Income Tax
Income Tax Return Filing — Accurate, On-Time ITR Support for Individuals and Businesses
TrustLedger handles ITR filing for salaried individuals, professionals, freelancers, proprietorships, and companies. Know the right form, due dates, and deductions before you file.
What is an Income Tax Return?
The Income Tax Return is your annual declaration of total income earned, deductions claimed, taxes paid during the year, and any remaining tax due or refundable — filed with the Income Tax Department of India.
Filing an ITR is how you formally close your tax account for a financial year. It confirms that you have paid the correct amount of tax and gives you the opportunity to claim a refund of any excess TDS that was deducted from your income by employers, banks, or clients.
Beyond compliance, a filed ITR is a financial record. Banks require it for loan processing, visa applications ask for the last two or three years of returns, and it serves as income proof for any significant financial transaction.
Who Must File an ITR?
Filing is mandatory if any of the following applies:
- Individual with gross total income exceeding the basic exemption limit — ₹2.5 lakh (below 60), ₹3 lakh (60–79 years), ₹5 lakh (80 years and above); thresholds may differ under old vs new regime
- Any company or LLP — regardless of profit, loss, or activity
- Any partnership firm
- Individuals holding any foreign asset or earning any income from outside India
- Individuals who are directors in a company or hold unlisted equity shares during the year
- Anyone who has deposited ₹1 crore or more in one or more current accounts, spent ₹2 lakh or more on foreign travel, or paid ₹1 lakh or more in electricity bills during the year
- Anyone who wants to carry forward a business loss, capital loss, or house property loss to future years
Many individuals below the basic exemption limit also file voluntarily — to claim TDS refunds, maintain a filing record for loan eligibility, or support financial applications.
Which ITR Form Applies?
ITR-1 (Sahaj): Salaried individuals with total income up to ₹50 lakh, having income from salary, one house property, and other sources (interest, dividend)
ITR-2: Individuals and HUFs with capital gains, more than one house property, foreign income, or income over ₹50 lakh
ITR-3: Individuals and HUFs with income from business or profession (not covered by presumptive taxation)
ITR-4 (Sugam): Individuals, HUFs, and firms opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE
ITR-5: Partnership firms, LLPs, AOPs, BOIs, and other entities (not companies or trusts)
ITR-6: Companies (other than those claiming exemption under Section 11)
Documents Required
For Salaried Individuals
- Form 16 (Part A and Part B) — issued by your employer
- Form 26AS / AIS (Annual Information Statement) — download from the IT portal
- Bank statements for all bank accounts held during the year
- Interest certificates from savings accounts, fixed deposits, and recurring deposits
- Investment proofs for deductions claimed — 80C (PPF, LIC, ELSS, tuition fees, home loan principal), 80D (health insurance premium), 80G (donations), 80TTA/TTB (savings interest)
- Housing loan interest certificate (for Section 24 deduction)
- Rent receipts or HRA details (if claiming HRA exemption)
Additional Documents for Capital Gains
- Capital gains statement from your stockbroker or mutual fund house
- Sale deed and purchase deed for property sold during the year
- Stamp duty valuation of property (for accurate capital gain computation)
For Professionals and Freelancers
- All above, plus client-wise income details
- Business expense records — invoices, receipts
- If in 44ADA presumptive scheme: gross receipts for the year (expenses not needed individually)
Our Process
Step 1 — Document Collection: We collect your Form 16, AIS, bank statements, investment proofs, and any capital gain or rental income details.
Step 2 — Regime and Form Selection: We compute your taxable income and tax liability under both old and new tax regimes and recommend the more beneficial option. We also confirm the appropriate ITR form based on your income profile.
Step 3 — AIS Reconciliation: We cross-check your declared income against the Annual Information Statement (AIS) to identify and resolve discrepancies before filing. This step prevents notices post-filing.
Step 4 — Return Preparation: We prepare the ITR, compute final tax payable or refund due, and share a computation summary for your review and confirmation.
Step 5 — E-Filing and Verification: We file the return on the Income Tax portal and complete e-verification through Aadhaar OTP, net banking, EVC, or DSC. Without e-verification, the return is treated as invalid even if filed.
Due Dates
- July 31: Individuals, HUFs, firms, and others not subject to tax audit
- October 31: Taxpayers subject to tax audit or transfer pricing requirements
- These dates are for the financial year ending 31 March of that year. Extensions are announced by the government — check official notifications.
Consequences of Not Filing or Filing Late
- Late fee: ₹5,000 if filed after July 31 but by December 31 of the assessment year; ₹10,000 after December 31
- Reduced late fee: ₹1,000 if total income does not exceed ₹5 lakh
- Interest: 1% per month on unpaid tax under Section 234A
- Losses cannot be carried forward if the return is not filed by the original due date (except loss from house property)
- Non-filing for two or more years with significant tax liability can result in prosecution
Frequently Asked Questions
My employer deducted TDS from my salary. Do I still need to file?
Probably yes. Your employer's TDS covers your salary income only. It does not account for interest income from your savings account or FDs, any freelance or part-time income, rental income, or capital gains. Filing the ITR is how you bring all income under one return, claim full deductions, and recover any excess TDS.
What is the difference between the old and new tax regime?
The old regime allows over 70 deductions and exemptions — 80C investments, 80D health insurance, HRA, LTA, standard deduction, home loan interest. The new regime offers lower slab rates but restricts most deductions. The choice depends on your income level and how much you invest in tax-saving instruments. We compute both before recommending one.
I missed the filing deadline. Can I still file?
Yes — you can file a belated return up to December 31 of the assessment year, with a late fee of ₹5,000 (₹1,000 if income ≤ ₹5 lakh). After that deadline, you cannot file unless the department specifically allows it. Business losses and capital losses cannot be carried forward from a belated return.
What is the AIS and why does it matter?
The Annual Information Statement is a comprehensive record of all financial transactions associated with your PAN — salary, interest, dividends, mutual fund purchases and sales, property purchases and sales, rent paid (Section 194-IB), and more. The IT Department uses AIS to pre-populate returns and to check for income that is not declared. Before you file, we always reconcile your declared income with the AIS.
I received an intimation or notice from the Income Tax Department. What should I do?
Don't ignore it. An intimation under Section 143(1) is usually a routine processing summary or a minor mismatch correction — low urgency but must be responded to if it demands additional tax. Notices under Sections 143(2), 147, or 148 are more serious. Share the notice with us immediately and we will assess and coordinate the appropriate response within the required timeline.
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