INDEX
- What is ITR?
- Documents Required to File ITR
- Types of ITR Forms
- How to File ITR?
- Key Forms for ITR E-filing
- Investment Documents Required
- Why Should You File ITR?
Income Tax Returns (ITR)
What is ITR?
An Income Tax Return (ITR) is a form taxpayers use to report their income and taxes paid to the government. Filing an ITR by the due date is mandatory. The type of ITR form to file depends on your taxpayer category (e.g., individual, Hindu Undivided Family (HUF), or company), the nature of your income, and the total amount of income earned.
Additionally, filing ITR is essential if you have losses to carry forward or wish to set off previous losses. Before filing, it is recommended to check Form 26AS for details of TDS and other income, such as interest from Fixed Deposits (FDs). Having Form 16 handy will help in filling out details about your salary and tax-saving deductions.
Documents Required to File ITR
The documents needed to file ITR vary depending on your income bracket and other factors. However, the following are commonly required:
- PAN Card
- Form 26AS (Tax Credit Statement)
- TDS Certificates (Form 16A, 16B, 16C)
- Salary Pay Slips
- Bank Statements
- Interest Certificates
- Proof of Tax-Saving Investments (e.g., PPF, life insurance, etc.)
Types of ITR Forms
The Income Tax Department offers seven different ITR forms tailored for specific taxpayers and income types.
| ITR Form | Applicable for | Income Type |
|---|---|---|
| ITR-1 | Individuals (residents) with income up to ₹50 lakh | Salary, House Property, Other Sources |
| ITR-2 | Individuals, HUFs without business/profession income | Salary, House Property, Capital Gains, Other Sources |
| ITR-3 | Individuals with income from Business/Profession | Business Income, Salary, Capital Gains, Other Sources |
| ITR-4 | Individuals, HUFs, Partnership Firms with presumptive income | Business Income (Turnover ≤ ₹2 crore for FY 2024-25 (3Cr)), Profession (Turnover ≤ ₹50 lakhs (for FY 2024-25 75 Lakhs)) |
| ITR-5 | Partnership Firms, LLPs, AOPs, BOIs | Business and Profession Income |
| ITR-6 | Companies | Business Income, Other Sources |
| ITR-7 | Trusts, Associations, and Companies claiming tax exemptions | Income of Trusts, Charitable, and Religious Institutions |
How to File ITR?
E-filing of ITR is mandatory for most taxpayers. Taxpayers can file their ITR for the FY 2023-24 (Assessment Year 2024-25) using the Income Tax Department’s portal. However, some exceptions apply:
- Taxpayers aged 75 or above, with pension and interest income only, who meet specific conditions and have submitted a declaration to the bank for TDS under Section 194P.
- Taxpayers with income below the basic exemption limit.
When filing, calculate your total income, apply applicable tax deductions, and pay any remaining tax liability. If you have already paid tax through TDS, TCS, or advance tax, claim the deduction to determine your net payable tax or refund.
Key Forms for ITR E-Filing
Several forms are vital for accurate and hassle-free ITR filing:
- Form 16: Contains details about your salary, exemptions (e.g., HRA, LTA), deductions, and TDS.
- Form 26AS: Displays TDS on salary, interest, capital gains, and tax payments. Verify it before filing.
- Form 15G/15H: These ensure no TDS deduction if your taxable income is below the exemption limit.
- Form 15G: For individuals under 60 years with no tax liability.
- Form 15H: For senior citizens aged 60+ with zero tax payable.
Investment Documents Required
To claim deductions or exemptions, keep these investment-related documents ready:
| Investment Document | Purpose | Tax Benefit |
|---|---|---|
| Home Loan Interest Payment Receipts | Required if you have a self-occupied house with a home loan. | Deduction of up to ₹2,00,000 under Section 24(b). |
| Education Loan Interest Receipts | Needed if paying interest on an education loan. | Deduction under Section 80E, with no upper limit for 8 years. |
| Stock Trading Statement | Details of stock market transactions for profits or losses. | Report short/long-term capital gains under Section 10. |
Why Should You File ITR?
Filing ITR is mandatory for:
- Taxpayers whose income exceeds the exemption limit.
- Companies or Firms, irrespective of profit or loss.
- Individuals claiming a tax refund due to excess TDS deducted.
- Carrying forward losses like capital or business losses.
- Loan or visa applications, as ITR acts as proof of income.
- Residents with foreign assets or financial interests.
Additionally, filing ensures compliance with tax laws, helps claim tax refunds and deductions, and builds financial credibility.
By structuring your ITR filing process and leveraging all eligible deductions, you can not only comply with tax laws but also secure better financial management.