Income Tax Return Filing (ITR Filing in India)

Income tax return filing in India is a legal obligation that provides certain advantages, including legal compliance, financial planning, refunds, better access to banking and financial services, and a better understanding of tax laws.

  • Filing ITR
  • Filing Forms
  • Flexible and Simple online Process
  • Consultancy from Experts
  • On time compliances
  • Get your registration in 3-4 days
How It Works

File your ITR

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7
ITR forms, ITR-1 to ITR-7
3–4 days
Typical turnaround
₹5,000
Late fee under Section 234F
6
Entity types that must file
Overview

Overview of ITR Filing in India

Income tax return filing in India is a legal obligation that provides certain advantages, including legal compliance, financial planning, refunds, better access to banking and financial services, and a better understanding of tax laws. You should file your return on time to avoid penalties and legal issues. It's recommended to seek the assistance of a tax professional who can help you navigate the complex tax laws and regulations, file a correct and compliant return, and maximize your refund. Filing the return accurately and on time ensures you don't have to pay fines or face legal consequences.

Illustration: a receipt and a calculator
Details

Who should file ITR in India

Income Tax Return Filing is an essential legal obligation arising from the provisions of the Income Tax Act of 1961. The Act specifies the classes of individuals and entities liable to pay income tax in India. The obligation to file a return depends on various factors, including the individual's income, profession, and residency status. The tax return filing deadline is usually due on or before 31st July every year, subject to certain exceptions. It is important to note that failure to file a tax return on time can result in penalties and other legal consequences, including prosecution, fines, and interest. Therefore, it is essential for every individual or entity liable to file a tax return to do so on time, accurately, and with due care. It is recommended to seek the assistance of a tax professional who can advise and guide you on the applicability and requirements of income tax return filing to ensure compliance with the legal requirements and avoid legal consequences.

Advantages

What are the Advantages to file ITR in India?

Legal Compliance

Income Tax Return Filing is a legal obligation, and failure to comply with the legal requirements can result in penalties, fines, and legal consequences. By filing an income tax return, individuals can ensure their legal compliance with the tax laws and avoid legal complications.

Calculation of Tax Liability

Income tax return filing improve an individual's creditworthiness, enabling them to access better financial services such as loans, credit cards, etc.

Claiming Refunds

Filing an income tax return can result in a tax refund if the individual has paid more taxes than they owe. The refund can be received through various modes, such as direct credit to the bank account, a cheque, etc.

Financial History and Transactions

Filing an income tax return can help individuals understand their financial situation, identify areas for improvement, make informed financial decisions, and plan their finances wisely. Additionally, individuals can use the tax return to review their income and expenses, identify areas for tax planning, and determine the taxes they owe for the year.

Compliance with Tax Laws

Income tax return filing can help individuals better understand the tax laws and regulations, which can come in handy in the future while making financial decisions, planning, or filing taxes for other entities.

Avoiding Future Consequences

Regularly filing ITR helps individuals and businesses in India avoid any potential future complications or scrutiny from the Income Tax Department. It minimizes the risk of audits, inquiries, or penalties arising from non-compliance.

Documents

Documents Required to file ITR

Checklist
  • It is important to understand the documents and details required to file ITR to ensure that the process goes smoothly. The following documents are required for ITR Filing in Sikkim:
  • PAN card
  • AADHAR card
  • Complete account statement/bank passbook for the financial year
  • Income tax credentials Login
  • Form 16
  • Real estate purchase and sale agreement
  • Demat account statement for mutual fund returns
  • Home loan statement
  • Account books maintained by Sales Ledger, Purchase Ledger, Expense Voucher, Complete Bank Statements, Stock Ledger, Fixed Asset Ledger, Audit Report
  • TDS return
  • GST return
  • Fixed deposit interest certificate
  • Receipt of LIC Premium
  • Receipt of Tuition fee
  • Certificate of premium for health insurance
  • Donation receipt
  • PF/ESI passbook
How it works

How to file ITR in India?

1

The process of filing an income tax return in India involves several steps, which can be broadly categorized into the following stages:

2

Preparation: The first step in filing an income tax return involves gathering all the necessary documents and information that will be required to prepare the return. It includes details of your income, deductions, and assets.

3

Filling out the tax return form: The second step is to fill in the income tax return form, which can be done manually or using the Income Tax portal. The form requires details of your income, deductions, and tax liability.

4

Verification: After filling out the form, you need to verify the details in return by uploading the necessary documents, such as Form 16, investment proofs, and other relevant documents.

5

Submission: Once the return is verified and all the required documents are uploaded, you can submit the return online on the Income Tax portal.

6

It's important to note that the process can be more complex for individuals and entities with multiple sources of income and complicated investments. In such cases, it's recommended to seek the assistance of a tax professional who can guide you through the process, identify any potential errors, and ensure you're claiming all the deductions and exemptions you're entitled to.

Details

Types of ITR Forms/Income Tax Return Forms

The Income Tax Return (ITR) form used for filing tax returns in India is issued by the Income Tax Department of the Government of India. Several forms can be used for filing ITR depending on the type of entity and the source of income. The most commonly used forms include:

Details

ITR 1 (Sahaj)

This form is for individuals who are residents (other than ordinarily residents) who have a salary up to Rs. 50 lakhs, having salary income, property of one house, miscellaneous sources (interest and so on), and farming pays up to Rs. 5000. This form is not for a person who-

  • has resources (remembering the pecuniary interest for the element) situated outside India; or
  • has payments from any source outside India; or
  • is a director in any company; or
  • held any unlisted securities at any time during the previous year; or
  • owns more than one property whose salary is charged under the heading "Payment from real estate"; or
  • has a payment under the heading "Payment from Other Sources" in the idea:-
  • winning the lottery
  • activity in the field of ownership and maintenance of racehorses
  • pay exceptional rates under section 115BBDA or section 115BBE; or
  • transfer losses or offset losses
Details

ITR 2

This form is used by individuals and Huf having income from profit and gains from business or profession.

Details

ITR 3

This form is meant for individuals and HUFs with business income.

Details

ITR-4 (sugam)

ITR 4 applies to individuals, HUFs, and firms who are residents and have a total income of up to Rs. 50 Lacs, do not maintain their books of account and want to pay tax on the deemed basis under the provisions of the Income Tax Act, 1961. This excludes a person who-

  • has resources (remembering the pecuniary interest for the element) situated outside India; or
  • has payments from any source outside India; or
  • is a director in any organization; or
  • held any unlisted securities at any time during the preceding year; or
  • claims more than one house, the salary of which is charged under the heading "Payment from the property of the house"; or
  • has a payment under the heading "Payment from Other Sources" in the idea:-
  • lottery prizes
  • events of buying and keeping race ponies
  • pay unique rates under section 115BBDA or section 115BBE; or
  • has any presented misfortune to mediate under any wages; or
  • is assessable on the income on which duty has been deducted at source held by an individual other than the assessee.
Details

ITR 5

This form is meant for persons other than individuals, HUF, companies, and persons filing returns in ITR 7 form.

Details

ITR 6

This form is for companies other than organizations exempted under Section 11 of the Income Tax Act, 1961.

Details

ITR 7

This structure is intended for persons including companies who need to file a return under Section 139(4A) or 139(4B) or 139(4C) or 139(4D) of the Income Tax Act, 1961 particularly.

Details

What are the Different Types of Entities which Need to File Income Tax Returns Filing?

India's Income Tax Department (ITD) requires various entities to file Income Tax Returns (ITR). These entities can be broadly categorized into the following categories:

Individual: Every individual who is a resident in India as per the Income Tax Act, 1961, needs to file the ITR if their total income exceeds the taxable limit. The individual can either file the ITR himself/herself or can engage a qualified professional to do so on his/her behalf.

Huf: A Hindu Undivided Family (Huf) is considered a distinct legal entity that is not treated as a natural person and is exempted from taxation. However, a Huf is required to file an ITR if they have any income from any business or profession.

Association of Persons (AOP) and Partnerships: Association of Persons (AOP) and partnerships registered under the Indian Partnership Act, 1932, and having any income from business or profession, need to file ITR in India.

Company: Every company registered under the Companies Act, 2013 is responsible for filing the ITR on behalf of the company by its authorized representative.

Trust: A trust registered under the Act of Trust and Charity or under any state trust law is required to submit an ITR if it has any income from any business or profession.

Firm: A firm registered under the Indian Partnership Act 1932 is required to file an ITR if they have any income from any business or profession.

It is advised to consult an authorized and qualified professional to help you with the process and ensure compliance with all legal requirements. Failing to do so may result in penalties, fines, and legal consequences. Therefore, essential to maintain accurate records, comply with the applicable law, and file the ITR on time.

Details

What is the penalty for failure to pay income tax?

As per Section 234F of the Income Tax Act, late filing fees will be charged from FY 2018-19. If you file your IT return after the due date but before December 31 of the assessment year, you will have to pay a late penalty of ₹5,000. In case you pay after 31st December of this AY, the penalty will be ₹10,000. However, the late fee would not exceed ₹1000 if your income does not exceed ₹5000.

Why us

Why choose us?

Legal Window is a unique entity of expert professionals in the industry who are actively engaged in offering services for ITR Filing smoothly. Our qualified experts will properly check all the parameters associated with this service and perform it in the best possible way. In addition, this service can be availed at the most favourable and reasonable price.

So if you are confused with all the compliances involved in ITR Filing, your thirst to find the right place for assistance has quenched. Feel free to contact us. We are a devoted expertise team that provides precision and hassle-free delivery of services. Providing services to our committed clients on time, saving our clients' time. We are committed to delivering the best, if you are not satisfied with our services, all prepaid professional service fees will be refunded.

  1. 01
    Guaranteed lowest costs compared to other consulting firms.
  2. 02
    24/7 professional help for our clients.
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Final words

At Legal Window, we work to make your income tax return filing process as easy and seamless as possible. Our team is dedicated to providing you with personalised, secure and reliable tax filing services. Income tax return filing on time is essential to avoid penalties, fines, and other legal consequences. Don't stress out. Trust us to manage your tax compliance. Get assistance from a tax professional to guide you through the process and claim all the deductions and exemptions you're entitled to, maximize your refund, and avoid legal issues.

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