It is the process of reporting your income, deductions, and tax paid to the Income Tax Department through an official return (ITR).
An Income Tax Return (ITR) is a form used to declare your annual income, deductions, and claim refunds, if any, from the department.
All individuals with income above ₹2.5L (₹3L for seniors), businesses, freelancers, or those seeking refunds/loans must file ITR.
31st July for individuals and 31st October for businesses (audit cases). Late filing attracts penalties and loss of benefits.
Filing helps claim refunds, builds legal proof of income, improves financial credibility, and avoids tax department scrutiny.
Different forms apply based on income type: ITR-1 to ITR-7 cover individuals, businesses, companies, and trusts.
Legal compliance, faster refunds, visa/loan eligibility, carry forward losses, and financial transparency are key benefits.
Failure to file can lead to penalties up to ₹5,000, interest on tax due, and potential legal actions from the department.