What is Income Tax Return Filing?

ITR filing reports your total income, deductions, and taxes to the Income Tax Department for a financial year. It is mandatory if your income crosses the basic exemption limit.

Why it matters:

• Declares total income and taxes paid
• Enables claiming deductions and refunds
• Required by law if income exceeds the limit

Sources of Income for ITR

A source of income is the origin of your earnings that must be disclosed when filing your ITR. The Income Tax Department classifies income under these heads:

• Salary Income
• Business or Professional Income
• Capital Gains (shares, mutual funds, property)
• Income from House Property
• Other Income (interest, lottery winnings, etc.)

Advantages of Income Tax Return Filing

• Tax Refund Claims: Recover excess tax paid
• Legal Compliance: Stay penalty and notice-free
• Loan Approvals: Serves as valid income proof
• Visa Processing: Required by many embassies
• Income Verification: Recognised official income document
• Carry Forward Losses: Adjust future tax liabilities
• Government Tenders: Essential for contract bids
• Easy Document Access: Handy for planning and official use

Who Should File ITR?

Any individual or entity whose income exceeds the basic exemption limit or meets certain financial criteria must file an Income Tax Return (ITR) in India.

As per the Union Budget 2025: The exemption limit under the new tax regime has been increased from ₹3 lakhs to ₹4 lakhs. The rebate under Section 87A has also been enhanced.

ITR filing is applicable to:

• Salaried Individuals
• Self-Employed Professionals
• Non-Resident Indians (NRIs)
• Hindu Undivided Families (HUFs)
• Companies and Firms

Even if income is below the exemption limit, voluntary filing is recommended.

Documents Required for ITR Filing

For Salary Income:

• Form 16
• Salary slips
• PAN and Aadhaar card
• Form 26AS
• Bank statements

For Business/Capital Gains Income:

• Profit & Loss statement
• Balance Sheet
• Capital Gains statement
• GST returns
• Form 26AS

For Other Income Sources:

• Investment proofs
• Rent receipts
• Home loan interest certificates
• Donation receipts
• Annual Information Statement (AIS)

Eligibility Criteria for ITR Filing

• Income Threshold:
  • Below 60 years: ₹2.5 lakh
  • Senior Citizens: ₹3 lakh
  • Super Senior Citizens: ₹5 lakh
• Residential Status:
  • Residents: Global income taxed
  • NRIs: Only Indian income taxed
• NRI Criteria: Salary, Rent, Capital gains, Interest income in India
• Business/Profession: Mandatory for freelancers, consultants, etc., exceeding turnover limits
• Foreign Assets: Mandatory for residents holding foreign assets/accounts

Steps: Income Tax Return e-Filing Procedure

• Step 1: Document Collection – Form 16, bank statements, proofs, etc.
• Step 2: Secure Upload – Upload on e-filing portal or via Sperso Filings
• Step 3: Expert Review – CA-reviewed returns for accuracy
• Step 4: File ITR Online – Submit on portal and e-verify

Types of ITR Forms & Their Applicability

• ITR-1 (Sahaj): Salaried individuals with income up to ₹50 lakh
• ITR-2: HUFs and individuals with capital gains or foreign income
• ITR-3: Individuals/HUFs with income from business/profession
• ITR-4 (Sugam): Presumptive income for small businesses/freelancers
• ITR-5: LLPs, partnerships, BOIs, AOPs
• ITR-6: Companies not claiming Section 11 exemptions
• ITR-7: Trusts, political parties, charitable institutions

Income Tax Return Filing Deadlines & Penalties

• Regular Deadline: July 31 of the assessment year
• Belated Return (ITR-U): File by December 31
• Late-Filing Fees: Up to ₹10,000 under Section 234F
• Interest: 1% per month on unpaid tax from due date

How to File ITR Without Form 16?

• Payslips & Bank Statements: Calculate income
• Form 26AS: Download tax credit statement from TRACES portal

Expert Support After Filing Your ITR

Revised & Belated Returns Assistance

• Filing revised returns to fix errors
• Assistance with late submissions

Refund Tracking & Follow-Up

• Track refund status until received
• Support in queries with IT Department

Why Choose Sperso Filings for ITR Filing?

• 10+ years of trusted tax filing experience
• Thousands of verified 5-star client reviews
• CA-reviewed filings ensure error-free returns
• Fully encrypted, secure portal protecting your data

With Sperso Filings, your tax filing is always accurate, safe, and hassle-free.