INCOME TAX E-FILING IN INDIA
Filing an Income Tax Return (ITR) is a fundamental responsibility for every taxpayer in India. It ensures compliance with the country’s tax regulations and transparency in reporting income, deductions, and tax liabilities to the Income Tax Department.
E-filing, or electronic filing, simplifies this process by allowing taxpayers to submit their returns online. Early filing not only reduces the chances of technical issues but also ensures accurate processing and timely tax refunds.
WHAT IS INCOME TAX E-FILING?
Income Tax e-filing refers to the process of submitting your Income Tax Return online to the Income Tax Department. This digital method enables individuals, professionals, and businesses to report their annual income, claim deductions, and discharge their tax liabilities efficiently and securely.
The e-filing system provides pre-filled data, secure authentication, and instant acknowledgment, making the process quicker and more transparent than traditional offline filing.
WHAT IS AN INCOME TAX RETURN (ITR)?
An Income Tax Return (ITR) is a prescribed form used to declare one’s income, deductions, and tax payments to the government.
There are seven types of ITR forms (ITR-1 to ITR-7), and the selection depends on the taxpayer’s income sources, total income, and taxpayer category such as individuals, Hindu Undivided Families (HUFs), companies, and firms.
Filing the correct form within the due date is essential to comply with the provisions of the Income Tax Act, 1961.
WHO SHOULD FILE AN INCOME TAX RETURN?
Filing ITR is mandatory for certain individuals and entities based on income and other financial criteria. Below are the main categories of taxpayers required to e-file:
- Salaried Individuals: If your annual income exceeds the basic exemption limit under the applicable tax regime, you are required to file an ITR.
- Self-Employed and Professionals: Freelancers, consultants, doctors, lawyers, architects, and other professionals with income above the exemption limit must file returns. Deductions on business-related expenses may also be claimed.
- Business Owners: All entities—including proprietorships, partnerships, LLPs, and private limited companies—must file income tax returns annually, regardless of profit or loss.
- Directors and Partners: Individuals serving as directors in companies or partners in LLPs must file ITRs reflecting their share of income and financial interest in the entity.
- Individuals with Investment Income: Taxpayers earning income from dividends, interest, or capital gains (stocks, crypto, F&O, mutual funds, etc.) must report it in their ITR.
- NRIs and RNORs: Non-Resident Indians (NRIs) earning income in India above the exemption limit, and RNORs (Resident but Not Ordinarily Resident) with foreign income or assets, must e-file returns.
- Residents with Foreign Assets or Income: Indian residents holding foreign assets (bank accounts, shares, or property) or earning income abroad are required to file an ITR, irrespective of total income.
- High-Value Transaction Individuals: Even with income below exemption limits, filing is mandatory if you have:· Deposited ₹1 crore or more in a current account· Deposited ₹50 lakh or more in a savings account· Spent ₹2 lakh or more on foreign travel· Paid electricity bills exceeding ₹1 lakh in a year
- Tax Refund Claimants: If you have paid excess tax through TDS, advance tax, or self-assessment, filing an ITR is necessary to claim a refund.
- Charitable or Religious Trusts: All charitable and religious institutions must file annual returns to maintain transparency and compliance.
ELIGIBILITY CRITERIA FOR INCOME TAX E-FILING
A person must file an ITR if their gross total income exceeds the basic exemption limit, which varies by age and tax regime:
OLD TAX REGIME (WITH DEDUCTIONS)
| Category | Basic Exemption Limit |
| Individuals below 60 years | ₹2.5 lakh |
| Senior citizens (60–80 years) | ₹3 lakh |
| Super senior citizens (above 80 years) | ₹5 lakh |
OLD TAX REGIME SLABS:
| Income Range | Tax Rate |
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
NEW TAX REGIME (SIMPLIFIED STRUCTURE – BUDGET 2025)
| Income Range (₹) | Tax Rate |
| Up to 4,00,000 | Nil |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| Above 24,00,000 | 30% |
ADDITIONAL CIRCUMSTANCES REQUIRING ITR FILING
Even if your income is below the exemption limit, filing is mandatory if you have:
- Deposited ₹1 crore+ in current accounts
- Deposited ₹50 lakh+ in savings accounts
- Incurred electricity expenses over ₹1 lakh
- Spent ₹2 lakh+ on foreign travel
- Paid TDS/TCS above ₹25,000 (₹50,000 for senior citizens)
- Business turnover above ₹60 lakh or professional receipts above ₹10 lakh
DUE DATES FOR INCOME TAX FILING (FY 2024–25)
| Category | Due Date |
| Individuals & Non-audit Entities | 16th September 2025 (extended) |
| Tax Audit Cases (non-transfer pricing) | 31st October 2025 |
| Transfer Pricing Cases | 30th November 2025 |
| Revised/Belated Returns | 31st December 2025 |
REVISED, BELATED, AND UPDATED RETURNS
Revised Return (Section 139(5))
If you discover errors or omissions after filing, you can file a Revised Return before 31st December of the assessment year.
Belated Return (Section 139(4))
If you miss the due date (31st July), you can still file a Belated Return by 31st December.
· Late fee: ₹5,000 (₹1,000 if income ≤ ₹5 lakh).
· Interest @1% per month may apply on unpaid tax.
Updated Return (Section 139(8A))
If both deadlines are missed, an Updated Return (ITR-U) can be filed within four years from the end of the relevant assessment year to declare omitted income.
However, it cannot be used to reduce tax liability or claim refunds.