Filing under old tax regime? New ITR rules you should know in 2025
If you're a salaried person and usually file your income tax return (ITR) under the old tax regime, there's something new you need to be aware of this year. Just using Form 16 won't be enough any more. The tax department now wants a little more proof from your side.WHAT CHANGED IN ITR FILING THIS YEAR?Earlier, if your only income was from your salary, you could easily file your return using Form 16 through ITR-1. You would declare any tax-saving investments, like LIC, ELSS mutual funds, or health insurance, to your employer. They included everything in Form 16, and that was good enough. You didn't need to upload any documents.advertisementExperts say that the tax department is focusing more on transparency and preventing false claims. So, you'll need to keep records ready when filing.MORE DOCUMENTS FOR SPECIFIC DEDUCTIONS
Some deductions now need more detailed information, such as while claiming for a disabled dependent under Section 80DD or 80U, you'll need to give details like Form 10-IA, their PAN/Aadhaar, and UDID (if available). Further, if you are claiming interest on an education loan under Section 80E, be ready to share details of the lender, as these may be verified by the tax department.Taxpayers must provide proof of deductions under sections like 80C, 80D, and HRA, which was not mandatory in previous years. The new rules demand comprehensive record-keeping, placing a greater responsibility on taxpayers to gather and maintain all relevant documentation before filing their returns.advertisementHere, it must be pointed out that if you claim something but don't have the documents, your claim may be rejected. You might even have to pay extra tax.CHANGES IN LONG-TERM CAPITAL GAINS REPORTINGKey changes include the ability for taxpayers to report long-term capital gains of up to Rs 1.25 lakh in the ITR-1 form, provided these gains are from equity mutual funds or shares.Notably, gains realised after July 23, 2025, will not be taxed. Additionally, the deadline for filing ITR for those not requiring an audit has been extended from July 31 to September 15, 2025. This extension provides additional time for taxpayers to ensure compliance with the new documentation requirements.So, if you're sticking with the old tax regime this year, take a little extra time to get organised. Keep all your receipts, policy documents, rent proofs, and other records ready before you start filing. It'll not only make the process smoother but also help avoid any issues later with the tax department.Trending Reel
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India Today
31 minutes ago
- India Today
Got an income tax notice? Don't panic, here's how to deal with it
Filing your income tax return might feel like ticking off the last task on your to-do list, but it's not always the end of your tax journey. For many honest taxpayers, the unexpected arrival of an income tax notice in their inbox can trigger before panic sets in, here's the good news! Most of these notices are routine and manageable, provided you respond appropriately and on Today spoke to CA (Dr) Suresh Surana to decode what these notices really mean, why they're sent, and what you should do if one lands your DO TAX NOTICES ARRIVE? In today's data-driven tax system, the chances of receiving a notice have increased, not because you're doing something wrong, but because the tax department now has greater access to your financial footprint. CA Surana explained, 'With enhanced data analytics, information integration (via AIS, TIS, 26AS), and increased reporting obligations, the issuance of notices has become both structured and data-driven.'The tax system tracks your financial transactions, like your salary, bank interest, stock trades, and mutual fund investments. If something doesn't match or seems off, a notice might be sent to you for this isn't necessarily a sign of wrongdoing. Often, the notice is just a formal nudge asking for more information, missing documents, or explaining a MOST COMMON NOTICES – AND WHAT THEY MEANadvertisementSection 143(1): Intimation After Return ProcessingThis is one of the most frequently issued notices and is sent after your return has been processed. It compares your declared income and deductions with the department's own data. If everything matches, no action is needed. But if there's a mismatch, like incorrect TDS or deductions, you may be asked to pay more tax or may receive a to CA (Dr) Suresh Surana, 'This is a preliminary assessment, not a final order. You still have time to revise your return under Section 139(5) if needed.'Section 142(1): Inquiry Before AssessmentThis is more of an information request. You may receive it if you haven't filed your return, or if the tax officer needs further documents to complete your assessment. This can include income details, bank records, or rent receipts.'Non-compliance can lead to Best Judgement Assessment under Section 144 and may attract penalties or prosecution,' Surana 139(9): Defective ReturnThis notice appears when your return is found to have issues, like using the wrong ITR form, leaving out income details, or missing tax payment information. You're usually given 15 days to fix it.'If not corrected in time, the return is treated as invalid, with consequences as if no return was filed at all,' Surana explained. This could mean losing out on exemptions or carry-forward 245: Adjustment Against Tax DuesIf you're due for a refund but still owe tax from previous years, the department can adjust the two. A notice under Section 245 is issued to inform you about this, giving you a chance to accept or dispute the adjustment.'This adjustment can only be made after a written intimation, and the taxpayer usually has 21 days to respond,' Surana noted. Common reasons for defective returns include incorrect ITR form used, incomplete information, and non-disclosure of tax payment details, he 148: Income Escaping AssessmentThis notice is more serious. It's sent when the department believes that you've failed to disclose certain income in past returns. The Assessing Officer must have credible evidence for reopening your case. You'll be asked to file a fresh return for the year in question, and possibly explain the source of the income in noted that reassessments are governed by Sections 147 to 153 and can involve recalculations of losses or SHOULD YOU RESPOND TO A TAX NOTICE?The first rule is simple: do not ignore it. Every notice carries a response deadline. Missing it can lead to penalties, disallowance of claims, or even reopening of your by logging into the income tax portal and reading the notice carefully. Check under which section it has been issued and verify its authenticity using the Document Identification Number (DIN). If it's a valid notice, gather all supporting documents, like ITR copies, Form 16, salary slips, bank statements, investment proofs, and submit a clear and complete response through the e-filing advised, "Taxpayers need to submit a comprehensive and fact-based response via the income tax e-filing portal in accordance with the requirements set out in the notice."Further, he added, 'Once the response is submitted, retain copies of your reply and acknowledgement receipts. Track the status on the portal and be alert to further updates from the department.'If you're not satisfied with the outcome, don't hesitate to explore remedies. These include seeking a rectification under Section 154, filing an appeal with the Commissioner (Appeals), or requesting a revision under Section 264, depending on your other words, receiving a tax notice isn't the end of the world. In most cases, it's just the department doing its job, cross-checking information and ensuring everything adds up. Staying calm, reading the notice carefully, and responding with the right documents on time can help you resolve it if you're ever in doubt, don't try to guess your way through it. Reach out to a qualified tax professional who can guide you through the Watch
Mint
an hour ago
- Mint
Maharashtra's expensive alcohol—following its first duty hike in 14 years—will still find takers. Here's why
On Tuesday, the Maharashtra cabinet approved several revenue-enhancing measures in the excise department, including an increase in liquor duty—its first such hike in 14 years. This would make domestic premium liquors 60% costlier in Maharashtra. However, the tax hangover of the Maharashtra government's excise duty hike on key alcohol products might be short-lived as the underlying trend of India's alcohol consumption remains strong, particularly aided by demand for premium liquors, said experts. 'Young consumers are mainly driving this premiumisation," Naman Shah, an independent consumer sector analyst, told Mint. 'The growing popularity of cocktail culture and demand for curated experiences have made them less sensitive to price hikes. Alcohol is not a sin anymore. People want to taste luxury." The Maharashtra government seems to be capitalising on this trend by hiking excise duty on premium liquors. Indian-made foreign liquors like whiskey, rum and spirits will attract duties 4.5 times their manufacturing costs, up from the current rate of three times, according to the committee tasked with boosting the state's liquor revenue. Alcohol excise duty contributed about 6% of the state's total tax receipts in 2024-25, according to unaudited provisional figures from Comptroller and Auditor General of India. The state government plans to increase that to 10% in FY26. While excise duties on beer and wine have not been increased, country and imported premium liquors will face relatively smaller hikes. This will increase their retail prices by 14% and over 25% respectively. The industry impact The increased liquor levies would support Maharasthra's strained exchequer and help fund populist schemes such as Ladki Bahin Yojana (to provide financial assistance to women in low-income families), as well as benefits for farmers and other communities, said experts. Regarding the potential impact on volumes, Shah believes demand won't be dented in the long term as consumers are willing to pay. Moreover, 'majority of Indian consumers still fall under the 'mass" segment where the proposed hike on excise duty is only 3-4%. So, there should not be much of a volume impact, overall," the consumer sector analyst said. But the market panicked and heavily penalised distilleries with significant exposure to the state. United Spirits Ltd, India's largest alcohol producer and owner of brands like McDowell's No.1, Royal Challenge, and Signature, has a sizable 25-30% exposure to Maharashtra. As a result, its stock corrected by almost 7% on Wednesday. 'Distilleries with significant exposure to Maharashtra might see a big volume dip in Q2 (the second quarter, July-September) following the price hike," another consumer sector analyst said, requesting anonymity. 'From Q3 onwards, as the festive season kicks in and new prices are absorbed, volumes should recover again." Among major distilleries, shares of Allied Blenders and Distillers Ltd, the maker of medium-ranged Sterling Reserve and Officer's Choice whiskies, declined 5%. The market anticipates major volume hits on the lower to mid-ranged products, despite the proposal of a limited tax hike on them, according to experts. 'There might be some impact on the country, lower-end and mid-premium segments. But I don't see any significant impact on the premium or luxury end," the unnamed consumer sector analyst said. A 'premium' explosion Alcohol companies have been riding a formidable wave of premiumisation post-covid as they have seen an explosion in demand in the 'prestige and above' (P&A) segment, which places an emphasis on brands with quality, reputation, and higher profit margins. United Spirits's P&A volume grew at a faster pace—9% year-on-year—than its overall volume growth of 7% during the fourth quarter of FY25, mainly driven by resilient consumer demand in the luxury and premium segments, Nuvama Institutional Equities said in a recent report. This resulted in a 40% on-year surge in Q4 Ebitda. Similarly, while United Breweries Ltd saw an overall 5% on-year volume growth, its premium-end products clocked 24% yearly growth and Ebitda rose 31%, according to the report. Radico Khaitan Ltd, best known for its Magic Moments vodka brand, has also aggressively expanded its P&A portfolio with premium offerings like Jaisalmer Gin, Rampur Indian Single Malt Whisky, and Royal Ranthambore. Radico has an 8% share in the P&A segment and plans to widen its portfolio further in this segment. This would expand its target user base and improve its confidence on execution, as there is demand for innovative premium products in the market, Motilal Oswal Financial Services said in a note. Moreover, Radico has only 7-8% exposure to Maharashtra. Hence, its stock price was broadly resilient on Wednesday akin to its beer and wine manufacturing peers'. Since beer and wine were spared of any excise duty hikes, shares of Sula Vineyards Ltd rose almost 8%, while those of Maharashtra-based GM Breweries Ltd rose 10%. GM Breweries, which primarily produces country liquor, already receives excise duty concession from the Maharashtra government. 'Now it will also manufacture Maharashtra Made Liquor (MML) for the government. Hence its stock went up" said Shah, the independent consumer sector analyst quoted earlier. MML, which the Maharashtra government introduced along with its excise duty hikes on premium liquors, is a new category of grain-based foreign liquor to be produced exclusively by local manufacturers. It would be priced higher than country liquor, but lower than the cheapest Indian-made foreign liquor.
The Hindu
4 hours ago
- The Hindu
PM Modi lauds India's technological, digital progress in past 11 years
Prime Minister Narendra Modi on Thursday (June 12, 2025) hailed India's digital and technological progress stating that the country is making remarkable progress in innovation and application of technology. The Prime Minister highlighted that that the digital progress is also strengthening country's efforts towards becoming self reliant in the technology sector. Taking to his X social media platform PM Modi shared a post by MyGovIndia, which talks about how India could become the next technology powerhouse of the world and the steps taken by the Union Government in the past 11 years in the sector. Leveraging the power of technology has brought innumerable benefits for people. Service delivery and transparency have been greatly boosted. Furthermore, technology has become a means of empowering the lives of the poorest of poor. #11YearsOfDigitalIndiahttps:// — Narendra Modi (@narendramodi) June 12, 2025 "Powered by the youth of India, we are making remarkable progress in innovation and application of technology. It is also strengthening our efforts to become self-reliant and a global tech powerhouse", PM Modi said. India has recorded a surge of 2500 times in the volume of UPI transaction with data showing that UPI transaction which was at 0.93 crore in April 2017 increased to 1867.70 crore until April is also leading the digital payment revolution wherein more than Rs 260 lakh crore transactions have been processed with Rs 18,600 crore transactions annually. UPI's acceptance in the world has also increased and it is live in seven countries including UAE, Singapore, Nepal, France, Mauritius, Bhutan and Sri Lanka. India also stands as world's cheapest mobile data providers with more than 94 crore broadband connections and more than 120 crore telephone subscribers. A total of 2.18 lakh gram panchayats have been connected through optical fiber network under the Bharat Net scheme and 6.92 lakh km of fiber cable has been laid.T The Union Government has also showcased interest in Artificial Intelligence with three AI Centres of Excellence to be setup in top educational institutions. India is also working over the development of AI models such as BharatGen, Sarvam-1, Chitralekha and Hanooman's Everest 1.0. On june 10, Prime Minister Modi shared an article on the government's commitment in advancing India's digital connectivity over the past 11 years. PM shares an article by Union Minister Scindia Sharing an article by Union Minister Jyotiraditya Scindia, PM Modi said, "Our government has been constantly striving to provide world-class facilities in digital connectivity to the country. In his article, Union Minister Jyotiraditya Scindia has explained in detail how the success achieved in this in the last 11 years is inspiring us to move forward even faster in this direction. "In his article, Mr. Scindia elaborated on how villages have started telling the story of digital said on X, "In the last 11 years, the historic decisions taken in the telecom sector and the Postal Department, under the leadership of Prime Minister Narendra Modiji, have given rise to a digital revolution, connecting not only cities, but also villages, forests and borders."
