Income Tax Return

What is an Income Tax Return?

The ITR full form is Income Tax Return, and it is a type of form that is filled out by all taxpayers, including businesses and individuals, to report their annual income and the taxes they have paid to the Department of Income Tax.

This document is a formal record which makes sure that ensures the government collects the right amount of tax from the people based on their earnings. The taxpayers also face penalties and interest if they pay taxes after the income tax return due date.

Benefits of filing ITR in India

There are many benefits of ITR filing in India, which are mentioned below:

You can claim an income tax refund from the IT department.
While applying for a visa or a loan, you need to show the ITR.
If your business or profession faces losses, then you cannot carry forward these losses until you file the ITR.

Eligibility Criteria to file ITR

The eligibility criteria to file ITR are distributed into two types of tax regimes: new and old. Here are the tax slabs, rates, and surcharge for FY 2025-26 for both regimes:

Old Tax Regime

Income Tax Slab	Income Tax Rate	Tax Calculation	Surcharge
Up to Rs. 2.5 lakhs	Nil	Nil	Nil
Rs 2.5 lakhs- Rs. 5 lakhs	5%	5% above Rs 2.5 lakhs	Nil
Rs 5 lakhs- Rs 10 lakhs	20%	Rs 12,500 + 20% above Rs 5 lakhs	Nil
Rs 10 lakhs- Rs 50 lakhs	30%	Rs 1,12,500 + 30% above Rs 10 lakh	Nil
Rs 50 lakhs- Rs 1 Crore	30%	Rs 1,12,500 + 30% above Rs 10 lakh	10%
Rs 1 Crore- Rs 2 Crore	30%	Rs 1,12,500 + 30% above Rs 10 lakh	15%
Rs 2 Crore- Rs 5 Crore	30%	Rs 1,12,500 + 30% above Rs 10 lakh	25%
Above Rs. 5 Crore	30%	Rs 1,12,500 + 30% above Rs 10 lakh	37%

New Tax Regime

Income Tax Slab	Income Tax Rate	Tax Calculation	Surcharge
Up to Rs 4 lakhs	Nil	Nil	Nil
Rs 4 lakhs to Rs 8 lakhs	5%	5% of income above Rs 4 lakhs	Nil
Rs 8 lakhs to Rs 12 lakhs	10%	Rs 20,000 + 10% of income above Rs 4 lakhs	Nil
Rs 12 lakhs to Rs 16 lakhs	15%	Rs 60,000 + 15% of income above Rs 8 lakhs	Nil
Rs 16 lakhs to Rs 20 lakhs	20%	Rs 1,20,000 + 20% of income above Rs 16 lakhs	Nil
Rs 20 lakhs to Rs 24 lakhs	25%	Rs 2 lakhs + 25% of the income above Rs 10 lakhs	Nil
Above Rs 24 lakhs	30%	Rs 3 lakhs + 30% of income above Rs 24 lakhs	Nil
Rs 24 lakhs to Rs 50 lakhs	30%	Rs 3 lakhs + 30% of income above Rs 24 lakhs	Nil
Rs 50 lakhs to Rs 1 Crore	30%	Rs 3 lakhs + 30% of income above Rs 24 lakhs	10%
Rs 1 Crore to Rs 2 Crores	30%	Rs 3 lakhs + 30% of income above Rs 24 lakhs	15%
Above Rs 2 Crores	30%	Rs 3 lakhs + 30% of income above Rs 24 lakhs	25%

Related Glossary

Explore key terms and definitions related to this topic to deepen your understanding.

Income Tax

Income Tax Act

Income Tax Appellate Tribunal

Income Tax Deduction

Income Tax Department

Indexation

Indirect Tax

ITR Form

Joint Development Agreement