1. What is Income Tax?
Income Tax is a tax imposed by the government on income earned by individuals and businesses. It is calculated annually based on your total income, exemptions, and deductions.
🔹 2. Who needs to file Income Tax Returns (ITR)?
Any individual whose annual income exceeds ₹2.5 lakh (under the old regime) must file an ITR. Businesses, professionals, companies, and individuals with foreign income or assets also need to file returns.
🔹 3. What is the due date for filing ITR for FY 2024–25?
The due date for most individuals is July 31, 2025. For businesses requiring audit, the deadline is October 31, 2025 (subject to change based on government announcements).
🔹 4. What are the different ITR forms?
- ITR-1: For salaried individuals (income up to ₹50 lakh)
- ITR-2: For individuals with capital gains, rental income
- ITR-3: For business or professional income
- ITR-4: For presumptive income scheme (businesses or professionals)
🔹 5. What documents are needed for ITR filing?
- PAN, Aadhaar, Form 16
- Bank statements
- TDS certificates
- Investment proofs (LIC, PPF, ELSS, etc.)
- Capital gains statements (if applicable)
🔹 6. What is the difference between Old Tax Regime and New Tax Regime?
- Old Regime: Allows deductions and exemptions (e.g., 80C, HRA)
- New Regime: Offers lower tax rates but no deductions/exemptions
Taxpayers can choose the regime that offers maximum savings.
🔹 7. Is it mandatory to link PAN with Aadhaar?
Yes, linking PAN with Aadhaar is mandatory. Failure to do so may make your PAN inoperative, affecting your tax filings and refunds.
🔹 8. What happens if I miss the ITR deadline?
You can file a belated return with a late fee (up to ₹5,000). However, you may lose the benefit of carry-forward losses and face penalties or interest.
🔹 9. What is Advance Tax and who needs to pay it?
Advance tax is paid by individuals or businesses whose total tax liability exceeds ₹10,000 in a financial year. It’s usually paid in 4 installments (June, Sept, Dec, March).
🔹 10. What is TDS and how does it work?
TDS (Tax Deducted at Source) is deducted by the payer (like employer or bank) before making payments like salary, interest, or rent. It’s adjusted while filing your ITR.