Income Tax Eligibility Calculator

What is an ITR?

ITR stands for Income Tax Return. It is a form that taxpayers are required to file with the Income Tax Department of India to report their income, deductions, and taxes paid in a financial year.

An ITR form is a declaration of a taxpayer's income, and it helps the government determine the taxpayer's tax liability. It also allows taxpayers to claim any refunds due to them from the Income Tax Department.

There are several types of ITR forms, and the form to be filed depends on the nature and source of income, the category of the taxpayer, and other factors such as the value of assets and the place of residence. The forms range from ITR-1 to ITR-7, and each form is designed to cater to different types of taxpayers.

• ITR-1: Another name for this form is Sahaj, and it should be filed solely by a resident individual ( other than not ordinarily residents) taxpayers under a few conditions.
  1. When an individual receives income through a salary or pension.
  2. When an individual has rental income from a single-house property.
  3. When an individual is not earning any income from other countries and has no property in other countries.
  4. When the individual has no income from businesses or capital gains.
  5. If the income obtained through agriculture is up to 5,000 rupees.
  6. If the source of income (except winning from the lottery, income from horse races) for the individual is from multiple sources like investments, fixed deposits, and schemes.
  7. When an individual’s total income does not exceed Rs. 50 lakhs.
  8. If an individual plans to acquire their spouse's or underage child's income as their own after fulfilling some specified criteria.
• ITR-2: A Hindu Undivided Family (HUF) or an individual taxpayer can use this ITR form. It applies to the following people:
  1. Applicability for ITR-2 is almost the same as it is for ITR-1. Although, there are some differences, such as: when the income received through agriculture is above rupees 5000, when income has income through capital gains, and when the individual obtains income through activities such as lotteries, betting, etc. If the total income of an individual exceeds 50 lakhs from salary source, rental income from one house property, and some type of interest income from different sources, then also they are required to file ITR 2.
• ITR-3: This form applies to HUF and individuals whose income comes from profits from business or a profession.
• ITR-4: This form applies to individuals, HUFs, and partnership firms( Other than LLP) when the income is computed presumptively under the following sections
  1. Business earnings as per the provisions of Section 44AD and 44AE.
  2. Professional Income under the special provisions of Section 44ADA.
• ITR-5: This Form can be used by Limited Liability Partnerships (LLPs), cooperative societies, artificial judiciaries, Body of Individuals (BOIs), Association of Persons (AOPs), Estate of insolvent, Business trusts, investment funds, and local authorities.
• ITR-6: This form applies to any company except to firms or organizations that claim tax exemption as per Section 11 of the Income Tax Act. Organizations that claimed the tax exemption u/s 11 received income from the property and used it for religious and charitable purposes.
• ITR-7: ITR-7: It applied when the income obtained concerns a few Sections
  1. Section 139(4A) - People earning through religious funds or charitable trust.
  2. Section 139(4B) - Political parties whose income surpasses non-taxable limits.
  3. Section 139(4C)- Any institution under Section 10(23A) and institutions like new agencies, medical institutions, research associations, or educational entities that come under Section 10(23B).
  4. Section 139(4D) is Required to be filed by every university, college, or other institution that is not required to furnish a return of income or loss under any other provision of this section.
  5. Section 139(4E) - Business trusts that are not required to provide a return of income or loss as per other provisions of this Section.
  6. Section 139(4F) Must be filed by any investment fund referred to in section 115UB. No return of income or loss is required to be furnished under any other provision of this section.

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Who should file ITR?

In general, any individual or entity whose total income during the financial year exceeds the basic exemption limit (which varies depending on age and income category) must file an Income Tax Return (ITR) in India.

The taxpayers in India need to pay income tax on the basis of the income tax slab they fall in. There are three categories under which income tax is divided:-

• Individuals who are less than 60 years in age.
• Senior citizens with age 60 to 80 years in age.
• Super senior citizens with age above 80 years in age

As per the Union Budget 2024, the tax slab under new tax regime has been revised. These revised slab rates will be applicable from 1April 2025. The income tax slab for AY 2025-26 for salaried person has been revised as follows:-

(Note: There is no change under the tax slabs for old tax regime)

New Regime (FY 2024-25)

Old Regime (FY 2024-25)

There are exceptions where an individual's income does not meet the taxable limit but is still mandated to file tax returns. The conditions for the same include:

1. If the deposited amount in one or more current accounts crosses the threshold of Rs. 1 crore.
2. If the traveling expenditure to another country exceeds the limit of Rs. 2 lakh.
3. If the total bill amount towards the consumption of electricity exceeds Rs. 1 lakh.
4. Any individual with an annual income below the taxable limit but possesses a bank account, a beneficiary interest in an entity outside India or holds a capital asset, or has signing authority in any account.
   An individual must file his ITR when his Business Turnover exceeds Rs. 60 lacs,
   An individual must file his ITR when his Professional Receipts exceeds Rs. 10 lacs,
   An individual must file his ITR when the aggregate amount of TDS & TCS is Rs. 25,000. This limit of 25000 will change to 50000 for senior citizen individuals.An individual must file his ITR when cumulative Deposits in one or more Savings Bank Accounts is equal to or more than 50 lacs in that financial year.

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How to use the Tax2win eligibility checker?

• Step 1- Go to the https://tax2win.in/tax-tools/itr-eligibility-checker
• Step 2- A page titled ‘Income Details’ requesting your date of birth and annual income appears. Enter the details correctly and click on ‘Next.
• Step 3- A page titled ‘Other Details’ appears. Answer all questions by choosing ‘yes’ or ‘no.’
• Step 4- A final page requesting personal details like full name, email ID, and mobile number is displayed. Provide all the details and click on ‘Next.’( you can also skip this step)
• Step 5- The Tax2win eligibility checker displays whether ITR filing is mandatory. If you need to file ITR, then click on the ‘File ITR Now’ option given below.

What documents are required while filing ITR?
The important documents required for filing income tax returns are-

1. Permanent account number
2. Aadhar card
3. Bank Account details
4. Form 16
5. Form 26AS
6. Investment details
7. Annual Information Statement (AIS)
8. Taxpayer’s Information Statement (TIS)

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What are the benefits of filing ITRs?

The key benefits of filing your Income Tax Return regularly are as follows:

• To claim tax refund- When excess TDS or TCS has been deducted from taxpayers. That extra tax can be claimed by filing Income Tax returns. Hassle-free and quick Visa processing- Timely filed ITR documents for the last two years are made mandatory to produce at the embassies or consulates for VISA application.
• To avoid penalties- If you fail to file your ITR periodically and systematically, the tax office has the right to charge you with a fine of rupees 1000 or 5,000 as per the Income Tax Act, 1961.
• For carry forward of losses
• To take insurance policies with high cover.