Income Tax Return Filing in Bangalore

Filing an income tax return is more than a once-a-year formality — it is the document the department reads when it raises a query, processes a refund, or assesses a loan or visa application on your behalf. At Krishna & Associates we have filed returns for clients across India since 2016, and we treat each return as a position you may one day have to defend. This page explains who must file, which form applies, and the key dates and provisions for FY 2025-26 (AY 2026-27).

Who Needs to File an ITR

Under the old regime, the basic exemption limit is ₹2,50,000 (₹3,00,000 for residents aged 60–80 and ₹5,00,000 for those above 80). Under the new regime — the default from AY 2024-25 under Section 115BAC — the basic exemption is ₹4,00,000 for FY 2025-26, with a Section 87A rebate that makes income up to ₹12,00,000 effectively tax-free for resident individuals. Even below these limits, filing is mandatory under the seventh proviso to Section 139(1) if you deposit over ₹1 crore in a current account, spend over ₹2 lakh on foreign travel, incur electricity charges above ₹1 lakh, or hold foreign assets or signing authority abroad.

Which ITR Form Applies

Choosing the wrong form is the most common reason a return is treated as defective under Section 139(9). In brief: ITR-1 (Sahaj) suits resident salaried individuals with income up to ₹50 lakh; ITR-2 covers capital gains and more than one house property; ITR-3 is for business or professional income; ITR-4 (Sugam) is for presumptive taxpayers; and ITR-5 to ITR-7 apply to firms, LLPs, companies and trusts. We select the form after reviewing your full income profile, not just your Form 16.

Presumptive Taxation — Sections 44AD and 44ADA

Small businesses can declare income under Section 44AD at 8% of turnover (6% for digitally received receipts) where turnover does not exceed ₹2 crore — extended to ₹3 crore where cash receipts are 5% or less. Professionals can use Section 44ADA at 50% of gross receipts up to ₹50 lakh (₹75 lakh where cash receipts are within 5%). Presumptive schemes reduce bookkeeping, but opting in and out has consequences under Section 44AD(4), so the decision deserves a moment's planning rather than a default tick.

Capital Gains Reporting

Gains on equity shares and equity mutual funds held over 12 months are long-term and, w.e.f. 23 July 2024, taxed at 12.5% above the ₹1.25 lakh annual exemption; short-term equity gains are taxed at 20%. Property and other long-term assets are taxed at 12.5%, with a transitional indexation option for resident individuals on property acquired before 23 July 2024. We compute gains transaction-by-transaction from your broker statements and reconcile them with the AIS so nothing surfaces later as a mismatch.

Old vs New Regime — Choosing Well

The new regime offers lower headline rates and a ₹75,000 standard deduction but withdraws most exemptions; the old regime rewards taxpayers with significant 80C, 80D, HRA and home-loan interest claims. Salaried taxpayers may choose afresh each year, but those with business income may switch only once using Form 10-IEA. We run both computations before recommending a regime.

Penalties and Interest

A late return attracts a fee under Section 234F of ₹5,000 (₹1,000 where total income does not exceed ₹5 lakh). Interest runs at 1% per month under Section 234A for late filing, Section 234B for shortfall in advance tax, and Section 234C for deferment of advance-tax instalments. Filing on time also protects your right to carry forward business and capital losses.

What to Keep Ready

For most returns we ask for Form 16, your Annual Information Statement (AIS) and Taxpayer Information Summary (TIS), bank statements, interest certificates, capital-gains statements, and proof of deductions claimed. Reconciling the AIS and TIS before filing is the single most effective way to avoid a later notice.

Why a CA-Handled Return

A correctly filed, reconciled return is your first line of defence against scrutiny. We also handle TDS credit mismatches that commonly affect refunds, and where your turnover crosses the audit threshold we move seamlessly into tax audit under Section 44AB. Explore our full range of services or contact us to begin.