Income Tax E-Filing

INR 1999 All Inclusive

Personal – Salaried

  • Salary Income
  • Assisted ITR Filing
  • Tax Expert Support
INR 1999 All Inclusive

Personal – Self Employed

  • Professionals
  • Freelancers
  • Assisted ITR Filing
  • Tax Expert Support

Income Tax Filing

Income Tax Return (ITR) filing is a critical responsibility for every taxpayer in India, ensuring compliance with the country’s tax regulations. It involves submitting a detailed account of all income sources, deductions, and tax liabilities to the Income Tax Department. The deadline to file the Income Tax Return for the Financial Year 2023-24 (Assessment Year 2024-25) without incurring a late fee is July 31, 2024.

Filing your ITR early helps prevent mistakes and avoids last-minute technical issues, ensuring a seamless submission process. At Allycon, we simplify the ITR e-filing process, allowing you to complete your returns online with ease. Our platform is designed to make every step more efficient, secure, and faster.

With expert guidance available throughout the filing process, Allycon ensures a smooth, hassle-free experience, helping you meet your tax obligations effortlessly and on time.

Income Tax Return (ITR)

An Income Tax Return (ITR) is a form used by taxpayers to report their income and tax payments to the Income Tax Department. There are seven different ITR forms available, from ITR 1 to ITR 7. The correct form depends on the taxpayer’s income sources, the total amount earned, and the type of taxpayer, such as individuals, Hindu Undivided Families (HUFs), companies, etc. Accurate and timely submission of these forms is essential for compliance with tax laws.

Who Needs to eFile an Income Tax Return?

Income tax return filing is both a legal obligation and a financial responsibility. Various groups must file ITR under different circumstances:
  1. Salaried Individuals: If your total income, before deductions under Sections 80C to 80U, exceeds the basic exemption limit, you are required to file an ITR.

  2. Firms: All corporate entities, including private limited companies, LLPs (Limited Liability Partnerships), and traditional partnerships, must file ITR annually, regardless of profit or loss.

  3. Directors and Partners: Directors in private limited companies and partners in LLPs are required to file ITR, reflecting their income and financial activities within the company.

  4. Dividend Earners: Those receiving dividends from sources such as mutual funds, bonds, equities, or fixed deposits must file an ITR to report all income sources for accurate taxation.

  5. Charity and Religious Trusts: Income from managing charity funds, religious trusts, or voluntary contributions must be reported through an ITR to maintain transparency and comply with tax laws.

  6. Tax Refund Claimants: Anyone eligible for a tax refund, whether individuals or businesses, should file an ITR to claim the refund of taxes overpaid.

  7. NRIs and Tech Professionals: Non-resident Indians (NRIs) and technology professionals must file ITR if their income from India exceeds the exemption limit or involves specific transactions.

Eligibility for Income Tax Filing 

You are required to file an ITR in India if your gross total income exceeds the basic exemption limit:

  • Individuals under 60 years: Rs 2.5 lakh
  • Individuals between 60 and 80 years: Rs 3.0 lakh
  • Individuals over 80 years: Rs 5.0 lakh

Even if your income is below these thresholds, certain high-value transactions, such as depositing Rs 1 crore or more in bank accounts or incurring electricity expenses over Rs 1 lakh, also necessitate ITR filing.

Income Tax Return Forms in India

India’s ITR filing system offers several forms tailored to various taxpayer types:
  1. ITR-1 (Sahaj): For individuals with an income from salary or pension below Rs. 50 lakhs and owning one house property.

  2. ITR-2: For NRIs, directors, or individuals with capital gains, foreign income, or owning more than one house property.

  3. ITR-3: For professionals and proprietorship businesses.

  4. ITR-4 (Sugam): For those opting for the presumptive taxation scheme.

  5. ITR-5: For partnership firms, LLPs, associations, and bodies of individuals.

  6. ITR-6: For companies registered in India.

  7. ITR-7: For entities such as charitable trusts, political parties, and scientific research institutions.

Due Date for ITR Filing

For the Financial Year 2023-24 (Assessment Year 2024-25), the due date for filing ITR under section 139(1) is July 31, 2024, unless the government extends it. Simply paying taxes is not sufficient; timely submission of ITR is essential to avoid penalties. A late filing fee will be imposed for returns submitted after the deadline.

Advantages of Income Tax e Filing

Filing ITR online offers numerous financial and legal advantages:

  1. Legal Documentation: Your ITR serves as proof of income and taxes paid, useful for identity verification and income documentation.

  2. Claim Tax Benefits: Filing your ITR allows you to claim deductions and exemptions, reducing your tax liability.

  3. Essential for Financial Transactions: ITRs are required for loan and visa applications to verify income and financial stability.

  4. Avoid Penalties: Filing on time helps avoid penalties and interest charges.

  5. Carry Forward Losses: Losses from business or investments can be carried forward to offset future tax liabilities.

  6. Quick Loan and Card Approvals: A regular tax-filing record speeds up loan and credit card approvals.

  7. High-Value Transactions: For high-value transactions, such as purchasing property, ITR filing is mandatory.

Documents Required for ITR e Filing

To ensure a smooth ITR filing process, the following documents may be needed:

  • PAN and Aadhaar Cards: Essential for tax identification and verification.
  • Bank Account Details: Required for refund processing.
  • Income-related Documents: Salary slips, rent receipts, Form 16 (salary), Form 26AS, etc.
  • Deductions and Exemptions: Proofs for insurance, PPF, NSC, ELSS mutual funds, etc.

Penalty for Late Filing Income Tax Returns

Missing the ITR deadline can lead to penalties under the Income Tax Act:

  1. Interest: A 1% per month charge on unpaid taxes under Section 234A.
  2. Late Fees: Rs 5,000 (Rs 1,000 for incomes below Rs 5 lakh) as per Section 234F.
  3. Loss Adjustment Forfeiture: Delayed filing forfeits the ability to carry forward losses from investments or business.

Procedure for eFiling of ITR in India

Allycon provides a straightforward step-by-step guide for e-filing ITR:

  1. Login to the Income Tax e-Filing Portal
  2. Select the Right Assessment Year and Taxpayer Category
  3. Choose the Correct ITR Form (based on income sources)
  4. Review Pre-Filled Data and Edit
  5. Submit ITR and Make Tax Payments Online
  6. e-Verify the Return

Verification can be done through Electronic Verification Code (EVC), Aadhaar OTP, or by sending a signed ITR-V form to the Income Tax Department.

Steps to Take If You Miss the ITR Filing Deadline

If you’ve missed the deadline for filing your Income Tax Return (ITR), don’t worry—there are still ways to remedy the situation. Here’s what you can do:

1. File a Belated Return

  • Under Section 139(4) of the Income Tax Act, you can file a belated return for the Financial Year 2023-24 (Assessment Year 2024-25) until December 31, 2024.
  • Keep in mind, filing a belated return may incur penalties and interest charges.
  • Additionally, most losses (except house property losses) cannot be carried forward if you file after the original deadline.

2. File an ITR-U (Updated Return)

  • Introduced by the Finance Act of 2022, the ITR-U allows you to update your tax return within two years from the end of the relevant assessment year.
  • This is useful for correcting any errors or omissions in the original or belated return.
  • Filing an updated ITR incurs additional tax charges:
    • 25% penalty if filed within the first year.
    • 50% penalty if filed in the second year.

To avoid these penalties and added costs, it’s recommended to start your ITR filing process early and avoid last-minute rushes.

Common Mistakes While e-Filing Income Tax

When filing your Income Tax Return (ITR) online, there are several common errors that taxpayers often make. Avoiding these mistakes can save you from complications and penalties:

1. Choosing the Wrong Tax Form

  • Different ITR forms cater to various income sources and taxpayer statuses. Selecting the correct ITR form based on your income type is essential for a successful filing.

2. Incorrect PAN or Personal Information

  • Mistakes in your PAN, name, address, or date of birth can lead to rejection or delayed processing of your return.

3. Incorrect Bank Account Details

  • Wrong bank account information can delay your ITR refund. Ensure your account number, IFSC code, and other details are accurate.

4. Not Claiming All Eligible Deductions

  • Many taxpayers miss out on reducing their tax liabilities by failing to claim all applicable deductions for savings, investments, and other allowable expenses.

5. Failing to Disclose All Income Sources

  • All income earned in the year must be disclosed. Failure to report all sources of income can result in penalties and is considered tax evasion.

6. Not E-verifying the Return

  • After filing, your return must be e-verified within the prescribed time. An unverified return is treated as if it was not filed at all.

7. Filing After the Deadline

  • Late filing incurs penalties and fines, so it’s crucial to file before the due date.

8. Omitting Capital Gains from Mutual Funds

  • Both long-term and short-term capital gains from mutual funds are taxable. Ensure these gains are correctly reported.

By avoiding these errors, you can ensure a smoother and error-free e-filing experience. IndiaFilings offers expert assistance to guide you through the complex ITR e-filing process, ensuring compliance with tax regulations.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.