Filing your Income Tax Return (ITR) is a fundamental responsibility for taxpayers in India. It ensures compliance with tax regulations and facilitates various financial transactions. This comprehensive guide outlines the steps and considerations for filing your ITR for the Financial Year (FY) 2024-25, corresponding to the Assessment Year (AY) 2025-26.

1. Determine Your Filing Obligation

You are required to file an ITR if your income exceeds the basic exemption limits:

• Individuals below 60 years: 2,50,000

• Senior citizens (60 to 79 years): 3,00,000

• Super senior citizens (80 years and above): 5,00,000

Additionally, filing is mandatory if you:

• Have assets or financial interests outside India.

• Seek a refund for excess tax paid.

• Intend to carry forward losses to future years.

• Have deposited over 1 crore in one or more current accounts.

• Have spent more than 2 lakh on foreign travel.

• Have paid electricity bills exceeding 1 lakh in a year.

2. Gather Necessary Documents

Before filing, collect the following documents:

• PAN Card: Your Permanent Account Number.

• Aadhaar Card: Mandatory for e-verification.

• Form 16: Issued by your employer, detailing salary and tax deducted.

• Form 26AS: A consolidated tax statement available on the Income Tax Department's website.

• Bank Statements: Reflecting interest income and other transactions.

• Investment Proofs: Documents supporting deductions under sections like 80C, 80D, etc.

• Property Details: Information on rental income or capital gains, if applicable.

3. Choose the Correct ITR Form

Selecting the appropriate ITR form is crucial:

• ITR-1 (Sahaj): For individuals with income up to ?50 lakh from salary, one house property, and other sources.

• ITR-2: For individuals and HUFs not having income from business or profession.

• ITR-3: For individuals and HUFs having income from business or profession.

• ITR-4 (Sugam): For presumptive income from business or profession.

Ensure you select the form that matches your income sources to avoid processing issues.

4. Calculate Your Tax Liability

Compute your total income by summing all income sources, then apply eligible deductions to arrive at your taxable income. Use the applicable tax slabs to calculate your tax liability. Online calculators and the Income Tax Department's e-filing portal can assist in this computation.

5. Pay Any Outstanding Taxes

If your computed tax liability exceeds the tax already paid through TDS or advance tax, pay the balance as self-assessment tax via the e-filing portal before submitting your return.

6. File Your ITR Online

Follow these steps to e-file your ITR:

• Step 1: Visit the Income Tax e-Filing portal and log in using your PAN/Aadhaar and password.

• Step 2: Navigate to the 'e-File' section and select 'File Income Tax Return'.

• Step 3: Choose the appropriate Assessment Year (AY 2025-26) and select the applicable ITR form.

• Step 4: Enter your personal information, income details, deductions, and tax payments. Verify pre-filled data from Form 26AS and Annual Information Statement (AIS) for accuracy.

• Step 5: Review the computed tax liability or refund. Ensure all details are correct before submission.

7. Verify Your ITR

After submission, verify your return within 30 days to complete the filing process. Verification methods include:

• Aadhaar OTP: Receive an OTP on your registered mobile number linked to Aadhaar.

• Net Banking: E-verify through your bank's net banking portal.

• Digital Signature Certificate (DSC): Use if you have a DSC.

• Sending a Physical Copy: Mail a signed copy of ITR-V to the Centralized Processing Center (CPC) in Bangalore.

8. Acknowledge Receipt

Upon successful verification, you will receive an acknowledgment from the Income Tax Department. Retain this for future reference.

Important Deadlines

• Filing Start Date: The ITR filing window for AY 2025-26 is expected to open on April 1, 2025.

• Due Date: The deadline for filing without late fees is July 31, 2025.

Common Mistakes to Avoid

• Incorrect ITR Form: Filing with the wrong form can lead to rejection or processing delays.

• Mismatch in Income Details: Ensure all income sources are accurately reported and match Form 26AS and AIS.

• Omitting Deductions: Claim all eligible deductions to reduce taxable income.

• Incorrect Bank Details: Provide accurate bank information to receive refunds promptly.

• Non-Verification: Failing to verify your ITR renders it invalid.

Filing your ITR accurately and timely is essential for compliance and to avail benefits like refunds and loss carry-forwards. By following this guide and ensuring all details are correct, you can navigate the e-filing process smoothly. If you encounter complexities, consider consulting a tax professional for assistance.

Note: Tax laws and procedures are subject to change. Always refer to the latest guidelines issued by the Income Tax Department or consult a professional for the most current information.

https://www.livehomes.in/blogs