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A. Basics of ITR

What is ITR?

ITR (Income Tax Return) is a form that taxpayers in India use to report their annual income, deductions, and taxes paid to the Income Tax Department. It helps the government assess whether an individual or business has paid the correct amount of tax or is eligible for a refund.

Why is filing ITR important?

Filing ITR is important because it is a legal obligation under the Income Tax Act. It serves as proof of income, helps claim tax refunds, avoids penalties, and is often required for financial transactions such as applying for loans, visas, or credit cards.

Who should file ITR in India?

Every individual, HUF, or business whose annual income exceeds the basic exemption limit (₹2.5 lakh for individuals below 60 years, ₹3 lakh for senior citizens, and ₹5 lakh for super senior citizens) must file ITR. Additionally, people with foreign assets, high-value transactions, or those who want to claim a refund must also file ITR, even if their income is below the limit.

What are the benefits of filing ITR even if income is below taxable limit?

Helps in easy loan approvals from banks and NBFCs
Required for visa processing in many countries
Acts as income proof for renting property or financial transactions
Enables carry forward of losses for future tax benefits
Ensures smooth claim of tax refunds if TDS is deducted

Is it mandatory to file ITR every year?

Yes, it is mandatory to file ITR every year if your income is above the prescribed limit or if you meet specific criteria (foreign assets, high-value deposits, electricity bill payments above ₹1 lakh, etc.). Even if not mandatory, voluntary filing is highly beneficial.

What happens if you don’t file ITR?

If you don’t file ITR:

You may face a penalty under Section 234F (up to ₹5,000).
Interest on due tax will be charged under Section 234A/B/C.
You may lose the chance to carry forward business or capital losses.
Legal action can be taken in cases of tax evasion.

What is the due date for filing ITR?

The due date for filing ITR (without audit) is usually 31st July of the assessment year. For businesses requiring audit, the due date is 31st October. The government may extend these dates in special cases.

Can I file ITR after the due date?

Yes, you can file a belated return after the due date, usually up to 31st December of the assessment year. However, late filing attracts penalties and interest, and you cannot carry forward certain losses.

What is the difference between ITR filing and tax payment?

Tax Payment: Paying the actual tax liability (advance tax, TDS, or self-assessment tax).
ITR Filing: Reporting your income, deductions, and taxes paid to the Income Tax Department through prescribed forms.
👉 Even if taxes are paid, filing ITR is mandatory to declare and validate them.

What is the penalty for late filing of ITR?

If you miss the due date, a penalty of up to ₹5,000 (under Section 234F) is charged. If income is below ₹5 lakh, the penalty is ₹1,000. Additional interest under Section 234A/B may also apply if taxes are unpaid.

B. Types of ITR Forms

How many types of ITR forms are there?

The Income Tax Department of India notifies seven types of ITR forms (ITR-1 to ITR-7) for different categories of taxpayers. The choice of form depends on the source of income, residential status, and type of taxpayer (individual, HUF, company, or trust).

What is ITR-1 (Sahaj)?

ITR-1 (Sahaj) is the simplest form designed for resident individuals having income up to ₹50 lakh from salary, one house property, or other sources (like interest income).

Who can file ITR-1?

ITR-1 can be filed by:

Resident individuals (not HUFs, not companies)
Income from salary/pension
Income from one house property (not more than one)
Income from other sources (interest, family pension, etc.)
Total income up to ₹50 lakh

What is ITR-2?

ITR-2 is for individuals and HUFs not having income from business or profession. It covers income from multiple sources like salary, capital gains, foreign income, and multiple house properties.

Who should file ITR-2?

Individuals and HUFs with income from salary/pension
Income from more than one house property
Income from capital gains (sale of shares, property, etc.)
Income from foreign assets or foreign income
Agricultural income above ₹5,000
NRIs (Non-Resident Indians)

What is ITR-3?

ITR-3 is applicable for individuals and HUFs earning income from business or profession, including income from partnership firms.

Who should file ITR-3?

Individuals/HUFs with business or professional income
Partners in a partnership firm
Income from salary, house property, capital gains, and other sources in addition to business/profession

What is ITR-4 (Sugam)?

ITR-4 (Sugam) is a simplified form for small taxpayers who opt for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE.

Who should file ITR-4?

Resident individuals, HUFs, and firms (other than LLP)
Income from business or profession under presumptive taxation
Total income up to ₹50 lakh
Income from salary, one house property, and other sources (interest)

What is ITR-5?

ITR-5 is for entities other than individuals, HUFs, and companies.

Who can file ITR-5?

Partnership firms
LLPs (Limited Liability Partnerships)
Associations of Persons (AOPs)
Body of Individuals (BOIs)
Cooperative societies, local authorities, and other entities

What is ITR-6?

ITR-6 is for companies registered under the Companies Act, except those claiming exemption under Section 11 (charitable/religious purposes).

Who should file ITR-6?

All private limited and public limited companies (except charitable/religious trusts)

What is ITR-7?

ITR-7 is meant for persons (including companies) required to furnish returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D).

Who should file ITR-7?

Charitable trusts
Religious institutions
Political parties
Research associations, universities, colleges
Entities required to file return under the above sections

How do I know which ITR form is applicable to me?

The correct ITR form depends on:

Type of taxpayer (individual, HUF, company, trust, or firm)
Sources of income (salary, business, capital gains, foreign assets, agriculture, etc.)
Residential status (Resident/Non-Resident)
👉 The Income Tax Department provides a detailed ITR form selection guide every year, and choosing the wrong form can lead to defective return notices.

⚡ Pro Tip: Most salaried individuals with simple income use ITR-1 or ITR-2, while business owners/professionals use ITR-3 or ITR-4.

C. ITR Filing Process

How to file ITR online?

You can file ITR online through the Income Tax e-Filing Portal. Steps:

Register/Login using PAN (Permanent Account Number).
Select e-File > Income Tax Returns > File Income Tax Return.
Choose the relevant assessment year and ITR form.
Enter income, deductions, and tax details.
Preview, submit, and e-verify the return.

Can I file ITR offline?

Yes, but only certain categories (super senior citizens aged 80+ and some cases) can file ITR offline using paper forms. Most taxpayers must file ITR online (mandatory).

What documents are required to file ITR?

Common documents include:

PAN card & Aadhaar card
Form 16 (for salaried employees)
Form 16A/16B/16C (for TDS on interest, rent, or property transactions)
Bank statements & passbooks
Investment proofs (LIC, PPF, ELSS, etc.)
Form 26AS & AIS (tax credit statements)
Capital gains statements (shares, mutual funds, property)
Home loan certificate (if applicable)

What is Form 16 in ITR filing?

Form 16 is a TDS certificate issued by employers showing salary paid and tax deducted. It helps salaried individuals file ITR easily by providing income and deduction details.

What is Form 26AS?

Form 26AS is an annual tax credit statement showing all taxes deposited against your PAN. It includes TDS, TCS, advance tax, self-assessment tax, and refund details.

What is AIS (Annual Information Statement)?

AIS (Annual Information Statement) is a detailed record of all financial transactions linked to your PAN, such as income, interest, dividends, securities, property purchases, and foreign remittances.

What is TIS (Taxpayer Information Summary)?

TIS (Taxpayer Information Summary) is a simplified summary of AIS that gives pre-filled values of your income and taxes for easy reference while filing ITR.

What is Form 16A?

Form 16A is a TDS certificate issued for non-salary income, such as TDS on interest from bank deposits, rent, or professional fees.

How to check TDS in Form 26AS?

Log in to the Income Tax e-Filing Portal.
Go to e-File > Income Tax Returns > View Form 26AS.
It redirects to TRACES portal where you can view/download your TDS details.

How to verify ITR after filing?

After submitting ITR, it must be verified within 30 days to be processed. Verification can be done online (e-verification) or offline (sending signed ITR-V to CPC, Bengaluru).

What is e-verification of ITR?

E-verification is the process of electronically validating your ITR using Aadhaar OTP, net banking, or other methods without physical documents.

What are the ways to e-verify ITR?

Aadhaar OTP (linked mobile number)
Net banking login
Bank account EVC (Electronic Verification Code)
Demat account EVC
ATM verification (for some banks)
Sending signed ITR-V by post (offline method)

Can I file ITR without Aadhaar?

No, Aadhaar is mandatory (or Aadhaar enrolment number) for filing ITR under Section 139AA, unless you are an NRI or exempt category.

Can I file ITR without PAN card?

No, PAN is compulsory for filing ITR in India. If you don’t have a PAN, you must apply for one before filing.

How to correct errors in ITR filing?

If you made mistakes in filing, you can:

File a revised ITR (before 31st December of the assessment year).
Use the correction option in the e-filing portal for small details.

What is a revised ITR?

A revised ITR is a corrected return filed to rectify mistakes such as wrong income details, deductions, or bank account numbers in the original return.

How to file a revised ITR?

Log in to the e-filing portal.
Select File Revised Return under ITR filing.
Enter acknowledgement number and date of original ITR.
Correct the errors and resubmit.

How to check ITR status online?

Log in to the e-filing portal.
Go to View Filed Returns.
Check status: “Submitted,” “Verified,” “Processed,” or “Refund Issued.”

How to download filed ITR copy?

Login to portal → View Filed Returns → Download ITR form (PDF/JSON format).
Keep it as proof of filing for future use.

How to track ITR refund?

Go to NSDL Refund Tracking website or Income Tax Portal.
Enter PAN and assessment year.
It shows refund status – issued, processed, or pending.

How to show salary income in ITR?

Salary income is reported under the ‘Income from Salary’ head in ITR. Salaried individuals usually file ITR-1 or ITR-2. Details are taken from Form 16 and include basic pay, allowances, perquisites, bonuses, and deductions (like HRA, LTA, standard deduction).

How to show business income in ITR?

Business income is reported under the ‘Profits and Gains of Business or Profession’ head.

Small businesses under presumptive taxation (Section 44AD/44ADA) can file ITR-4 (Sugam).
Others must file ITR-3 with detailed profit & loss account and balance sheet.

How to show capital gains in ITR?

Capital gains from sale of property, shares, or mutual funds are reported under the ‘Capital Gains’ head.

Short-term and long-term gains must be shown separately.
Details include purchase price, sale price, and indexation (if applicable).
ITR-2 or ITR-3 is used depending on other income sources.

How to file ITR for freelancers?

Freelancers are considered self-employed professionals.

If income is below ₹50 lakh and opting for presumptive taxation (44ADA) → file ITR-4.
If maintaining books of accounts → file ITR-3.
Income should include payments from clients, online work, and foreign remittances.

How to file ITR for pensioners?

Pension is treated as salary income.

Pensioners can file ITR-1 or ITR-2, depending on income sources.
If receiving family pension, it is shown under Income from Other Sources, with a deduction of ₹15,000 or 1/3rd of pension (whichever is lower).

How to file ITR for senior citizens?

Senior citizens (60+) and super senior citizens (80+) get a higher exemption limit.

Most use ITR-1 or ITR-2.
They can file ITR offline (paper form) if 80+.
Benefits include Section 80TTB (deduction on interest up to ₹50,000).

How to file ITR for NRIs?

NRIs must file ITR-2 or ITR-3 depending on income type.

Report only income earned in India (salary, house rent, capital gains, etc.).
Foreign income is exempt, but foreign assets must be disclosed.
TDS deductions (like on NRO account interest or property rent) can be claimed while filing.

How to file ITR if I have income from house property?

Income from house property (self-occupied or rented) is shown under the ‘Income from House Property’ head.

Deduct municipal taxes paid.
Claim 30% standard deduction and home loan interest (Section 24).
ITR-1 (for one house) or ITR-2 (for multiple houses).

How to file ITR for rental income?

Rental income is declared under Income from House Property.

Mention gross rent received.
Deduct municipal taxes and claim 30% standard deduction.
Home loan interest can also be deducted.
If renting to businesses, TDS may be deducted, which should match with Form 26AS.

How to report agricultural income in ITR?

Agricultural income is exempt under Section 10(1), but if it exceeds ₹5,000, it must be reported in Schedule EI of ITR. It is considered for rate purposes to calculate tax on non-agricultural income.

How to report dividend income in ITR?

Dividend income is reported under Income from Other Sources.

Taxable at slab rates after FY 2020-21.
Mention TDS (if deducted by company) from Form 26AS/AIS.
Use ITR-1, ITR-2, or ITR-3 based on other incomes.

How to report interest income in ITR?

Interest income from bank deposits, savings account, or FDs is shown under Income from Other Sources.

Savings interest → deduction under Section 80TTA (₹10,000) or 80TTB (₹50,000 for senior citizens).
TDS deducted by banks should be matched with Form 26AS.

How to report cryptocurrency gains/losses in ITR?

Crypto income is taxed under Section 115BBH at 30% flat rate plus surcharge & cess.

No deductions allowed except cost of acquisition.
Must be reported under Schedule VDA (Virtual Digital Assets) in ITR.
Losses from crypto cannot be set off against other income.

How to report income from foreign sources?

Foreign income must be reported if you are a resident in India.

Disclose in Schedule FSI (Foreign Source Income).
Claim relief under Double Taxation Avoidance Agreement (DTAA) if taxes are already paid abroad.
NRI income earned abroad is not taxable in India.

How to file ITR if I have multiple income sources?

If you have salary, business, capital gains, and other income:

Use ITR-3 (for business/professional income).
Use ITR-2 (if no business income).
All sources must be disclosed under their respective heads.

How to show exempted income in ITR?

Exempt income (agriculture, PPF interest, EPF maturity, gifts, etc.) is reported in Schedule EI of ITR. Though not taxable, disclosure is mandatory to avoid tax scrutiny.

E. Deductions & Exemptions

What are the deductions available under Section 80C?

Section 80C allows deductions up to ₹1.5 lakh per year from taxable income. Eligible investments/expenses include:

Life Insurance Premium (LIC)
Employee Provident Fund (EPF) & Public Provident Fund (PPF)
Equity Linked Savings Scheme (ELSS) mutual funds
National Savings Certificate (NSC)
5-Year Fixed Deposit (Tax Saver FD)
Sukanya Samriddhi Yojana (SSY)
Principal repayment of home loan
Tuition fees for children (up to 2 children)

How to claim 80C deduction in ITR?

Choose the old tax regime (80C not available in new regime).
Enter eligible investment/expense details in Schedule VI-A → Section 80C of the ITR form.
Ensure proofs are submitted to your employer (if salaried) for accurate Form 16 reporting.

What is Section 80D deduction?

Section 80D provides deduction on health insurance premiums and preventive health check-ups:

Self, spouse & children: up to ₹25,000
Parents (below 60 years): ₹25,000 extra
Senior citizen parents: ₹50,000
Preventive health check-up: ₹5,000 (within overall limits)

How to claim HRA exemption in ITR?

House Rent Allowance (HRA) exemption can be claimed if you live in rented accommodation. Exemption = Least of:

Actual HRA received
50% of salary (metro) or 40% (non-metro)
Rent paid – 10% of salary
👉 Enter details in Salary Schedule of ITR. Keep rent receipts/PAN of landlord (if rent > ₹1 lakh).

How to claim home loan interest deduction?

Section 24(b): Deduction up to ₹2 lakh on home loan interest (for self-occupied property).
Section 80EE/80EEA: Additional deduction (₹50,000 or ₹1.5 lakh) for first-time home buyers.
Claim under Schedule HP (House Property) in ITR.

What is Section 80G?

Section 80G allows deduction for donations to approved charitable institutions. Deductions can be 50% or 100% (with or without limit), depending on the notified organization.

How to claim donations in ITR?

Enter donation details in Schedule VI-A → Section 80G.
Keep donation receipt & PAN of trust.
Ensure donation is made via cheque, draft, or digital mode (cash allowed only up to ₹2,000).

How to claim tuition fees in ITR?

Tuition fees paid for up to 2 children is eligible under Section 80C.

Must be for full-time education in a school/college/university in India.
Enter details in Schedule VI-A → 80C.

What deductions are available for senior citizens?

80C: ₹1.5 lakh (investments like PPF, SCSS, ELSS).
80D: Health insurance premium (₹50,000).
80TTB: Interest on deposits up to ₹50,000.
24(b): Home loan interest up to ₹2 lakh.
80G: Donations.

What is the difference between old regime and new regime in ITR?

Old Regime: Higher tax rates but multiple deductions/exemptions (80C, 80D, HRA, home loan, etc.).
New Regime: Lower slab rates but no major deductions/exemptions allowed.

How to choose between old and new tax regime?

Old Regime is better if you claim high deductions (80C, 80D, HRA, home loan).
New Regime is better if you have fewer investments/deductions and prefer lower tax rates.
👉 Use the tax regime calculator on the Income Tax portal before filing.

Can I switch between old and new regime every year?

Salaried taxpayers: Yes, they can switch regimes every year while filing ITR.
Business/professional taxpayers: Can switch only once. After opting out of new regime, they cannot switch back.

What deductions are not available in the new tax regime?

Most exemptions/deductions are not allowed in the new regime, including:

80C (PPF, ELSS, LIC, tuition fees)
80D (health insurance)
HRA exemption
LTA (Leave Travel Allowance)
Home loan interest (self-occupied property)
Standard deduction (₹50,000) – Note: available from FY 2023-24 onwards in new regime

What is an income tax refund?

An income tax refund is the excess amount of tax paid by a taxpayer compared to actual tax liability. It usually happens when TDS (Tax Deducted at Source), advance tax, or self-assessment tax exceeds the final tax payable after deductions and exemptions.

How to claim an income tax refund?

File your ITR online and ensure all taxes and TDS are correctly reflected in Form 26AS / AIS / TIS.
If excess tax has been paid, the refund will be automatically calculated in the return.
Enter correct bank account details (linked with PAN & pre-validated on e-filing portal) for direct credit.

How much time does it take to get an ITR refund?

Generally, ITR refunds are processed within 7 to 45 days after ITR is verified. In some cases, it may take longer if detailed scrutiny or mismatch issues arise.

How to check ITR refund status?

Visit the Income Tax e-Filing Portal → Login → View Filed Returns → Check Refund Status.
Or visit the NSDL Refund Tracking Portal and enter PAN & assessment year.
The status will show as: Processed, Issued, Failed, or Pending.

What if my ITR refund is delayed?

Ensure your ITR is e-verified within 30 days.
Check if bank details are correct and pre-validated.
See if there is any mismatch in income, TDS, or deductions.
If still delayed, you can raise a grievance on e-filing portal or contact CPC Bengaluru.

What if my ITR refund is less than expected?

Reasons for a lower refund may include:

Outstanding tax demand from previous years (adjusted automatically).
Mismatch between TDS claimed and Form 26AS/AIS data.
Incorrect reporting of deductions/exemptions.
👉 You can file a rectification request under Section 154 if you think it’s an error.

How to update bank account details for refund?

Login to Income Tax e-Filing Portal → Profile → My Bank Account.
Add/modify account details and pre-validate using net banking.
Only pre-validated accounts can receive refunds via direct credit (NECS/RTGS/NEFT).

Can I get a refund if I file ITR late?

Yes, you can still get a refund if you file a belated ITR (before 31st December of the assessment year). However:

Delayed filing may attract a penalty under Section 234F.
Refunds may take longer to process.
Losses cannot be carried forward (except house property losses).

G. Technical & Legal Questions

What is Section 139 of the Income Tax Act?

Section 139 governs the filing of Income Tax Returns in India. It specifies:

Who must file ITR
Deadlines for filing
Provisions for belated, revised, and updated returns
Special cases like companies, firms, and charitable trusts

What is a belated return?

A belated return is an ITR filed after the due date (31st July for individuals, 31st October for audit cases). It can be filed till 31st December of the assessment year, but late filing attracts penalties and loss of certain benefits (like carrying forward losses).

What is an updated return (ITR-U)?

Introduced in Budget 2022, an updated return (ITR-U) allows taxpayers to correct omissions or errors even after the belated/revised return deadline.

Can be filed within 2 years from the end of the assessment year.
Additional tax (25%–50% of tax due) must be paid.

What is defective return in ITR?

A defective return is when the ITR filed has missing, incomplete, or incorrect information (like mismatch in TDS, missing financial statements, or incorrect form selection). The IT Department issues a notice under Section 139(9) for correction.

How to respond to defective return notice?

Log in to the e-filing portal.
Go to e-Proceedings > Submit Response to Defective Return Notice.
Correct the errors and file a revised ITR within 15 days (or extended time given).

What is scrutiny of ITR?

Scrutiny is a detailed examination of your ITR by the Income Tax Department under Section 143(2) to ensure accuracy of income, deductions, and tax paid. Types include:

Limited scrutiny
Complete scrutiny
Manual scrutiny (rare cases)

What is a tax notice after filing ITR?

A tax notice is an official communication from the IT Department asking for clarification, correction, or compliance. Common reasons:

Mismatch in TDS and income declared
High-value transactions not reported
Suspected tax evasion
Random scrutiny

How to reply to an income tax notice?

Login to the e-filing portal → Pending Actions → e-Proceedings.
Select the notice, upload required documents, and submit a response online.
Always reply within the deadline to avoid penalties.

What is advance tax?

Advance tax is the system of paying income tax in installments during the financial year instead of a lump sum at year-end. It is applicable if tax liability exceeds ₹10,000 in a year. Due dates: 15th June, 15th Sept, 15th Dec, and 15th March.

What is self-assessment tax?

Self-assessment tax is the balance tax paid before filing ITR after adjusting advance tax and TDS. It must be paid using Challan 280 before submitting ITR.

What is TDS and how is it adjusted in ITR?

TDS (Tax Deducted at Source) is tax deducted by the payer (employer, bank, tenant, etc.) and deposited with the government on behalf of the taxpayer. While filing ITR:

TDS is matched with Form 26AS/AIS.
Excess TDS leads to a refund; shortfall leads to additional tax payable.

What is relief under Section 89(1)?

Section 89(1) provides tax relief in cases of salary arrears, advance salary, or gratuity received in a lump sum. It prevents taxpayers from paying higher tax due to income bunching in a single year.

How to claim double taxation relief in ITR?

If income is taxed in both India and another country:

Claim relief under Section 90/91 (Double Taxation Avoidance Agreement – DTAA).
Report foreign income in Schedule FSI & Schedule TR of ITR.
Attach proof of foreign tax paid.

What is Section 44AD, 44ADA, 44AE?

These are presumptive taxation sections:

44AD: Small businesses with turnover up to ₹2 crore can declare 8% (6% digital) as profit.
44ADA: Professionals (lawyers, doctors, consultants, etc.) with income up to ₹50 lakh can declare 50% as profit.
44AE: Transporters can declare income based on the number of goods vehicles owned.

What is presumptive taxation scheme?

Presumptive taxation allows small businesses and professionals to avoid maintaining detailed books of accounts by declaring a fixed percentage of turnover/receipts as income. It simplifies compliance for MSMEs and professionals.

What is Section 87A rebate?

Section 87A offers a tax rebate of up to ₹12,500 under the old regime and ₹25,000 under the new regime if your total taxable income does not exceed ₹5 lakh (old) or ₹7 lakh (new). This makes effective tax zero for eligible taxpayers.

What is marginal relief in income tax?

Marginal relief ensures that the extra tax payable due to crossing a surcharge threshold does not exceed the actual income earned above the limit. It provides relief to taxpayers at income levels where surcharge becomes applicable.

H. Practical Scenarios in ITR Filing

How to file ITR if I have only savings account interest?

If you earn only savings account interest income, you must report it under “Income from Other Sources” in ITR. Interest above ₹10,000 per year is taxable after claiming Section 80TTA deduction (up to ₹10,000) for non-senior citizens, and Section 80TTB (₹50,000) for senior citizens. Usually, ITR-1 (Sahaj) is sufficient for such cases.

How to file ITR if I have stock market income?

Income from shares and stock market is classified as:

Short-Term Capital Gains (STCG) – Taxed at 15% under Section 111A.
Long-Term Capital Gains (LTCG) – Taxed at 10% if gains exceed ₹1 lakh (Section 112A).
Intraday/Speculative income – Treated as business income and taxed as per slab rates.
You should use ITR-2 (for capital gains) or ITR-3 (if showing stock trading as business).

How to file ITR if I am self-employed?

Self-employed individuals (consultants, shop owners, freelancers) should report income under “Profits and Gains from Business or Profession.” You can opt for:

Normal scheme (actual expenses shown) → File ITR-3.
Presumptive taxation (Section 44AD/44ADA) → File ITR-4 (Sugam).
Maintain records of receipts, GST returns, and expenses for accuracy.

How to file ITR for partnership firm?

A partnership firm must file ITR-5, whether it has profits or losses. The firm pays tax at a flat 30% rate + cess and surcharge, while partners’ remuneration and interest are deductible subject to limits under Section 40(b).

How to file ITR for trust or NGO?

Charitable trusts and NGOs file ITR-7 if registered under Sections 12A/12AB or 80G. Exemptions are allowed only if income is applied for charitable/religious purposes as per law. Proper audit and compliance under Section 12A/80G are mandatory.

How to file ITR for company?

A private limited or public company (other than Section 8 company) must file ITR-6 online using digital signature (DSC). Companies claiming exemption under Section 11 (charitable purpose) file ITR-7. Corporate tax rates vary (22% for domestic companies under Section 115BAA, 15% for new manufacturing companies, 30% otherwise).

How to file ITR for LLP?

A Limited Liability Partnership (LLP) files ITR-5. LLPs are taxed at 30% flat rate + surcharge and cess. Audit is compulsory if turnover exceeds prescribed limits under the Income Tax Act or LLP Act.

How to file ITR for joint property income?

If you own a joint property, rental income must be divided between co-owners in proportion to ownership share. Each co-owner files their own ITR (usually ITR-2) showing their share of income under “Income from House Property.”

How to file ITR if I changed jobs during the year?

If you changed jobs, collect Form 16 from both employers and report consolidated income. Make sure to include all TDS deducted and claim eligible deductions (like HRA, 80C, 80D). File ITR-1 or ITR-2 based on other income sources.

How to file ITR if I have income from two states?

Income tax in India is centralized, so state doesn’t matter. You just need to aggregate your total income (salary, rent, business, etc.) and file ITR based on applicable form. For salary, report both Form 16 incomes together.

How to file ITR for lottery or gambling winnings?

Income from lottery, gambling, horse racing, card games, betting is taxed under Section 115BB at a flat 30% rate + cess, without deductions (except TDS credit). File ITR-2 and report under “Income from Other Sources.”

How to file ITR for gift income?

Gifts are taxable if value exceeds ₹50,000 in a year, unless received from relatives, on marriage, will/inheritance, or specific exemptions. Taxable gifts are reported under “Income from Other Sources” in ITR-2/ITR-3.

How to file ITR for minors’ income?

A minor’s income (like interest, dividends) is usually clubbed with the parent’s income under Section 64(1A), unless it’s from the child’s own skill or talent. Parents can claim an exemption of ₹1,500 per child per year. File ITR in parent’s name, unless separate filing is needed.

How to file ITR for deceased person?

The legal heir of a deceased person must file ITR on their behalf. Steps:

Register as a legal heir on the Income Tax e-filing portal.
Submit documents like death certificate, PAN, legal heir certificate.
File ITR for the income earned by the deceased up to the date of death.

I. Common Problems & Errors in ITR Filing

What if PAN and Aadhaar are not linked while filing ITR?

If PAN and Aadhaar are not linked, the Income Tax Department may treat your PAN as inoperative. You won’t be able to e-file ITR, claim refunds, or even perform financial transactions like opening a bank account, investing in mutual funds, or trading in shares. It is mandatory under Section 139AA to link PAN and Aadhaar before filing ITR.

What if I filed ITR using the wrong form?

If you filed ITR using the wrong form, your return may be marked as defective u/s 139(9) or rejected. You need to file a Revised ITR using the correct applicable form before the deadline. Filing under the wrong form can lead to notices and delay in refund processing.

What if I made a mistake in bank details in ITR?

If you entered incorrect bank details in your ITR, your refund may fail to be credited. You can log in to the Income Tax e-filing portal, update bank account details under “Profile Settings,” pre-validate the new account, and then request a refund re-issue.

What if I forgot to e-verify ITR?

If you forget to e-verify your ITR, the return is considered invalid and will not be processed. You must e-verify within 30 days of filing (extended from 120 days earlier). Verification can be done via Aadhaar OTP, net banking, bank ATM, or sending a signed ITR-V form to CPC Bengaluru.

What if I missed the ITR deadline?

If you missed the ITR due date, you can still file a belated return under Section 139(4) before 31st December of the assessment year. However, you may have to pay a late filing fee u/s 234F (up to ₹5,000) and may lose eligibility to carry forward certain losses.

What if I don’t have Form 16?

If you don’t have Form 16, you can still file ITR using salary slips, Form 26AS, AIS (Annual Information Statement), and bank statements. Cross-check TDS deducted by your employer from Form 26AS before reporting income.

What if employer did not deduct TDS?

If your employer did not deduct TDS, you are still responsible for paying the self-assessment tax on your income before filing ITR. Non-payment may attract interest u/s 234B and 234C along with penalties.

What if income is not reflecting in Form 26AS?

If income or TDS is missing in Form 26AS, verify details with the deductor (employer, bank, etc.). The deductor must file a revised TDS return for correction. Do not claim unmatched TDS, as it may result in notices from the IT department.

What if my ITR is rejected?

If your ITR is rejected, it is usually due to non-verification, technical issues, or errors in filing. Check the rejection reason in your income tax account and file a Revised Return or complete the pending verification process.

What if I underreport income in ITR?

If you underreport income, you may receive a tax notice under Section 143(2) or 148. You may be charged penalty up to 200% of tax evaded and interest. To avoid this, file a Revised ITR within the due date once you identify the mistake.

What if I overreport income in ITR?

If you overreport income, you may end up paying extra tax. To correct this, file a Revised ITR before the deadline. Once processed, you may be eligible for a refund of excess tax paid.