Online Income Tax Return Filing

What is Income Tax? 

Income tax is a direct tax collected by the government on the income or profits earned by individuals or businesses during a financial year. The tax collected is used to fund public services like infrastructure, healthcare, education, and welfare programs. People and businesses who earn above a certain threshold must file an Income Tax Return (ITR) every year. 

What is Income Tax Return? 

Income Tax Return (ITR) is a formal declaration submitted by individuals, businesses, or other entities to the Income Tax Department of India, showing their total income, deductions, and taxes paid for a financial year. It is a way for taxpayers to report their annual earnings and the amount of tax they have paid or still owe to the government. 

Why is Filing ITR important? 

Filing your ITR is important for several reasons: 

1. Claim Tax Refunds: If you’ve overpaid tax through TDS or advance tax, filing ITR allows you to claim a refund. 
2. Legal Requirement and Avoid Penalties: Filing your ITR ensures compliance with tax laws and helps avoid late filing penalties and legal issues. 
3. Carry Forward of Losses: Filing your ITR on time allows you to carry forward business or capital losses, so you can use them to reduce your taxable income in future years. 
4. Increase Your Credibility and Trustworthiness: Regular filing of ITR builds financial credibility and trust with banks, lenders, and other financial institutions. 
5. Claim Tax Deductions and Benefits: You can claim tax-saving deductions under sections like 80C, 80D, 80E, etc., to reduce your taxable income. 
6. Helps in Easy Transfer of Property: ITR is often required when buying/selling property or applying for home loans. 
7. Eligibility for Government Opportunities & Social Benefits: A valid ITR is required to apply for government tenders, contracts, subsidies, loans and schemes etc. 
8. Easier Tracking of Tax Records: ITR provides a consolidated record of your income, taxes paid, and deductions, making it easier to track your financial status. 

Who Should File an ITR? 

Filing an Income Tax Return (ITR) is mandatory for various categories of taxpayers. Below are the main groups who should file ITR: 

1. Salaried Employees

If your total income exceeds the basic exemption limit, or you want to claim a refund, or have income from more than one employer. 

2. Self-Employed Individuals / Professionals

If you earn income from business, freelancing, consultancy, or any professional services and it exceeds the exemption limit. 

3. Businesses & Startups

Entities including companies (private or public), partnership firms, and Limited Liability Partnerships (LLPs)-must file ITR, regardless of profit or loss. 

4. Non-Resident Indians (NRIs) and Individuals with Foreign Income or Assets

If you have income earned or received in India, own foreign assets, or are a director in a company. 

5. Individuals with High-Value Transactions

If you have deposited large amounts in bank accounts, spent heavily on foreign travel, or paid high electricity bills (as per specified limits). 

6. Senior Citizens (Pensioners)

f you are 60 years or older and your total income exemption limit, you should file an ITR. 

7. Taxpayers with Capital Gains

If you have earned capital gains from the sale of shares, mutual funds, property, or other assets, you must report and pay tax on such gains, even if your total income is below the exemption limit in certain cases. 

Documents Required for Income Tax Filing  

To file your Income Tax Return (ITR) in India, you should keep the following documents ready. Having these documents ready facilitates effective tax planning and ensures a smooth and error-free ITR filing process: 

• PAN Card: Mandatory for all taxpayers as a unique identification for tax purposes. 
• Aadhaar Card: Required as per Section 139AA of the Income Tax Act; PAN and Aadhaar should be linked. 
• Form 16: Issued by your employer, it contains details of your salary, deductions, and tax deducted at source (TDS). 
• Salary Slips: It is useful to verify income details and deductions. 
• Form 26AS and Annual Information Statement (AIS): Summarizes tax deducted, advance tax paid, and high-value transactions. 
• Bank Account Details and Statements: Needed to report interest income and for refund processing. 
• Interest Certificates: From banks or post office for savings account and fixed deposit interest.  
• Investment Proofs for Tax Deductions: Includes receipts for life insurance, health insurance, PPF, ELSS, NPS, etc., for claiming deductions under sections like 80C, 80D. 
• Home Loan Statements: For claiming deductions on principal and interest paid. 
• Rent Receipts or Rental Agreement: To claim House Rent Allowance (HRA) or report rental income. 
• Capital Gains Documents: Sale/purchase deeds, statements from brokers, and receipts for improvement costs if you sold property, shares, or mutual funds. 
• TDS Certificates (Form 16A/16B/16C): For tax deducted on income other than salary, like interest, rent, or property sale. 
• Donation Receipt: Use receipts to claim tax deductions under 80G for charitable donations. 

Forms Required to File ITR Returns 

Under Income Tax Rule 12 of the Income Tax Rules, 1962, the Central Board of Direct Taxes specifies the below forms to be used by different categories of taxpayers for filing their return of income, based on the nature and amount of their income. 

Regime for FY 2024-25 (AY 2025-26) 

If your total income is up to ₹12 lakhs under the new tax regime, your tax liability will be zero due to the increased rebate under Section 87A. 

New Tax Slabs (FY 2025–26) 

• Section 87A rebate has increased to ₹60,000. 
• This means no tax for income up to ₹12,00,000 (after applying slab rates and then subtracting the rebate). 
• The rebate does not apply to income taxed at special rates (like capital gains under Section 112A). 
• Marginal relief is still available to prevent sudden jumps in tax for slightly higher incomes. 

How DigiLawyer's ITR Filing Process Works?

Filing your ITR with DigiLawyer is designed to be simple and stress-free. Our streamlined approach ensures you get expert assistance at every stage. Here’s how we make your tax filing easy and efficient: 

STEP 1: Share Details & Documents

Upload your basic information and required documents like PAN, Aadhaar, and Form 16 etc. 

STEP 2: Expert Tax Review

Our CAs review your data, calculate your tax, and ensure all deductions are claimed. 

STEP 3: We File Your Return

We submit your ITR on the government portal, ensuring accuracy and compliance. 

STEP 4: Get Acknowledgement & E-Verify

Receive your filing acknowledgement and complete e-verification with our guidance. 

STEP 5: Track Refunds & Get Support

Easily track your refund status and get ongoing support for any queries. 

Common Mistakes to Avoid When Filing Income Tax Return 

Filing your Income Tax Return can be tricky, and small mistakes may lead to delays or penalties. Avoiding common errors ensures your return is processed smoothly and keeps you compliant with tax laws. 

1. Filing with the Wrong ITR Form: Using the incorrect form can cause your return to be rejected or delayed. 
2. Entering Incorrect Personal or Bank Details: Mistakes in PAN, Aadhaar, address, or bank info can delay refunds and communication. 
3. Not Reporting All Sources of Income: Leaving out income like interest, rent, or dividends can lead to penalties. 
4. Not Matching Data with Form 26AS or AIS: Differences between your return and tax records can trigger notices. 
5. Missing the Filing Deadline: Late filing results in fines and possible legal issues. 
6. Not Claiming Eligible Deductions and Exemptions: Missing deductions means paying more tax than necessary. 
7. Skipping E-Verification: Without verification, your return won’t be processed. 

Deadlines & Penalties for Late Filing FY 2024-25 (AY 2025-26) 

The Income Tax Department sets different deadlines for various types of taxpayers each year. Below are the key ITR filing dates for FY 2024-25 

Why Choose DigiLawyer for Your Income Tax Return? 

Filing your Income Tax Return (ITR) doesn’t have to be stressful, and with DigiLawyer, it won’t be. We make the process easy, accurate, and tailored to your needs. 

FAQs Related to ITR