Compliance with tax laws.
-
Easier loan approvals.
-
Quick visa processing.
-
Claim tax refunds without hassle.
-
Avoid penalties and legal consequences.
Consequences of Late Filing
-
Interest under Section 234A for delayed tax payment.
-
Late fee under Section 234F (₹1,000 to ₹5,000 based on delay and taxable income).
-
Ineligibility to carry forward losses.
Frequently asked questions
