Introduction to Income Tax Return
Income Tax Return (ITR) is a form used to file information about your income and taxes to the Income Tax Department. Filing ITR is not just a legal obligation but also helps in claiming refunds, applying for loans, and maintaining financial records.
Assessment Year vs Financial Year
Financial Year (FY): The year in which you earn income (April 1 to March 31)
Assessment Year (AY): The year in which you file return for the previous FY
For FY 2024-25 (April 2024 - March 2025), the Assessment Year is AY 2025-26.
Who Should File ITR?
Filing ITR is mandatory in the following cases:
- Gross total income exceeds ₹2.5 lakhs (₹3 lakhs for senior citizens)
- Want to claim tax refund
- Have assets or bank accounts outside India
- Deposited more than ₹1 crore in bank accounts
- Incurred foreign travel expenditure exceeding ₹2 lakhs
- Electricity bills exceed ₹1 lakh in the year
Even if Not Mandatory
It's advisable to file ITR even if your income is below the taxable limit. It serves as proof of income for loan applications, visa processing, and maintains your financial records.
ITR Forms - Which One to Choose?
ITR-1 (Sahaj)
For salaried individuals
- Income from salary/pension
- One house property
- Other sources (interest, etc.)
- Total income up to ₹50 lakhs
ITR-2
For individuals with capital gains
- Capital gains from shares, property
- Multiple house properties
- Foreign income/assets
- Director in a company
ITR-3
For business/professional income
- Business or profession income
- Partnership firm partner
- Not eligible for ITR-4
ITR-4 (Sugam)
For presumptive income
- Section 44AD (business)
- Section 44ADA (professionals)
- Total income up to ₹50 lakhs
Documents Required
Identity Documents
- PAN Card
- Aadhaar Card
- Bank Account Details (for refund)
Income Documents
- Form 16 (from employer)
- Salary Slips
- Bank Interest Certificates
- Rental Income Details
Investment Proofs
- 80C: LIC, PPF, ELSS, NSC, etc.
- 80D: Health Insurance Premium
- 80E: Education Loan Interest
- Home Loan Interest Certificate
Other Documents
- Form 26AS (Tax Credit Statement)
- AIS (Annual Information Statement)
- Rent Receipts
- Capital Gains Statement
Common Tax Deductions
Section 80C
Max: ₹1,50,000PPF, ELSS, Life Insurance, NSC, Tuition Fees, Home Loan Principal
Section 80D
Max: ₹25,000 - ₹1,00,000Health Insurance Premium for self, family, and parents
Section 24(b)
Max: ₹2,00,000Home Loan Interest (self-occupied property)
Section 80CCD(1B)
Max: ₹50,000NPS contribution (additional to 80C)
HRA Exemption
As per calculationHouse Rent Allowance (if living in rented accommodation)
Old vs New Tax Regime
Old Tax Regime
✓ All deductions available (80C, 80D, HRA, etc.)
New Tax Regime
✗ Most deductions not available
Which Regime to Choose?
If your total deductions exceed ₹3-4 lakhs, the old regime might be beneficial. Use our Income Tax Calculator to compare both regimes and find the best option for you.
Try CalculatorITR Filing Process
Gather Documents
Collect Form 16, bank statements, investment proofs, and other required documents
Calculate Income
Calculate total income from all sources including salary, house property, capital gains
Claim Deductions
Apply all eligible deductions under Section 80C, 80D, and other sections
Calculate Tax
Compute tax liability and compare with TDS already deducted
File Return
Submit ITR online through e-filing portal or through MyTaxAdvisor
E-Verify
Verify your return within 30 days using Aadhaar OTP, Net Banking, or DSC
Important Deadlines for FY 2024-25
ITR Filing Deadline (Non-Audit)
For individuals, HUFs, and businesses not requiring audit
ITR Filing Deadline (Audit)
For businesses requiring tax audit
Belated Return Deadline
Last date to file belated/revised return