Income Tax News: Important! Who Needs to File ITR? Check Steps to File Return Online

Income Tax News: As people started filing income tax return, there are some people who do not know who are required to file ITR and there are also some people who do not know the process of filing return.

Who are Required to File ITR?

Filing ITR is compulsory for some people and optional for some people. Those people whose income is more than the exemption limit must file return. Under new tax regime, the basic exemption limit for the assessment year 2025-26 is Rs 4 lakh, applicable to every individual irrespective of the age. Under old tax regime, the exemption limit is Rs 2.5 lakh for individuals below 60 years, Rs 3 lakh for senior citizens up to age 80, and Rs 5 lakh for senior citizens above 80. Moreover, those people, who paid electricity bills above Rs 1 lakh during the financial year or spent more than Rs 2 lakh on foreign travel in a financial year or deposited Rs 1 crore or above in the current account, are also compulsorily required to file return.
Besides this, those persons whose income is even below the exemption limit can think of filing ITR as it can be useful for various things. It can help to claim various refunds such as TDS. It will also help in carry forwarding losses which leads to decreased income tax in future. It also helps in using as income proof for taking loans, applying visa, and other things.

How to File Income Tax Return Online?

Filing income tax return online is preferred method of most of the people. People can use following steps for this:
•    Registration/ Log In: Visit official website and log in through PAN (as User ID) and password. Users, who are not registered, need to register first by using PAN, Aadhaar, and other required details.
•    Selecting Appropriate ITR Form: Choose the relevant ITR form. ITR-1 is used for salaried people. Select e-File; now click ‘Income Tax Return’.
•    Pre-filled Data and Validation: Auto-filled data from Form 26AS and AIS should be checked and edited. Verify income, deductions, and tax credits.
•    Uploading Documents: Normally, documents like Form 16 are not required to upload but these documents should be used to cross-verify. If there is any requirement of uploading document it should be done.  Some important documents are Form 16:Salaried Employees, Form 26 AS: Tax Credit Statement, AIS: Annual Information Statement, Bank Account details, Investment proofs, Rent receipts, Life insurance or Medical insurance proof etc.
•    Submission and Verification Complete ITR filing by verification through Aadhaar OTP, net banking, DSC, or bank account EVC.

As Income tax filing started and last date of filing is also extended, people should know; who needs to file ITR and how it can be done online easily.