ITR Filing
Forms + Process Guide

ITR FORM SELECTION based on YOUR INCOME TYPE: SALARIED WITH SIMPLE INCOME → ITR-1 (Sahaj): (1) Income up to ₹50 LAKH (salary + interest + rental). (2) ONE house property. (3) NO capital gains > ₹2.5L. (4) Resident individual. (5) Simplest form — 5-10 minute filing. WHO CAN'T USE ITR-1: (1) Income > ₹50L. (2) Capital gains > ₹2.5L (any sale of property, shares, MFs > ₹2.5L gain). (3) Foreign income or assets. (4) ESOPs/RSUs. (5) NRI status. (6) Director in company. (7) Holding unlisted equity shares. (8) > 1 house property. (9) Agricultural income > ₹5K. ITR-2 — Most Common Step Up: SALARIED + CAPITAL GAINS (sold MFs, shares, property) → ITR-2. SALARIED + NRI STATUS → ITR-2 mandatory. SALARIED + FOREIGN ASSETS (US ESOPs, foreign accounts) → ITR-2. ITR-3 — BUSINESS/PROFESSION: F&O traders, freelancers, consultants, business owners. ITR-4 — PRESUMPTIVE: Small business 44AD (6%/8% deemed profit) or profession 44ADA (50%). RECOMMENDATIONS: (1) STRATEGY: file ITR-1 only if STRICTLY salary + ≤ ₹50L + no other income. (2) Slight doubt? Use ITR-2 — safer + flexible. (3) Once you start business/F&O: ITR-3. (4) Want simplicity for small business: ITR-4. CONSULTANT: ₹15 lakh salary + ₹5 lakh consulting → ITR-3 (professional income). Cannot use ITR-1.

ITR FILING (Online via incometax.gov.in): PREPARATION: (1) Gather documents — Form 16 (salary), Form 16A (TDS on interest), Form 26AS, AIS (Annual Information Statement), bank statements, investment proofs (80C/80D/etc.), capital gains records, property documents. (2) Choose ITR form based on income type. STEP 1: Visit www.incometax.gov.in. Login with PAN + password. First-time: register with PAN + Aadhaar + mobile + email. STEP 2: Click 'File Income Tax Return' → 'Year FY 2026-27' (or relevant year). STEP 3: Select ITR form (ITR-1, 2, 3, 4 etc.). STEP 4: Choose status: Individual/HUF/Other. Choose: Old or New regime. STEP 5: AUTO-POPULATED PORTAL imports: (a) Form 16 data (salary, TDS). (b) Form 16A data (other TDS). (c) AIS data (interest, dividends, transactions). (d) Tax payments + refund details. STEP 6: REVIEW imported data + MANUALLY ADD missing items: deductions (80C, 80D, etc.), additional income, capital gains, foreign assets. STEP 7: COMPUTE tax — system auto-calculates based on slabs + regime. STEP 8: BANK ACCOUNT for refund. STEP 9: VERIFY everything carefully. STEP 10: SUBMIT + GENERATE ITR-V (verification). STEP 11: VERIFY ITR within 30 days: (a) Aadhaar OTP. (b) Net banking. (c) Digital Signature (DSC). (d) Bank account validation. (e) Sign physical ITR-V + post to CPC Bengaluru (slowest). STEP 12: ACKNOWLEDGMENT received. Track refund status under 'Refund' tab. TIPS: (1) File EARLY (April-June) — less crowded, refund faster. (2) Match Form 16 + AIS + Form 26AS before filing. (3) Don't miss any income. (4) Keep documents for 8 years.

ITR FILING DEADLINES (FY 2026-27): (1) NORMAL FILING: 31 JULY 2027 (for FY 2026-27, AY 2027-28). For non-audit cases. (2) AUDIT CASES: 31 OCTOBER 2027 (for FY 2026-27, AY 2027-28). For businesses requiring tax audit. (3) TP CASES (Transfer Pricing): 30 NOVEMBER 2027. EXTENSION: CBDT may extend deadlines via notifications. Verify current year status. LATE FILING — BELATED ITR: Allowed until 31 DECEMBER 2027 for FY 2026-27 (with penalty). PENALTY UNDER SECTION 234F: (1) Income < ₹5L: ₹1,000 penalty. (2) Income > ₹5L: ₹5,000 penalty. ALSO: (1) INTEREST 1% per month from due date till payment of any pending tax. (2) Some deductions DENIED: 80C, 80D, etc. still available; but loss carry-forward DENIED. (3) No revised return if late filed. POST-DECEMBER 2027: No belated return possible. UPDATED RETURN (Section 139(8A)): Available 2 years from end of AY. ₹50K or 25% additional tax payment penalty. Use this only as last resort. CONSEQUENCES OF NON-FILING: (1) Cannot claim refund of TDS. (2) Penalty + interest. (3) Notice from IT Department. (4) Future loan/visa applications affected. (5) Cannot use loss carry-forward benefits. RECOMMENDATION: ALWAYS FILE BY JULY 31 even if no tax due. Refunds processed faster. Track AIS data + Form 26AS for accuracy.

ITR E-VERIFICATION — MANDATORY within 30 DAYS of filing. Without verification, ITR is INVALID (treated as not filed). METHODS: (1) AADHAAR OTP (most popular + easiest): Submit ITR → OTP sent to Aadhaar-linked mobile. Enter OTP. Verification complete in 2 minutes. (2) NET BANKING: Login to bank's net banking → 'Income Tax e-Filing' → click verification link → redirected to IT portal. Works for most major banks (SBI, HDFC, ICICI, Axis, etc.). (3) DSC (DIGITAL SIGNATURE CERTIFICATE): For companies + audit cases. Costs ₹500-2K annually for individual DSC. Mandatory for some categories. (4) BANK ACCOUNT VALIDATION: Pre-validate bank account on IT portal → use during verification. Some banks support. (5) DEMAT ACCOUNT VALIDATION: Pre-validate demat account → use during verification. (6) PHYSICAL ITR-V: Print ITR-V form → sign → POST to CPC Bengaluru within 120 days. SLOWEST method — may delay refund 30-90 days. PROCESS AFTER VERIFICATION: (1) ITR is accepted by CPC. (2) AUTO-PROCESSING begins. (3) Section 143(1) intimation issued (refund/demand). (4) Refund credited to verified bank account within 7-15 days (post-2024 speed improvements). (5) If demand: pay within 30 days. CRITICAL: (1) Aadhaar must be linked with PAN + active mobile. (2) Pre-validate bank account for faster refund. (3) Don't miss 30-day verification window — ITR becomes invalid. Re-filing required + penalty if delay > original deadline. AUTOMATIC REMINDERS: IT portal sends email + SMS reminders if not verified.

ITR COMMON ERRORS (cause notices + rejections): (1) WRONG ITR FORM: Salary > ₹50L person filing ITR-1 → AUTO REJECTED. Match form to income type. (2) FORM 16 vs ITR MISMATCH: ITR amount different from Form 16 → notice u/s 139(9). Match exactly. (3) AIS DATA NOT MATCHED: Bank interest, MF SIP, share trading not declared → notice. Download AIS, match every transaction. (4) TDS MISMATCH: Form 26AS vs Form 16 vs ITR don't match → refund stuck. Verify Form 26AS regularly. (5) BANK ACCOUNT NOT VALIDATED: refund will fail. Pre-validate bank account before filing. (6) WRONG ASSESSMENT YEAR: filing FY 2026-27 income in FY 2025-26 ITR → rejected. (7) MISSING CAPITAL GAINS: Sold MFs/shares/property not declared → notice + tax recovery. (8) FOREIGN ASSETS NOT DISCLOSED in Schedule FA → BIG PROBLEM. Penalty ₹10L+ under Black Money Act. (9) AGRICULTURAL INCOME WRONG CLASSIFICATION: usually exempt but must be declared. (10) WRONG TAX REGIME SELECTION: Old vs New — once selected for business income, locked. (11) NOT VERIFYING ITR: invalid filing. (12) NOT FILING DESPITE INCOME: > ₹2.5L (₹3L senior, ₹5L super senior) income mandatory. PREVENTION: (1) AIS check before filing. (2) Form 26AS match. (3) Match every Form 16/16A. (4) Software (Tally, ClearTax, Quicko) for error detection. (5) E-verify within 30 days. (6) Keep documents for 8 years. STRATEGIC: file early (April-June). Less crowded server + faster processing.

ITR REFUND TIMELINE (post-2024 improvements): (1) AUTO-PROCESSING after e-verification: 3-30 days typically. (2) MOST REFUNDS: 7-15 days from verification. (3) AUDIT/SCRUTINY cases: 6-12 months. (4) BANK ACCOUNT pre-validated speeds up by 3-5 days. STATUS CHECK: (1) IT PORTAL: Login → 'View Filed Returns/Forms' → check status. (2) REFUND BANNER on dashboard shows current status. (3) PAN-BASED CHECK: tin.tin.nsdl.com → refund status. (4) FORM 26AS update once refund credited. STATUS DEFINITIONS: (a) 'Return Submitted' — filed but not verified. (b) 'Return Verified' — filed + verified, awaiting processing. (c) 'Return Processed' — CPC has processed → check intimation. (d) 'Refund Approved' — processing started. (e) 'Refund Sent' — money on its way. (f) 'Refund Credited' — money in bank. (g) 'Demand Raised' — instead of refund, tax due. ISSUES + RESOLUTIONS: (1) REFUND DELAYED: Check verification status. May need re-verification. (2) BANK ACCOUNT VALIDATION FAIL: Re-validate via NACH (auto-debit setup). (3) ACCOUNT FROZEN/DORMANT: Activate or use different account. (4) MISMATCH IN BANK DETAILS: Update on portal. INTEREST ON DELAYED REFUND: 0.5% per month from April of next FY till refund payment. PROCESS: Login → 'Refund Status' → 'Track Refund' → enter assessment year. IF REFUND ADJUSTED u/s 245 (against prior demand): verify if demand legitimate. Otherwise file rectification + appeal.

SALARIED + BUSINESS INCOME — DUAL FILING SCENARIOS: (1) SALARIED + RENTAL INCOME (small house property): ITR-2 typically. ITR-1 only if income < ₹50L. (2) SALARIED + F&O TRADING: F&O = business income → ITR-3 mandatory. (3) SALARIED + FREELANCING (additional consulting income): Professional income → ITR-3 OR ITR-4 (if presumptive 44ADA). (4) SALARIED + SMALL BUSINESS: ITR-3 (regular) or ITR-4 (presumptive 44AD). (5) SALARIED + STOCK/MF INVESTMENTS: ITR-2 (capital gains). NOT business unless very frequent trading. WHO IS A 'TRADER' vs 'INVESTOR': (1) Investor — long-term holdings, infrequent trades, ITR-2. Capital gains 12.5% LTCG. (2) Trader — frequent buying/selling, high volume, ITR-3. Slab rate on business income. (3) F&O ALWAYS business income — ITR-3. ITR-3 SECTIONS: (1) Schedule BP (Business + Profession) — main P&L. (2) Schedule HP (House Property). (3) Schedule CG (Capital Gains). (4) Schedule OS (Other Sources). (5) Salary section. ITR-4 PRESUMPTIVE: (1) Section 44AD — 6%/8% deemed profit on turnover ≤ ₹2cr business. (2) Section 44ADA — 50% deemed profit ≤ ₹50L profession. (3) CANNOT claim actual expenses. Simpler but may pay more tax if actual profit margin lower. STRATEGY: F&O trader earning ₹5L salary + ₹3L F&O loss → ITR-3 to claim loss against future income. Salary income separate. Freelance consultant earning ₹20L → ITR-4 (50% presumptive = ₹10L deemed profit) OR ITR-3 (actual expenses). Compare both — usually ITR-4 simpler + lower compliance cost.

OLD vs NEW REGIME SELECTION in ITR: SALARIED: SWITCH ANNUALLY allowed. Via Form 12BB submission to employer + ITR-specific selection. NO LOCK-IN. BUSINESS INCOME: ONE-TIME selection via Form 10-IEA. Once selected (or if no selection assumed new regime), locked. To switch back: complex process + restrictions. SELECTION IN ITR: (1) During ITR filing, in 'Personal Details' or specific section, choose 'Old' or 'New' regime. (2) System auto-applies relevant deductions/exemptions. (3) For salaried: choose what gives lower tax (calculator-based decision). (4) For business: ONCE locked, very difficult to change. NEW REGIME DEFAULT (FY 2023-24 onwards): If you don't select anything, NEW regime auto-applied. NEW REGIME (FY 2026-27): (1) Tax slabs: 0% up to ₹3L, 5% to ₹7L (₹0 with 87A rebate), 10% to ₹10L, 15% to ₹12L, 20% to ₹15L, 25% to ₹20L, 30% above. (2) ₹75K standard deduction (salaried). (3) NO 80C, 80D, 80E, 80G, HRA. (4) Simpler — no documentation needed. OLD REGIME: (1) Tax slabs: 0% up to ₹2.5L (₹3L senior), 5% to ₹5L (₹0 with 87A rebate), 20% to ₹10L, 30% above. (2) ₹50K standard deduction (salaried). (3) 80C ₹1.5L + 80D ₹25K + 80E (unlimited) + 80G + HRA + 24(b) ₹2L + 80U + 80DDB etc. CALCULATOR FOR DECISION: At ₹10L income, old regime with ₹3L deductions vs new regime — usually new wins by ₹50K. At ₹20L+ income with substantial home loan + 80C + HRA: old usually wins. USE Richify Income Tax Calculator FY 2026-27 to compare both regimes side-by-side.