Income Tax e Filing

Filing ITR (income tax return) is a crucial duty of every taxpayer in India, ensuring adherence to the nation's tax regulations. Income tax filing involves detailing all sources of income, deductions, and tax liabilities for a comprehensive report to the Income Tax Department. Early ITR e-filing helps avoid errors and last-minute technical glitches, ensuring a smoother submission process.

Charter 24 simplifies the entire Income Tax e Filing process, making it quick, easy, and hassle-free. Our platform guides you step-by-step, from auto-fetching your pre-filled data to assisting you in choosing the right tax regime. Whether you're an individual or a business owner, our user-friendly ITR efiling system ensures your taxes are filed accurately and on time.

What is Income Tax Return Filing?

ITR filing is the process of reporting your total income, deductions, and taxes paid to the Income Tax Department for a specific financial year. It is mandatory for individuals and businesses whose income exceeds the basic exemption limit.

• Why it matters:

  • Declares your total income and tax paid

  • Helps you claim deductions and refunds

  • Legally required if income exceeds exemption threshold

Income Tax Return (ITR)

An ITR Income Tax Return is a form that taxpayers use to report their income details and tax payments to the Income Tax Department. There are seven different ITR forms available for ITR e filing: ITR 1 through ITR 7. The appropriate form for a taxpayer depends on various factors, including their sources of income, the total amount earned, and the type of taxpayer they are (such as individuals, Hindu Undivided Families (HUFs), companies, etc.). Each taxpayer must accurately complete their income tax filing within the specified deadline to comply with the Income Tax Law.

Who Needs to e File an ITR Income Tax Return?

Income tax filing is not just a legal obligation, but also a financial responsibility. It applies to individuals and entities across various categories and income levels. Below is a clear overview of who must e-file their ITR income tax return in India:

1. Salaried Individuals

If your total annual income exceeds the basic exemption limit, you are required to file IT returns online.

2. Self-Employed Professionals

Freelancers, consultants, doctors, lawyers, designers, and other independent professionals with income above the exemption threshold must e-file. Business-related expenses can also be claimed as deductions.

3. Business Owners (including SMEs & MSMEs)

All business entities—including sole proprietorships, partnerships, LLPs, and private limited companies—must file IT returns online annually, irrespective of profit or loss.

4. Directors and Partners

Individuals who serve as directors in private limited companies or partners in LLPs are mandated to file ITRs reflecting their share of income and financial involvement in the entity.

5. Dividend, Interest, and Capital Gains Earners

If you receive income from:

• Dividends (mutual funds, equities, etc.)

• Interest (from FDs, bonds, etc.)

• Capital gains (from stocks, crypto, F&O, mutual funds)…then it’s mandatory to report and pay applicable taxes through ITR.

6. NRIs and RNORs

• NRIs (Non-Resident Indians) with income arising in India exceeding the exemption limit must file IT returns online.

• RNORs (Resident Not Ordinarily Residents) with foreign income or assets may also be required to file based on disclosure obligations.

7. Foreign Asset or Income Holders

Indian residents holding foreign assets (like overseas bank accounts, shares, or property) or earning foreign income are required to file ITR, even if their taxable income is below the exemption limit.

8. High-Value Transaction Individuals

Even if your income is below the basic exemption limit, you must file ITR if you have:

• Deposited Rs. 1 crore or more in a bank account

• Spent over Rs. 2 lakh on foreign travel

• Paid more than Rs. 1 lakh in electricity bills in a year

9. Claiming Tax Refunds

If you've paid excess tax (through TDS, advance tax, etc.), you must file an ITR to claim your tax refund.

10. Charitable and Religious Trusts

Organisations that manage charity funds, religious institutions, or voluntary contributions must file ITRs annually to maintain financial transparency and tax compliance.

Types of Income Tax returns

1. ITR 1 - This ITR filing is for individuals whose income from Salary, Pension, House Property, or Other Sources upto INR 50 Lakhs.

2. ITR 2 - This return is for Individuals & HUF whose income is from salary, pension, house property, capital gains, foreign asset/income or other sources.

3. ITR 3 - This income tax return is for Individuals & HUF having income from profit and gains of business or profession (PGBP).

4. ITR 4 - This ITR Filing is for Individuals or HUF who have income from PGBP but have opted for presumptive income scheme

5. ITR 5 - This return is for Firms, LLPs, Body of Individuals (BOI) and Association of Persons (AOP)

6. ITR 6 - This return is for all type of companies such as Public Limited Company, Private Limited Company, OPC, except Section 8 Company

Benefits of Filing Income Tax Return

Though According to income tax laws, filing the return and updating your ITR status is mandatory for every individual or entity whose income exceeds the threshold limit mentioned in the Income Tax Act-1961. There are certainly many benefits of filing of ITR:-

1. Avoid Penalty up to INR 10,000/- This year, the government has introduced a new section in the Income Tax Act-1961, i.e. section 234F wherein failing to file ITR on due date July 31, 2018, attracts a mandatory penalty of 5,000/- that may extend up to 10,000/- if not filed before 31st December, 2018.

2. Avoid Tax Notice of non-filing of ITR Remember, Uncle Sam is having an eye on your ITR status! In case you fail to duly file your Income Tax Return, you may get a tax notice from the Income Tax department, which would land you up in trouble. Better you timely fulfil the ITR filing process.

3. Get TDS Refund Back If your client or employer deduct your TDS while making payment, it might be that you're eligible for Tax Refund. On filing Income Tax Return you can claim your TDS credit and get a refund back excess TDS deducted over your net tax liability.

4. Ease in Availing Loans Income Tax Return is a primary requirement of the bank and financial institution while sanctioning the loan. Income declared in Income Tax Return depicts your financial credibility which helps you to sanction loan easily.

5. Can take input or carry forward losses Timely filing of income tax return make you eligible to carry forward your business & capital losses, if any, during a financial year which can be adjusted against income earned in the subsequent years and ultimately save your taxes.

ITR filling process

1. Upload Required Documents for ITR Filing & Information to our web portal

2. Choose Package and Pay online with different payments modes available

3. On placing the order, your application is assigned to one of our dedicated professional

4. Our professional team will prepare computation of income & net tax liability

5. On after confirmation generate the income tax challan for income tax payment

6. After tax payment, file the income tax return and share ITR-V via email

Documents Required For Income Tax Return Filing

1. PAN Card

2. Bank Statement

3. Form 16 & 16A

4. Digital Signature Certificate