ITR filing Mumbai

Income Tax Filing

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What’s ITR filing?

Income Tax Return (ITR) is a declaration of your total income earned  during a financial year i.e April to March.  It is submitted electronically filling Forms available on governments official portal. In this article we’ll be guiding you the procedure for the same.

It ensures revenue collection for nation-building and governance for the government, and provides legal compliance, access to refunds, and proof of income for financial and legal purposes for taxpayers

Are you liable to File ITR?

Practically, all individuals whether salaried employees, freelancers, business owners, or other individual earning more than ₹3 lakhs in Financial Year 2024–25 (as per the new regim) are required to file their Income Tax Returns. In addition, all entities such as Partnership Firms, Private Limited Companies, LLPs, Societies, and Trusts (NGOs) are mandatorily required to file their returns, regardless of turnover. This means that even if there was no business activity during the year, return filing is still compulsory for non individuals.

How shall I determine its mandatory for me?

Certain high-value financial transactions and conditions make it mandatory to file an Income Tax Return (ITR), even if your income is below the basic exemption limit. As per Rule 12AB of the Income Tax Rules and Section 139(1) of the Income Tax Act, ITR filing becomes compulsory if any of the following conditions are met:

Conditions That Make ITR Filing Mandatory:

1. Total income exceeds the basic exemption limit

    1. ₹2.5 lakh (below age 60)

    2. ₹3 lakh (age 60–80)

    3. ₹5 lakh (above 80)

2. Aggregate deposits of ₹1 crore or more in one or more current accounts in a financial year.

3. Spending more than ₹2 lakh on foreign travel for yourself or any other person.

4. Spending more than ₹1 lakh on electricity bills in a financial year.

5. Total sales, turnover, or gross receipts from business exceed ₹60 lakh, or from profession exceed ₹10 lakh during the financial year.

6. TDS or TCS of ₹25,000 or more (₹50,000 for senior citizens) has been deducted or collected in the financial year.

7. Payment of ₹10 lakh or more via credit card in a financial year.

Additionally, if you are eligible for a refund, filing an Income Tax Return is mandatory to claim it.
We also advise all small freelancers with a turnover exceeding ₹10 lakhs, and traders with turnover crossing ₹20 lakhs, to file their returns to ensure compliance and avoid future tax scrutiny. 

Documents Required to File Income Tax Return File

“The more openly you speak to a doctor, the better they can treat you  the same goes for your CA. Full disclosure helps us serve you best and keep you compliant.”

The common document for all type of tax payers are IT portal Credentials or PAN Card, Aadhar Card and Bank Statements. As per the following List detail and specific documents are reuired:

Due date of filing and Late Fees

The Due date to submit the return online is 31st July 2025. For Audit case The due date is 31st October and for Transfer pricing Taxpayers it is 30th November. Taxpayers must not wait for the last moment as the income tax portal may not give timely response.

Late filing consequences

Late fees for late filing is Rs.5000 u/s234F of Income Tax Act 1961 . However, for small taxpayer who’s total income is not more than 5 lakh, maximum penalty will be Rs. 1000 under the said section. Moreover, Interest under Sections 234A, 234B, and 234C at 1% per month or part thereof on the unpaid tax amount under each section. There is another very important date, that is 31st December 2025 which is the last date to file ITR with late fees and interest. After 31st December taxpayer can not apply for refund.

Advantages of filing ITR

Following are the benefits of Timely filing of Income tax returns:

• Timely filing of your Income Tax Return (ITR) is essential to claim any eligible refund of Tax Deducted at Source (TDS).

• Filing your ITR before the due date allows you to carry forward business losses and capital losses (such as those from share trading) to offset them against future profits.

• Income Tax Return documents serve as valid proof of income and reflect your financial standing, which can be useful for various financial and official purposes.

• ITR filings are often required during visa application processes, as they provide a reliable record of your income and tax compliance.

• High-value financial transactions may attract scrutiny from government authorities. Proper disclosure of income through timely ITR filing significantly reduces the likelihood of receiving such inquiries or summons.

Why Linking of PAN Card and Aadhar Card is Important

Why Linking of PAN Card and Aadhar Card is Really Important

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As per the notification from the Income Tax Department, the permanent account number i.e PAN holders must link their number with Aadhar card by March 31, 2023. As per the notification, if the PAN is not linked with Aadhaar Card on or before March 31, 2023, the PAN Card will automatically become inoperative. After crossing the deadline, the PAN holders will not be able to use their ten-digit unique alphanumeric number and financial transactions linked to PAN will be stopped. Moreover, all the income tax pending returns will be stopped from processing by the Income Tax Department.

However, there are some categories of residents who are exempted from linking their PAN Card with Aadhaar Card the List of which is as follows:

  1. Taxpayers residing in the state of Assam, Jammu and Kashmir, and Meghalaya;
  2. a NRI i.e. (a non-resident Indian) as per the Income Tax Act, 1961;
  3. Person of the age of eighty years or more at any time during the previous year;
  4. not a citizen of India,

The Above-mentioned categories of people are exempted from the process of linking PAN Card with their Aadhaar Card.

What Is The Penalty For Not Linking Aadhar Now?

Irrespective of your reasons, The Central Board of Direct Taxes will impose a fine of Rs.1000/- if you link your Aadhar Card with PAN Card after 30th June 2022.

Why PAN Should Be Linked to Aadhaar?

  • The Centre made linking of PAN Card and Aadhaar number mandatory under current regulations due to linking is a process for legal requirements, the process also benefits the government and taxpayers.
  • Moreover, the linking of PAN with Aadhaar helps in spotting people with multiple PAN cards.
  • If the PAN is linked with Aadhaar, it will simplify income tax return process and verification.

Shahnawaz and Associates, Chartered Accountant Firm in Mumbai is engaged into PAN related registration and application since its incorporation. We have a team of experts who not only poses required skills and experience but also have worked in complex business environment and were engaged in providing complex solutions in terms of providing Accounting, Taxation and related Compliance services to our clients.

Why You Should opt For Outsourced Accounting Services in Mumbai (1)

Why You Should opt For Outsourced Accounting Services

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Now, most of the business organisations are opting to outsource their accounting activities to an CA Firm in Mumbai or and Outsourced Accounting Services in Mumbai. There are many reasons where the entrepreneurs find it easy for outsourcing the accounting activities of the Company to an outside agency. Some of the benefits of accounting outsourcing services in Mumbai are as follows:

  • A Team of Experts are appointed to process your accounting activities
  • Saving in Expenses of Appointment and Training of Accounting Team
  • They provide you with the Team of Experts including Managers, Senior and Junior executives such combination of Team helps smooth flow of the process and also ensures double checking of the accounting data
  • Such Outsourcing enables entrepreneurs especially Startups to hand over a crucial department to the Experts so that they can concentrate in the core business activity
  • Outsourcing your Accounting activities to a CA Firm in Mumbai will get your accounting data ready for Audits also they will make sure that all the compliances are done on Due Dates and with accuracy
  • They will introduce automation in the process and take help of many common software’s to make the process easy and Tech Savvy.
  • An Accountant is considered as your first financial advisor. Hence, an Expert CA Firm in Mumbai is the best choice to outsource your accounting services in Mumbai

There are multiple and numerous benefits associated with outsourcing the accounting services. Our Firm, Shahnawaz & Associates, leading CA Firm in Mumbai if appointed for providing outsource accounting services in Mumbai. We first understand the business of the Company, then select candidates and combination of candidates required for providing accounting services to such Company and then provide monthly reviews in the Form of MIS Reports, Health Check-ups, and Performance Updates to the respective clients.

Extension of TDS Return Filling

Extension of TDS Return Filling Due Date by ITD For Q1 of FY 2023-24

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The ITD has issued an Important update related to TDS Return Filling for Q1 of the FY 2023-24. The Due date for filing of Form 26Q, 27Q & 27EQ for Q1 of the financial year 2023-24 has been revised and now same needs to filed from September 1, 2023 to September 30, 2023. (earlier due date for filing was July 1, 2023 to July 31, 2023).

  • New changes have been notified by ITD in Form 26Q, 27Q & 27EQ for which development is underway are applicable for statements pertaining to Financial Year 2023-24 & Quarter 1 for which updated Return Preparation Utility (RPU) and File Validation Utilities (FVUs) are going to be released on August 31, 2023.
  • If the statements are accepted in old format, it may bring complications while processing it at ITDs end. To avoid this, ITD have asked us to build restrictions on acceptance of these statements till August 31, 2023.
  • Statements accepted at our end from July 1, 2023 to July 3, 2023 for the aforementioned Forms are going to be rejected at ITDs end. Deductor/Collectors may be advised to file statements again from September 1, 2023.

For more details on various topics related to TDS Return Filling, Auditing and accounting industry, you can get in touch with our CA Firm in Mumbai – Shahnawaz & Associates.