ITR Filing: 11 Frequently Asked Questions on Income Tax Return Filing

What is a Return of Income?

An Income Tax Return (ITR) is a form used to report the income earned by an individual or entity during a financial year, along with the taxes paid on that income, to the Income Tax Department.

Filing an ITR is not just about reporting income—it also helps you:

• Claim a tax refund (if excess tax has been paid),
• Carry forward certain losses to future years, and
• Stay compliant with tax laws.

The Income Tax Department has specified different ITR forms based on the taxpayer’s status (individual, firm, company, etc.) and the nature of income (salary, business, capital gains, etc.).

What are the Income Tax Return Forms Prescribed under the Income Tax Act?

The Income Tax Act has prescribed different ITR forms for filing their ITR, based on their source of income and category. The ITR forms notified by the IT department are as follows -

• ITR-1 (SAHAJ): For resident individuals (other than not ordinarily resident) with total income up to ₹50 lakh. Income sources can include salary, one house property, other sources (like interest), long-term capital gains under Section 112A up to ₹1.25 lakh, and agricultural income up to ₹5,000.
• ITR-2: For individuals and Hindu Undivided Families (HUFs) who do not have income under the head "Profits or gains of business or profession."
• ITR-3: For individuals and HUFs who earn income under the head "Profits or gains of business or profession."
• ITR-4 (SUGAM): For resident individuals, HUFs, and firms (except LLPs) with total income up to ₹50 lakh. It applies to income from business or profession calculated under sections 44AD, 44ADA, or 44AE and long-term capital gains under Section 112A up to ₹1.25 lakh.
• ITR-5: For firms, LLPs, AOPs, BOIs, artificial juridical persons (as per section 2(31)(vii)), cooperative societies, and local authorities. This form is not for those who must file under sections 139(4A), 139(4B), 139(4C), or 139(4D) (such as trusts, political parties, and institutions).
• ITR-6: For companies, except those claiming exemption under section 11 (charitable or religious trusts).
• ITR-7: For persons (including companies) who need to file returns under sections 139(4A), 139(4B), 139(4C), or 139(4D), such as trusts, political parties, colleges, and institutions.
• ITR-V: This is the acknowledgement form for return filing.

What are the different modes of filing Income Tax returns?

You can file your Income Tax Return with the Income Tax Department using any of the following methods:

• Submit the return in paper form.
• File the return electronically using a digital signature.
• File the return electronically using an electronic verification code (EVC).
• File the return electronically and then send the signed ITR-V (verification form) separately.

Who Can Use ITR-1 (SAHAJ)?

Individuals can file ITR-1 (SAHAJ) if their total income includes:

• Income from salary or pension
• Income from one house property, except cases with a carried-forward loss from previous years
• Income from other sources, excluding:
  • Lottery winnings
  • Income from racehorses
  • Income taxable under section 115BBDA
  • Income covered under section 115BBE
• Long-term capital gains under section 112A, up to ₹1.25 lakh

You can also use this form if you are clubbing the income of another person (such as a spouse or minor child), as long as the clubbed income also falls under the above categories.

How to E-verify your ITR online?

In order to e-verify your ITR, you must log in to the Income Tax Portal using your ID and Password. Next, click on e-file > Income tax return > e-verify return.

If you have filed your ITR through the Tax2win portal, you can e-verify your ITR through Tax2win portal using Aadhaar, demat, or bank account. Once you select the desired method, you will receive an e-verification code on your mobile number. Simply enter the EVC and verify it. Your ITR will be successfully e-verified.

Should You File a Nil Return?

Filing a nil return can be beneficial for taxpayers as it serves as proof of earnings, speeds up loan approval and visa processing. Even if your income is below the taxable limit, you can still file your ITR. Read more about the benefits of filing ITR.

Who Can Use ITR-2?

Form ITR-2 can be used by individuals and Hindu Undivided Families (HUFs) who meet the following conditions:

• They are not eligible to file ITR-1 (Sahaj).
• They do not have income from a business or profession.
• They do not receive income such as interest, salary, bonus, commission, or remuneration from a partnership firm.

Additionally, if the taxpayer needs to club the income of another person (such as a spouse or minor child), they can use ITR-2 only if the income to be clubbed also falls under the above categories.

Who Can Use ITR-3?

Form ITR-3 can be used by individuals and Hindu Undivided Families (HUFs) who have income from profits and gains of business or profession.

This form is also applicable to those who receive income in the form of interest, salary, bonus, commission, or remuneration from a partnership firm, which is taxable under the head "Profits and gains of business or profession."

Who Can Use ITR-4 (SUGAM)?

Form ITR-4 (SUGAM) can be used by an Individual, HUF, or Firm (other than LLP) if their total income includes:

• Business income calculated under section 44AD or 44AE
• Professional income calculated under section 44ADA
• Salary or pension
• Income from one house property (excluding cases with carried forward loss)
• Income from other sources (excluding lottery winnings, race horse income, dividends over ₹10 lakh, or unexplained income under section 115BBE)
• Long-term capital gains under section 112A up to ₹1.25 lakh

You can also use this form if you're required to club the income of a spouse, minor child, etc., provided the clubbed income falls under any of the above categories.

What is the Due Date for ITR Filing in FY 2024-25 (AY 2025-26)?

The due date for filing ITR for FY 2024-25 has been extended to 15th September 2025. Generally, the ITR filing deadline is 31st July every year; however, this deadline is subject to change by the CBDT. This year, due to various changes in the ITR forms, the deadline has been extended to 15th September 2025.

What Happens if I Fail to File the ITR by the Due Date?

If you fail to file your ITR by the due date, you might have to face various consequences. Given below are the consequences of filing ITR after the due date -

• Penalty u/s 234F: A penalty upto Rs. 5000 is levied under section 234F, if the ITR is filed after the due date. For incomes upto Rs. 5 lakhs, the penalty is Rs. 1,000, and for income above this limit, the penalty is Rs. 5,000.
• Interest on Tax Due: An interest on the outstanding tax can be levied under section 234A. Interest is calculated at 1% per month (or part thereof) from the due date of filing till the actual date of filing.
• No Carry Forward Benefit: If you file your ITR after the due date, you cannot carry forward the losses to the following years. If you file on time, you can carry forward your business losses and capital losses and set them off against profits in the following years upto the next 8 years.
• Restriction on Choosing Old Tax Regime: Salaried individuals with no business income cannot opt for the old tax regime if they file their ITR after the due date.

Can we change the tax regime while filing the ITR in 2025?

Yes, the taxpayer can change to the old regime by filing Form 10IEA for FY 2024-25 (AY 2025-26). However, once this form is filed, the taxpayer is mandatorily required to choose the old regime, as it cannot be reverted. Moreover, business professionals can only switch their regime once in their lifetime.

Which is better, the old regime or the new regime?

Both the old regime and the new regime offer attractive deductions, exemptions, and rebates. Whether you should choose the old regime or the new regime depends on your level of income and the deductions and exemptions you are eligible to claim. For example, if your income exceeds Rs. 25 lakhs and you have made investments in tax-saving instruments like PPF, ELSS, LIC, etc, the old regime might be a better choice for you.

If you are confused about which regime to choose, don’t worry! You can use our Income Tax Calculator, which automatically computes your tax liability under both regimes, so that you can choose the more beneficial one.

How to File ITR Online Without a CA for FY 2024-25?

You can easily file your Income Tax Return (ITR) through Tax2win using their Do-It-Yourself (DIY) platform without the need for a CA. Here’s how:

• Visit Tax2win’s website.
• Login or Sign up using your mobile number or email.
• Choose the "File ITR Yourself" option.
• Select the relevant ITR form based on your income type.
• Upload your Form 16 or manually enter your income details.
• The system will auto-fill most fields using your PAN and AIS data.
• Review your ITR summary and make any necessary changes.
• Pay the applicable fee (if any).
• Submit your return directly to the Income Tax Department.
• Lastly, e-verify your return through Aadhaar OTP, net banking, or other available options.

ITR filing for FY 2024-25 has begun; don’t wait till the last minute! Filing your Income Tax Return correctly is crucial to avoid unwanted tax notices, penalties, or delays in refunds. Even small errors can lead to big consequences.

That’s why it’s always wise to seek expert assistance. With Tax2win, you get access to qualified CAs who guide you through everything, right from tax planning and accurate filing to resolving any income tax notices.

Whether your income includes salary, capital gains, business income, or multiple sources, our experts ensure your return is filed correctly and on time. File now with Tax2win!