Income Return Filing

Income Return Filing: complete guide

Introduction

An income tax return is the annual statement in which an individual reports their income for the year, claims the deductions and exemptions they are entitled to, works out the tax payable, and reconciles it with the tax already deducted or paid. Returns are filed online on the income tax e-filing portal in the form that matches the type of income, and must be verified, usually through Aadhaar OTP or net banking, to be treated as valid. Once processed, the department either confirms the return, issues a refund of excess tax, or raises a demand where it finds a shortfall.

For many individuals, filing a return is required by law. Even where it is not compulsory, it is often worth doing. A filed return is the only way to claim a refund of excess TDS, carry forward capital losses and business losses to future years, and build a record of income that banks, embassies and lenders ask for when you apply for a loan, a credit card, or a visa. It is also the basis on which the department matches your income with the information it already holds.

That information is now extensive. The Annual Information Statement and Form 26AS show salary and TDS, interest from banks and post office deposits, dividends, mutual fund and share transactions, property purchases and sales, foreign remittances, rent received where TDS was deducted, and many other high-value transactions. Pre-filled returns pick up much of this automatically. But pre-filled data is not always complete or correct, and anything left out or reported wrongly can lead to an automated notice. Choosing between the old and new tax regimes, reporting capital gains correctly, claiming the right deductions, and disclosing foreign assets for residents all require care.

The law itself is in transition. The Income-tax Act, 2025 replaces the Income-tax Act, 1961 for the tax year beginning on the first of April 2026. Returns for the financial year 2025-26, filed during 2026, are still filed under the 1961 Act, while returns for the tax year 2026-27 onwards will be filed under the new Act, with new form numbers and terms. Our team prepares and files your return under the correct law, reviews your data against the department's records, compares the two tax regimes for you, and files a return that you can stand behind. Rules, forms and due dates change each year, and we check the current position at the time of filing.

Who Needs It

This service is designed for individuals, and covers the following situations:

• Salaried employees with income from one or more employers, including those who changed jobs during the year and need TDS from both employers reconciled.
• Individuals whose income exceeds the basic exemption limit. Filing is compulsory once total income before certain deductions exceeds the basic exemption limit applicable to the regime and age group.
• Pensioners and senior citizens, including those with interest income from deposits, who may be eligible for higher exemption limits under the old regime and specific deductions for interest income.
• Investors with capital gains from shares, mutual funds, property, gold or other assets, including those with short-term and long-term gains and losses to carry forward.
• Individuals with rental income from one or more properties, and those claiming home loan interest.
• Freelancers and professionals with income from consultancy, design, content, tutoring or similar work, who may be able to use presumptive taxation where eligible.
• Individuals with foreign income or assets. Residents must disclose foreign bank accounts, shares, property and other assets in the return, even if no tax is due on them.
• NRIs with Indian income, such as rent, interest or capital gains, who need to report it and may claim relief under a tax treaty.
• People who must file regardless of income, for example where they have deposited large amounts in a current account, spent large sums on foreign travel, paid high electricity bills, or have TDS or TCS above the limits notified, as per the conditions in the law.
• Anyone due a refund of excess TDS or advance tax.

Complex business income requiring a tax audit, partnership firms, companies and trusts are handled through our other tax filing services.

Key Benefits

• Correct choice of tax regime. We compute your tax under both the new regime and the old regime, where you are allowed to choose, and file under the one that results in lower tax for your situation.
• Accurate reporting. We reconcile your income and TDS with Form 16, the Annual Information Statement and Form 26AS, which reduces the risk of mismatch notices.
• Full use of deductions and exemptions. Under the old regime, we help you claim deductions such as those for investments, insurance, health insurance, home loan interest, education loan interest and donations, with proof. Under the new regime, we apply the standard deduction and permitted deductions.
• Correct capital gains reporting. We classify gains as short-term or long-term, apply the correct rates and exemptions, and carry forward losses where allowed.
• Faster refunds. A clean return verified on time is processed faster, and refunds are credited to your pre-validated bank account.
• Proof of income. Filed returns serve as proof of income for loans, visas and tenders.
• Carry forward of losses. Capital losses and business losses can be carried forward only if the return is filed by the due date.
• Avoiding late fees and interest. Filing on time avoids the late fee and limits interest on unpaid tax.

Old regime compared with new regime. The new regime has lower slab rates and a higher rebate, but allows very few deductions and exemptions. The old regime has higher rates, but allows deductions for investments, insurance, house rent allowance, home loan interest and many others. Under the current rules, the new regime is the default, and a resident individual with income up to twelve lakh rupees under the new regime may pay no tax after the rebate, subject to conditions such as the exclusion of incomes taxed at special rates. Salaried individuals without business income can choose the regime each year. Individuals with business income have more limited options to switch. We calculate both and explain the difference before filing.

How filing works in practice. You share your documents with us. We review them, download the pre-filled data and the Annual Information Statement, reconcile the figures, compute tax under both regimes and send you a summary. Once you approve, we file the return and help you complete e-verification.

Eligibility and Legal Requirements

Income tax returns for the financial year 2025-26 are governed by the Income-tax Act, 1961 and the Income-tax Rules, 1962. From the tax year 2026-27, returns are governed by the Income-tax Act, 2025 and the rules made under it. The key requirements are:

• Who must file. An individual must file if total income before certain deductions and exemptions exceeds the basic exemption limit, or if any of the specified conditions applies, such as high-value deposits, expenditure on foreign travel or electricity, TDS or TCS above notified limits, or holding foreign assets or signing authority in a foreign account as a resident.
• Choice of return form. The form depends on the type and amount of income. Simple salary, one house property and interest income usually fall under ITR-1 for residents within the notified income limit. Capital gains, foreign assets and multiple properties usually need ITR-2. Business or professional income needs ITR-3 or, for eligible presumptive income, ITR-4. Using the wrong form can make the return defective.
• Due dates. For individuals not required to get their accounts audited, the due date is ordinarily the thirty-first of July following the financial year, unless extended by the department. Individuals requiring a tax audit have a later due date.
• Belated and revised returns. A belated return can be filed after the due date, with a late fee, up to the thirty-first of December following the financial year, or as notified. A return can be revised within the same period if an error is discovered.
• Updated returns. An updated return can be filed within the extended period now allowed under the law from the end of the relevant assessment year, with additional tax, to report income that was missed, subject to conditions and exclusions.
• Verification. A return must be verified within thirty days of filing, through Aadhaar OTP, net banking, a bank account or demat account based code, or by sending a signed form. A return that is not verified is treated as not filed.
• PAN and Aadhaar. PAN must be linked with Aadhaar, as required under the law. An inoperative PAN can lead to refunds being withheld and higher TDS.
• Bank account. A bank account must be pre-validated on the e-filing portal for refunds to be credited.

Tax rates, slabs, rebates, forms and due dates are revised through the annual Finance Act and notifications. We check the rules that apply to your year at the time of filing.

Step-by-Step Guide

1. Onboarding call. We understand your sources of income, investments, residential status, any foreign assets and whether you have filed returns in earlier years.
2. Document collection. You share Form 16, bank interest certificates, capital gains statements, rent details, investment proofs and other relevant documents.
3. Download of pre-filled data. With your consent and access, we download the pre-filled return, the Annual Information Statement and Form 26AS.
4. Reconciliation. We compare your documents with the department's data, identify differences, and ask you about any transactions you do not recognise.
5. Computation of income. We compute income under each head, including salary, house property, capital gains, business or profession, and other sources, with set-off of losses as allowed.
6. Regime comparison. We compute tax under the new and old regimes, where you can choose, and recommend the option that results in lower tax.
7. Review with you. We share a summary of income, deductions, tax payable or refund due, and explain any significant points.
8. Tax payment, if needed. If tax is payable, we calculate self-assessment tax and interest, and you pay it online before filing.
9. Filing the return. We file the return in the correct form on the e-filing portal and share the acknowledgement.
10. E-verification and follow-up. We help you e-verify the return immediately, then track processing, the refund status and the intimation from the department.

Documents Checklist

For all individuals:

• PAN and Aadhaar
• E-filing portal login, or consent to register on your behalf
• Bank account details for all accounts held during the year
• Previous year's return, if filed

For salaried individuals:

• Form 16 from each employer during the year
• Salary slips, where Form 16 is incomplete
• Rent receipts and landlord's PAN, where house rent allowance is claimed under the old regime
• Leave travel allowance proofs, where applicable

For deductions under the old regime:

• Proofs of investments such as provident fund, public provident fund, life insurance, equity-linked savings schemes and tuition fees
• Health insurance premium receipts and preventive health check-up bills
• Home loan interest and principal certificate
• Education loan interest certificate
• Donation receipts with the details required under the law

For capital gains:

• Capital gains statements from brokers and mutual funds
• Sale and purchase deeds for property, with cost of improvement records
• Details of reinvestment for exemption claims

For other income:

• Interest certificates from banks and post office
• Dividend statements
• Rental agreements and rent received, with municipal tax paid
• Invoices, bank statements and expense records for freelance or professional income

For foreign income and assets:

• Details of foreign bank accounts, shares, property and other assets held during the relevant period
• Foreign income statements and proof of tax paid abroad, for claiming relief

For NRIs:

• Passport pages or travel records to determine residential status
• Tax residency certificate where treaty relief is claimed

How Long It Takes

For most individuals, the return is ready to file within two to four working days after we receive complete documents. A typical timeline looks like this:

• Document review and reconciliation: one to two working days.
• Computation and regime comparison: one working day.
• Review and approval by you: depends on your availability, usually within a day.
• Filing and e-verification: completed on the same day as your approval.
• Processing by the department: usually a few weeks after verification, although it can take longer in peak periods or where the return is picked for further checks.

Returns with capital gains, multiple properties, foreign assets or freelance income may take a little longer. We recommend sharing documents well before the due date, since the portal is often busy in the last few weeks.

Pricing

Our professional fee for Income Return Filing is ₹ 1,499.

This covers:

• Review of your documents and the department's pre-filled data
• Reconciliation with Form 16, Form 26AS and the Annual Information Statement
• Computation of income and comparison of the old and new tax regimes
• Preparation and filing of the return in the correct form
• Help with e-verification
• Tracking of processing and refund status, and explanation of the intimation

This fee applies to a return with salary or pension, one house property and other sources. Returns with capital gains, multiple properties, foreign assets, freelance or business income, NRI returns, revised and updated returns, and replies to notices are quoted separately. Any tax, interest or late fee payable is paid to the government at actual.

Common Mistakes to Avoid

• Relying only on Form 16. Form 16 does not show interest income, capital gains or other income reported in the Annual Information Statement. Always check the full record.
• Ignoring savings account and deposit interest. Interest from savings accounts and fixed deposits is taxable and must be reported, even where no TDS was deducted.
• Choosing the wrong regime. Defaulting to a regime without comparing both can lead to paying more tax than necessary.
• Using the wrong return form. Filing ITR-1 when you have capital gains or foreign assets can make the return defective.
• Not disclosing foreign assets. Residents must report foreign assets, even with no income from them. Non-disclosure can attract heavy penalties under the black money law.
• Forgetting to e-verify. A return that is not verified within thirty days is treated as not filed.
• Missing the due date. Late filing attracts a late fee, means losses cannot be carried forward, and can limit the choice of regime.
• Claiming deductions without proof. Deductions claimed without supporting documents can be disallowed if questioned.
• Ignoring PAN-Aadhaar linking. An inoperative PAN can block refunds.
• Not revising when an error is found. If you discover a mistake after filing, revise the return within the time allowed rather than waiting for a notice.

What Happens After

Once your return is filed and verified, the following steps usually follow:

• Processing. The department processes the return and sends an intimation by email showing whether it accepts your computation.
• Refund. If excess tax was paid, the refund is credited to your pre-validated bank account, with interest where applicable.
• Demand or adjustment. If the department finds a shortfall, it raises a demand. We review it and, if it is incorrect, file a rectification request or respond on the portal.
• Defective return notice. If the return has a defect, a notice is issued asking you to correct it within the time given. We help you respond.
• Advance tax for the next year. If your tax liability after TDS is above the limit in the law, you must pay advance tax in instalments during the year. We can help you plan these.
• Record keeping. Keep your documents and computation for several years, since returns can be reopened within the time limits in the law.

Our team can also help with notices, updated returns and planning for the next year's taxes.

FAQs

Do I need to file a return if my employer has already deducted TDS?

Yes, if your income exceeds the basic exemption limit or any other filing condition applies. TDS is only a prepayment of tax. Filing the return completes your obligation and allows a refund where excess tax was deducted.

Which tax regime should I choose?

It depends on your income and deductions. If you have significant deductions such as home loan interest, insurance and investments, the old regime may suit you. Otherwise, the new regime is often lower. We calculate both before filing.

Can I switch between regimes every year?

Salaried individuals without business income can choose each year at the time of filing. Individuals with business or professional income have limited options to switch, as set out in the law.

What is the due date for filing?

For individuals not subject to tax audit, the due date is ordinarily the thirty-first of July after the financial year, unless the department extends it. We confirm the date for your year.

What if I miss the due date?

You can file a belated return up to the thirty-first of December following the financial year, or as notified, with a late fee. Some benefits, such as carrying forward certain losses, are lost.

What is the Annual Information Statement?

It is a statement on the e-filing portal that shows income and transactions reported about you by banks, employers, mutual funds, registrars and others. It should be checked before filing.

Do I need to report interest from my savings account?

Yes. Interest from savings accounts, fixed deposits and other deposits is taxable and must be reported. Certain deductions may be available on such interest depending on your age and regime.

I have foreign shares through my employer. Do I need to report them?

Yes, if you are a resident. Foreign shares, including those received under employee stock plans, must be reported in the foreign assets schedule, along with any income from them.

How long does it take to receive a refund?

Refunds are usually credited within a few weeks of verification, provided the bank account is pre-validated and the return has no mismatches. Delays can occur during peak periods.

What if I made a mistake in my filed return?

You can file a revised return within the time allowed. After that, an updated return may be possible in some cases, with additional tax.

Can NRIs file returns through your team?

Yes. We determine residential status, report Indian income, and claim treaty relief where eligible. NRI returns are quoted separately.

What is the effect of the new Income-tax Act, 2025?

It applies from the tax year starting in April 2026. Returns for the financial year 2025-26 are still filed under the 1961 Act. Later returns will follow the new Act, its forms and its terms.

Do I need to send any physical documents?

No. Everything is handled online. You share scanned copies or digital statements, and the return is verified electronically.

Will you help if I receive a notice after filing?

Yes. We explain the notice and help you respond. Notice replies beyond routine processing queries are quoted separately.

Services by city

• Income Tax Return Filing in Delhi
• Income Tax Return Filing in Mumbai
• Income Tax Return Filing in Bengaluru
• Income Tax Return Filing in Pune
• Income Tax Return Filing in Hyderabad
• Income Tax Return Filing in Chennai
• Income Tax Return Filing in Kolkata
• Income Tax Return Filing in Gurugram
• Income Tax Return Filing in Noida
• Income Tax Return Filing in Greater Noida
• Income Tax Return Filing in Ahmedabad
• Income Tax Return Filing in Chandigarh
• Income Tax Return Filing in Navi Mumbai
• Income Tax Return Filing in Patna

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