What is ITR?

Income Tax Return (ITR) filing is a legal requirement and a smart financial choice for every individual and business earning an income in India. ITR is a form where taxpayers report their annual income, deductions, tax liability, and any refund claims to the Income Tax Department of India. Whether you are a salaried employee, a freelancer, or a business owner, filing your ITR on time and correctly helps you stay compliant and access multiple financial benefits.

As India pushes for digitization, filing ITR online has become simple, quick, and clear. However, choosing the right form, applying exemptions correctly, and avoiding mistakes still need guidance.

Benefits of Filing ITR

• Easy loan approvals: Banks require ITR for home, car, and business loan verification.
• Claim TDS refunds: File ITR to reclaim any excess tax deducted by employers or banks.
• Visa processing: Most embassies ask for past ITRs when processing visa applications.
• Proof of income: ITR acts as an official document for income and net worth.
• Carry forward losses: Adjust capital or business losses against future profits when ITR is filed.
• Stay legally compliant: Avoid penalties and legal issues under the Income Tax Act.

Taxpayers who shall file ITR for FY 2024-25 (AY 2025-26)

1. If your total income in the year is more than the basic exemption

Basic Exemption under New Regime: ₹ 3 Lakhs, irrespective of the age of the taxpayer.

1. If you have deposited a total of Rs. 1 crore or more in one or more current accounts at a bank. However,  there is no such requirement for deposits made in post office current accounts. 
2. If you have deposited more than Rs. 50 lakh in your savings bank account. 
3. If you have spent more than Rs. 2 lakh on foreign travel, whether for yourself or someone else. 
4. If your yearly electricity bills exceed Rs. 1 lakh. 
5. If your tax withheld in the form of TDS/TCS is more than Rs. 25,000. For senior citizens (above 60 years), this limit is Rs. 50,000. 
6. If your business turnover exceeds Rs. 60 lakh. 
7. If your income from your profession is more than Rs. 10 lakh. 
8. If the total of TDS and TCS is Rs. 25,000 or more during the financial year.

Penalties for Non-Filing Income Tax Return

Not filing your ITR within the due date will result in a penalty of Rs 5,000. However, if your income is below Rs 5 lakhs, then the penalty will be reduced to Rs 1,000.

Documents Required for ITR Filing

• PAN card
• Aadhaar card
• Form 16 (for salaried individuals)
• Salary slips
• Bank account details & statements
• TDS certificates (Form 16A, Form 26AS)
• Investment proofs (80C, 80D, etc.)
• Home loan certificate (if applicable)
• Business income details (P&L account, balance sheet)
• Foreign income/asset details (if applicable)

Types of ITR Forms

ITR-1 (Sahaj): Salaried individuals with income up to ₹50 lakh

ITR-2: Individuals and HUFs not having business income

ITR-3: Individuals and HUFs with business/professional income

ITR-4 (Sugam): Presumptive taxation scheme for small businesses/professionals

ITR-5: Partnerships, LLPs, firms

ITR-6: Companies other than those claiming exemption under Section 11

ITR-7: Persons, trusts, companies filing under Section 139(4A–4D)

Process of Filing ITR with MrBrandy

Step 1 – Share Your Details

Upload documents (Form 16, salary slips, etc.) through our secure portal.

Step 2 – Review & Tax Calculation

Our experts verify income, deductions, and calculate tax/refunds.

Step 3 – File Online

We e-file your ITR on the official Income Tax Department portal.

Step 4 – Acknowledgement

You receive the ITR-V (acknowledgement) as proof of filing.

Step 5 – Refund Processing

Track your refund status directly through our platform.