Who is required to file an ITR?
Under Section 139(1) of the Income Tax Act 1961, an individual must file an ITR if their gross total income before deductions exceeds the basic exemption limit — ₹2.5 lakh for individuals below 60, ₹3 lakh for senior citizens (60–80 years), and ₹5 lakh for super senior citizens. Under the new tax regime introduced by Section 115BAC, the basic exemption limit is ₹3 lakh for all ages.
Irrespective of income level, an ITR must also be filed if you have deposited more than ₹1 crore in bank accounts, paid electricity bills exceeding ₹1 lakh, or incurred foreign travel expenditure above ₹2 lakh — as mandated under the seventh proviso to Section 139(1).
All private limited companies, LLPs, and partnership firms are required to file ITR regardless of profit or loss. For businesses and professionals with turnover above ₹1 crore (or gross receipts above ₹50 lakh for professionals), a tax audit under Section 44AB is required before the ITR is filed.
This service covers: salaried individuals, business owners and consultants, HUFs, NRIs with Indian income, and founders of Pvt Ltd companies seeking comprehensive tax planning.
What we handle for you
- Tax regime analysis (old vs new)
Under Section 115BAC, the new tax regime offers lower rates but eliminates most deductions. We run the computation both ways and recommend the regime that results in lower tax — a decision that saves some clients ₹30,000–₹80,000 per year and can only be optimised before the ITR is filed.
- Deduction and exemption mapping
We identify every deduction available to you: Section 80C (up to ₹1.5 lakh), Section 80D (health insurance), Section 24(b) (home loan interest up to ₹2 lakh), and HRA exemption under Section 10(13A). Most clients have unclaimed deductions.
- Capital gains computation
Short-term and long-term capital gains on equities (Sections 111A and 112A), mutual funds, property, and unlisted shares are computed accurately — including the LTCG grandfathering benefit for pre-2018 equity holdings and the cost inflation index for property.
- Advance tax scheduling
We calculate and schedule your advance tax instalments under Section 208 — due on June 15, September 15, December 15, and March 15 — so you avoid the interest under Sections 234B and 234C (1% per month for underpayment).
- ITR form selection and filing
ITR-1 for salaried income up to ₹50 lakh; ITR-2 for multiple properties or capital gains; ITR-3 for business income; ITR-4 for presumptive income under Sections 44AD, 44ADA, or 44AE. Selecting the wrong form is a defective return.
- Revised return support
If an error is discovered after filing, we file a revised return under Section 139(5) within the permitted window — with no additional charge for returns filed by us.
How income tax filing works with Auranity
Feb–Mar
Planning window
For retainer clients, we run an advance tax and deduction review before March 31 — the last date to make most deductions count for the current financial year.
Apr–Jun
Data collection
We request Form 16, capital gains statements, bank interest statements (Form 26AS / AIS), rental income details, and any foreign income. You share once; we handle the rest.
Jun–Jul
Computation and review
We compute tax under both regimes, select the lower-tax option, prepare the ITR, and share a computation summary for your review — before filing. You see exactly what the tax liability is and why.
By Jul 31
ITR filed
We e-file the ITR before the deadline. You receive the ITR-V acknowledgement immediately. For audit cases (October 31 deadline), the process starts earlier — we flag this during onboarding.
What income tax filing costs
Income Tax Return
from ₹2,499
per return
- Tax regime comparison (old vs new)
- Deduction and exemption mapping
- ITR-1 through ITR-4 filing
- Form 26AS and AIS reconciliation
- One revised return if needed
Add-on: Capital gains (property / unlisted shares) — from ₹1,999 additional
Add-on: NRI income tax return — from ₹3,999
Add-on: Tax audit (Section 44AB) — quoted by turnover
Complex returns — multiple capital gains transactions, foreign assets (Schedule FA), or ESOP taxation — are quoted individually. Book a free 15-minute call.
What clients ask about income tax returns
Should I choose the old or new tax regime?
It depends entirely on your deduction profile. The new regime under Section 115BAC offers lower slab rates (5%, 10%, 15%, 20%, 25%, 30%) but eliminates most deductions including 80C, 80D, and HRA. The old regime allows all deductions but at higher slab rates. Individuals with significant home loans, insurance, and 80C investments typically save more under the old regime. The calculation must be run with real numbers — rules of thumb are unreliable.
What is the penalty for filing ITR after the deadline?
Under Section 234F, a fee of ₹5,000 applies if the ITR is filed after July 31 but before December 31. If filed after December 31, the fee rises to ₹10,000. For taxpayers with income below ₹5 lakh, the maximum fee is capped at ₹1,000. In addition, a belated return cannot be revised, and losses (other than house property loss) cannot be carried forward.
I have received a notice under Section 143(1). What does it mean?
An intimation under Section 143(1) is an automated preliminary assessment comparing your ITR with the department's data (TDS records, AIS, Form 26AS). It may result in a demand for additional tax, a refund, or no change. Responding to a 143(1) intimation is time-bound — typically 30 days — and should not be ignored. We handle 143(1) responses as part of our ITR support.
What is AIS and how does it affect my filing?
The Annual Information Statement (AIS) is a comprehensive view of your financial transactions compiled by the Income Tax Department from banks, brokers, mutual funds, and registrars. Any figure in your AIS that you do not report in your ITR may trigger a mismatch notice. We reconcile AIS with your ITR before filing.
What is advance tax and who must pay it?
Under Section 208, any taxpayer with an estimated tax liability of ₹10,000 or more in a financial year is required to pay advance tax in four instalments. Failure to pay results in interest under Sections 234B and 234C — which compound monthly. Business owners and freelancers must pay independently.
I missed filing ITR for two or three previous years. Can I still file?
An updated ITR (ITR-U) under Section 139(8A) can be filed up to two years after the end of the relevant assessment year. However, ITR-U attracts an additional tax of 25% (if filed within one year of the end of the assessment year) or 50% (if filed in the second year) on the incremental tax payable. We advise on whether filing ITR-U or responding to a notice is the more cost-effective path.
Switched from old to new regime last year based on Auranity's calculation. Saved ₹42,000 in tax — money I would have left on the table if I'd stuck with what my previous CA recommended without running the numbers.
Had three years of unfiled ITRs — I was convinced I'd face serious penalties. Auranity filed all three via ITR-U, quantified the exact additional tax due, and handled the 143(1) notice that came back. Total cost was far less than I feared. Clean slate now.