Home > Income Tax > Help Center > Guide on ITR filing in IndiaLast Updated: Aug 15th 2024
Guide to File your Income Tax Return for AY 2024-25
Complete guide on Income Tax Return filing in India covering What, Why, and Who should File ITR along with the documents required, IT Forms, Income Tax Rates and Slabs. Also covered on How to start and complete ITR, and eVerify before getting the Refund.
Updated per latest Union Budget 2024
This document covers
- What is Income Tax?
- Who should File Income Tax Return (ITR)?
- Why should a person file Income Tax?
- Documents required for filing Income Tax Return?
- Income Tax Return Forms
- Income Tax Rates
- Verifying the return filed
- Checking the status of IT Return filed
- Signup with EZTax.in
- After Signup with EZTax.in
- Tax Rule changes from Apr 01st 2023
1. What is Income Tax?
Income Tax is a tax that governments impose on financial income generated by all the individuals and entities within their jurisdiction. By law, businesses and individuals must file an Income Tax Return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public.
Refer Income Tax Help Center for complete help.
2. Who should File Income Tax Return?
Every Company, Firm, LLP, BOI, Societies, Trusts, and other persons irrespective of whether having Income or Loss during the previous financial year.
Every Individual whose income exceeding the below said limits before allowing any deductions under Section 80C To 80U (Old Tax Regime)
| Age | Annual income exceeding * |
|---|---|
| Up to 60 Years | Rs. 2,50,000 |
| From 61 Years to 80 Years (Senior Citizens) | Rs. 3,00,000 |
| Above 80 years (Super Senior Citizens) * | Rs. 5,00,000 |
If the individuals or HUF opting for New Tax Regime u/s 11BAC w.e.f FY 2020-21, the basic exemption slab for tax filing is Rs 2.5 lakhs irrespective of age. Basic exemption limit of senior citizens and super senior citizens is 2.5 lakhs if they are opting for New tax Regime
As per Budget 2023, the basic exemption slab for the taxpayers opting New Tax regime is increased to Rs 3 lakhs from 2.5 lakhs
* Starting from FY 2021-22 (AY 2022-23), Senior Citizens are exempted from ITR Filing. Refer the Budget 2021 announcement @ Senior Citizens to be exempted from filing ITR
Who should file IT Return in India ?
3. Why should a person file Income Tax?
Past decades have observed low Income Tax filing compliance in India, during recent years, Govt of India took stringent measures in enforcing the Income Tax Law by linking various benefits for prompt tax filers. Advantages of income tax filing including but not limited to
- Get the Loans easier
- Avoid paying penalties, embarrassments
- Get your refund back on the excess tax payments
- Hurdle for Foreign VISA Stamping with IT returns filing
- Improve your credit worthiness for future loans
- Be a good citizen to contribute in India's growth and get Peace of mind for you and the family.
4. Documents required for filing Income Tax Return?
There are many sources of income one may have during a financial year that should be included in the Income Tax Return. Refer below list of documents that are applicable to file your return.
Mandatory List of Documents / Information
- PAN Card. To get new PAN number, refer how to get PAN card in 10 minutes?
- Aadhaar Card (To be linked to your PAN Card for e-verifying your income tax return. Refer How to link PAN Card with Aadhaar Card?). Optional for Non-Resident Indians.
- Mobile Number and an Email ID
- All the Bank Account numbers and their IFSC Codes
- Form 26 AS which can be downloaded from ITD Portal. Refer How to View / Download Form 26AS?. This is the most important document starting from 2018-19 onwards.
Optional List of Documents / Information
- Form 16 issued by employer for Salaried Employees
- Bank Statements for Savings Bank Interest, if not reported in Form 26AS. If you own a business and/or having business income, Bank Statement is important while preparing Taxes.
- Interest Income statement on fixed deposits, if not reported in Form 26AS.
- TDS Certificates issued by banks and others, if not reported in Form 26AS.
- Other documents for claiming deductions such as investments, LIC, Tuition fees, etc.
- Other documents related to Capital gains if you have sold property, or stock or any other capital asset. Refer How to download tax P&L statement from different brokers?
5. Income Tax Return Forms
Basically there are 7 different IT forms used to file Income Tax Returns as per their applicability to a person’s source of Income. IT Return Forms are explained in detail.
For Resident Individuals having total income up to Rs 50 Lakhs through Income from Salaries, one house property, other sources (Interest etc.) and Agricultural Income up to Rs 5000. It is not applicable to the individual who is either director in a company or has invested in Unlisted Equity Shares).
For Individuals and HUFs not carrying out business or profession under any proprietorship or partnership
(This form can be used by individuals & HUF who are not eligible to file ITR-1 and whose income is not chargeable under head Business or Profession).
For individuals and HUFs having income from a proprietary business or profession or income from partnership firm.
(This form can be used by individuals & HUF who are carrying out a proprietary business or profession or income from Partnership Firm).
For Presumptive Income from Business & Profession
(This Return Form is to be used by an individual/ HUF/ Partnership Firm whose total income includes Business income is computed under section 44AD & 44AE & income from profession is computed under section 44 ADA).
This Form can be used by a person being a firm, LLPs, AOP, BOI, artificial juridical person, cooperative society, registered societies and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4F) shall not use this form.
This Form can be used by a company, other than a company claiming exemption under section 11 (Income from property held for charitable or religious purposes).
For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F).
6. Income Tax Rates
Income tax slabs and calculation is same for AY 2024-25, AY 2023-24, AY 2022-23, AY 2021-22 and AY 2020-21.
Following are the tax slabs, rates applicable to Individuals, companies, and other persons.
6.1. For Individuals & HUF
Income Tax Slabs Rate: New Tax Regime
- Know more @ Old vs New Tax Regime
- Check more @ Income Tax Calculator
Income Tax Slabs Rate: Old Tax Regime
6.1.a. Income Tax Slab for Individuals & HUF taxpayers both men, women and transgender aged up to 60 years| Income Tax Slab | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | FY 2020-21 |
|---|---|---|---|---|---|
| Up to Rs.2,50,000 | NIL | NIL | NIL | NIL | NIL |
| Rs.2,50,001 to Rs.5,00,000 | 5% | 5% | 5% | 5% | 5% |
| Rs.5,00,001 to Rs.10,00,000 | 20% | 20% | 20% | 20% | 20% |
| Over Rs.10,00,000 | 30% | 30% | 30% | 30% | 30% |
| Health & Education Cess-4% of total income tax payable + surcharge | |||||
| Income Tax Slab | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | FY 2020-21 |
|---|---|---|---|---|---|
| Up to Rs.3,00,000 | NIL | NIL | NIL | NIL | NIL |
| Rs.3,00,001 to Rs.5,00,000 | 5% | 5% | 5% | 5% | 5% |
| Rs.5,00,001 to Rs.10,00,000 | 20% | 20% | 20% | 20% | 20% |
| Over Rs.10,00,000 | 30% | 30% | 30% | 30% | 30% |
| Health & Education Cess-4% of total income tax payable + surcharge | |||||
| Income Tax Slab | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | FY 2020-21 |
|---|---|---|---|---|---|
| Up to Rs.5,00,000 | NIL | NIL | NIL | NIL | NIL |
| Rs.5,00,001 to Rs.10,00,000 | 20% | 20% | 20% | 20% | 20% |
| Over Rs.10,00,000 | 30% | 30% | 30% | 30% | 30% |
| Health & Education Cess-4% of total income tax payable + surcharge | |||||
| Income Tax Slab | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | FY 2020-21 |
|---|---|---|---|---|---|
| From Rs.50 lakhs to 1 crore | 10% | 10% | 10% | 10% | 10% |
| From Rs 1 crore-Rs 2 crores | 15% | 15% | 15% | 15% | 15% |
| From Rs 2 crores-5 crores | 25% | 25% | 25% | 25% | 25% |
| Above 5 Crores | 37% | 37% | 37% | 37% | 37% |
If the taxpayer’s income is more than 5 crores and he is opting for New Tax Regime, Surcharge is 25% instead of 37% w.e.f Apr 1st 2023
6.2. Partnership Firms and LLPs (Limited Liability Partnerships)
They are to be taxed at the rate of 30%.
Plus
- Surcharge: If income is greater than Rs.1, 00, 00,000 – 12% of income tax amount. Subject to marginal relief.
- Health & Education Cess: 4% extra – charged on the amount of income tax + surcharge being paid.
6.3. For Domestic Companies:
- If the total turnover or gross receipt of the company in the FY 2019-20 ≤ 400 crores-25% of total income
- In any other case-30% of total income
Plus
- Surcharge: If income is greater than Rs.1,00,00,000 – 7% of the income tax amount. If income is greater than Rs.10,00,00,000 – 12% of the income tax amount. Subject to marginal relief.
- Health & Education Cess: 4% extra – charged on the amount of income tax + surcharge being paid.
* The details given above are in broader sense and may vary from case to case.
6.4. For Foreign Companies:
| Nature | Rate |
|---|---|
| If the income received by the Foreign Company is in the form of royalties paid by the Indian Government in relation to agreements made with an Indian concern (after March 31st, 1961, and before April 1st, 1976) | 50% |
| If the income received is in the form of fees for technical services rendered for agreements made with Indian concerns (after February 29th, 1964, and before April 1st, 1976) | 50% |
| Any other income | 40% |
Plus
- Surcharge: If income is greater than Rs.1,00,00,000 – 2% of the income tax amount. If income is greater than Rs.10,00,00,000 – 5% of the income tax amount. Subject to marginal relief.
- Health & Education Cess 4% extra – charged on the amount of income tax + surcharge being paid.
6.5. For Co-operative Societies:
| Income Tax Slab | Rate |
|---|---|
| Up to Rs.10,000 | 10% |
| Rs.10,000 to Rs.20,000 | 20% |
| Over Rs.20,000 | 30% |
Plus
- Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
- Health & Education Cess: 4% extra – charged on the amount of income tax + surcharge being paid.
7. Verifying the return filed:
- After filing the return an acknowledgement will be generated and the assessee needs to verify the return filed either electronically or manually.
- Verification can be done electronically by using the most common way of OTP generated using Aadhaar or OTP generated through Prevalidation of Bank Account or Net Banking with in 30 days from the e-filing date.
- Manually a return can be verified by sending a signed copy of acknowledgement generated after filing return to Centralised Processing Centre, Income Tax Department, Bengaluru - 560500, Karnataka, India.
8. Checking the status of return filed:
- After Verification of ITR V assessee needs to check the status of filing of ITR to know whether the ITR is processed and refund has been credited to the bank account.
- Refer ITR Status to check the status.
9. Signup with EZTax.in
- Register @ EZTax.in ITR Portal
- Then click on Create Account, and enter your eMail id, Password, and Mobile number to create an account.
- You will receive an email to activate your account. Click on "Activate Account" button in that email to activate your account.
10. After Signup with EZTax.in
After creating the account you can avail the services mentioned below:
10.1. Self Service Tax Filing
Using Self Service Tax Filing an individual/HUF can E-file the return for current assessment year and the previous assessment year.
- While filling the form, in case any help needed the assessee can look at the EZHelp fields provided at the right side of the form which explains the assessee the details which are required to be filled. We have more than 450 such EZHelp fields which guides assessee throughout the filling of the form.
- While filling the return form but before filing it, there is an option called Creative Audit using which an individual/HUF can check whether all the required / mandatory details have been filled up and it compares the Personal information entered by the client with that of the standard details available in documents such as Form 16, Form 26AS.
- There is another option called Tax optimizer which suggests the assessee where can he invest for reducing the tax liabilities.
10.2. Expert Assisted Service
Using the Expert Assisted Tax Filing Service an Individual, HUF, Firm, LLP, AOP, BOI, Trust, society, & Company can file the returns.
10.3. Expert Consultation
Using the Expert Consultation Service any assessee can reserve an expert time to describe their case and get an advice, direction quickly.
11. Tax Rule changes from Apr 01st 2023
Starting from 1st April 2023 (FY 2023-24), new tax rules related to Income tax, GST, and company compliance are in effect. Tax rule changes from crypto tax, applicability of e-Invoicing, taxability of EPF withdrawal, Updated IT Returns, to Sr. Citizens IT Filing.
Refer more @ New Tax Rules effective from 1st April 2023