Matching the form to your income, not the other way around
The most common filing mistake we see isn’t a wrong number — it’s the wrong form. A salaried professional in Peelamedu with a small consulting side-income needs ITR-3, not ITR-1. A shop owner in Gandhipuram opting for presumptive taxation needs ITR-4. Filing the wrong form doesn’t just risk a defective return notice; it can mean you miss disclosures the correct form would have prompted.
Presumptive taxation: simpler books, not simpler judgment
Sections 44AD (small businesses), 44ADA (specified professionals) and 44AE (goods transporters) let eligible taxpayers declare income at a prescribed percentage of turnover without maintaining detailed books of account. The eligibility hinges on turnover limits and the nature of the profession or business — both worth checking against current limits every year, since crossing a threshold once can affect scheme eligibility for subsequent years too.
Old regime vs. new regime: run both, then decide
The right regime depends entirely on how much you claim in deductions — 80C investments, home loan interest, HRA — against your income level. There is no universal answer; we compute both for every client each year, because the better regime for one year’s income and deduction profile isn’t guaranteed to stay better the next.
Capital gains on Coimbatore property: don’t skip the FMV check
For land and property acquired before the relevant cut-off date, fair market value substitution under Section 55(2)(b) can substantially reduce a computed capital gain — but only if it’s claimed correctly and the current dual-option regime under recent Finance Act amendments is applied to whichever computation actually benefits you. This is one of the highest-value checks we do on property sale transactions.
Frequently asked questions
What’s the penalty for missing the ITR filing deadline?
A late filing fee under Section 234F applies, along with interest on any unpaid tax under Section 234A, and losses (other than house property loss) generally can’t be carried forward if the return is filed late.
Can I switch between the old and new tax regime every year?
Salaried individuals can choose either regime each year when filing; those with business or professional income face restrictions on switching back once they’ve opted out of the default regime, so the choice needs more care.
This article is for general information and does not constitute specific tax advice. Provisions and thresholds referenced are subject to change — please confirm current applicability for your situation before acting.