Find out how to file Income tax return in Delhi.

ITR filing is required for individuals and businesses to report their earnings to the government. It can be done online or offline, depending on convenience, and is based on the income slab of the filer. An Income Tax Return (ITR) form details an individual’s income and the taxes owed for a financial year, filed with the Income Tax Department of India. The process is complex and often handled by professionals to ensure accuracy and avoid overpayment.

ITR forms range from ITR1 to ITR7, varying in detail and disclosure requirements. Essential documents like Form 16, income details, bank account numbers, and personal information are needed. ITR can be filed online through the e-filing portal by hiring a professional or self-filing. The deadline for filing is July 31st each year.

Categories of Income Tax Returns Forms

Form Type	Type of Income
ITR 1	Individuals who gain income from salary and interest
ITR 2	Individuals and HUF that don’t earn income from business and profession
ITR 3	Individuals and HUF who are in partnership firms, who do not carry out business or profession under sole proprietorship
ITR 4	Individuals and HUF that earn from proprietorship or profession
ITR 4S	Individuals and HUF that earn presumptive business income
ITR 5	Association of Persons (AOP), Body of Individuals (BOI), Firms
ITR 6	Companies other than those claiming exemption under Section 11 of Companies Act, 2013
ITR 7	Persons and companies that are required to furnish returns under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)

 Mandatory Documents for ITR Filing

• Bank account details along with IFSC code
• TDS certificate or Form 16/16A
• Profit and loss accounts, balance sheets
• Savings Certificate
• PAN (Permanent Account Number)
• Details of the assessee.

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Procedure to File Income Tax Returns Offline

1.     Log into the official website and get registered in the portal. The user id is the PAN of the applicant
2.     The tax credit statement in Form 26AS and the TDS as per Form 16 must tally against each other
3.     Click on the ITR forms and choose the financial year
4.     Download the applicable ITR form. If the exempted income exceeds ₹5000, Form ITR 2 should be chosen. For Forms ITR 1 or ITR 4S, the process can be completed on the portal by clicking the ‘Quick e-file ITR’ link
5.     Open the downloaded Excel Utility and enter the required details using Form 16
6.     The tax to be paid can be computed by clicking the ‘Calculate Tax’ tab
7.     After filling in the challan details, the tax can be paid
8.     Revisit and verify the data entered in the worksheet by clicking the ‘validate’ tab
9.     Generate and save the XML file thus generated
10. Upload the XML file by clicking ‘Upload Return’ on the portal
11. A pop-up appears wherein the applicant has to affix the digital signature. The applicant has to Select ‘Yes’ or ‘No’ depending upon whether the individual has the digital signature or not
12. The applicant can thereafter download the acknowledgment form and ITR Verification (ITR-V) form
13. ITR V should be printed and signed by the applicant in blue ink
14. The form should be sent by ordinary post or speed post to the capital gain tax

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Procedure to File IT Returns Online

The Forms ITR1 to ITR4S can be furnished by uploading XML or by online submission.

1. Log in to the e-filing portal and create an account to get registered with the portal
2. Under eFile go to ‘Prepare and Submit ITR Online
3. Select the applicable form from ITR1 to ITR4S and the suitable assessment year
4. After entering the required details, click ‘Submit’
5. Once the details are submitted, the acknowledgment details appear on the screen
6. The link has to be clicked to view or generate a printout of acknowledgment of form ITR V.

It is always a good practice to file ITR even if the individual falls in the exempted category. The document can be very functional while making applications for loans, as it speaks about one’s financial position. It acts as proof of income, which in turn reflects one’s ability to pay a loan. If one intends to move abroad for higher studies or to pursue a job, it is required to furnish at least three years of filed ITR as proof of income. This shows one financial health which in turn substantiates that the individual can be self-sustained in an income tax class

Register for income tax is not only crucial but also can be tricky and tedious. It is prudent to delegate this to the professionals as they know better to resolve the calculations involved. Outsourcing it to the experts will also enable one to give their undivided attention to their profession. At Vakilsearch, our team is professionally trained in filing taxes, accounting, and bookkeeping apart from offering best-in-class legal services.  

Types of Returns 

There are three main types of Income Tax Returns that can be filed:

Original Return

An original return is the first legitimate return filed on or before the due date in the specified form and manner. It contains all the necessary information about an individual’s income and taxes for the financial year.

Revised Return

If an individual files an Income Tax Return but later realises they forgot to include some information or made a mistake, they can file a revised return. This second return corrects the errors or adds the missing details from the original return.

Belated Return

When taxpayers miss the deadline to file their Income Tax Return, they can still file it after the due date as a belated return. The deadline for filing a belated return is December 31st of the assessment year. This option ensures that even late filers can fulfil their tax obligations.

What happens if taxpayers fail to file ITR within the due date? 

Failing to file an Income Tax Return (ITR) within the prescribed time frame can lead to several consequences:

Loss of Loss Carryforward

Taxpayers cannot carry forward losses under capital gains and business and profession heads if they miss the due date.

Interest on Tax Due

Taxpayers must pay interest at the rate of 1% per month on the amount of tax due under Section 234A.

Penalties for Late Filing

• If the taxable income exceeds Rs. 5,00,000, a penalty of Rs. 5,000 is imposed under Section 234F.
• If the taxable income is between Rs. 2,50,000 and Rs. 5,00,000, the penalty is Rs. 1,000.

Reduced Refund Interest

Taxpayers entitled to a refund will receive interest under Section 244A, but the delay in filing will reduce the interest amount received.

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