How to File Income Tax Return - Everything You Need to Know

Taxpayers can file their ITR online on the income tax department's official website and declare their income and expenses.

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As you start earning money, you’ll likely come across the term “income tax.” So what exactly is it, and how to file ITR? Filing an ITR means submitting a detailed report of your income, expenses, liabilities, and deductions to the tax authorities. You can fill out your ITR using different forms like ITR-1, ITR-4, and others. This process ensures you are abiding the tax laws, helping you avoid penalties and interest for non-compliance. Timely ITR filing is recommended to confirm whether you owe any additional taxes or are eligible for a refund. It can also reflect on your creditworthiness and is often required for loans or visa applications.

Let’s discuss filing income tax return in India, the documents required, and everything you need to know while filing your taxes.

New Income Tax Filing for AY 2024-25

With the latest financial budget, a few changes were implemented on April 1, 2024, and new regulations were added to the existing ones. Before filing taxes for AY 2024-25, one must know about the changes in tax rates for various age brackets under the new tax regime. They are listed below:

Changes in Income Tax Slab Rates

Tax rates for individuals (resident or non-resident) less than 60 years of age at any time during the previous year are as under:

New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate
Up to ₹ 3,00,000	Nil
₹ 3,00,001 - ₹ 6,00,000	5% above ₹ 3,00,000
₹ 6,00,001 - ₹ 9,00,000	₹ 15,000 + 10% above ₹ 6,00,000
₹ 9,00,001 - ₹ 12,00,000	₹ 45,000 + 15% above ₹ 9,00,000
₹ 12,00,001 - ₹ 15,00,000	₹ 90,000 + 20% above ₹ 12,00,000
Above ₹ 15,00,000	₹ 1,50,000 + 30% above ₹ 15,00,000

Tax rates for individuals (resident or non-resident) 60 years or more but less than 80 years of age at any time during the previous year are as under:

New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate
Up to ₹ 3,00,000	Nil
₹ 3,00,001 - ₹ 6,00,000	5% above ₹ 3,00,000
₹ 6,00,001 - ₹ 9,00,000	₹ 15,000 + 10% above ₹ 6,00,000
₹ 9,00,001 - ₹ 12,00,000	₹ 45,000 + 15% above ₹ 9,00,000
₹ 12,00,001 - ₹ 15,00,000	₹ 90,000 + 20% above ₹ 12,00,000
Above ₹ 15,00,000	₹ 1,50,000 + 30% above ₹ 15,00,000

Tax rates for individuals (resident or non-resident) 80 years of age or more anytime during the previous year are as under:

Income Tax Slab	Income Tax Rate
Up to ₹ 3,00,000	Nil
₹ 3,00,001 - ₹ 6,00,000	5% above ₹ 3,00,000
₹ 6,00,001 - ₹ 9,00,000	₹ 15,000 + 10% above ₹6,00,000
₹ 9,00,001 - ₹12,00,000	₹ 45,000 + 15% above ₹ 9,00,000
₹ 12,00,001 - ₹15,00,000	₹ 90,000 + 20% above ₹12,00,000
Above ₹ 15,00,000	₹ 1,50,000 + 30% above ₹ 15,00,000

Changes in Rebate Limits

Earlier, the rebate limit was ₹12,500 for income up to ₹5 lakhs. However, under the new tax regime, the rebate has increased to ₹25,000 if the taxable income is less than or equal to ₹7 lakhs.

Standard Deduction

Under the old tax regime, the standard deduction for salaried individuals was ₹50,000, this limit has been increased to ₹75,000 under the new regime.

Change in Default Tax Regime

From Financial 2023-24, the new tax regime has become the default tax regime. If you wish to choose the old tax regime, you must submit Form 10-IEA when filing your tax return.

Steps to File an ITR Online

Filing your Income Tax Return (ITR) online simplifies tax submission, streamlines the process, and ensures timely and accurate reporting. Follow these steps:

First, you must log in to your account using your username, password, date of birth, and Captcha Code.

The next step in the process of how to file income tax return online is to go to the e-file tab and click on the prepare and submit ITR online’ button

You must then select either Form ITR1 or ITR 4 and the assessment year for which you want to file the return

Once you select the appropriate form, you must complete all the relevant details and then click on the ‘submit’ tab

When applicable, you may upload the Digital Signature Certificate (DSC); you must ensure that the DSC is registered with the e-filing website

On successful submission, ITR-V is displayed (when you do not use the DSC); click on the link to download the ITR-V, which is also sent to your registered email address

The ITR-V must be printed, signed, and sent to the Central Processing Cell (CPC) within 120 days from the date of e-filing; your return is processed only after the CPC receives a duly signed ITR-V

If you use the DSC for the ITR filing process, you do not have to download the ITR-V

Information to be Filled While Filing ITR Online

When filing an ITR online, you must fill out the following information; remember that the information must be true to your best knowledge:

Personal information such as your full name, PAN, father’s name, and complete date of birth

Income details, including the name of all your employers during the assessment year and type of employer. Additionally, you must input your salary and the details for the Tax Deducted at Source (TDS). You must provide a detailed breakup of your salary.

The Income Tax Act includes certain provisions for claiming deductions, which reduces your tax liability. You must provide information about all your investments, such as life insurance premiums, Public Provident Fund, etc. Deductions are available under Section 80C for various investments. Section 80TTA allows deductions on interest earned during the year on your savings bank account.

Details of tax paid for any non-salary income you earn during the financial year. This may include interest or earnings from freelance work. The tax payments towards such income must be input; these details may also be uploaded through Form 26AS.

You must provide the bank details to complete the process of ITR filing online. You should include all your bank accounts and provide details about the primary account.

After completing the aforementioned information, if you see ’no tax due’ or ’refund’ intimation, you may complete the e-filing process to receive acknowledgment on submission. If you get a message saying ’tax due,’ you must follow the instructions to pay the same before the ITR filing process.

Guide on How to File ITR Offline for Super Senior Citizens

During the financial year, super senior persons (those who are 80 or older) can file ITRs offline. If an individual or HUF has an income of less than ₹5 lakh and is not eligible for a refund, the ITR may also be filed offline.

This step-by-step procedure to file returns offline is mentioned below

Request Form 16.

After that, the ITR returns must be submitted in paper form to the Income Tax Department.

You will receive an acknowledgment slip from the Income Tax Department once the form has been submitted.

Documents Required for Filing ITR

You will need the following documents while filing ITR1:

Aadhaar Card
PAN Card
Bank Statements
Form 16
Donation receipts
Stock trading statements from the broker platform
Insurance policy paid receipts related to life and health
Bank account information linked to PAN
Aadhaar registered mobile number for e-verifying the return
Interest certificates from banks

Conclusion

Keep in mind the updates and changes in old and new regime while submitting ITR and double check to see which regime suits your income slab and saves you more on tax. Ensure timely ITR filling to avoid penalties and extra charges. Use the steps discussed above and information guide and file your income tax return on time.

FAQs on How to File Income Tax Return

Who needs to file an income tax return?

The following people and businesses need to file an income tax return:

All individuals, up to 59, whose total income for a financial year exceeds ₹2.5 lakh. For senior citizens (aged 60-79), the limit increases to ₹3 lakh; for super senior citizens (aged 80 and above), the limit is ₹5 lakhs.
All registered companies.
Those who wish to claim a refund.
Individuals who have assets or financial interest entities that are located outside India.
NRIs who earn or accrue more than ₹2.5 lakh in India in a single financial year.

How do I determine which ITR form to use?

You can determine which ITR form to use with the following information:

ITR-1- Applicable for Individual: This return applies to a Resident (other than Not Ordinarily Resident) Individual with total Income from any of the following sources up to ₹50 lakh.
Salary / Pension
One House Property
Other sources (Interest, Family Pension, Dividend, etc.)
Agricultural Income up to ₹5,000
ITR-2 - Applicable for Individual and HUF: This return is applicable for Individual and Hindu Undivided Families (HUF):
Not having Income under the head Profits and Gains of Business or Profession
Who is not eligible for filing ITR-1
ITR-3- Applicable for Individual and HUF: This return is applicable for Individual and Hindu Undivided Family (HUF):
Having Income under the head Profits and Gains of Business or Profession
Who is not eligible for filing ITR-1, ITR-2 or ITR-4
ITR-4- Applicable for Individual, HUF, and Firm (other than LLP): This return is applicable for individuals or Hindu Undivided Family (HUF) who are residents other than Not Ordinarily Resident or a Firm (other than LLP) having a total Income up to ₹50 lakhs and having income from business or profession which is computed on a presumptive basis (u/s 44AD / 44ADA / 44AE) and income from any of the following sources:
Salary / Pension
One House Property
Other sources (Interest, Family Pension, Dividend, etc.)
Agricultural Income up to ₹5,000

What is the deadline for filing an income tax return?

The due date for filing an income tax return is 31st July for individuals and 31st October for taxpayers whose accounts are subject to audit.

How can I file my income tax return online?

You can file your income tax return online by following these steps:

Step 1 - Go to the Income Tax e-filing website
Step 2 - Register or Log in to the website
Step 3 - Enter the required details
Step 4 - Select the mode of Filing
Step 5 - Select the status
Step 6 - Select the appropriate ITR form
Step 7 - If you select ITR 1
Step 8 - If you select ITR 4
Step 9 - Summary of tax computation
Step 10 - Proceed to validation and submit the ITR

Can I file my tax return if I missed the deadline?

Yes, you can file tax return after the deadline however, a late filing fee and interest will be applicable. Penalty regarding additional taxes is also applicable in case of updated return.

How do I check the status of my income tax return?

To check the status of your income tax return:

Click on the e-filing homepage
Click view ITR status
Enter the ITR acknowledgment number and a valid mobile number
You will be able to view the status of your e-filing account.

What are the consequences of not filing an income tax return?

If you owe more than ₹25,000 to the government, you may face imprisonment for 6 months to 7 years. If you owe less than ₹25,000, you may face imprisonment for 3 months to 2 years and a fine.

Can I claim deductions or exemptions on my tax return?

Yes, you can claim deductions on tax returns for investments such as Employee Provident Fund (EPF), Public Provident Fund (PPF), National Savings Certificate (NSC), and life insurance premiums.

How to File Income Tax Return - Everything You Need to Know

New Income Tax Filing for AY 2024-25

Changes in Income Tax Slab Rates

Changes in Rebate Limits

Standard Deduction

Change in Default Tax Regime

Steps to File an ITR Online

Information to be Filled While Filing ITR Online

Guide on How to File ITR Offline for Super Senior Citizens

Documents Required for Filing ITR

Conclusion

FAQs on How to File Income Tax Return

Who needs to file an income tax return?

How do I determine which ITR form to use?

What is the deadline for filing an income tax return?

How can I file my income tax return online?

Can I file my tax return if I missed the deadline?

How do I check the status of my income tax return?

What are the consequences of not filing an income tax return?

Can I claim deductions or exemptions on my tax return?

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