ITR Filing (Individual)

Income Tax Return (ITR) filing is the annual declaration of your income, deductions and tax to the Income Tax Department. An individual must file if total income exceeds the basic exemption limit, or to claim a refund, carry forward losses, or as proof of income for loans/visas. The form depends on income type: ITR-1 (Sahaj) for salaried residents with income up to ₹50 lakh, ITR-2 for capital gains/multiple properties/foreign income, ITR-3 for business/professional income, and ITR-4 (Sugam) for presumptive income.

The new regime is the default for AY 2026-27. The Budget-2025 slabs are: up to ₹4 lakh Nil, ₹4–8L 5%, ₹8–12L 10%, ₹12–16L 15%, ₹16–20L 20%, ₹20–24L 25%, above ₹24L 30%. Thanks to the enhanced Section 87A rebate of ₹60,000, a resident with taxable income up to ₹12 lakh pays zero tax; with the ₹75,000 standard deduction, salary up to ₹12.75 lakh is effectively tax-free. A 4% health & education cess applies on the tax.

The new regime offers lower slab rates but disallows most deductions (only the ₹75,000 standard deduction is allowed). The old regime retains deductions — ₹1.5 lakh under Section 80C, 80D (health insurance), HRA, home-loan interest (Section 24(b)), 80G, etc. — with slabs of 2.5L/5L/10L. The old regime suits those with large deductions (home loan + 80C + HRA); the new regime suits most others, especially after the ₹12 lakh rebate. We compute tax under both and recommend the optimal one — note the old regime cannot be opted for in a belated return.

For FY 2025-26 (AY 2026-27): salaried/simple returns (ITR-1 and ITR-2) are due by 31 July 2026; business/professional non-audit returns (ITR-3 and ITR-4) by 31 August 2026; and cases requiring a tax audit by 31 October 2026. A belated or revised return can be filed up to 31 December 2026 (with a late fee). Filing on time preserves your right to carry forward losses and to opt for the old regime.

Typically: Form 16 / Form 130 (salary certificate) from your employer, your Annual Information Statement (Form 168, formerly 26AS) and AIS for TDS and high-value transactions, bank interest certificates, capital-gains statements (for shares/mutual funds/property), rent receipts and home-loan certificates (old regime), and investment proofs for 80C/80D. We reconcile your income against the AIS/168 to ensure nothing is missed and no mismatch notice arises.

Under Section 234F, a late-filing fee of up to ₹5,000 applies (reduced to ₹1,000 if total income is below ₹5 lakh). In addition, interest at 1% per month under Section 234A accrues on any unpaid tax from the due date until filing. Late filing also blocks the carry-forward of capital, business and speculative losses, and prevents opting for the old regime. Filing by the due date avoids all of these.

If you have capital gains from shares, mutual funds or property (and no business income), you file ITR-2 with a detailed capital-gains computation. If you run a business or profession, you file ITR-3 (regular books) or ITR-4 (Sugam) if you opt for presumptive taxation. Filing the wrong form leads to a defective-return notice under Section 139(9). We select the correct form based on all your income heads.

Presumptive taxation lets eligible small businesses and professionals declare income at a fixed rate without maintaining detailed books. Under Section 44AD (eligible businesses), income is presumed at 8% of turnover (6% for digital receipts); under Section 44ADA (specified professionals), at 50% of gross receipts. These are filed in ITR-4 (Sugam). If you declare lower profit and your income exceeds the basic exemption, a tax audit may be triggered. We advise whether presumptive filing benefits you.

An NRI must file an ITR in India if their India-sourced income (rent, capital gains, interest, business income) exceeds the basic exemption limit, or to claim a refund of TDS deducted at higher rates. NRIs generally file ITR-2 (or ITR-3 for business). DTAA relief can reduce double taxation on the same income, and a Tax Residency Certificate may be needed. We handle residential-status determination, DTAA application and accurate NRI filing.

Once filed and e-verified, refunds are typically credited within 20–45 days, directly to your pre-validated bank account. Common mistakes that delay refunds or trigger notices include: choosing the wrong ITR form, not reconciling income with the AIS/Form 168, mismatched bank details, forgetting to e-verify, and missing the due date (losing loss carry-forward and the old-regime option). Our CA-assisted review minimises these. Fees depend on the complexity of your income — contact us for a customised quote.