Introduction
Income Tax Return (ITR) Filing is the process of declaring your annual income, deductions, exemptions, and tax liability to the Income Tax Department of India. Filing ITR is mandatory for individuals, HUFs, firms, and companies whose income exceeds the basic exemption limit under the Income Tax Act, 1961.
A2Z Accounting & Tax Firm provides comprehensive ITR filing services starting from ₹499. Our expert Tax Professionals ensure maximum legal tax savings using deductions under Section 80C, 80D, HRA exemption, capital gains optimization, and regime selection advisory (Old vs New Tax Regime).
What is Income Tax Return (ITR) Filing?
Income Tax Return (ITR) is an official form prescribed by the Income Tax Department through which taxpayers declare their gross total income, claim deductions and exemptions, compute net taxable income, and pay the applicable tax. The IT Department provides 7 ITR forms (ITR-1 to ITR-7) for different categories of taxpayers.
ITR filing is governed by Section 139 of the Income Tax Act, 1961. The due date for salaried individuals is 31st July and for businesses requiring audit is 31st October of the assessment year.
Why is Income Tax Return (ITR) Filing Important?
- Legal Obligation — Filing ITR is mandatory if gross income exceeds ₹3,00,000 (new regime) or ₹2,50,000 (old regime) in a financial year
- Claim Refunds — If excess TDS has been deducted, you can claim a refund only by filing ITR
- Visa Processing — ITR receipts for the last 3 years are commonly required for visa applications
- Loan Approvals — Banks require ITR as income proof for home loans, car loans, and personal loans
- Carry Forward Losses — Capital losses and business losses can be carried forward only if ITR is filed on time
- Avoid Notices — Non-filing or late filing triggers notices under Section 142(1) and Section 148
- Address TDS Mismatch — Filing ITR reconciles Form 26AS/AIS data with your actual income
Who Needs Income Tax Return (ITR) Filing?
- Salaried individuals with gross income above ₹3,00,000 (New Regime) or ₹2,50,000 (Old Regime)
- Self-employed professionals and freelancers
- Business owners and proprietors
- Directors of companies
- Non-Resident Indians (NRIs) with Indian income
- Persons with capital gains (shares, property, mutual funds)
- Individuals with foreign income or foreign assets
- Persons claiming TDS refund
- Individuals who have deposited more than ₹1 Crore in savings accounts
- Persons with electricity expenditure above ₹1 Lakh
- Persons with foreign travel expenditure above ₹2 Lakhs
Eligibility Criteria
| Category | ITR Form | Applicability |
|---|---|---|
| Salaried (income up to ₹50L) | ITR-1 (Sahaj) | Salary, one house property, other sources, agricultural income up to ₹5,000 |
| Salaried (income above ₹50L or multiple properties) | ITR-2 | Salary, multiple house properties, capital gains, foreign income |
| Business/Profession | ITR-3 | Income from business or profession (non-presumptive) |
| Presumptive Business | ITR-4 (Sugam) | Presumptive income u/s 44AD, 44ADA, 44AE |
| Firms/LLPs | ITR-5 | Partnership firms, LLPs, AOPs, BOIs |
| Companies | ITR-6 | All companies except Section 11 (charitable) |
| Trusts/Institutions | ITR-7 | Persons claiming exemption u/s 11, 12 |
Benefits
Tax Refund
Claim refund of excess TDS deducted by employer or banks. Refund is directly credited to your bank account.
Visa & Loans
ITR serves as income proof for visa applications, home loans, car loans, and credit card applications.
Loss Carry Forward
Carry forward capital losses for up to 8 years to set off against future capital gains, reducing future tax liability.
Legal Tax Savings
Expert tax planning using Section 80C (₹1.5L), 80D (₹25K–₹1L), HRA, NPS, home loan interest, and more.
Documents Required
- PAN Card
- Aadhaar Card (linked to PAN)
- Form 16 from employer
- Form 26AS / Annual Information Statement (AIS)
- Bank statements (all active accounts, interest certificates)
- Investment proofs — 80C (ELSS, PPF, LIC), 80D (health insurance)
- Home loan interest certificate (Section 24)
- HRA rent receipts and landlord PAN (if rent > ₹1 Lakh/year)
- Capital gains statements (shares, mutual funds, property)
- Foreign income details and DTAA certificates (for NRIs)
- Previous year ITR acknowledgement
Step-by-Step Process
Document Collection
Submit your Form 16, bank statements, investment proofs, and other income documents to A2Z.
Income Computation
Our Tax Expert computes your total income under all heads: salary, house property, capital gains, business, and other sources.
Tax Optimization
We apply all eligible deductions (80C, 80D, 80E, 80G, HRA, NPS) and compare Old vs New Regime to minimize tax.
ITR Preparation
The appropriate ITR form is prepared with all schedules, including foreign assets (if applicable).
Client Review & Approval
Draft ITR is shared for your review. Tax computation summary is explained.
e-Filing & e-Verification
ITR is filed on the Income Tax portal and e-verified via Aadhaar OTP. ITR-V acknowledgement is delivered instantly.
Timeline
ITR filing at A2Z is completed within 24–48 hours of receiving all documents.
| Category | Due Date |
|---|---|
| Salaried Individuals / Non-audit cases | 31st July of the Assessment Year |
| Businesses requiring audit (Sec 44AB) | 31st October |
| Transfer Pricing cases | 30th November |
| Belated/Revised Return | 31st December |
Government Fees
There are no government fees for filing Income Tax Returns. The e-filing portal is free to use.
Late filing fee (Section 234F): ₹5,000 if filed after due date but before 31st December. ₹10,000 if filed after 31st December. Reduced to ₹1,000 if total income is below ₹5 Lakhs.
Professional Fees at A2Z
| Category | Fee | Includes |
|---|---|---|
| Salaried (ITR-1/ITR-2) | ₹499 | Form 16 processing, 80C/80D optimization, regime comparison, e-filing |
| Capital Gains (ITR-2) | ₹5,000 | Share/MF/property gains, loss carry forward |
| Business Income (ITR-3/4) | ₹8,000 | P&L preparation, balance sheet, presumptive computation |
| NRI Returns (ITR-2/3) | ₹10,000 | DTAA benefit, foreign income, FBAR/FATCA |
| Company/Firm (ITR-5/6) | ₹15,000+ | Complete corporate return with schedules |
Penalties for Non-Compliance
- Late filing fee (Sec 234F): ₹5,000 (₹1,000 if income below ₹5 Lakhs)
- Interest on late payment (Sec 234A): 1% per month on outstanding tax
- Interest on short payment (Sec 234B): 1% per month on advance tax shortfall
- Interest on deferment (Sec 234C): 1% per month on installment defaults
- Non-filing penalty (Sec 270A): 50% to 200% of tax evaded in cases of underreporting/misreporting
- Prosecution (Sec 276CC): For willful non-filing, imprisonment of 6 months to 7 years
Common Mistakes to Avoid
- Not comparing Old vs New Regime — Many taxpayers miss significant savings by defaulting to the new regime without comparison
- Not reporting all bank interest — Interest from savings accounts, FDs, and RD must be reported even if TDS is deducted
- Missing Form 26AS/AIS entries — All TDS entries in 26AS must match the ITR; mismatches trigger notices
- Not claiming HRA when eligible — Salaried individuals paying rent can save substantial tax through HRA exemption
- Ignoring capital gains — Even small gains from mutual fund redemption or share sales must be reported
- Not reporting foreign assets — Failure to report foreign bank accounts, investments, or property attracts ₹10 Lakh penalty
- Wrong ITR form selection — Filing ITR-1 instead of ITR-2 when having capital gains leads to defective return
- Not verifying after filing — ITR must be e-verified within 30 days; unverified returns are treated as never filed
Frequently Asked Questions
Latest Rules & Updates (2026)
- New Regime default — New Tax Regime is the default from FY 2023-24. Must explicitly opt out for Old Regime
- Standard deduction — ₹75,000 under New Regime (previously ₹50,000), ₹50,000 under Old Regime
- Rebate u/s 87A — No tax payable on income up to ₹7 Lakhs (New Regime) or ₹5 Lakhs (Old Regime)
- Presumptive taxation limit — Raised to ₹3 Crore for business (Sec 44AD) and ₹75 Lakhs for professionals (Sec 44ADA)
- TDS on virtual digital assets — 1% TDS on crypto/VDA transfers under Section 194S
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File Your ITR Today — Starting at ₹499
Expert Tax Expert-assisted ITR filing with maximum deductions. Old vs New Regime comparison included. Free consultation.
