What is an ITR filing ?
Income Tax Return (ITR) filing is the process of submitting a statement that outlines an individual’s income from various sources and the corresponding taxes paid on those earnings. This filing is required to report income and calculate the taxes owed or any refunds due.
ITR filing is mandatory for individuals whose annual income exceeds INR 2.5 lakh (in the general tax payer category). It is typically done between April and July each year. Failing to file an ITR can lead to consequences such as interest charges, penalties, prosecution, or scrutiny by the Income Tax Department.