Filing your Income Tax Return (ITR) is a legal obligation and a smart financial move that helps you maintain tax compliance, claim refunds, and build financial credibility.

But filing ITR involves more than just entering figures—it requires careful planning, correct disclosures, and awareness of changing tax laws.

This guide covers everything you should keep in mind while filing your ITR, including:

• Foreign income,

• Cryptocurrency taxation,

• Futures & Options (F&O) reporting,

• Residential status, and more.

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📌 Why Filing ITR Is Important

Filing your ITR:

• Prevents penalties and notices

• Helps claim TDS refunds

• Is mandatory for loan or visa applications

• Helps carry forward business and capital losses

• Builds a clean financial history with the Income Tax Department

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✅ Key Points to Remember While Filing ITR (Assessment Year 2025–26)

1️⃣ Determine Your Residential Status

Your residential status under Section 6 of the Income Tax Act is critical because:

• Residents are taxed on global income

• Non-residents (NRIs) are taxed only on Indian income

• RNORs have limited global tax exposure

⏳ Count your stay in India over the past years carefully to determine this status.

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2️⃣ Report Foreign Income and Assets

If you’re a Resident, you’re required to:

• Report all foreign income (salary, rent, interest, dividends)

• Disclose foreign assets like bank accounts, stocks, mutual funds, real estate, etc.

• Fill Schedule FA in the ITR

🔒 Non-disclosure can attract penalties under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

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3️⃣ Don’t Ignore Cryptocurrency Income

Under Section 115BBH:

• Crypto income is taxed at 30% flat rate

• No deduction allowed (except cost of acquisition)

• 1% TDS applies above ₹10,000 per year

Include all trades—even P2P or wallet-to-wallet transactions.

🪙 Disclose gains even if you haven’t converted crypto to INR.

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4️⃣ Report F&O Trading as Business Income

F&O income is treated as speculative or non-speculative business income:

• Must be disclosed under ITR-3

• Maintain proper books of account

• File a tax audit if turnover exceeds limits

📘 Losses can be carried forward for 8 years—only if filed on time.

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5️⃣ Use the Correct ITR Form

🚫 Wrong form = defective return = re-filing with penalty.

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6️⃣ Match Form 26AS, AIS & TIS Before Filing

These reports show all income, taxes, and transactions linked to your PAN:

• Form 26AS – TDS, advance tax, refunds

• AIS (Annual Information Statement) – Comprehensive income details

• TIS (Taxpayer Information Summary) – Condensed view of AIS

🔍 Mismatch may lead to notice or refund delay.

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7️⃣ Declare All Sources of Income

You must disclose:

• Salary, interest, rent

• Capital gains from shares or property

• Business/profession income

• Crypto/F&O income

• Dividend income

• Foreign income and gifts received

📣 Even exempt income like agricultural income must be declared.

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8️⃣ Claim Deductions Under Old Tax Regime

If opting for the old regime, claim deductions like:

• Section 80C: PPF, LIC, ELSS, school fees

• 80D: Medical insurance

• 80G: Donations

• 80E: Education loan interest

• 24(b): Home loan interest

💡 New tax regime disallows most deductions—choose wisely.

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9️⃣ Pay Self-Assessment or Advance Tax

If TDS is not sufficient to cover your tax liability:

• Pay advance tax in 4 installments (15 Jun, 15 Sep, 15 Dec, 15 Mar)

• Or pay self-assessment tax before filing ITR

Use Challan 280 for tax payments.

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🔟 E-Verify Your Return Within 30 Days

You must verify your ITR to complete the process:

• Aadhaar OTP

• Net banking

• Bank account/Demat EVC

• Sending signed ITR-V to CPC Bangalore

⏰ Failure to e-verify = return considered “not filed”.

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1️⃣1️⃣ File Before Due Date to Avoid Penalties

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📩 Need Professional Help with Your ITR?

Our expert CA team helps with:

• Salary and capital gains ITR

• F&O and Crypto trading tax reports

• Foreign income and NRI returns

• Audit & business return filing

🌐 Visit: www.ncagrawal.com
📧 Email: info@ncagrawal.com
📞 Call: +91-9718046555

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🔍 Top 12 FAQs on Income Tax Return Filing in India (2025)

Q1. Is it mandatory to file ITR if my income is below ₹2.5 lakh?
No, unless you fall under specific conditions like depositing >₹1 crore in a year, holding foreign assets, TDS deducted, etc.

Q2. What happens if I don’t report foreign income as a Resident?
You may face penalty and prosecution under the Black Money Act. Always disclose in Schedule FA.

Q3. Which ITR form should I use if I earned from crypto and salary?
Use ITR-3 if you have income from crypto, even if you’re salaried.

Q4. Can I claim expenses against crypto or F&O income?
Only cost of acquisition can be deducted for crypto. For F&O, business-related expenses are allowed.

Q5. What if I missed filing ITR last year but had losses?
You cannot carry forward losses if ITR wasn’t filed on time.

Q6. Is trading in US stocks or receiving foreign dividends taxable in India?
Yes, foreign dividends and capital gains are taxable if you are a Resident.

Q7. Can I file ITR myself or should I hire a CA?
You can file yourself, but if you have multiple income sources, trading, foreign assets, or crypto, a CA’s help is highly recommended.

Q8. Is Aadhaar mandatory to file ITR?
Yes, Aadhaar is mandatory for resident taxpayers unless specifically exempted.

Q9. How long should I keep ITR documents?
Keep ITR and related documents for at least 6 years for reference or scrutiny.

Q10. Can I revise my ITR after filing?
Yes, revised returns can be filed before 31st December 2025 (or before assessment is completed).

Q11. What is the penalty for late filing?
Up to ₹5,000 under Section 234F, plus interest and loss of carry-forward benefits.

Q12. Do I need to disclose my foreign bank account if I’m an NRI?
No, NRIs are not required to disclose foreign assets unless they become Residents.

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