Frequently Asked Questions

Any individual whose gross total income exceeds the basic exemption limit (₹2.5 lakh for individuals below 60, ₹3 lakh for senior citizens, ₹5 lakh for super senior citizens) must file an ITR. Additionally, filing is mandatory if you have foreign assets, wish to claim a refund, or have carried forward losses — regardless of income level.

For individuals not subject to audit, the due date is typically July 31st of the assessment year. For those requiring a tax audit (business/profession income above threshold), it is October 31st. Belated returns can be filed up to December 31st with a late fee of ₹1,000–₹5,000 under Section 234F.

Section 80C allows deductions up to ₹1.5 lakh per year for investments in PPF, ELSS mutual funds, NSC, 5-year FD, LIC premium, EPF contributions, home loan principal repayment, children's tuition fees, and Sukanya Samriddhi Yojana. Note that the new tax regime does not allow most 80C deductions.

The old regime allows numerous deductions (80C, 80D, HRA, LTA, etc.) but has higher base tax rates. The new regime (default from FY 2023-24) offers lower slab rates but eliminates most deductions. The new regime is generally beneficial for those with fewer investments or deductions. Our CAs can calculate which regime saves you more tax based on your specific income profile.

Missing the deadline results in a late fee under Section 234F (₹1,000 if income ≤ ₹5 lakh; ₹5,000 otherwise), interest on outstanding tax under Section 234A, inability to carry forward certain losses (like capital losses), and potential scrutiny notices. You can still file a belated return by December 31st of the assessment year.

For equity mutual funds: Short-term capital gains (held < 1 year) are taxed at 15%; long-term gains (held > 1 year) above ₹1 lakh are taxed at 10% without indexation. For debt funds: Gains are now added to your income and taxed at your slab rate (indexation benefit removed from April 2023). ELSS funds have a 3-year lock-in with LTCG treatment.