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NDTV
3 days ago
- Business
- NDTV
How To File ITR If You Have Multiple Incomes? Simplified Steps
The Income Tax (IT) Department has started the process to file the income tax return (ITR) for the financial year 2024-25, corresponding to the assessment year 2025-26. While filing ITR is relatively easier for individuals with only one source of income, those with multiple streams may have a hard time keeping up with the regulations. As the ITR filing window is open, here is how taxpayers with income from multiple sources should go about their business: Gather all documents: This should be 101, but gathering all the documents is the first step. Collect the relevant salary slips, rental agreements, investment receipts and Form 26 AS. The latter is important for Tax Deducted at Source (TDS) and tax Collected at Source (TCS) claims during the financial year. Correct forms: Once the documents have been collected, the next step is to choose the correct ITR form. ITR 3 and ITR 4 are the two forms meant for taxpayers with income from business and other professions. Meanwhile, ITR-4 is for taxpayers who opt for presumptive business income. Assess total income to calculate tax: Income and tax calculation involves determining earnings from each source and aggregating them to determine your total taxable income. Various income sources may carry different tax implications. Deductions and exemptions: Make sure to consider potential deductions and exemptions that could lower your tax burden. The deductions will largely depend on the tax regime (old or new) you may have opted for. ITR deadline extended Earlier this week, the Income Tax Department extended the date to file the ITR to September 15 from the earlier deadline of July 31 to enable a smoother filing experience for taxpayers. ITR filing: Key deadlines to remember Individuals and non-audit cases: September 15, 2025 Audited Accounts (business or professionals): October 31, 2025 Taxpayers requiring transfer pricing cases (Form 3CEB): November 30, 2025 Belated or revised return: December 31, 2025 Failure to file the ITR may result in a notice from the Income Tax Department. If your reply is not accepted, it could lead to a penalty or in some cases, imprisonment.
India Today
23-04-2025
- Business
- India Today
Forgot to declare your tax regime choice to employer? Here's what happens
If you're a salaried employee, your employer must have asked you to choose between the old and new tax regimes for the current financial year (2025-26) for TDS the right regime according to your income and eligible deductions, can help you save a fair bit of money during the year. However, forgetting to inform your employer or being late with a deadline can understand in this article what happens if you miss informing your employers about your preferred tax TELL THE EMPLOYER ABOUT TAX REGIME? Your employer deducts tax from your salary every month. This is called TDS (Tax Deducted at Source). To calculate the correct amount, your employer needs to know which tax regime you've chosen. If you don't inform them, they'll go with the default option, which is the new tax government made the new tax regime the default one from April 1, 2023. So, if you say nothing, tax will be deducted as per the new regime, even if the old regime would've saved you more COULD GO WRONG?If the old regime is better for you, and you have invested heavily under Section 80C, but don't inform your employer, more tax might be deducted from your salary during the year. You'll have to wait till next year to claim a refund when you file your income tax return (ITR). That means your money will stay stuck with the tax department for the other hand, if the new regime suits you anyway, there's no loss. But it's still a good idea to confirm your choice with your YOU CHANGE THE REGIME MIDWAY?The tax rules don't say if you can switch regimes halfway through the year for TDS purposes. Usually, employers don't allow it, because switching mid-year makes tax calculations tricky. So, it's best to make an informed choice early on and stick to IF YOU CHANGE JOBS DURING THE YEAR?You can choose a different regime with your new employer. The declaration you make is only for that employer's TDS calculation. When you join a new job, you'll need to tell them which regime you want for salary processing."You can switch tax regimes when changing employers. Each employer uses your declaration to deduct TDS based on your preferred tax regime at that point in time. There is no restriction on informing your new employer of a different regime, even within the same financial year. The declaration to employers is solely for TDS purposes. When you join a new company, you are required to fill out a declaration form to indicate your preferred tax regime for salary processing and TDS calculations. This choice is independent of what you selected with your previous employer," said Tarun Kumar Madaan, CA, while speaking to The Economic added, 'When filing your ITR, you have the flexibility to choose either the old or new regime, regardless of what you declared to one or more employers during the year.'Hence, informing your employer early can help you avoid delays, confusion, and unexpected deductions, thereby ensuring that the right amount of tax is deducted from your salary throughout the Watch
