Income Tax Return (ITR)

Income Tax Return (ITR) is a form through which a taxpayer reports income, deductions, taxes paid, and other financial details to the government for a financial year.

Filing an ITR is the formal way of declaring your income and computing your final tax liability.

1. Who Needs to File ITR

You are required to file an ITR if:

• Your income exceeds the basic exemption limit
• You want to claim a tax refund
• You have foreign assets or income
• You have carried forward losses
• You meet specific conditions (like high-value transactions, deposits, etc.)

Even if not mandatory, filing is often beneficial.

2. Types of ITR Forms

Different forms apply based on income type:

• ITR-1 (Sahaj): Salaried individuals with simple income
• ITR-2: Individuals with capital gains or multiple properties
• ITR-3: Individuals with business or professional income
• ITR-4 (Sugam): Presumptive taxation cases

Choosing the correct form is critical.

3. What Information is Included

An ITR captures:

• Income under all heads
• Deductions and exemptions claimed
• Taxes paid (TDS, advance tax, self-assessment tax)
• Bank account details
• Details of assets or liabilities (in certain cases)

4. Due Dates

• Generally 31st July for individuals (non-audit cases)
• Extended deadlines may apply in certain years
• Late filing attracts fees and interest

5. Verification of ITR

Filing is complete only after verification:

• Aadhaar OTP
• Net banking
• Sending signed ITR-V (if required)

Unverified returns are treated as not filed.

6. Revised and Updated Returns

• Revised Return: To correct errors (within prescribed time)
• Updated Return (ITR-U): To voluntarily update income (subject to conditions)

7. Common Mistakes

• Not reporting all income
• Selecting wrong ITR form
• Ignoring AIS/Form 26AS mismatch
• Missing deductions
• Not verifying the return

Practical Insight

Most people treat ITR as a formality.

It’s not.

It’s a financial summary of your entire year:

• income
• investments
• transactions

If this doesn’t align with what the system already knows, it gets flagged.

How N D Savla & Associates Can Help

At N D Savla & Associates, we help you:

• Choose the correct ITR form
• Report income accurately across all heads
• Maximise deductions and tax efficiency
• Ensure error-free filing and verification
• Handle notices and corrections