Income Tax Filing in India: Your Questions Answered

1. Who needs to file an Income Tax Return (ITR)?

   • Individuals: If your total income for the financial year exceeds the basic exemption limit (currently ₹2.5 lakhs for individuals below 60 years), you must file an ITR.
   • Businesses and Companies: All businesses, regardless of profit or loss, must file ITRs.
   • Others: Certain individuals and entities, like Hindu Undivided Families (HUFs) and trusts, also have to file ITRs.

2. What are the different ITR forms, and which one should I use?

   The Income Tax Department has different ITR forms based on the sources of income and the category of taxpayer. The most common ITR forms are:

   • ITR-1 (SAHAJ): For salaried individuals with income from one house property and other sources (interest, etc.).
   • ITR-2: For individuals and HUFs with income from salary, house property, capital gains, and other sources.
   • ITR-3: For individuals and HUFs who are partners in firms and have income from a proprietary business or profession.
   • ITR-4 (SUGAM): For individuals, HUFs, and firms (other than LLPs) with income from a proprietary business or profession opted for presumptive taxation scheme.

3. What is the deadline for filing ITR?

   The due date for filing ITR for the financial year 2023-24 (Assessment Year 2024-25) is generally July 31, 2024. However, it's advisable to file your return well in advance to avoid last-minute issues.

4. What documents do I need to file my ITR?

   The documents you'll need depend on your sources of income. Typically, you'll need:

   • Form 16: From your employer, detailing your salary and TDS deducted.
   • Form 26AS: Tax credit statement reflecting TDS and other tax payments.
   • Bank statements: To track interest income and other financial transactions.
   • Investment proofs: For claiming deductions and exemptions.
   • Proof of expenses: For deductions like house rent allowance (HRA) or medical expenses.

5. How can I file my ITR?

   You can file your ITR:

   • Online: Through the e-filing portal of the Income Tax Department.
   • Offline: By submitting a physical copy of your return at the designated tax office.

6. What are the consequences of not filing ITR on time?

   Late filing of ITR attracts a penalty of up to ₹5,000. You may also lose out on interest on refunds and face potential legal action in severe cases.

7. What happens after I file my ITR?

   After filing, your return will be processed by the Income Tax Department. They may issue a notice if they find any discrepancies. If everything is in order, you'll receive an intimation of the processing of your return.

8. Can I revise my ITR if I make a mistake?

   Yes, you can file a revised return to correct any errors or omissions within the specified time limit (usually before the end of the relevant assessment year).

9. Do I need to file ITR even if my income is below the taxable limit?

   It's not mandatory, but it's advisable to file an ITR even if your income is below the taxable limit. This can be helpful in claiming tax refunds, carrying forward losses, and establishing your financial track record.

10. What is Form 26AS, and why is it important?

    Form 26AS is a consolidated tax credit statement that shows all the taxes deposited against your PAN. It's crucial to verify Form 26AS before filing your ITR to ensure that all TDS deductions and tax payments are accurately reflected.