ITR (Income Tax Return)

ITR stands for Income Tax Return.

It is a statutory return that every person earning income above the basic exemption limit must file with the Income Tax Department of India, reporting their income, deductions, and tax liability for a financial year. Filing ITR is not just a legal obligation — it is also a critical financial document that serves as proof of income for loans, visas, and financial applications. What is an ITR? The Income Tax Act mandates filing ITR if your gross total income exceeds the exemption threshold (₹3 lakhs for individuals below 60, ₹3.5 lakhs for senior citizens, ₹5 lakhs for very senior citizens under the new tax regime) before deductions. Even if your tax liability is zero after deductions, if your gross income exceeds the threshold, you must file an ITR. Additionally, certain categories of persons must file ITR regardless of income — for example, individuals with foreign assets, those who have deposited more than ₹1 crore in a current account in a year, or those who spend more than ₹2 lakhs on foreign travel per year. There are different ITR forms depending on your income sources: ITR-1 (Sahaj) for salaried individuals with income up to ₹50 lakhs from salary and one house property; ITR-2 for those with income from capital gains, more than one house property, or foreign income; ITR-3 for professionals and business owners; ITR-4 (Sugam) for presumptive income businesses; and ITR-5, 6, and 7 for other entities. The due dates for filing ITR are: July 31 for individuals and HUFs not requiring audit (or November 30 for businesses requiring tax audit). Late filing attracts a penalty of ₹1,000 (if total income is up to ₹5 lakhs), ₹5,000 (if total income exceeds ₹5 lakhs), and ₹10,000 (for late filing by companies or those with international transactions). If you miss the deadline and the tax liability is also unpaid, interest under Section 234A at 1% per month is charged on the unpaid tax. For salaried individuals, the ITR filing process is straightforward: download Form 16 from the employer, verify Form 26AS for all TDS entries, log in to the income tax e-filing portal, select the appropriate ITR form, fill in income details (pre-filled from employer data), claim deductions under 80C, 80D, etc., calculate the tax payable or refundable, e-verify using Aadhaar OTP or net banking, and submit. Once processed (typically 2-4 weeks after e-verification), the ITR is marked as "Verified" and the refund (if any) is issued within 1-2 weeks. ITR-V is the acknowledgment generated after filing ITR. If you file ITR without e-verification, you must print the ITR-V, sign it, and send it to the CPC in Bengaluru within 30 days of filing. Keep the ITR-V receipt and the verified ITR acknowledgement safely — they are proof of filing and may be required for visa applications, loan processing, and IT department queries.