What is Income Tax Return (ITR)?
Income tax is a type of tax that is levied by governments on the income earned by individuals, corporations, and other entities. The tax is usually calculated as a percentage of the income earned, and the amount paid is used to fund various government programs and services.
eFiling of Income Tax returns refers to the electronic filing of tax returns through online platforms provided by tax authorities. It is an alternative to the traditional method of filing paper-based tax returns. This process is easy; quick in the comfort of your home or office, you can file an income tax return.
Individuals are required to pay income tax on their salary or wages, as well as on other forms of income such as interest, dividends, rental income, business profits, and capital gains. Corporations are also required to pay income tax on their profits.
ITR contains all the details of incomes and tax-saving investments an individual does in a particular financial year. The tax department has notified 7 types of ITR forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7 for filing Income Tax returns (Forms are relevant for individuals, companies, firms, etc.).
Who should file ITR?
In general, any individual or entity whose total income during the financial year exceeds the basic exemption limit (which varies depending on age and income category) must file an Income Tax Return (ITR) in India.
The taxpayers in India need to pay income tax on the basis of the income tax slab they fall in. There are three categories under which income tax is divided:-
Individuals who are less than 60 years in age.
Senior citizens with age 60 to 80 years in age.
Super senior citizens with age above 80 years in age
In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced significant changes to India’s income tax structure, aiming to enhance the spending power of the middle class and stimulate economic growth. The budget raises the nil tax slab threshold to ₹12 lakh annually, meaning individuals earning up to this amount will not be liable for income tax.
No personal income tax payable upto income of Rs 12 lakh (i.e. average income of Rs 1 lakh per month other than special rate income such as capital gains) under the new regime.
This limit will be Rs 12.75 lakh for salaried tax payers, due to standard deduction of Rs 75,000.
The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment.
The new Income-Tax Bill to be clear and direct in text so as to make it simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation.
Revenue of about ₹ 1 lakh crore in direct taxes will be forgone.
Budget 2025: Tax slab under new tax regime FY 2025-26 (AY 2026-27)
Income Range
Tax Rate
0-4 Lakh
4-8 Lakh
8-12 Lakh
12-16 Lakh
16-20 Lakh
20-24 Lakh
Above 24 Lakh
Nil
5%
10%
15%
20%
25%
30%
Changes in the New Tax Regime – Budget 2024:
Standard Deduction:
Increased to ₹75,000 (from ₹50,000) for salaried/pensioners (+₹25,000).
No change in Budget 2025.
Family Pensioners:
Standard deduction raised to ₹25,000 (from ₹15,000) (+₹10,000).
NPS Employer Contribution:
Deduction limit increased to 14% (from 10%), allowing more tax savings.
Current Income tax slabs under new tax regime for FY 2024-25 (AY 2025-26)
Income Range
Tax Rate
0-3 Lakh
3-7 Lakh
7-10 Lakh
10-12 Lakh
12-15 Lakh
Above 15 Lakh
Nil
5%
10%
15%
20%
30%
What are the Benefits of Filing an Income Tax Return?
In India, there is a general practice that if you are a citizen with a gross income that exceeds the basic tax exemption limit, i.e., 2,50,000, subject to certain conditions, you must file an Income Tax Return (ITR). If your income doesn’t exceed Rs 2,50,000 during the year, you’re not legally bound to file your return. But it’s still recommended that you file your return because of the benefits that come with filing an income tax return:
Accidental Claims
Income tax returns can be used as evidence to help determine the income of an accident victim when calculating accident claim amounts. However, the specific formula used and other factors such as the severity of the injury, medical expenses, and loss of earning capacity will also be considered.
Proof of Income/Proof of Net worth
ITR serves as a comprehensive record of an individual's income, deductions, and tax liabilities, making it a reliable proof of income.
Refund
You can claim a refund of the amount you have paid in excess or deducted excessively in the form of TDS. There is no bigger joy than getting back your money from the Income Tax Department.
Eligibility in Loan Application
Income Tax Returns for the last three years are one of the basic documents required for loans. This helps banks in judging your payback capacity.
Carry forward capital losses
If, in a financial year, you have incurred capital losses, then you can carry forward them and settle them in the future.
Carry forward of losses
Want to claim last year’s business loss? File your income tax return, and you’re all set for it.
Protection against Black Money
If you diligently file your income tax return every year, then your savings will never be at risk of being termed as black money by the Income Tax officials, as any income not reported to the Income Tax Department comes under the radar of black money.
Buying an insurance Policy with high life cover
Some insurance companies are adamant about income tax returns while providing high life cover to verify your annual income.
Easiest Way of Income Tax efiling in India
1+ Million Trusted Users
I have an excellent experience! The service was outstanding.
Happy client
File ITR yourself
Claims Benefits of Filing ITR
It's quick, easy, and few minutes to file your income tax return.
Easy Sign in/up
Login or create a
new account
5 Simple Steps to e-file your Income Tax Return
Quick pick
Select your sources
of income
Pre-filled data
Details auto extracted from IT dept for ITR filing
Compare Computations
Choose between old &
new regimes
File ITR
E-File Income tax & get confirmation from IT dept
What documents are required while filing ITR?
The important documents required for filing income tax returns are-
Permanent account number
Aadhar card
Bank Account details
Form 16
Form 26AS
Annual Information Statement (AIS)
Investment details
Taxpayer’s Information Statement (TIS)
What are the benefits of filing ITRs?
The key benefits of filing your Income Tax Return regularly are as follows:
To claim tax refund- When excess TDS or TCS has been deducted from taxpayers. That extra tax can be claimed by filing Income Tax returns. Hassle-free and quick Visa processing- Timely filed ITR documents for the last two years are made mandatory to produce at the embassies or consulates for VISA application.
To avoid penalties- If you fail to file your ITR periodically and systematically, the tax office has the right to charge you with a fine of rupees 1000 or 5,000 as per the Income Tax Act, 1961.
For carry forward of losses
To take insurance policies with high cover.
Services
Your trusted partner for financial success.
Support
Contact Us
+91-9975791135
© 2025. All rights reserved.