What Should be the Income Tax Return Filing Charges?

Filing your Income Tax Return (ITR) is a very important financial responsibility for every salaried person, business owner, freelancer, and professional in India. Whether you are filing it yourself or taking help from a tax expert, knowing the charges involved in ITR filing is essential. In this article, we will explain what the ITR filing charges are, what factors affect these charges, and what you should keep in mind while hiring a professional for ITR filing.

Why Filing ITR is Important?

Income Tax Return Filing

Before we talk about charges, let us first understand why ITR filing is important:

  • It is mandatory under Indian law if your annual income is more than the basic exemption limit.
  • It helps in getting loans, visas, and other financial approvals.
  • It shows that you are a responsible taxpayer.
  • If you are eligible for a refund, you can get it only by filing your ITR.

ITR Filing Options in India

You can file your ITR in three ways:

  1. Self-Filing via the Income Tax Department’s website (free of cost)
  2. Using Online Platforms (with or without expert help)
  3. Through Chartered Accountants or Tax Professionals (paid service)

Now, let’s understand the charges when you opt for paid services.

How Much Do Professionals Charge for ITR Filing?

ITR filing charges in India usually depend on:

  • Your income source (salary, business, freelancing, etc.)
  • The complexity of your return (investments, capital gains, foreign income, etc.)
  • Whether you need consultation or tax planning advice

Here’s an approximate fee structure:

Type of ITR Filing Charges (Approx.)
Salaried Individual (Simple ITR-1) ₹500 – ₹1,000
Salaried with HRA, 80C, Home Loan ₹1,000 – ₹1,500
Freelancer or Consultant ₹1,500 – ₹2,500
Business Income (Presumptive Taxation) ₹1,500 – ₹3,000
Business Income (Regular Books of Accounts) ₹3,000 – ₹6,000
ITR with Capital Gains (Shares, Property) ₹2,000 – ₹5,000
NRI Income or Foreign Assets ₹3,000 – ₹8,000
ITR for Firms or Companies ₹5,000 – ₹10,000+

These are standard market rates. The charges may vary based on the city, experience of the tax professional, and the urgency of filing.

Factors Affecting ITR Filing Charges

  1. Income Source – If your income is only from salary, the filing is simple and charges are low. But if you have multiple sources like rent, dividends, or business, the return becomes complex.
  2. Documents and Deductions – If your return has several deductions (like 80C, 80D, 24(b), etc.), and documents like Form 16, interest certificates, capital gains statements, etc., the expert needs more time and effort.
  3. Previous Year Notices or Revisions – If your previous returns have errors or notices, then additional charges apply for handling them.
  4. Tax Planning Services – If you need guidance on saving tax legally, professionals may charge separately for planning and strategy.

Why Should You Hire a Professional?

Even though the government portal is free, many individuals prefer professional help due to:

  • Accuracy – Avoid mistakes that can lead to penalties.
  • Faster Refunds – Professionals know how to file correctly, reducing refund delays.
  • Handling Complexities – For business owners, freelancers, or capital gains, professional help is highly useful.

Beware of Very Low Charges

Some service providers may offer filing at ₹199 or ₹299. But always check what’s included:

  • Is it only basic filing?
  • Are they including deductions, HRA, capital gains, etc.?
  • Do they provide support in case of notice or correction?

Low charges may mean poor service or hidden costs. Choose someone with a transparent pricing policy.

Conclusion

ITR filing is a yearly financial task that should be done with proper care. While the charges for filing ITR may range from ₹500 to ₹10,000 depending on the nature of your income, it’s important to focus on quality, accuracy, and timely filing. Whether you choose to file it yourself or take help from a professional, make sure your return is complete and correct.

FAQs on Income Tax Return Filing Charges

1. What is the average charge for ITR filing by professionals in India?

The average charge for ITR filing by professionals in India ranges from ₹300 to ₹5,000, depending on the type of income, sources involved (salary, business, capital gains, etc.), and complexity of the return.

2. Is it cheaper to file ITR online by myself?

Yes, you can file your ITR online for free through the official income tax portal if your return is simple. However, if you are unsure or your return includes business income, capital gains, or foreign assets, it is better to hire a professional to avoid mistakes.

3. Are the charges for salaried individuals and business owners different?

Yes. Salaried individuals generally pay lower fees (₹300 to ₹1,500), whereas business owners may be charged more (₹1,500 to ₹5,000 or more) due to additional details like profit & loss statements, GST data, and balance sheets.

4. Can I claim tax benefits on the ITR filing charges paid to a CA or tax consultant?

No, ITR filing charges paid to professionals are not eligible for tax deductions under current income tax laws for individuals. However, businesses may claim them as professional expenses.

5. Do I need to pay ITR filing charges every year?

Yes, if you take help from a professional, you’ll need to pay charges each year. However, if you file it yourself using the free e-filing portal, there are no charges involved.

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