Who is required to file an Income Tax Return in India?

You must file an ITR in India (including in Pondicherry) if: (1) your gross total income exceeds the basic exemption limit — Rs. 2.5 lakh (below 60), Rs. 3 lakh (senior citizens 60–80), Rs. 5 lakh (super senior citizens above 80) under the old regime, or Rs. 3 lakh under the new regime; (2) you deposited Rs. 1 crore or more in a current bank account in a year; (3) you spent Rs. 2 lakh or more on foreign travel; (4) your electricity consumption exceeded Rs. 1 lakh; (5) you have income from foreign assets or are a beneficial owner/signing authority in a foreign account; (6) you are a company or firm regardless of profit/loss; or (7) you want to claim an income tax refund for excess TDS deducted.

What is the due date for filing ITR for individuals in India?

For individuals and HUFs not subject to tax audit, the ITR due date is 31 July of the assessment year. For example, for Financial Year 2025–26 (AY 2026–27), the due date is 31 July 2026. For entities subject to audit under Section 44AB of the Income Tax Act — business income above Rs. 1 crore or professional income above Rs. 50 lakh (with exceptions under presumptive schemes) — the due date is 31 October. A belated return can be filed until 31 December of the assessment year with a late fee under Section 234F (Rs. 5,000 if income above Rs. 5 lakh; Rs. 1,000 if between the exemption limit and Rs. 5 lakh).

What is the penalty for not filing ITR on time?

Consequences of late ITR filing: (1) late fee under Section 234F — Rs. 5,000 if total income exceeds Rs. 5 lakh; Rs. 1,000 if income is between the exemption limit and Rs. 5 lakh; nil if income is below the exemption limit; (2) interest under Section 234A at 1% per month on the unpaid tax amount from the due date; (3) loss of the right to carry forward certain losses — capital gains loss, business loss (not house property loss) — which cannot be set off in future years if the return is filed after the due date. Filing even a belated return avoids prosecution under Section 276CC of the Income Tax Act.

Which ITR form should I file for different income types?

ITR form selection: ITR-1 (Sahaj) — for individuals with only salary, one house property, and other sources income, with total income up to Rs. 50 lakhs; ITR-2 — for individuals/HUFs with capital gains, multiple house properties, foreign income, or income from other sources above Rs. 5,000 but no business income; ITR-3 — for individuals/HUFs with income from business or profession (other than presumptive); ITR-4 (Sugam) — for individuals, HUFs, and firms (except LLP) opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE; ITR-5 — for firms, LLPs, AOPs; ITR-6 — for companies; ITR-7 — for trusts and entities under Sections 139(4A)–(4D).

Can I revise an ITR already filed in India?

Yes. A revised return can be filed under Section 139(5) of the Income Tax Act, 1961, if you discover an error or omission in the original or belated return. The revised return can be filed before 3 months prior to the end of the relevant assessment year, or before completion of assessment by the Income Tax department, whichever is earlier. For AY 2026–27, the last date to file a revised return is 31 December 2026. There is no limit on the number of revisions within the permitted period. Filing a revised return with the correct information avoids penalty proceedings and assessments by the Income Tax officer.

Income Tax Return Filing in Pondicherry

Who Is Required to File ITR?

Filing an Income Tax Return (ITR) is mandatory for individuals and entities when their gross income exceeds the basic exemption limit, and also in several other specific situations:

Income above exemption limit: Individuals with gross total income exceeding Rs. 2.5 lakhs per year (Rs. 3 lakhs for senior citizens aged 60–79; Rs. 5 lakhs for super senior citizens 80+) must file. Note: These are gross income limits before deductions.
Refund claim: Even if income is below the threshold, filing is mandatory if TDS has been deducted and you want a refund.
Carry forward of losses: To carry forward capital losses, business losses, or other losses to future years, ITR must be filed on time.
High-value transactions: If you have deposited more than Rs. 1 crore in bank accounts, spent more than Rs. 2 lakhs on foreign travel, or paid electricity bill exceeding Rs. 1 lakh — ITR is mandatory even if income is below threshold.
Foreign assets / income: Persons having any foreign asset, bank account, or income must file ITR regardless of income level.
Signing authority abroad: If you are a signing authority in any foreign account.
Companies and LLPs: All companies and LLPs must file ITR regardless of income or whether profit/loss was made.
Trust / NGO: Filing mandatory for claiming 12A exemption or if income exceeds exemption limit.

Which ITR Form Should You File?

ITR Form	Who Should File	Income Type
ITR-1 (Sahaj)	Resident individuals (income ≤ Rs. 50 lakhs)	Salary/pension + one house property + other sources (interest, dividends)
ITR-2	Individuals/HUF (not having business income)	Capital gains (shares, property), multiple house properties, NRI income, foreign assets
ITR-3	Individuals/HUF with business or professional income	Business income, professional fees, trading income, partner in firm
ITR-4 (Sugam)	Individuals, HUF, firms under presumptive taxation (turnover ≤ Rs. 2 crore / income ≤ Rs. 50L for professionals)	Business under Section 44AD, professionals under 44ADA, transporters under 44AE
ITR-5	Partnership Firms, LLPs, AOPs, BOIs	All income types for firms and LLPs
ITR-6	All companies except Section 11 companies	Company income — business, capital gains, etc.
ITR-7	Trusts, political parties, research institutions, NGOs	Entities claiming exemption under Sections 139(4A)–(4F)

Key ITR Filing Deadlines (AY 2025–26)

31 July

Individuals, HUF, Firms (no audit)

Original due date — AY 2025-26

31 October

Businesses requiring statutory audit (Companies, LLPs > Rs. 40L/1 crore)

Extended due date — AY 2025-26

31 Dec

Belated ITR — last chance to file with late fee

Late fee: Rs. 1,000–5,000

Documents Required for ITR Filing

💼 Salaried Employees

Form 16 from employer
Form 26AS / AIS / TIS from IT portal
Bank account statements
PAN card
Investment proofs (80C, 80D, 80G)
Home loan interest certificate (if applicable)
HRA rent receipts (if applicable)

🏢 Business / Professional

Profit & Loss statement
Balance Sheet
GST returns (if registered)
Bank statements (business accounts)
TDS certificates received
Fixed asset details
Partner/director details (if firm/company)

📈 Capital Gains / Investments

Share trading statement (from broker)
Mutual fund capital gains statement
Property sale deed and purchase deed
Stamp duty-paid amount at purchase
Improvement cost invoices
Cost Inflation Index chart

Our ITR Filing Process

1

Document Collection

We send you a structured checklist based on your income type. You share documents digitally (PDF, WhatsApp, email). We review for completeness before proceeding.

2

Income & Tax Calculation

We compute your total taxable income across all heads, apply eligible deductions (80C, 80D, 80E, HRA, 80G etc.), and calculate the tax liability under both old and new regimes to identify the more beneficial option.

3

AIS / 26AS Verification

We verify the Annual Information Statement (AIS) and Form 26AS for accuracy — checking TDS credits, high-value transactions, and pre-filled data from the IT portal to ensure the return matches government records.

4

ITR Filing on IT Portal

We prepare and file the ITR on the Income Tax e-filing portal (incometax.gov.in). The return is filed using your credentials (or via our EVC/digital signature). You receive the ITR Acknowledgement (ITR-V).

5

ITR Verification (e-Verify)

The filed ITR must be verified within 30 days. We complete e-verification via Aadhaar OTP, net banking, or EVC. Alternatively, a signed ITR-V can be sent to CPC Bengaluru by post. Only verified returns are processed.

Consequences of Not Filing ITR

Late Filing Fee (Section 234F): Rs. 1,000 if total income is up to Rs. 5 lakhs; Rs. 5,000 for income above Rs. 5 lakhs. The fee is payable even if there is no tax liability.
Interest on Tax Dues (Section 234A): 1% per month (simple interest) on any unpaid tax from the original due date until the actual filing date.
Loss Cannot Be Carried Forward: If ITR is filed after the due date, business losses, capital losses, and speculation losses cannot be carried forward to offset future income (except house property loss).
Notices & Scrutiny: Non-filing or incorrect filing may trigger a notice under Section 142(1) or Section 148. Deliberate tax evasion can lead to prosecution.
Loan and Visa Rejections: Banks and embassies require ITR copies for home loans, business loans, and visa applications. Non-filing affects financial credibility.

Frequently Asked Questions

My total income is below Rs. 5 lakhs and I have no tax payable. Do I still need to file ITR?

Yes, if your gross total income exceeds Rs. 2.5 lakhs (before deductions), filing is mandatory. However, if you have already had TDS deducted and want a refund, filing is the only way to claim it. Filing also creates a record of income for future loan applications, visa purposes, and continuity of ITR history. Even if there is no tax payable, filing voluntarily is advisable.

I missed the July 31 deadline. Can I still file?

Yes — you can file a Belated Return under Section 139(4) up to 31 December of the assessment year. A late fee of Rs. 1,000 (income ≤ Rs. 5L) or Rs. 5,000 (income > Rs. 5L) is payable. After 31 December, you can only file if the IT department sends a notice. It is also possible to file a Revised Return (Section 139(5)) to correct errors up to 31 December.

Should I choose the Old Tax Regime or the New Tax Regime?

It depends on your deductions. The New Regime (default from AY 2024-25) offers lower tax rates but no deductions (80C, HRA, home loan interest, etc.). The Old Regime allows all deductions — better if you have significant 80C investments, home loan, HRA, or other deductions. We calculate your tax under both regimes and recommend the one that results in lower tax. Salaried individuals can switch between regimes every year; business owners can switch only once.

I have sold property / shares this year. Which ITR form do I file?

If you have sold property or shares and have capital gains, you must file ITR-2 (if no business income) or ITR-3 (if you also have business income). ITR-1 cannot be used if you have capital gains. Long-term capital gains from listed shares above Rs. 1 lakh are taxable at 12.5% (changed from 10% in Budget 2024); short-term capital gains on listed shares are taxed at 20%.

What is Form 26AS and AIS? Why is it important?

Form 26AS is a consolidated tax credit statement showing all TDS deducted against your PAN, advance tax paid, and self-assessment tax paid. AIS (Annual Information Statement) is a more comprehensive document showing all financial transactions linked to your PAN — stock market transactions, mutual fund transactions, property purchases, interest income, GST turnover, and more. We always reconcile your ITR with both documents to ensure there are no mismatches that could trigger IT notices.

Can I get an ITR for previous years if I never filed?

You can file ITR for the current assessment year and the immediately preceding year (as a belated or updated return). For older years (more than 2 years old), you can file only if you receive a notice from the Income Tax Department. Under Section 139(8A), you can file an Updated Return (ITR-U) for up to 2 years before the current assessment year, paying additional tax of 25–50%. We assess your situation and recommend the best approach.

Income Tax Return (ITR) Filing in Pondicherry