Section 220 of Income Tax Act, 2025 (formerly Section 139(1), Section 115BAC, and Section 140A of Income Tax Act, 1961)

Income Tax Return (ITR) Filing

Comprehensive Income Tax Return preparation across Forms ITR-1 to ITR-7, multi-broker Capital Gains computation, automated AIS/TIS reconciliation, foreign asset disclosure schedules, and statutory e-verification under the Income-tax Act, 2025 (formerly Income-tax Act, 1961).

CA Due Diligence

Official Portal Filing

State Stamp Advisory

Income Tax Return (ITR) Filing Statutory Advisory

Turnkey Statutory Filing

MCA & Tax Practice

Official Govt of India AuthorityCentral Board of Direct Taxes (CBDT), Ministry of Finance, Govt of India

Income Tax e-Filing Official Portal

The official Government of India portal for individual, corporate, and trust tax return filings, downloading pre-filled JSON data, AIS/TIS reconciliations, and e-verification through Aadhaar OTP or DSC.

Visit Govt Portal

STATUTORY OVERVIEW

Income Tax Return Preparation & Annual Filing

The electronic filing of Income Tax Returns in India operates through a fully integrated digital compliance ecosystem governed by the Income-tax Act, 2025 alongside transitional provisions under the Income-tax Act, 1961. With automated data exchanges between banking networks, mutual fund registrars, stock exchanges, and the Central Board of Direct Taxes (CBDT), accurate tax computation requires rigorous cross-verification with the Annual Information Statement (AIS), Taxpayer Information Summary (TIS), and Form 26AS. Our practice assists salaried professionals, High-Net-Worth Individuals (HNIs), Partnership Firms, LLPs, Private Limited Companies, and Charitable Trusts in preparing and submitting returns in accordance with statutory guidelines and within mandated deadlines.

Statutory & Practice Summary • At-A-Glance

ICAI UDIN Authentication Mandate

Governing Framework

Section 220 of Income Tax Act, 2025 (formerly Section 139(1), Section 115BAC, and Section 140A of Income Tax Act, 1961)

Regulatory Authority

Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, Govt of India

Professional Assurance

Chartered Accountants Attestation under ICAI Standards & Code of Ethics

DOCUMENTATION MATRIX

Mandatory Documents Checklist

Self-attested scanned copies required

1. Promoters / Partners / Directors KYC

✓PAN Card and Aadhaar Card of the Taxpayer (linked with active mobile number for e-verification)
✓Bank Account details (Account Number, IFSC, and pre-validation status on the e-filing portal)
✓Valid Digital Signature Certificate (Class 3 DSC) for corporate directors, tax audit assessees, and political parties

2. Registered Office & Premises Proof

✓Principal Residential Address or Registered Office address proof
✓Valid active email address and mobile phone number registered on the income tax portal profile

3. Specific Statutory Declarations & Enclosures

•Form 16 from all employers for salaried individuals with detailed salary breakups
•Form 16A (TDS on other income, bank interest, professional fees) and Form 16B/16C for property transactions
•Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) downloaded from the e-filing portal
•Consolidated Capital Gains statements from stockbrokers, mutual fund folios, and crypto/VDA trade ledgers
•Property purchase/sale deeds with stamp duty valuation certificates for real estate capital gains calculations
•Foreign Assets (Schedule FA) particulars: Foreign bank accounts, ESOPs/RSUs in overseas parent companies, and foreign income details

PROCEDURAL ROADMAP

Step-by-Step Filing & Approval Process

Structured execution roadmap managed by our Chartered Accountants from pre-filing due diligence to certificate allotment.

01Days 1 - 2

Data Collation & AIS/TIS Sync

Downloading AIS, TIS, and Form 26AS; matching broker capital gain statements, dividend summaries, and bank interest across all accounts.

02Days 3 - 4

Regime Optimization & Deduction Modeling

Simulating tax liabilities under the default Concessional Regime u/s 115BAC vs. Conventional Regime with Chapter VI-A deductions (80C, 80D, HRA, home loan).

03Days 5 - 6

Draft Computation & Client Verification

Preparing the comprehensive computation of total income, verifying self-assessment tax challan payments u/s 140A, and sharing draft computation for sign-off.

04Day 7

Portal E-Filing & Instant E-Verification

Uploading JSON schema to the income tax portal, completing instant e-verification via Aadhaar OTP or DSC, and archiving the statutory ITR-V acknowledgment.

Comprehensive Return Preparation Across All ITR Forms

Selecting the correct ITR form is essential to ensure that returns are treated as valid and not categorized as defective under statutory provisions (formerly Section 139(9) of the Income-tax Act, 1961). Each category of taxpayer is subject to specific disclosure requirements, balance sheet reporting thresholds, and schedules.

New Regime (formerly Section 115BAC) Modeling

Concessional Slabs

Comparative tax liability modeling between the default concessional rate slabs under the Income-tax Act, 2025 (formerly Section 115BAC of the Income-tax Act, 1961) and the conventional regime with Chapter VI-A deductions, HRA, and home loan interest.

AIS / TIS & 26AS Cross-Verification

Automated Data Matching

Clause-by-clause reconciliation of reported salary, interest, dividends, mutual fund redemptions, share trading turnover, and high-value transactions against portal data.

ITR-1 (Sahaj) & ITR-2: Salaried professionals, individuals with multiple house properties, and capital gains from securities and real estate

ITR-3: Individuals and HUFs carrying on business or profession, partners in firms, and proprietary enterprises requiring detailed financial schedules

ITR-4 (Sugam): Eligible small businesses and professionals opting for presumptive taxation under Sections 59 and 60 of the Income-tax Act, 2025 (formerly Sections 44AD, 44ADA, and 44AE of the Income-tax Act, 1961)

ITR-5: Partnership Firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), and Body of Individuals (BOIs)

ITR-6: Domestic and foreign companies not claiming exemption under Section 11, requiring complete audited balance sheet schedules

ITR-7: Charitable trusts, educational institutions, political parties, and research associations registered under statutory tax-exemption provisions

Capital Gains Structuring & Revised Statutory Framework

Under the revised capital gains framework codified in the Income-tax Act, 2025 (formerly Chapter IV of the Income-tax Act, 1961), taxpayers navigate revised statutory tax rates and holding periods. Long-Term Capital Gains (LTCG) on listed equity exceeding statutory thresholds are assessed at 12.5%, while Short-Term Capital Gains (STCG) on specified securities (formerly Section 111A of the Income-tax Act, 1961) are taxed at 20%. For immovable property, taxpayers must evaluate capital gains computations under the 12.5% rate without indexation, alongside transitional grandfathering provisions for assets acquired prior to July 2024.

Computation of LTCG and STCG across domestic equity, mutual funds, unlisted shares, and international portfolios

Real estate capital gains computation incorporating indexed cost grandfathering where legally permitted

Structuring reinvestment exemptions under Section 54, 54EC (capital gain bonds), and 54F within statutory deposit timelines

Detailed disclosure of foreign stock options (ESOPs/RSUs) and foreign bank accounts under Schedule FA

Updated Returns (ITR-U) & Post-Filing Management

Practice Scope & Statutory Guidance

Where taxpayers have omitted disclosures or missed the original filing due date, statutory updated return provisions (formerly Section 139(8A) of the Income-tax Act, 1961) permit filing Form ITR-U within 24 months from the end of the relevant assessment year upon payment of specified additional tax. We assist clients in computing accurate liability, preventing penalty proceedings, and addressing automated rectification notices under statutory assessment rules.

STATUTORY MATRIX

Statutory Provisions & Regulatory Comparative Matrix

Comparative analysis of governing sections under the new framework alongside legacy statutory references.

Statutory ITR Form	Governing Section: New Act 2025 (Old Act 1961)	Applicable Taxpayer Category & Income Scope
ITR-1 (Sahaj)	Section 220 of Income Tax Act, 2025 (formerly Section 139(1) of Income Tax Act, 1961)	Resident individuals with income up to ₹50 Lakhs from Salary, One House Property, and Other Sources (excluding lottery/gambling/capital gains).
ITR-2	Section 220 of Income Tax Act, 2025 (formerly Section 139(1) of Income Tax Act, 1961)	Individuals and HUFs with Capital Gains, Foreign Assets (Schedule FA), Directorships in unlisted companies, and multiple house properties.
ITR-3	Section 220 of Income Tax Act, 2025 (formerly Section 139(1) of Income Tax Act, 1961)	Individuals and HUFs having income from Business or Profession, partners in partnership firms, F&O intraday traders, and audited individuals.
ITR-4 (Sugam)	Section 59, 60 & 220 of 2025 Act (formerly Sec 44AD, 44ADA & 139(1) of 1961 Act)	Resident individuals, HUFs, and firms (other than LLPs) with income up to ₹50 Lakhs opting for presumptive taxation under 44AD/44ADA.
ITR-5	Section 220 of Income Tax Act, 2025 (formerly Section 139(1) of Income Tax Act, 1961)	Partnership Firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), and Body of Individuals (BOIs).
ITR-6	Section 200 & 220 of 2025 Act (formerly Sec 115BAA & 139(1) of 1961 Act)	Domestic and foreign companies not claiming exemption under Section 11 (Charitable Trusts). Full audited balance sheet reporting mandatory.
ITR-7	Section 220 of Income Tax Act, 2025 (formerly Section 139(4A) to (4D) of 1961 Act)	Charitable/Religious Trusts, Educational Institutions, Medical Entities, and Political Parties registered under tax-exempt codes.

ONGOING GOVERNANCE

Mandatory Post-Registration Compliances

Failing to complete statutory post-incorporation actions carries steep daily penalties. Our CA firm manages continuous compliance:

Aadhaar OTP / Net Banking EVC / DSCStrictly within 30 days of e-filing

Mandatory E-Verification of Return

Returns not verified within 30 days are treated as non-est (invalid), resulting in late filing penalties and loss of carry-forward losses.

CPC Automated IntimationWithin 9 months from the end of FY

Intimation under Section 143(1)

Automated processing of return by CPC Bangalore; verifying refund credit to validated bank account or addressing demand intimations.

Portal Rectification RequestWithin 4 years from the date of order

Rectification under Section 154

Filing online rectification for credit mismatches of TDS/TCS or apparent calculation errors in the CPC 143(1) intimation.

Form ITR-U with Additional TaxUp to 24 months from the end of AY

Updated Return under Section 139(8A) [ITR-U]

Opportunity to update previously filed returns or file omitted returns upon payment of 25% to 50% additional tax without penalty.

FREQUENTLY ASKED QUESTIONS

Statutory FAQs & Practical Guidance

Authoritative answers to common questions regarding Income Tax Return (ITR) Filing.

Is the New Tax Regime compulsory, and how do I switch back to the Old Regime?

The New Tax Regime under Section 115BAC is the statutory default regime for individuals, HUFs, and AOPs. However, taxpayers have the legal right to opt for the Old Tax Regime if it is more beneficial. Salaried individuals can exercise this choice directly in their ITR every year. Taxpayers having income from business or profession must file Form 10-IEA electronically on or before the statutory due date (July 31st) to exercise the Old Regime option.

What happens if I fail to e-verify my Income Tax Return within 30 days?

Under CBDT notifications, an ITR that is not verified within 30 days of electronic submission is treated as invalid (never filed). Consequently, you may become liable to late filing fees under Section 234F (up to ₹5,000), lose the legal right to carry forward business and capital losses, and forfeit entitlement to tax refunds until a condonation request is approved by the tax commissioner.

Who is mandatorily required to report foreign assets in Schedule FA?

Any resident individual who holds foreign bank accounts, foreign depository/custodial accounts, shares/RSUs in foreign corporations (e.g., US tech stocks), overseas properties, or has signing authority in any overseas account must mandatorily disclose them in Schedule FA of ITR-2 or ITR-3, regardless of income level. Failure to disclose attracts a severe penalty of ₹10 Lakhs under the Black Money Act, 2015.

Can I file an Updated Return (ITR-U) to claim a tax refund or report a loss?

No. Under the provisions of Section 139(8A), an Updated Return (ITR-U) cannot be filed if it results in claiming an additional refund, increasing a previously claimed refund, or filing/increasing a net loss. ITR-U is strictly meant to declare previously undisclosed income and pay additional tax (25% additional tax if filed within 12 months, or 50% if filed between 12 to 24 months).

STATUTORY ADVISORY DESK • ICAI COMPLIANT

Statutory Inquiries & Practice Advisory

In strict conformity with ICAI Council Guidelines No. 1-CA(7)/06/2004, professional engagements for Income Tax Return (ITR) Filing are accepted following formal conflict verification and statutory documentation. Contact our registered practice offices for procedural guidance.

Contact Practice Office +91 99140-14949