What is ITR?

Also called: Income Tax Return

An ITR is the annual statement of income, deductions and tax paid that a taxpayer files with the Income Tax Department, normally by 31 July for individuals who are not subject to audit.

There are seven forms and using the wrong one makes the return defective under section 139(9). ITR-1 (Sahaj) covers salaried people with income up to ₹50 lakh from salary, one house property and other sources. ITR-2 adds capital gains and more than one house property. ITR-3 is for business or professional income. ITR-4 (Sugam) is the presumptive scheme.

Filing after the due date attracts a late fee under section 234F — ₹1,000 where total income is under ₹5 lakh and ₹5,000 above it — and forfeits the right to carry forward most losses.

Why it matters

A filed ITR is the document banks ask for on a loan application and consulates ask for on a visa application. It is the only proof of income most people have.

A worked example

A salaried employee earning ₹12,00,000 with ₹1,50,000 of 80C investments and ₹2,00,000 of home loan interest compares the two regimes for the year.

Illustrative figures. Your own numbers will differ — that is what the quote is for.
Gross salary	₹12,00,000
Old regime: standard deduction	₹50,000
Old regime: 80C	₹1,50,000
Old regime: section 24(b) home loan interest	₹2,00,000
Old regime taxable income	₹8,00,000
New regime: standard deduction only	₹75,000
New regime taxable income	₹11,25,000

Taxable income is ₹3,25,000 lower under the old regime here, because the deductions are real and being used. Take away the home loan and the answer reverses — which is why the regime choice has to be computed on your own figures each year rather than settled once.

The statutory position

Each figure with the provision it comes from, so it can be checked.
What	Position	Source
Due date, individuals not subject to audit	31 July following the financial year	Section 139(1), Income-tax Act 1961
E-verification window	30 days from filing	CBDT Notification 05/2022
Belated and revised return deadline	31 December following the financial year	Sections 139(4) and 139(5)
Late filing fee	₹5,000, reduced to ₹1,000 where total income is under ₹5 lakh	Section 234F, Income-tax Act 1961

Not to be confused with

These get used interchangeably, including by tools that should know better. They are different things.

Form 16

Form 16 is the certificate your employer gives you. The ITR is the return you file. Receiving the first does not accomplish the second, and this is the commonest misunderstanding in Indian personal tax.

Form 26AS

26AS is the department's record of tax credited against your PAN. It is what you check the return against, not a return in itself.

Questions people ask

Do I have to file if my employer already deducted all the tax?

Yes, if your total income exceeds the basic exemption limit. TDS is the payment; the return is the reporting. Filing is also the only way to claim a refund of excess TDS or to carry forward a loss.

Which ITR form applies to me?

ITR-1 covers salary, one house property and modest other income. Any capital gain, a second house, foreign income or business receipts pushes you to ITR-2 or ITR-3. Filing on the wrong form makes the return defective under section 139(9).

What if I miss 31 July?

You can file a belated return up to 31 December with a section 234F fee and interest under 234A. You lose the right to carry forward most losses, and the return cannot be revised as freely.

What usually goes wrong

Filing from Form 16 alone while the AIS shows interest, dividend or a property sale as well
Forgetting to e-verify within thirty days, which makes the return legally non-existent
Choosing the regime by habit rather than computing both on the year's actual numbers
Filing ITR-1 in a year with any capital gain, which makes it defective