ITR

What is Income Tax Return (ITR)?

An Income Tax Return (ITR) is a document that individuals and businesses use to report their earnings, expenses, and taxes paid to the Income Tax Department in India. Filing an ITR is essential for those whose income surpasses the exempted limit set by the Income Tax Act. This helps the government determine if additional taxes are owed or if a refund is due.

Types of Income Tax Returns (ITR) in India

There are various ITR forms designed for different taxpayers:

• ITR-1 (Sahaj): For individuals earning from salary, one house property, and other sources, with a total income not exceeding ₹50 lakh.
• ITR-2: For individuals and HUFs who don't have business or professional income.
• ITR-3: For individuals and HUFs with income from a business or profession.
• ITR-4 (Sugam): For firms, individuals, and HUFs opting for presumptive taxation schemes.
• ITR-5: For firms, Limited Liability Partnerships (LLPs), and other business entities.
• ITR-6: For companies not claiming exemptions under Section 11.
• ITR-7: For entities required to file returns under specific sections, like charitable trusts.

Filing an Income Tax Return (ITR) in India

Filing your ITR is a legal requirement for those who meet the income criteria. It involves reporting your income, claiming eligible deductions, and paying any additional taxes if necessary. You can file your ITR online through the Income Tax Department’s e-filing portal or, in some cases, offline.

How to File an Income Tax Return (ITR) (ITR) Online in India?

1. Register or log in with your PAN on Income Tax e-filing portal (www.incometax.gov.in).
2. Choose the right ITR form based on your income type.
3. Enter your income details, deductions, and taxes paid.
4. Review and submit your ITR.
5. Verify through Aadhaar OTP, net banking, or an EVC (Electronic Verification Code).

Checking Income Tax Return (ITR) Refund Status

If you're due for a refund, you can check its status by logging into the e-filing portal or visiting the TIN NSDL website. Refunds are usually deposited directly into the bank account you provided in your ITR.

Who is exempt from filing ITR in India?

Certain individuals and groups are exempt from filing an Income Tax Return (ITR) in India, typically based on income level or specific circumstances. The following groups of individuals are exempt from filing an ITR:

1. Income Below the Basic Exemption Limit:
   Individuals whose total annual income falls below the taxable threshold are not required to file an ITR. For the financial year 2023-24 (Assessment Year 2024-25), the exemption limits are:

• Individuals < 60 years age: ₹2.5 lakh
• For senior citizens (aged 60-80): ₹3 lakh
• For super senior citizens (aged 80+): ₹5 lakh

2. Agricultural Income:
   If agricultural income is the sole source and falls within the exempted limit (Up to ₹5,000), the individual is not required to file an ITR.

3. Super Senior Citizens with Pension and Interest Income:
   Super senior citizens (aged 75 and above) who earn only pension income and interest from the same bank can be exempt from filing ITR if the bank deducts the necessary taxes under a specified provision.

4. Individuals Who Have Paid TDS and Have No Other Income:
   When TDS has already been applied to an individual's income and there are no additional earnings or tax obligations, filing an ITR may not be needed.

5. Non-Residents with No Income in India:
   Non-resident Indians (NRIs) who do not have any income in India, or their total income in India is below the exemption limit, are not required to file ITR.

6. Individuals with Only Tax-Free Income:
   Income that is completely tax-exempt under the Income Tax Act, such as certain scholarships or specific allowances, does not require the individual to file an ITR if it is the sole income source.