ITR

Full form: Income Tax Return

Tax & Deductions

ITR is the annual tax filing declaring total income, deductions, tax paid, and liability. Mandatory for income above Rs 3L (new regime) or Rs 2.5L (old regime), or specific transaction thresholds.

In detail

Key forms: ITR-1 (salaried, income below Rs 50L), ITR-2 (capital gains, multiple income), ITR-3 (business income), ITR-4 (presumptive income). Filing deadline: July 31. Late filing penalty: Rs 5,000 (above Rs 5L income) or Rs 1,000.

Real-life example

🇮🇳 India example

Pooja: salary Rs 8L + FD interest Rs 40K + LTCG Rs 1.8L. Files ITR-2. Pays LTCG tax Rs 6,875 on Rs 55K (above Rs 1.25L exemption). Balance tax Rs 3,500 after TDS credit.

Frequently asked questions

Must I file ITR if TDS covers all tax?
Yes if income exceeds basic exemption. Also mandatory to claim refunds, apply for loans/visa, carry forward capital losses, or if income above Rs 50L.