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News18
5 days ago
- Business
- News18
ITR Filing 2025: Confused Between ITR 1 And 4? Know Key Differences To File Correct Income Tax Return
Last Updated: The income tax dept has introduced Excel utilities for ITR-1 (Sahaj) and ITR-4 (Sugam) for FY 2024-25; here's who is eligible to file their income tax returns through these forms. ITR-1 Vs ITR-4: The income tax department has enabled the Excel utilities of ITR-1 (Sahaj) and ITR-4 (Sugam) for the financial year 2024-25 (assessment year 2025-26), thus allowing offline return filing. Online ITR forms will be enabled soon. Tax experts say it is necessary to choose the correct ITR form to avoid any future income tax notice. The Central Board of Direct Taxes (CBDT), the country's apex direct taxes body under the finance ministry, has already notified the latest ITR forms to be used for filing this year. As per the forms, both ITR-1 and ITR-4 have a provision to report long-term capital gains (LTCG) under Section 112A up to Rs 1.25 lakh (exemption limit), to simplify income tax return filing. Earlier, taxpayers had to file ITR-2 and ITR-3 for reporting any capital gain. Section 112A of the Income Tax Act deals with LTCG tax on the sale of listed shares and equity mutual funds. According to the Budget 2024 announcement, LTCG up to Rs 1.25 lakh is exempt. advetisement The Budget also announced several tax changes that were applicable with effect from July 23, 2024, (the Budget announcement date). The latest forms also have a provision to report both pre-July 23, 2024, gains and post-July 23, 2024, gains separately. The CBDT has also made certain changes in the forms with regard to deductions claimed under 80C, 80GG and other sections and has provided a drop down menu in the utility for tax filers to select from. Also, assessees will have to furnish in the ITR section-wise details with regard to TDS deductions. Here's the difference between ITR-1 and ITR-4 as per the latest forms notified by the finance ministry, and which one should you choose for filing. ITR-1 Vs ITR-4: Key Differences, Which One Should You Choose? Selecting the correct income tax return (ITR) form holds significant importance for both individuals and businesses. It ensures adherence to tax laws, minimising the likelihood of penalties or legal issues. Who is eligible to file ITR-1 Sahaj? According to the notified forms, ITR-1 can be filed by a resident individual whose: Total income does not exceed Rs 50 lakh during the FY. Income is from salary, one house property, family pension income Long-term capital gains up to Rs 1.25 lakh under Section 112A. Agricultural income (up to Rs 5,000) Other sources, including interest income. ITR 4 Sugam According to the latest government notification, a similar change has been made to form ITR-4 which applies to taxpayers resorting to presumptive taxation for their business income. The new ITR-4 form for AY 2025-26 also subsumes reporting of LTCG subject to tax under Section 112A of the IT Act within the limit of Rs 1.25 lakh. Who is eligible to file ITR-4? ITR-4 is for resident individuals, HUFs and firms (other than LLP) having total income up to Rs 50 lakh and having income from business and profession which is computed under Sections 44AD, 44ADA or 44AE and agricultural income up to Rs 5,000. ITR-4 can be filed by a Resident Individual / HUF / Firm (other than LLP) who has: Income not exceeding Rs 50 Lakh during the FY Income from Business and Profession which is computed on a presumptive basis u/s 44AD, 44ADA or 44AE Income from Salary/Pension, one House Property, Agricultural Income (up to Rs 5,000/-) Long-term capital gains up to Rs 1.25 lakh under Section 112A. Other sources include (excluding winning from Lottery and Income from Race Horses):-Interest from Savings Account-Interest from Deposit (Bank / Post Office / Cooperative Society)-Interest from Income Tax Refund-Family Pension-Interest received on enhanced compensation-Any other Interest Income (e.g., Interest Income from an unsecured loan). Advertisement Documents Needed To File ITR PAN and Aadhaar Card, Form 16, Form 26AS and AIS (annual information statement), bank account details, interest certificates, investment proofs for deductions (Section 80C, 80D, etc.) if going for old tax regime, home loan & property-related documents (if applicable), capital gains statements, foreign income & assets (if applicable), business or freelance income details, advance tax and self-assessment tax challans, old tax notices and previous year ITR. When Will You Receive Form 16? top videos View All Though the ITR filing has started with the offline utilities available, tax experts advise the salaried individuals to file ITR after they receive their Form 16. Form 16 is a critical document for salaried taxpayers. It is issued by employers and provides a detailed summary of the salary paid and the tax deducted at source (TDS) during the financial year. As per the income tax rules, employers must issue Form 16 by June 15, 2025. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : income tax income tax return Income Tax returns Location : New Delhi, India, India First Published: May 30, 2025, 11:18 IST News business » tax ITR Filing 2025: Confused Between ITR 1 And 4? Know Key Differences To File Correct Income Tax Return Latest News Surveen Chawla To Barkha Singh: A Look At The Criminal Justice Season 4 Cast Bollywood Viral Candidate Claims Recruiter Probed Into Family Income, Marriage Plans In Interview Bollywood Dharmendra Calls Bobby Deol, Tanya 'Darling Kids'; Sends Wishes On Wedding Anniversary Agency feeds FHF to celebrate Raj Khosla's centenary with screenings of his restored films Agency feeds Three judges take oath, SC regains full working strength of 34 judges latest news
Business Standard
5 days ago
- Business
- Business Standard
It's time to get Form 16 from your employer, and what to do if it's missing
Salaried Indians have started receiving Form 16, a document employers provide to help in filing Income Tax returns (ITR). Here's when you should get the document. According to the Central Board of Direct Taxes (CBDT) under Rule 31(3) of Income Tax Rules, 1962, salaried employees should receive Form 16 by June 15. Employers are required to furnish Form 16 within 15 days after filing the fourth quarter TDS return (Form 24Q), which is due on May 31. This means the last date to issue Form 16 is June 15, as per CBDT norms. What is Form 16? Form 16 is a certificate that organisations give to their salaried employees. It is a summary of the salary paid and tax deducted at source in a financial year. It has two parts: Can you file ITR without Form 16? Yes, it is possible to file your tax return even if you haven't received Form 16. Taxpayers can use salary slips, Form 26AS, the Annual Information Statement (AIS), and bank statements as alternatives. 'Taxpayers should use salary slips and compare them with Form 26AS and AIS data. If all three are consistent, one can proceed with ITR filing even without Form 16,' said Ritika Nayyar, partner, Singhania & Co. What if there's a mismatch? Sometimes, the figures in Form 16 may not match what's reflected in the income tax portal. This can delay return filing. 'If there is a mismatch between Form 16 and AIS, taxpayers should reconcile using payslips and seek correction from the employer, if required,' said Sandeep Bhalla, partner at Dhruva Advisors. For FY25 (assessment year 2025-26), the last date to file ITR has been extended to September 15. Filing after this date may attract penalties.
Indian Express
6 days ago
- Business
- Indian Express
ITR Filing Last Date FY 2024-25 (AY 2025-26): Updated deadline for filing income tax returns in India for salaried individuals, companies, and more
ITR Filing Updated Last Date FY 2024-25 (AY 2025-26): As the income tax season approaches, individuals and companies across India must exercise their civic obligations by filing their income tax returns (ITR) on time. A common mistake which taxpayers tend to make is delaying or missing the ITR filing date, which ultimately could result in taxpayers losing certain rights, facing penalties, and incurring interest on unpaid taxes. According to the latest notification issued by the Central Board of Direct Taxes (CBDT), it has been decided to extend the deadline for filing returns due to the extensive changes introduced in the notified Income Tax Returns (ITRs) and the time required for system readiness and rollout of ITR utilities for Assessment Year (AY) 2025-26. The ITR filing process usually begins on April 1st of the assessment year; so, for Fiscal Year 2024-25 (Assessment Year 2025-26), filing should have begun on April 1, 2025; however, due to significant modifications in the ITR forms, the ITR filing process is now scheduled to begin in June 2025. To provide a seamless and convenient filing experience for taxpayers, the deadline for filing ITRs, which was originally due on July 31, 2025, has been extended to September 15, 2025. However, if one misses the ITR filing date, they can file a belated return by Wednesday, December 31, 2025, with penalties and interest. Source:
Hindustan Times
7 days ago
- Business
- Hindustan Times
Income tax returns filing due date extended: step-by-step guide to file ITR
The Central Board of Direct Taxes (CBDT) has extended the due date for filing ITR for the year 2025-26 to September 15 due to the changes in the forms. The reason for this change was stated as technical reasons, including the necessary system development needed. Also read: ITR filing extension: CBDT announces new deadline for AY 2025-26
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First Post
7 days ago
- Business
- First Post
Deadline extended, new form notified: Why filing income tax returns will be different this year
The Central Board of Direct Taxes (CBDT) has extended the deadline to file income tax returns (ITRs) from July 31 to September 15, 2025. This extension is part of several changes introduced in the ITR filing process this year. One such change is the introduction of Form ITR-U (Income Tax Updated Return), notified on May 19, which allows taxpayers to file or revise returns for up to 48 months read more The last date for filing ITRs has been moved from July 31 to September 15, 2025. (File Image) Filing income tax returns (ITRs) for the assessment year 2025-26 will be a bit different this time. The Central Board of Direct Taxes (CBDT) has issued all seven ITR forms. These now include some changes in how people report capital gains. On Tuesday, the CBDT also pushed the . The last date has been moved from July 31 to September 15, 2025. So, what's new this year? We explain everything you need to know in this explainer. STORY CONTINUES BELOW THIS AD Let's take a look: Deadline extended for filing ITRs The last date to file income tax returns for the assessment year 2025-26 has been shifted. It was earlier set for July 31, 2025, but now the new deadline is September 15, 2025. As per the Central Board of Direct Taxes, this move aims to address concerns raised by stakeholders. It also gives more time for taxpayers to meet the requirements properly, helping to keep the process accurate and in order. Kind Attention Taxpayers! CBDT has decided to extend the due date of filing of ITRs, which are due for filing by 31st July 2025, to 15th September 2025 This extension will provide more time due to significant revisions in ITR forms, system development needs, and TDS credit… — Income Tax India (@IncomeTaxIndia) May 27, 2025 In its press note, the CBDT shared that the ITR forms for AY 2025-26 have been revised. These changes were made to make filing easier, bring more clarity, and allow for better reporting of information. Because of the updates, more time was needed to develop and test the systems that support these forms, the CBDT said. STORY CONTINUES BELOW THIS AD It added that the deadline was extended to September 15 to allow time for system upgrades and the launch of the ITR filing tools for AY 2025-26. Even though all the forms are now available, taxpayers still cannot file their returns. This is because the e-filing tools, the software used to submit the forms on the tax website, are not ready yet. So, while the forms can be downloaded, online filing will have to wait until the tools are working. New form 'ITR-U' launched The ITR forms from ITR-1 to ITR-7, along with the ITR-V form, have all been released. This year, a new form has also been notified- ITR-U (Income Tax Updated Return). Introduced on May 19, it lets taxpayers file or revise returns for up to 48 months, under the latest Finance Act. This means returns can now be updated for the assessment years 2021-22, 2022-23, 2023-24, and 2024-25. In its press note, the CBDT shared that the ITR forms for AY 2025-26 have been revised. (File Image) The Finance Act, 2025, has increased the time limit from the earlier 24 months. The government has also changed Section 139(8A) of the Income Tax Act. STORY CONTINUES BELOW THIS AD As per the new rules, ITR-U cannot be filed if a show-cause notice under Section 148A is issued more than 36 months after the end of the relevant assessment year. However, if the assessing officer decides under Section 148A(3) that reassessment is not needed, then ITR-U can still be filed within 48 months. Some rules still apply. Taxpayers cannot use ITR-U to claim refunds or to carry forward losses. They also cannot reduce the income that was reported in an earlier return. New rules for reporting capital gains The exemption limit for long-term capital gains (LTCG) on listed shares and equity mutual funds has been raised from Rs 1 lakh to Rs 1.25 lakh. This move is meant to support small investors. Taxpayers who have LTCG up to Rs 1.25 lakh and no capital loss to carry forward can now use the simpler ITR-1 or ITR-4 forms. Earlier, they had to fill out ITR-2 or ITR-3, even if they did not owe any tax. The revised ITR-1 and ITR-4 forms now have dedicated fields to report exempt LTCG under Section 112A. This change is expected to ease the process for salaried individuals and small business owners. STORY CONTINUES BELOW THIS AD However, if you have short-term capital gains or any capital losses that you want to carry forward, you will still need to use one of the other ITR forms. As the Budget 2024 introduced new tax rates for capital gains, the Capital Gains Schedule has been updated. Now, gains must be reported separately for periods before and from July 23, 2024, so the correct tax rates can be applied. Tax on buyback of shares From October 1, 2024, companies will no longer pay tax on buying back their shares. Instead, investors must report the amount received as a deemed dividend under 'Other Income' in their ITR. Any capital loss linked to the buyback must be shown separately. ITR-5 and ITR-6 have been updated to reflect this change. ITR-5 now allows only genuine buyback losses, provided the dividend has been taxed. ITR-6, which is for companies, now includes new sections for reporting capital gains, income from cruise operations, and diamond-related profits. Taxpayers cannot use ITR-U to claim refunds or to carry forward losses. (News18/File Image) Reporting payments to MSMEs If you earn income from a business or profession, you now need to mention how many days it took to make payments to Micro, Small, and Medium Enterprises (MSMEs). Asset and liability reporting The limit for reporting assets and liabilities under the AL Schedule has been raised from Rs 5 million to Rs 10 million. Although this offers some relief, it is still a good idea to keep detailed records of your assets, debts, and any changes during the year. This helps you stay organised and manage your finances better. STORY CONTINUES BELOW THIS AD Why salaried taxpayers should avoid filing ITRs before June 15 Tax professionals suggest that salaried individuals should wait until June 15, 2025, to file their income tax returns, even though the forms are already available. In previous years, the forms were released well ahead of time. This year, they were notified only by the end of April 2025. Also, the income tax department has not yet released the tools needed to file returns online. Tax professionals suggest that salaried individuals should wait until June 15, 2025, to file their income tax returns. (File Image) Form 16 is another key reason for the delay. It is issued by your employer and shows your salary details and tax deductions. It also lists your total income, exemptions under sections like 80C and 80D, and any other deductions. Employers issue Form 16 by June 15 every year. That's why salaried taxpayers are advised to wait until then before filing their returns.
