Most personal tax return mistakes happen before a single number is entered — the wrong ITR form is picked, or the tax regime that costs more is chosen by default. LegalDev starts there, then computes and files your return with every deduction and disclosure it actually needs.
For a salaried employee with a single Form 16 and no other income, filing can genuinely be quick. But the moment there's a second income source — rental income, capital gains from shares or mutual funds, freelance or consulting income, or even a modest amount of interest from multiple bank accounts — the correct ITR form changes, and so does the amount of disclosure required.
Add the choice between the old and new tax regimes, and most people end up either overpaying tax by picking the regime with lower headline rates but ignoring deductions they were eligible for, or underpaying and triggering a mismatch notice because a source of income wasn't reported at all.
ITR-1 (Sahaj) — For resident individuals with salary income, one house property, and other income like interest, where total income is up to Rs. 50 lakh and there are no capital gains.
ITR-2 — For individuals with capital gains, more than one house property, foreign assets or foreign income, but no income from business or profession.
ITR-3 — For individuals with income from business or profession, including partners receiving remuneration or interest from a partnership firm.
ITR-4 (Sugam) — For individuals, HUFs and firms (other than LLPs) opting for presumptive taxation under Sections 44AD, 44ADA or 44AE, with total income up to Rs. 50 lakh.
The new tax regime offers lower slab rates but removes most deductions, including 80C investments, HRA exemption, and home loan interest on a self-occupied property. The old regime keeps higher slab rates but allows these deductions in full.
There's no universal right answer — it depends on how much you actually claim. Someone with a home loan, an 80C investment of Rs. 1.5 lakh, and HRA exemption will often owe less tax under the old regime. Someone without significant deductions usually comes out ahead under the new one. We compute both and show you the actual numbers, rather than defaulting to whichever regime is the current default under the law.
Any individual whose total income before deductions exceeds the basic exemption limit is required to file a return. Filing is also mandatory in certain other situations, such as depositing large sums in a current account, spending significantly on foreign travel, or having high electricity bills, even if income is below the exemption limit.
ITR-1 suits salaried individuals with income up to Rs. 50 lakh and no capital gains or business income. ITR-2 covers individuals with capital gains, multiple properties, or foreign assets but no business income. ITR-3 is for individuals with business or professional income, including partners in a firm. ITR-4 is for those opting for presumptive taxation under Section 44AD, 44ADA or 44AE.
It depends on how many deductions and exemptions you actually claim. The old regime allows deductions like 80C, HRA and home loan interest but has higher slab rates. The new regime offers lower slab rates but removes most deductions. Individuals with significant investments, home loans or HRA claims often benefit from the old regime, while those without major deductions usually save more under the new one.
Form 16 from your employer, salary slips, bank statements showing interest income, investment proofs for deductions under Sections 80C, 80D and 80G, PAN and Aadhaar, and details of any capital gains, rental income or business income for the year.
For individuals not liable for a tax audit, the due date is 31st July of the assessment year. Individuals whose accounts require an audit, typically those with business or professional income above the audit threshold, get until 31st October.
A belated return can still be filed, but it attracts a late fee under Section 234F of up to Rs. 5,000, interest on any unpaid tax under Section 234A, and the loss of certain benefits such as carrying forward capital losses to future years.
Send us your Form 16, investment proofs and any other income details — we'll pick the right form, compare both tax regimes, and file on time.