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Income Tax Return (ITR) Filing

Who Files This?

Every individual, HUF, partnership, LLP, company, or trust whose income crosses the basic exemption limit, or who has foreign assets/income, capital gains, or business turnover requirements, must file an Income Tax Return.

Applicability Criteria

  • Individuals: Income above basic exemption (₹2.5 lakh/₹3 lakh/₹5 lakh as per age category).

  • Companies & LLPs: ITR filing mandatory every year, irrespective of profit/loss.

  • Partnership Firms: Mandatory, regardless of income.

  • Persons with foreign assets, capital gains, or carrying forward losses must file, even if below exemption limit.

Forms commonly used:

  • ITR-1: Salary & simple income sources (Individuals).

  • ITR-2: Capital Gains, multiple income sources, foreign income (Individuals/HUF).

  • ITR-3: Business/Profession (Individuals/HUF).

  • ITR-4: Presumptive Taxation (small businesses/professionals).

  • ITR-5: Partnership/LLP.

  • ITR-6: Companies (except claiming exemption u/s 11).

  • ITR-7: Trusts, NGOs, political parties.

Why It Matters

ITR filing ensures:

  • Compliance with the Income Tax Act.

  • Enables claiming of refunds and carry forward of losses.

  • Serves as an official proof of income for loans, visas, creditworthiness.

  • Avoids penalties and prosecution.

Process of Filing

  1. Collect financial data (salary slips, bank statements, capital gains, business income, investments).

  2. Compute total income & tax liability.

  3. Claim deductions under sections (80C, 80D, 80G, etc.).

  4. File appropriate ITR form on Income Tax e-filing portal.

  5. Verify return via Aadhaar OTP, DSC, or physical ITR-V.

Due Date

  • Individuals & non-audit cases: 31st July of the Assessment Year.

  • Companies & audit cases: 30th September.

  • Transfer Pricing audit cases: 30th November.

Penalty for Non-Compliance

  • Late filing fee u/s 234F: ₹1,000 to ₹5,000 depending on income.

  • Interest u/s 234A/B/C on tax payable.

  • Loss of carry-forward benefits.

How LTC Helps

  • Determining correct ITR form.

  • Preparation of capital gains, business schedules, and tax computations.

  • Filing and verification on portal.

  • Advisory on tax planning, deductions, and refund maximization.