All eligible Indian taxpayers have a financial obligation to file income tax returns. The Income Tax Act of 1961 governs the Indian tax system, which applies to Hindu Undivided Families (HUFs), independent contractors, business owners, and salaried employees. The process is now easier to complete and more accessible due to developments in free income tax filing and government-backed e-filing platforms. Accurate filing is necessary to ensure compliance and optimize your income tax services, regardless of whether you're claiming standard deductions under Sections 80C and 80D, selecting the appropriate ITR form, or understanding the distinctions between the old and new tax regimes. The fundamentals of income tax in India are broken down in this guide, which also defines specific filing services for various taxpayer types.

At auditfiling.com, we are committed to providing you with accurate, up-to-date information and services to help you navigate the complexities of income tax filing, audits, and compliance.

What is Income Tax and How It Works in India

In India, income tax is a direct tax that the government collects on the money that businesses, salaried workers, and individuals earn. Every individual who makes more than a specific amount of money must submit an income tax return each year. The tax system is governed by the Income Tax Act of 1961, which categorizes taxpayers into businesses, corporations, individuals, and Hindu Undivided Families (HUFs). Numerous income tax services, such as the free income tax filing platforms offered by the Income Tax Department of India, have made it simpler and easier to file an online tax return, or e-file a tax return.

Individuals can claim deductions, exemptions, and rebates under various sections (like 80C and 80D) to reduce their personal income tax liability. Employee tax is typically deducted at the source by employers (TDS), whereas individual income tax for self-employed individuals and professionals must be paid in advance or self-assessed. If someone is unable to file by the due date, they can apply for an income tax extension.

Income Tax Forms List

• ITR-1: Individuals (residents) having income from salary, one house property, other sources, agricultural income less than Rs 5,000 and with a total income of up to Rs 50 lakh.

• ITR-2: Individuals/HUFs not having any business or profession under any proprietorship, more than one house property.

• ITR-3: Individuals/HUFs having income from a proprietary business or profession, income of a person as a partner in a firm.

• ITR-4: Individuals/HUFs having presumptive income from business or profession, one house property.

• ITR-5: Partnership firms or LLPs.

• ITR-6: Companies.

• ITR-7: Trusts.

Step-by-Step Process to File Your Income Tax Return Online

A Complete Guide to file income tax return online a tax return is quick, simple, and safe. With the official income tax e-filing portal, the Indian government has made it simpler. To finish your online tax return as soon as feasible, follow these steps:

Step 1:

Go to the official website for income taxes.

Visit www.incometax.gov.in. The e-filing income tax department of India offers this as its official e-filing portal.

Step 2:

Register or log in.

Use your PAN, mobile number, and email address to register if you're a new user.

Current users can use their PAN as their CAPTCHA, password, and user ID to log in.

Step 3:

Select the option for filing.

Depending on your income source, choose the relevant Assessment Year, Filing Type (Original or Revised Return), and ITR Form (ITR-1, ITR-2, etc.) by going to "e-File" > "Income Tax Return."

Step 4:

Complete the necessary information form. 26AS, TDS, and AIS pre-filled data will be collected immediately.

Add or confirm your bank account details, income, and deductions (such as 80C and 80D).

Verify everything to prevent errors or extra alerts.

Step 5:

Check the Estimate of Taxes.

Based on your total income and allowed deductions, the system will automatically determine how much tax you owe or receive back.

Step 6:

Send in the return.

After each question has been answered and confirmed, click "Preview & Submit."

Verify every detail.

Submit your ITR online.

Step 7:

E-Verify Your Return in 

You must use one of the following techniques to e-verify your ITR after submitting it:

OTP for Aadhaar in Net Banking

A signed ITR-V from an EVC Demat Account Bank Account is sent to the Bengaluru CPC (without online e-verification).

Note: In order to finish the return filing process, e-verification is required.

List of Documents Needed to File an Income Tax Return in India

Having the correct documentation is essential for filing your Income Tax Return (ITR) accurately and on time. Below is a categorized list of documents you should collect before filing:

1. Records that include personal data

These facilitate taxpayer identification and are essential for verification and communication.

For tax identification and ITR filing,

• PAN card 

• Aadhaar card 

• Details of the bank account

• The Annual Information Statement (AIS)

2. Income-related documents used to report total income from various sources.

• Form 16: This document, which is supplied by the employer, lists the employee's pay and the amount of TDS that was deducted.

• Salary Slips: A monthly summary for the fiscal year (optional if Form 16 is detailed).

• For professionals or independent contractors: the income and expense statement or profit and loss statement for the fiscal year.

• Books of accounts and GST returns, if any are required by tax laws.

• Other sources of income include interest certificates (FD, RD, and savings interest) from banks or post offices.

• Statements of Capital Gains: When selling stocks, mutual funds, or real estate, broker statements or property sale deeds are required.

3. Documentation required to claim deductions under sections 80C, 80D, and other provisions, including proof of deduction and exemption (to reduce tax liability).

• LIC insurance premiums serve as evidence of investment.

• PPF contributions

• NSC, ELSS, and 5-year FD receipts. Receipts for premiums paid by oneself, parents, and family members are contributions to the Sukanya Samriddhi Yojana EPF/VPF medical insurance (Section 80D).

• House Loan: Certificate of interest from a bank or lender

• Principal repayment statement (for 80C deduction)

• Education loan interest certificate (Section 80E)

• Donations: Section 80G receipts from authorized nonprofit organizations

• Rent receipts: 4. Advance Tax Payment Receipts (if paid during the year) and Tax Payment Proofs (if any) if you are claiming HRA and your annual rent payment exceeds ₹1 lakh (with your landlord's PAN).

• Tax Challans for Self-Evaluation

4. Documents Particular to a Situation

These are required if applicable:

• Foreign Assets/Income: For citizens who own assets or money overseas.

• Deeds of sale, purchase, and indexation are examples of property capital gains.

• Use Form 16A/16B/16C for non-salary TDS (such as interest, real estate sales, and rent).

• Keep hard copies of documents for at least six years for record and audit purposes, and if you file online, always have scanned copies on hand.

Income Tax Filing Services for Professionals, Salaried Individuals, the Self-Employed, and Hindu Undivided Families (HUFs)

Our comprehensive tax filing services are intended for a broad spectrum of taxpayer types. We maximize tax benefits while streamlining the income tax filing process for professionals, business owners, salaried workers, and HUFs.

Receive Expert Advice on Salary Individual

By utilizing a number of exemptions and deductions, salaried taxpayers can lower their tax obligations. Identifying applicable tax-saving options for salaried individual, including investments under Section 80C, medical insurance under 80D, and NPS.

Accurately figuring out standard deductions and going over salary components like allowances, LTA, and HRA.

To help you choose the best tax course, compare the old and new tax regimes.

Which ITR Form Is Best for You?

• ITR-1 Sahaj: For the majority of salaried people making up to ₹50 lakh, one residence and necessary sources such as interest. Not for people with foreign assets or business income.

• ITR-2: For people who have multiple residences, foreign assets, or income, or capital gains.

• ITR-3: For those who make money from their occupation or business.

• ITR-4 (Sugam): can be filed by professionals or small business owners earning up to ₹50 lakh under the presumptive income scheme.

Income Tax Filing Solutions for Professionals and Consultants

Professionals typically earn a combination of passive and business income. The services that we provide are as follows: customized personal income tax computation and filing that accounts for revenue from professional fees tds and consulting.

Comprehensive tax planning to include investment income from tax computation, mutual funds, dividends, or capital gains.

Guidance on advance tax liability, GST (if applicable), and professional income-eligible expense claims.

Select the Appropriate ITR Form

• Most professionals use ITR-3 if they keep regular books of accounts; they use ITR-4 (Sugam) if they choose to use the presumptive taxation under Section 44ADA and their income is up to ₹50 lakh.

Expert Tax Filing for Self-Employed

Self-employed people typically do not have access to organized tax preparation. Among our offerings are utilizing presumptive income schemes or business profits to calculate individual income tax application of the most recent individual income tax rates under both regimes, which are based on income slabs.

Recommendations for monitoring expenditures, maintaining records, and following TDS to ensure a seamless yearly filing.

Which forms do you use as a self-employed person?

• ITR-3: For those who make money from their occupation or business.

• ITR-4 (Sugam): For professionals or small company owners who make use of the presumptive.

Set Up and Register Your Hindu Undivided Family for Tax Savings

Using Hindu Undivided Families (HUFs) is a useful strategy to lower total tax liabilities. For the HUF entity, we use a separate PAN and income tracking when filing individual income tax returns.

wise distribution of the HUF's tax-saving options, including investments, insurance, and school costs.

Allocating HUF income from interest, ancestral property, and other sources will reduce taxes.

 Which ITR form should you use?

• ITR-2: For HUFs who earn money from sources other than their business or profession, such as salaries, real estate, capital gains, and other sources

• ITR-4 (Sugam): For HUFs who opt for presumptive taxation under Sections 44AD, 44ADA, or 44AE and have total income up to ₹50 lakh (from business or profession calculated on a presumptive basis). 

• ITR-3: For HUFs who keep accounting records or make money from their business or profession

Income Tax Slab Rates FY 2025-26 (AY 2026-27)

With the government pushing the new income tax slab as the default choice for taxpayers, the income tax slab rates for FY 2025-26 (AY 2026-27) represent a significant change in the Indian tax system. This new tax slab is a simplified version of the previous income tax slab system, with individuals enjoying zero tax on income up to ₹4 lakh and progressive rates ranging from 5% to 30% after that. The increased standard deductions and improved rebate, which effectively make income up to ₹12 lakh tax-free under the new regime, are among the main features. The old regime's income tax slabs are still in place, with higher tax rates beginning at ₹5 lakh and basic exemptions beginning at ₹2.5 lakh. Taxpayers can still opt for the old regime if they wish to claim deductions under sections like 80C and HRA. These updated IT tax slab structures aim to improve compliance, reduce calculation burdens, and give taxpayers the flexibility to choose the slab rates that best suit their financial planning.

Old Tax Regime Income Tax Slab Rates for FY 2024-25 

There were no changes made to the tax slabs under the old regime. The tax slabs under the old income tax slab are as follows:

• Individuals less than 60 Years of Age

• Resident Individuals Aged 60-80 YearsResident Individuals Aged more than 80 Years

• Resident Individuals Aged more than 80 Years

• Surcharge and cess will be applicable.

• Individual residents with net taxable income less than or equal to Rs.5 lakh will be eligible for tax rebate u/s 87A under the old tax regime, i.e. tax liability will be NIL.

New Tax Regime Income Tax Slab Rates for FY 2025-26

The revised tax slabs under the new regime that are applicable from 1st April 2025 are as follows:

The Rebate has been increased to Rs. 60,000 from Rs. 25,000 for the FY 2025-26. With the revised tax structure, individuals earning up to Rs.12 lakhs will have no tax liability due to the increased rebate of Rs.60,000. For salaried individuals, the tax liability will be zero for incomes up to Rs.12.75 lakhs due to the Rs.75,000 standard deduction.

Why Choose Auditfilling for Your Income Tax Filing Needs?

Filing your income tax returns can often feel confusing and time-consuming, especially with ever-changing tax rules and multiple documents involved. That’s where AuditFiling makes a real difference. With a team of tax professionals and a customer-first approach, we ensure your ITR filing is smooth, accurate, and stress-free. Here's why thousands trust AuditFiling for their income tax filing:

• Expert Assistance: Our team of qualified tax experts helps you navigate complex tax laws and selects the correct ITR form based on your income sources.

• Error-Free Filing: We cross-verify your Form 16, salary slips, and other documents to ensure accuracy and prevent notices or rejections.

• Maximum Refunds: We help identify all eligible deductions (like HRA, 80C, 80D, etc.) to minimize your tax liability and maximize refunds.

• Quick & Hassle-Free Process: Our online and guided process is designed to save your time and make tax filing simple, even for first-time filers.

• Secure Data Handling: Your financial data is safe with us, protected by strong encryption and privacy policies.

• Affordable Pricing: We offer transparent and budget-friendly plans that cater to both salaried individuals and freelancers.Timely Reminders: Never miss a deadline—our system sends timely alerts to help you file your returns before due dates.