Income Tax Filing
Income Tax Filing
The process of filing your income tax return (ITR) online via the official portal of the Indian government is known as income tax e-filing. Individuals, professionals, and businesses can report their income, make deductions, and pay taxes in accordance with the Income Tax Act quickly, securely, and conveniently.
Transparency, quicker refund processing, and simple access to previous returns and tax records are all guaranteed by e-filing. With little paperwork, salaried people, independent contractors, business owners, and corporations can file their returns online.
You can avoid penalties, stay in compliance with the law, and keep a solid financial record for loans, visas, and other financial requirements by filing your income tax return on time.
Who Needs to e-File an Income Tax Return (ITR)?
Individuals
- Any person whose total income exceeds the basic exemption limit
- Anyone who wishes to claim a tax refund
Salaried Employees & Pensioners
- Employees earning taxable salary
- Pension income earners
Self-Employed Professionals & Freelancers
- Professionals earning income from consultancy or freelance work
Business Owners
- Proprietors
- Partnership firms
- LLPs and Companies
Capital Gains Earners
- Income from shares, mutual funds, or property
NRIs (Non-Resident Indians)
- NRIs earning income in India such as rent, interest, or capital gains
Tax Refund Claimants
- Individuals claiming refund of excess TDS or advance tax
Benefits of e-Filing Income Tax Return
- Legal Compliance: Ensures adherence to the Income Tax Act and avoids penalties or notices
- Easy Loan & Visa Processing: ITR acts as valid income proof for financial and immigration purposes
Basic Exemption Limits (Old Tax Regime)
- Individuals under 60 years: ₹2.5 lakh
- Individuals between 60 and 80 years: ₹3.0 lakh
- Individuals over 80 years: ₹5.0 lakh
Income Tax Slabs – Old Tax Regime
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Income Tax Slabs – New Tax Regime
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹6,00,000 | 5% |
| ₹6,00,001 – ₹9,00,000 | 10% |
| ₹9,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Old vs New Tax Regime – Comparison
| Particulars | Old Tax Regime | New Tax Regime |
|---|---|---|
| Tax Slab Rates | Higher slab rates | Lower slab rates |
| Exemptions & Deductions | Allowed | Mostly not allowed |
| Standard Deduction | Available | Available |
| Tax Saving Investments | Required | Not required |
| Compliance Complexity | Higher | Simple and easy |
| Suitable For | Taxpayers with high deductions | Taxpayers with minimal deductions |
| Rebate under Section 87A | Available | Available |
| Default Regime | Not default | Default tax regime |
Mandatory ITR Filing in Special Cases
- Deposited more than ₹1 crore in one or more current accounts
- Spent more than ₹2 lakh on foreign travel
- Electricity bill exceeded ₹1 lakh
- TDS deducted and refund needs to be claimed
- Holding foreign assets or foreign income
- High-value financial transactions reported to IT Department
- Company or firm required to file ITR irrespective of income or loss