Income Tax – ITR Filing & Computation Preparation (for individuals & businesses in India).

✅ What is ITR Filing?

ITR (Income Tax Return) is a form you submit to the Income Tax Department showing:

• Your Income (Salary, Business, Capital Gains, etc.)

• Deductions/Exemptions (80C, 80D, HRA, etc.)

• Tax payable / Refund

???? Filing is done online at ???? www.incometax.gov.in.

???? Types of ITR Forms (Individuals & Businesses)

???? Step-by-Step Process of ITR Filing

Step 1: Collect Documents

• Salary Income: Form 16 from employer.

• Other Income: Form 26AS / AIS (Annual Information Statement).

• Bank Statements: Interest certificates (FD, Savings).

• Capital Gains: Demat / broker statements.

• House Property: Rent receipts, loan interest certificate.

• Deductions: LIC, PF, PPF, medical insurance, donations, education loan, etc.

Step 2: Compute Total Income

1. Income Heads

   • Salary

   • House Property

   • Business/Profession

   • Capital Gains (Short-term, Long-term)

   • Other Sources (Interest, Dividend, Lottery, etc.)

2. Less: Exemptions & Deductions

   • HRA, LTA, Standard Deduction (₹50,000 for salary).

   • 80C (LIC, PPF, PF, ELSS, etc.) – max ₹1.5L.

   • 80D (Medical Insurance).

   • 80E (Education Loan Interest).

   • 80G (Donations).

3. Net Taxable Income = Gross Total Income – Deductions.

Step 3: Compute Tax Liability

• Apply tax slabs (Old Regime or New Regime).

• Add surcharge & cess (4%).

• Adjust TDS/TCS, Advance Tax, Self-Assessment Tax.

???? If extra paid → Refund. If short paid → Pay Balance Tax (via Challan 280).

Step 4: Log in & File ITR

• Go to Income Tax e-Filing Portal.

• Login using PAN & password.

• Select Assessment Year (AY).

• Choose correct ITR form (online utility or offline JSON utility).

• Fill income details → Claim deductions → Compute tax.

• Validate & submit.

Step 5: Verification

• E-Verify using:

  • Aadhaar OTP, Net Banking, EVC, or

  • Send signed ITR-V (acknowledgement) to CPC, Bengaluru.

???? Due Dates

• Individuals (not audited): 31st July.

• Businesses (audit required): 31st October.

• Transfer Pricing cases: 30th November.

???? Penalties for Late Filing

• Filed after due date (but before 31st Dec): ₹5,000.

• Filed after 31st Dec (but before 31st Mar): ₹10,000.

• Small taxpayers (<₹5L income): max ₹1,000.

• Interest u/s 234A, 234B, 234C for delay in tax payment.

???? Best Practices

✅ Always reconcile Form 26AS & AIS with your own records.
✅ Choose the correct regime (Old vs. New Tax Regime).
✅ File before due date to avoid penalty & carry forward losses.
✅ Keep acknowledgment (ITR-V) for future proof.

✅ In short:

ITR Filing = Collect docs → Compute income → Apply deductions → Calculate tax → Pay balance (if any) → File on portal → Verify.