Filing income tax returns (ITR) is a crucial duty of every taxpayer in India, ensuring adherence to the nation's tax regulations. It involves detailing all sources of income, deductions, and tax liabilities for a comprehensive report to the Income Tax Department. The last date to file your Income Tax Return for the Financial Year 2023-24 (Assessment Year 2024-25) without incurring a late fee is July 31, 2024.

Early ITR filing helps avoid errors and last-minute technical glitches, ensuring a smoother submission process.  At IndiaFilings, we streamline the ITR e-filing process, enabling you to submit your ITR returns online with ease. Our service simplifies each step, ensuring a faster, more efficient, and secure Income tax filing experience.

Income Tax Return (ITR)

An Income Tax Return (ITR) is a form that taxpayers use to report their income details and tax payments to the income tax department. There are seven different ITR forms available for ITR filing: ITR 1 through ITR 7. The appropriate form for a taxpayer depends on various factors, including their sources of income, the total amount earned, and the type of taxpayer they are (such as individuals, Hindu Undivided Families (HUFs), companies, etc.). Each taxpayer must accurately complete and submit their income tax ITR filing by a specified deadline to comply with tax laws.

Who Needs to eFile an Income Tax Return?

Income tax return filing is not only a legal duty but also a financial responsibility that applies to various groups under different circumstances. Here's a detailed look at who is required for ITR filing:

Salaried Individuals

If your total income before deductions under Sections 80C to 80U exceeds the basic exemption limit, you are mandated for income tax filing.

Firms

All corporate entities, including private limited companies, LLPs (Limited Liability Partnerships), and traditional partnerships, must file their ITR filing annually, regardless of profit or loss.

Directors and Partners

Individuals serving as directors in private limited companies or partners in LLPs are required to efile taxes reflecting their income and financial activities within the company.

Dividend Earners

If you receive dividends from sources such as mutual funds, bonds, equities, fixed deposits, and interest, you need to done the ITR efiling. This Income tax ITR filing ensures that all sources of income are properly reported and taxed if applicable.

Charity and Religious Trusts

Income received from managing charity funds, religious trusts, or voluntary contributions also necessitates the Income tax return filing meant to maintain transparency and adherence to tax laws.

Tax Refunds

Those eligible for tax refunds, including individuals and businesses, should file taxes online to claim refunds on taxes previously overpaid.

NRIs and Tech Professionals

Non-resident Indians (NRIs) and technology professionals must file an income tax return if their income derived from India surpasses the exemption limit or involves specific financial transactions.

Eligibility for Income Tax Filing  

In India, the obligation to file an Income Tax Return (ITR) arises under certain conditions. One of the primary criteria for Income tax filing is when your gross total income exceeds the basic exemption limits, which are age-dependent:

• Individuals under 60 years: Rs 2.5 lakh

• Individuals between 60 and 80 years: Rs 3.0 lakh

• Individuals over 80 years: Rs 5.0 lakh

However, there are other specific circumstances that required for an efile ITR, even if your income is below these thresholds:

High-value Transactions: You must file an ITR if you have:

• Deposited Rs 1 crore or more in one or more current bank accounts.

• Deposited Rs 50 lakh or more in one or more savings bank accounts.

• Spent over Rs 2 lakh on foreign travel.

• Incurred electricity expenses exceeding Rs 1 lakh during the financial year.

• Had TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) exceeding Rs 25,000 (or Rs 50,000 for senior citizens).

Business and Professional Income:

• Businesses: Mandatory if your total sales, turnover, or gross receipts exceed Rs 60 lakh during the financial year.

• Professionals: Mandatory if gross receipts exceed Rs 10 lakh during the financial year.

Income Tax Return Forms in India

In India, the process of efile Income Tax Returns (ITRs) is streamlined through various forms, each designed to cater to different types of taxpayers. Here's a comprehensive overview of these income tax retun forms:

ITR-1: SAHAJ

This Income tax return form is designed for individuals whose annual income from salary or pension is below Rs. Fifty lakhs who own just one house property.

ITR-2: Beyond Business

Ideal for Non-Resident Indians (NRIs), directors of companies, and shareholders of private companies. This ITR form is used if you have capital gains income or foreign income or own two or more house properties and if your income exceeds Rs. 50 lakhs.

ITR-3: Professionals and Proprietorships

This ITR form Suitable for professionals and individuals running a proprietorship business in India.

ITR-4: Presumptive Taxation Enrollees

This Income tax return form is for individuals opting for the presumptive taxation scheme, where business income is below Rs. 2 crores or professional income is below Rs. 50 lakhs.

ITR-5: Partnerships, LLPs, and More

This income tax form must be filed by partnership firms, Limited Liability Partnerships (LLPs), associations, and bodies of individuals.

ITR-6: Companies

This form is Applicable to companies that are registered in India.

ITR-7: Special Entities

The Income tax form is Used by entities such as charitable/religious trusts, political parties, scientific research institutions, and colleges/universities.

Due Date for ITR Filing  

For the Assessment Year (AY) 2024-25, the last date to file ITR (Income tax returns) under section 139(1) is July 31, 2024, unless extended by the government. It's important for taxpayers to note that merely paying taxes does not fulfil all obligations; timely filing of the ITR is also mandatory to avoid penalties. Starting from the financial year 2017-18, a late ITR filing fee is imposed for returns filed after the deadline.

Here's a summary of the key Income tax filing last dates or due dates for various categories of taxpayers for the Financial Year (FY) 2023-24:

• ITR Filing for Individuals and Entities Not Liable for Tax Audit: Due by July 31, 2024.

• ITR Filing for Taxpayers Under Tax Audit (excluding those involved in transfer pricing): Due by October 31, 2024.

• ITR Filing for Taxpayers Covered Under Transfer Pricing: Due by November 30, 2024.

• Due Date for Revised/Belated Return of Income for FY 2023-24: December 31, 2024.

Advantages of Income Tax Filing

Filing your Income Tax Return (ITR) provides a range of financial and legal benefits. Here are some key advantages of ITR  filing:

Legal Documentation

Your ITR serves as an official record of your income and taxes paid, acting as crucial proof for:

• Identity Verification: It is accepted as valid identity proof by various government and financial entities.

• Income Verification: It details your financial earnings and deductions, essential for major financial transactions like buying property or applying for a loan.

Claim Tax Benefits

Filing ITR allows you to claim tax deductions and exemptions under various sections of the Income Tax Act, effectively reducing your tax liability.

Essential for Financial Transactions

ITRs are often required for:

• Loan Applications: Banks and financial institutions typically require the last few years' ITRs as proof of income.

• Visa Applications: Many countries require proof of financial records, such as ITRs, for visa applications to ensure the applicant's financial stability.

Avoid Penalties

• Failing to file an ITR can result in penalties and fines, especially if you are liable to pay tax. Timely Income tax filing helps avoid these unnecessary costs.

Carry Forward Losses

If you incur any financial losses, these can be carried forward to subsequent years to be offset against future profits. This benefit is only available if you file your ITR.

Quick Loan and Card Approvals

Demonstrating a consistent tax record through file taxes online can speed up the approval process for loans and credit cards by showcasing financial reliability and regular income.

High-Value Investments and Transactions

For transactions involving high values, such as the purchase of property or high-premium insurance, having a filed ITR is often mandatory.

Refund Claims

If you've paid more tax than you owe (through TDS, etc.), Income tax filing is necessary to claim a refund. The refund process is straightforward and generally swift in efile taxes.

Compulsory If Meeting Certain Criteria

In some cases, like if your electricity bills or foreign travel expenses exceed a specified limit, ITR filing becomes mandatory regardless of your income level.

By filing your ITR, you not only comply with the law but also solidify your financial footprint, which can aid in many aspects of financial planning and obligations.