1. An individual is required to file an income tax return if

Income exceeds the basic exemption limit for the relevant financial year.

• For individuals below 60 years, the basic exemption limit is ₹2.5 lakh.
• For senior citizens (60 years or above), the limit is ₹3 lakh.
• For very senior citizens (80 years or above), the limit is ₹5 lakh.

Other conditions: Even if the income is below the exemption limit, filing may still be required if:

• You have any capital gains (from the sale of property, stocks, etc.).
• You have received a notice from the Income Tax Department.
• You are a resident of India and have assets outside the country.
• You need to claim a refund (for TDS deducted in excess or tax paid in advance).
• You have income from multiple sources

2. Types of ITR Forms for Individuals

• ITR-1 (Sahaj): For salaried individuals, pensioners, and those with income from one house property, other sources (like interest), and agricultural income up to ₹5,000.
• ITR-2: For individuals who are not carrying out business or profession and have income from more than one house property, capital gains, foreign assets, or other sources.
• ITR-3: For individuals or Hindu Undivided Families (HUFs) who have income from a business or profession.
• ITR-4 (Sugam): For small taxpayers opting for the presumptive taxation scheme under Section 44ADA, 44AE, or 44AD. This is generally for professionals or small businesses with income below specified thresholds.

3. Steps to File Income Tax Return (ITR)

• Determine the Relevant ITR Form: Choose the correct ITR form based on your sources of income.
• Gather Required Documents
• Calculate Total Income
• Fill in the ITR Form:
• Verify and Submit:
• E-Verify the Return:

4. Due Dates for Filing

• For individuals (except for those who are required to get their accounts audited): The due date for filing returns is 31st July of the assessment year.
• For taxpayers requiring audit (businesses or professionals): The due date is usually 30th September.
• Belated Return: If you miss the due date, you can still file a belated return before 31st December of the assessment year. A penalty may be levied for late filing.

5. Penalties for Non-Compliance

Late Filing Penalty:

• A penalty of ₹5,000 if filed after the due date but before 31st December.
• ₹10,000 if filed after 31st December.
• If your income is below ₹5 lakh, the penalty is reduced to ₹1,000.

Interest for Late Payment of Tax: Under Sections 234A, 234B, and 234C, interest can be charged if tax is not paid by the due date.

6. Common Deductions and Exemptions

• 80C: Deduction for investments in PF, PPF, life insurance, tax-saving FDs, etc. (up to ₹1.5 lakh).
• 80D: Deduction for insurance premiums (health, life, etc.).
• 80G: Deduction for donations to charitable organizations.
• HRA (House Rent Allowance): Exemption if you are paying rent and living in a rented property.
• LTA (Leave Travel Allowance): Exemption for travel expenses incurred on domestic travel.