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Know about Income Tax!

What is the consequence of missing the ITR filing deadline?

 Failing to file the ITR by the due date can result in interest charges under Section 234A and late fees under Section 234F.

Which ITR form should be used by an individual who earns income from Profits & Gains of Business or Profession?

Individuals/HUFs with income from Profits & Gains of Business or Profession (including F&O trading) must file ITR-3.

What is the main difference regarding tax deductions between the Old Tax Regime and the New Tax Regime for individuals?

The Old Tax Regime allows taxpayers to claim most deductions, such as Section 80C (LIC, PPF), 80D (Medical Insurance), HRA, and LTA. The New Tax Regime generally disallows most deductions and exemptions, although a Standard Deduction is allowed for salaried employees.

What is the final deadline for filing a Belated or Revised Income Tax Return?

The last date to file a Belated or Revised Return is typically December 31, 2025.

Income Tax Return (ITR) Filing: Mandatory Tax Compliance

Filing your Income Tax Return (ITR) is a mandatory annual legal obligation for every taxpayer in India, including individuals, businesses, LLPs, and companies. It is the process of declaring your total income, claiming deductions, calculating tax liability, and ensuring compliance with the Income Tax Department of India.

Key Taxpayer Categories and ITR Forms

The specific form you must file depends on your sources of income and taxpayer status. Using the correct ITR Form is essential to avoid a defective return.
ITR Form Applicable To
ITR-1 (Sahaj) Resident Individuals (Total income ≤ ₹50 L)
ITR-2 Individuals/HUFs (Total income > ₹50 L)
ITR-3 Individuals/HUFs
ITR-4 (Sugam) Resident Individuals/HUFs/Firms (Total income ≤ ₹50 L)
ITR-5 Firms, LLPs, AOPs, and BOIs
ITR-6 Companies

Old vs. New Tax Regime (For Individuals/HUFs)

Taxpayers must choose between the two tax regimes annually. The New Tax Regime (Section 115BAC) is now the default regime unless the taxpayer explicitly opts out.

FeatureOld Tax RegimeNew Tax Regime (Default)
Slab StructureHigher basic exemption limit (₹2.5 L to ₹5 L, based on age).Simplified structure with lower rates and six slabs (starting exemption is ₹3 L).
DeductionsAllows claiming deductions like Section 80C (LIC, PPF), 80D (Medical Insurance), HRA, LTA, and Chapter VI-A benefits.Most deductions and exemptions are not allowed. Standard Deduction is allowed only for salaried employees.
RebateTax rebate under Section 87A for income up to ₹5 Lakhs.Tax rebate under Section 87A for income up to ₹7 Lakhs.

Ensure Accurate and Timely ITR Filing with FileMyFirm

The complexity of choosing the right ITR form, selecting the optimal tax regime, and ensuring all deductions are claimed correctly requires expert guidance. FileMyFirm provides comprehensive Income Tax Services, including:

  • Tax Optimization: Analyzing your income and investments to choose between the Old and New Tax Regimes for maximum savings.

  • ITR Preparation & E-Filing: Accurate preparation and timely e-filing of the correct ITR form on the Income Tax e-Filing Portal.

  • Audit Compliance: Handling Tax Audits (Section 44AB) for businesses and filing necessary reports (Form 3CD).

  • TDS/TCS Compliance: Reconciliation and compliance for TDS (Tax Deducted at Source) and TCS (Tax Collected at Source).

Ready to begin your accurate and penalty-free ITR filing for the current financial year?