Filing your income tax return correctly and on time is crucial for financial compliance. This comprehensive guide walks you through the entire tax filing process for AY 2024-25.
Understanding Income Tax Basics
New Tax Regime vs Old Tax Regime
New Tax Regime (Default)
Tax Slabs (AY 2024-25):
- ₹0 - ₹3 lakhs: 0%
- ₹3 - ₹7 lakhs: 5%
- ₹7 - ₹10 lakhs: 10%
- ₹10 - ₹12 lakhs: 15%
- ₹12 - ₹15 lakhs: 20%
- Above ₹15 lakhs: 30%
Standard Deduction: ₹50,000
Old Tax Regime (Optional)
Tax Slabs:
- ₹0 - ₹2.5 lakhs: 0%
- ₹2.5 - ₹5 lakhs: 5%
- ₹5 - ₹10 lakhs: 20%
- Above ₹10 lakhs: 30%
Deductions Available:
- 80C: ₹1.5 lakhs
- 80D: ₹25,000-₹50,000
- Standard Deduction: ₹50,000
ITR Forms: Which One to Use?
| ITR Form | Who Should Use | Income Sources |
|---|---|---|
| ITR-1 (Sahaj) | Individuals with income up to ₹50 lakhs | Salary, pension, interest, one house property |
| ITR-2 | Individuals/HUFs not having business income | Multiple house properties, capital gains |
| ITR-3 | Individuals having business/profession income | Business profits, professional income |
| ITR-4 (Sugam) | Presumptive taxation scheme | Business income under section 44AD/44ADA |
Documents Required for Tax Filing
Essential Documents Checklist
Income Documents
- Form 16 (from employer)
- Form 16A (TDS certificates)
- Bank statements
- Interest certificates
- Capital gains statements
- Rental income documents
Deduction Documents
- LIC premium receipts
- ELSS investment statements
- Home loan interest certificate
- Health insurance premiums
- Medical bills (senior citizens)
- Donation receipts (80G)
Step-by-Step Tax Filing Process
Step 1: Register/Login to Income Tax Portal
Website: www.incometax.gov.in
- Go to "e-Filing" section
- Login with PAN and password
- For first-time users: Register using PAN, Aadhaar, and mobile number
- Verify account through email/SMS OTP
Step 2: Choose ITR Form
- Click on "File Income Tax Return"
- Select Assessment Year: 2024-25
- Choose appropriate ITR form
- Select filing mode: Online or Prepare offline
Step 3: Fill Basic Information
- Personal details (pre-filled from PAN database)
- Address and contact information
- Bank account details for refund
- Choose tax regime (New or Old)
Step 4: Enter Income Details
- Enter details from Form 16
- Gross salary, allowances, perquisites
- Standard deduction (₹50,000)
- Professional tax paid
- Interest Income: Bank deposits, FDs
- Capital Gains: From sale of assets
- House Property: Rental income
- Business Income: Profits from business
Step 5: Claim Deductions (Old Regime Only)
| Section | Deduction | Limit |
|---|---|---|
| 80C | LIC, ELSS, PPF, Home loan principal | ₹1,50,000 |
| 80D | Health insurance premium | ₹25,000-₹50,000 |
| 80E | Education loan interest | No limit |
| 80G | Donations to charitable organizations | 50-100% of donation |
| 24B | Home loan interest | ₹2,00,000 |
Step 6: Calculate Tax and Review
- System automatically calculates tax liability
- Review all entered information
- Check computation of income and tax
- Verify bank details for refund
Step 7: Submit Return
- Preview the complete return
- Click "Submit" button
- Generate and download acknowledgment
- Verify return within 120 days (if required)
Important Deadlines
| Category | Due Date | Late Filing Penalty |
|---|---|---|
| Individual/HUF (No audit) | 31st July | ₹1,000 (Income < ₹5L), ₹5,000 (Income > ₹5L) |
| Audit cases | 31st October | ₹5,000 |
| Companies | 31st October | ₹5,000 |
Common Mistakes to Avoid
Avoid These Filing Errors:
- Wrong ITR Form: Using incorrect form can cause processing delays
- Incorrect Bank Details: Wrong IFSC/account number delays refunds
- Missing Income: Not reporting all income sources (TDS, interest)
- Calculation Errors: Mathematical mistakes in computation
- Missing Verification: Not verifying return within 120 days
- Wrong AY Selection: Selecting wrong assessment year
Tax Saving Tips
Last-Minute Tax Saving Options
Section 80C Investments
- ELSS Mutual Funds (3-year lock-in)
- NSC (5-year term)
- Tax Saver FD (5-year lock-in)
- SCSS (for senior citizens)
Other Deductions
- Health insurance (80D)
- NPS additional ₹50,000 (80CCD1B)
- Interest on education loan (80E)
- Donations (80G)
After Filing Your Return
Verification Process
After filing, verify your return using one of these methods:
- Aadhaar OTP: Instant verification using Aadhaar
- Net Banking: Through your bank account
- Bank ATM: Using your debit card
- ITR-V Form: Physical form sent by post
Processing and Refund
- Processing: 4-6 weeks after verification
- Intimation u/s 143(1): Processing details
- Refund: Direct credit to bank account
- Tracking: Check status on income tax portal
Digital Tools for Tax Filing
Official Tools
- Income Tax Portal: Official e-filing website
- ITR Mobile App: File returns on mobile
- Offline Utilities: Downloadable ITR preparation tools
Third-Party Platforms
- ClearTax: User-friendly interface
- TaxGuru: Comprehensive tax solutions
- H&R Block: Professional assistance
When to Seek Professional Help
Consult a CA/Tax Advisor if you have:
- Complex business income
- Multiple capital gains transactions
- International income
- Tax notices from IT department
- Income above ₹50 lakhs
Action Checklist
Your Tax Filing Action Plan:
- Gather Documents: Collect all income and investment proofs
- Choose Regime: Compare tax liability under both regimes
- Select ITR Form: Pick the appropriate form
- File Return: Complete and submit before deadline
- Verify Return: Use Aadhaar OTP for instant verification
- Track Status: Monitor processing and refund status