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What is Income Tax Return (ITR)? How to File ITR Online for FY 2024-25 (AY 2025-26)?
Income Tax Return (ITR) - Overview
An Income Tax Return (ITR) is a form that individuals, businesses, and entities file with the Income Tax Department of India to report their income, expenses, deductions, and tax liabilities. It contains details about your earnings and tax-saving investments made in a specific financial year (FY). ITR is a mandatory procedure for those whose income exceeds the basic exemption limit as per the Income Tax Act.
How to File ITR Online for FY 2024-25 (AY 2025-26)
- Gather Documents:
Ensure you have your PAN card, Aadhaar, Form 16 (for salaried individuals), Form 26AS (tax credit), bank statements, investment proof, and other necessary documents ready.
Select the Correct ITR Form:
Choose from ITR forms 1 to 7 based on your income type and source. For example, ITR-1 is for salaried individuals with income up to Rs. 50 lakh, while ITR-3 is for self-employed or professionals.
Visit the Income Tax E-filing Portal:
Go to the official Income Tax e-Filing Portal and log in with your credentials.
Select the Assessment Year (AY):
Choose AY 2025-26 (for FY 2024-25).
Start Filing:
Click on the “Income Tax Returns” section and then “File Income Tax Return.”
Choose the relevant status (individual, company, etc.) and proceed.
Fill Out the ITR Form:
Enter personal details, income details, and deductions (e.g., under 80C, 80D). Ensure that all data, including TDS, is accurate.
Verify the Tax Computation:
After completing the form, the portal will show your tax calculation. If there is any payable tax, you will be prompted to pay it through the portal.
Submit the Return:
Once everything is filled and verified, submit the return. You’ll receive an acknowledgment number.
Verify the ITR:
It’s mandatory to e-verify your ITR. This can be done via an Aadhaar OTP, net banking, or a physical signature (ITR-V) sent to CPC Bangalore.
Check for Refunds (if any):
If you are eligible for a refund, it will be processed, and you will receive it in your linked bank account.
Benefits of Filing ITR:
- Proof of Income: Required for loan and visa applications.
- Claim Refunds: If excess tax has been paid or TDS has been deducted.
- Carry Forward Losses: You can carry forward business or capital losses to set off against future incomes.
- Avoid Penalties: Non-filing attracts fines and interest.
- Eligibility for Loans: Many lenders require ITR for evaluating loan eligibility.
Due Date for Filing ITR (FY 2024-25):
- The due date for regular taxpayers to file ITR is 31st July 2025.
- For taxpayers under tax audit or transfer pricing, the deadline is extended to 31st October and 30th November respectively.
Common Pitfalls:
- Incorrect Form Selection: Always choose the appropriate ITR form.
- Non-Verification: If you don’t e-verify your ITR, it will be considered invalid.
- Missing Deductions: Ensure to claim all eligible deductions to minimize your tax liability.
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Frequently Asked Questions
Income that arises from selling a capital asset is known as capital gains. A capital asset includes any type of property that an assessee holds for any purpose. The capital assets are taxable in the hands of the receiver in the year of transfer of the capital asset. Such tax is known as capital gains tax. Capital gains tax is of two types - short-term capital gains and long-term capital gains.
The sale value of the asset is reduced by the cost of acquisition, and the profit from the sale is charged to tax as capital gains.
Given below are a few examples of capital assets -
- Land
- Building
- House property
- Patents
- Trademarks
- Vehicles
- Leasehold Property
- Machinery
- Jewellery
Income that arises from selling a capital asset is known as capital gains. A capital asset includes any type of property that an assessee holds for any purpose. The capital assets are taxable in the hands of the receiver in the year of transfer of the capital asset. Such tax is known as capital gains tax. Capital gains tax is of two types - short-term capital gains and long-term capital gains.
The sale value of the asset is reduced by the cost of acquisition, and the profit from the sale is charged to tax as capital gains.
Given below are a few examples of capital assets -
- Land
- Building
- House property
- Patents
- Trademarks
- Vehicles
- Leasehold Property
- Machinery
- Jewellery
Income that arises from selling a capital asset is known as capital gains. A capital asset includes any type of property that an assessee holds for any purpose. The capital assets are taxable in the hands of the receiver in the year of transfer of the capital asset. Such tax is known as capital gains tax. Capital gains tax is of two types - short-term capital gains and long-term capital gains.
The sale value of the asset is reduced by the cost of acquisition, and the profit from the sale is charged to tax as capital gains.
Given below are a few examples of capital assets -
- Land
- Building
- House property
- Patents
- Trademarks
- Vehicles
- Leasehold Property
- Machinery
- Jewellery