ITR Filing Basics

What is ITR Filing?

ITR formally declares your income, deductions, and taxes paid in a financial year (FY). Filing it ensures compliance with Indian tax laws and helps claim refunds or carry forward losses.

FY vs. AY Simplified

• FY 2024-25: April 1, 2024 – March 31, 2025 (the year you earn income).
• AY 2025-26: The year following FY 2024-25 when you file returns for that income.

Why File ITR On Time?

• Avoid penalties up to ₹10,000.
• Claim refunds faster.
• Secure loans or visas quickly.
• Carry forward losses to future years.

Key Deadlines for FY 2024-25

Penalties for Late ITR Filing

1. Late Fee (Section 234F):
   • ₹5,000 if filed after July 31 but by December 31, 2025.
   • ₹10,000 if filed after December 31 (₹1,000 for income < ₹5 lakh).
2. Interest (Section 234A): 1% monthly interest on unpaid taxes from the deadline.
3. Loss Adjustment: Lose the right to carry forward losses like stock market losses.

Example: If you owe ₹50,000 and file on September 30 (2 months late), you’ll pay ₹1,000 (₹50,000 × 1% × 2) + ₹5,000 late fee = ₹6,000 extra.

Options If You Miss the ITR Filing Deadline

• Belated Return (By Dec 31, 2025): Pay penalties but retain most benefits.
• Revised Return (By Dec 31, 2025): Correct errors in the original filing.
• Updated Return (Up to March 2027): File beyond Dec 31 with 25%–50% extra tax.

Advance Tax Deadlines

Missed payments? Interest under Sections 234B & 234C applies.

7-Step Checklist for Smooth ITR Filing

1. Gather Docs: Form 16, bank statements, investment proofs.
2. Choose ITR Form: ITR-1 for salaried, ITR-3 for businesses.
3. Verify Deductions: HRA, 80C, 80D.
4. E-File: Use the IT portal or certified software.
5. Validate: Pre-submit checks to avoid errors.
6. E-Verify: Via Aadhaar OTP or net banking within 30 days.
7. Save Receipts: Keep ITR-V for 6 years.

Common Pitfalls:

• Picking the wrong ITR form.
• Forgetting foreign income disclosures.
• Skipping e-verification.

Timely ITR filing saves money, stress, and legal hassles. Mark your calendars, gather documents early, and consult a tax expert if unsure. Need help? Start your ITR filing today to stay penalty-free!

FAQs on ITR Filing

1. What happens if I don’t file my ITR by the due date?

Missing the deadline attracts a late fee of ₹5,000 (₹1,000 for income < ₹5 lakh) under Section 234F, monthly interest at 1% on unpaid taxes (Section 234A), and loss of benefits like carrying forward capital losses.

2. Can I file ITR without Form 16?

Yes, but you’ll need alternative income proofs like salary slips, bank statements, or TDS certificates. Form 16 simplifies the process as it consolidates salary and TDS details.

3. How is interest under Section 234A calculated?

Interest is charged at 1% per month on unpaid taxes from the original due date (e.g., July 31, 2025) until the actual filing date. For example, a ₹50,000 tax liability filed 3 months late incurs ₹1,500 interest.

4. Is there a penalty for missing advance tax deadlines?

Yes, Section 234B (for underpayment) and Section 234C (for delayed installments) apply. Interest ranges from 1%–1.5% monthly on the shortfall.

5. Can I claim a tax refund if I file a belated return?

Yes, refunds are processed even for belated returns. However, you cannot revise returns after December 31, 2025, to ensure accuracy.

6. What’s the difference between a revised and updated return?

Revised Return: Correct errors in your original ITR by December 31, 2025.

Updated Return: File beyond December 31 (up to March 2027) with 25%–50% extra tax on unpaid dues.

7. Do NRI taxpayers have the same ITR filing deadline?

NRIs must follow the same deadlines (July 31 or October 31) unless they qualify for an audit. Foreign income must be disclosed in ITR-2/3.

8. How do I check if I need to file an ITR?

Filing is mandatory if your income exceeds ₹2.5 lakh (₹3 lakh for seniors). Even if below, file to claim refunds, apply for loans, or comply with TDS triggers.

9. What if I have income from freelancing, stocks, or rental property?

You must file ITR-3/ITR-4 (for businesses/professionals) and disclose all income sources. Failure risks penalties for underreporting.

10. Can I file ITR after the belated return deadline (December 31, 2025)?

Yes, via an updated return under Section 139(8A) by March 31, 2027, but with 25%–50% additional tax on unpaid amounts.

11. Is e-verification mandatory after filing ITR?

Yes! Your ITR is invalid unless e-verified within 30 days via Aadhaar OTP, net banking, or sending a signed ITR-V to CPC Bengaluru.

The post ITR Filing Last Date FY 2024-25 (AY 2025-26): Key Deadlines, Penalties, and Expert Tips to Avoid Costly Mistakes appeared first on TAX VIC.

What is Schedule AL? Who must file it?

Schedule AL is a section of the Income Tax Return (ITR) form that collects information on a taxpayer’s assets and liabilities. It was enacted to combat tax evasion and encourage the disclosure of a taxpayer’s genuine financial situation. Individuals, Hindu Undivided Families (HUFs), and partnerships whose total income exceeds a set threshold (e.g., 50 lakhs) throughout the fiscal year are subject to Schedule AL.

Schedule AL Assets and Liabilities

Taxpayers must list various assets and liabilities on Schedule AL. Here is a list of things should be included:

A. Assets

Immovable Assets

This includes information about the taxpayer’s immovable property, such as land, buildings, and residences. You must mention their location, size, and acquisition cost.

Movable Assets

This category includes movable goods such as automobiles, jewels, artwork, and other collectibles. Each asset must be identified by its number, kind, and approximate value.

Financial Assets

Stocks, bonds, mutual funds, fixed deposits, and savings accounts are examples of financial assets. Mention the financial firms’ names, investment amounts, and the current market worth of each asset.

B. Liabilities

Loans and Borrowings

All outstanding loans and borrowings, including home loans, personal loans, and credit card obligations, must be reported. Enter the lender’s name, loan amount, and outstanding balance.

Other Liabilities

Aside from loans, include any other responsibilities, such as outstanding taxes, mortgages, or legal obligations.

ITR Schedule AL Filing Guide

Filing Schedule AL requires attention to detail and correct reporting. Here are some pointers to get you started:

Maintain Detailed Records

Keep all pertinent documents, such as property deeds, investment statements, and loan statements, organized and accessible. This will allow for more accurate reporting.

Use the Appropriate ITR Form

Check that you are using the correct ITR form, which includes Schedule AL, based on your income sources and taxpayer type.

Complete all fields thoroughly

Check the information you submit in Schedule AL twice. Any inaccuracies or omissions could create suspicion and lead to a tax audit.

Seek Professional Help

If you find Schedule AL complicated or have a large number of assets and liabilities, you should consult with a certified tax practitioner. Their knowledge and experience will ensure proper reporting and compliance.

Conclusion

Schedule AL is an essential component of the Income Tax Return that supplies the government with critical information about a taxpayer’s financial situation. By accurately and honestly submitting Schedule AL, you contribute to the nation’s economic prosperity and promote tax compliance. To handle this procedure efficiently, remember to stay organized, keep accurate records, and seek expert aid if necessary. When it comes to financial disclosures in tax forms, remember that honesty and accuracy are essential.

By adhering to these standards and giving detailed information in Schedule AL, you help to create a more transparent tax system and a more fiscally accountable India. So, take the time to understand your assets and responsibilities, attentively fill out the necessary paperwork, and responsibly meet your tax duties. Happy filing!

Need Professional Guidance: info@taxvic.com
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