Latest news with #ITR-2
Mint
7 hours ago
- Business
- Mint
ITR-1 to ITR-5: Find out which income tax form you would need as you file your return
As the income tax return (ITR) filing season is back, taxpayers are busy arranging their documents to be able to file their return on time i.e., before Sept 15, 2025. Among other things, taxpayers are meant to use the correct income tax return filing form and file their return accordingly. Here, we give a lowdown on the key income tax forms and which taxpayers must use as they file their tax returns. ITR1 (Sahaj): This income tax form is primarily used by the taxpayers whose income is lower than ₹ 50 lakh during the financial year and income comes mainly from salary, one house property, family pension income, agricultural income, long term capital gain and other sources, including savings accounts, interest from deposits, interest from income tax refund, any other interest income. But one should make sure that it is not filed by an individual whose total income exceeds ₹ 50 lakh, is a director in a company, is an NRI or has income from more than one house property. ITR 2: Now if you are not eligible to file ITR-1, you can file your return using ITR-2 if you do not have income from profit and gains of business or profession and also do not have income from profits and gains of business or profession in the nature of interest, salary, bonus or commission or remuneration received from a partnership firm. But make sure you do not file ITR-2 if your income includes income from profit and gains from business or profession and has income in form of interest, salary, bonus or commission. ITR 3: This tax return form is meant to be used by taxpayers or HUF who has income under the head ― profits or gains of business or profession and who is not eligible to file Form ITR-1 (Sahaj), ITR-2 or ITR-4 (Sugam). In other words, all freelancers, self-employed persons can file tax returns under ITR-3. ITR 4 (Sugam): This tax return form is meant to be filed by someone whose income does not exceed ₹ 50 lakh during the FY. The main income from business and profession is computed on a presumptive basis under sections 44AD, 44ADA or 44AE and long-term capital gain under section 112A not exceeding Rs.1.25 lakhs. But make sure you do not filed return with ITR-4 if you are a resident but not ordinarily resident or non-resident Indian, has income exceeding ₹ 50 lakh, short term capital gains, long term capital gains under section 112A exceeding ₹ 1.25 lakh, has agricultural income in excess of ₹ 5,000 or has income from more than one house property or is a director in a company. ITR 5: This tax return filing form is to be filed by firm and Limited Liability Partnership (LLP), Association of Persons (AOP) and Body of Individuals (BOI) (which also include trusts like private trust/ private discretionary trust / gratuity trust / PF Trust which are not eligible to file Form ITR-7), Artificial juridical person referred to in section 2(31)(vii), Local Authority and societies. For all personal finance updates, visit here
Time of India
7 hours ago
- Business
- Time of India
Is filing ITR tougher this year? Experts decode new tax return forms, tax refund delays, and stricter scrutiny
Has the ITR filing process become tougher this year with the introduction of new forms and utilities? Academy Empower your mind, elevate your skills Many people usually file their ITR to claim an income tax refund. Will there be a delay in income tax refunds this year due to the late release of ITR utilities, date mismatches, etc.? Will there be increased scrutiny of ITRs this year, and is the process more stringent than before? As the tax filing season for FY 2024-25 (AY 2025-26) begins, taxpayers are preparing to file their Income Tax Return ( ITR ). However, this year's ITR filing experience will be different from previous years due to several modifications introduced by the Income Tax Act of 1961 for FY 2024-25, which are proving to be a challenge for many taxpayers. The revised ITR forms for FY 2024-25 (AY 2025-26) and a more rigorous data collection and verification process have raised concerns about the increased complexity of filing ITR this Wealth Online spoke to several tax experts to gain insights into the changes in this year's ITR filing process, the reasons behind the increased complexity, and the potential for enhanced scrutiny by the Income Tax changes introduced in the ITR filing this year have significantly increased the complexity of the ITR filing process. This includes providing details to claim various deductions and exemptions, as well as capital gains bifurcations depending on the date of asset sales, among other things. According to tax experts, while the modifications aim to improve transparency and ensure accurate reporting, they have also increased the level of diligence and preparation required by read: ITR filing last date for FY 2024-25 is not same for all: Check due dates for salaried individuals, professionals, companies, proprietorship firms, other taxpayers Tarun Kumar Madaan, a practicing chartered accountant (CA), says, "While the fundamental structure of the ITR forms has not undergone a complete overhaul, the detailed information and disclosures required within them have expanded significantly this year, presenting new challenges for taxpayers. The primary issue has been the delayed release of ITR-2 and ITR-3 utilities, which are essential for individuals with capital gains, foreign income, or business/professional income. While ITR-1 and ITR-4 utilities were made available earlier, the significant delay in releasing ITR-2 and ITR-3 (until mid-July 2025) meant that although the filing season officially began, it could not commence in full swing for a large section of taxpayers. Though the due date has now been extended to September 15, 2025, the reduced effective filing window has led to considerable stress and backlog."Suresh Surana, a practicing CA, concurs, saying, "Yes, the process of filing ITR has become more complex this year, primarily due to the introduction of revised ITR forms. The Income Tax Department released the Excel utilities for ITR-1 and ITR-4 in late May 2025, whereas the utilities for ITR-2 and ITR-3 were made available only on 11 July 2025, significantly delaying the start of the filing window for taxpayers with more complex income structures. There are key structural changes in the ITR forms that have contributed to the increased compliance burden. Taxpayers are now required to provide detailed disclosures of capital gains, including bifurcation based on gains accrued before and after the Finance Act amendments effective from July 23, 2024. Additionally, detailed requirements are now required. For instance, to claim deductions or exemptions, taxpayers must furnish policy numbers, landlord PAN details for HRA claims, and insurer details for health insurance deductions. These requirements necessitate thorough record-keeping and accurate data input."Also read: Income Tax Dept cracks down on bogus claims of tax deductions like 80GGC; What can taxpayers do? The threshold for mandatory disclosure of assets and liabilities has been revised upwards from Rs 50 lakh to Rs 1 crore this year. "While this may offer relief to some, those falling within the reporting threshold must still comply with rigorous asset classification and disclosure norms. Moreover, any mismatch between the taxpayer's financial profile and the ITR form selected, such as choosing ITR-1 despite having capital gains exceeding Rs 1.25 lakh, may trigger defect notices and render the return invalid," Surana told ET Wealth Online."Over 1.08 crore returns for AY 2025-26 have already been verified and processed out of 1.27 crore filed returns. This year, the income tax refunds are witnessing delays primarily due to a combination of systemic and procedural factors. One of the key reasons is the delayed release of ITR utilities. While ITR-1 and ITR-4 utilities were made available by the end of May 2025, utilities for ITR-2 and ITR-3 were released only on July 11, 2025. This significantly compressed the window for the timely filing and processing of returns, causing a cascading delay in refund issuance," Surana told ET Wealth with this view, Madaan says, "Yes, the delay in releasing ITR utilities, particularly for taxpayers with capital gains, has directly contributed to delays in income tax refunds. Many taxpayers expecting refunds were unable to file their returns on time and, therefore, could not initiate their refund claims. Since refunds are processed only after the return is filed and verified, this delay has had a cascading impact."Apart from the delay in releasing ITR utilities, other reasons can also impact the income tax refunds. Surana says, "Refunds may be held in cases where there are pending assessments or outstanding tax demands from earlier years. In such scenarios, the department may adjust the current year's refund against past dues, which can prolong the refund process until the issue is resolved.""Refunds may be withheld or adjusted if there are mismatches between the tax return and data in Form 26AS, Annual Information Statement (AIS), or Taxpayer Information Statement (TIS), or if there are outstanding demands or pending assessments from previous years. However, the department is obligated to pay interest on delayed refunds under Section 244A of the Income Tax Act. This interest typically applies from April 1st of the assessment year, if the tax return is filed by the due date, or from the date of filing if it is filed after the due date, until the date the refund is issued," Madaan told ET Wealth says, "The tax department's increased use of data analytics and artificial intelligence to cross-verify information means that discrepancies are identified much faster and more frequently than before. If there are mismatches or underreported income, especially in high-value transactions, the system automatically flags the tax return and proposes an adjustment. To avoid such notices or delays, it is crucial for taxpayers to meticulously cross-verify their return data with Form 26AS, AIS, and TIS before submission. This year, accuracy and data matching are more important than ever."Surana says, "The tax department has introduced more comprehensive reporting requirements across various sections, from capital gains to claiming deductions, which further enhances the level of detail that taxpayers must provide. This increased scrutiny is likely to be complemented by enhanced automated systems designed to flag inconsistencies or missing details, making the process both more precise and more stringent. As a result, taxpayers can expect a higher likelihood of receiving tax notices for further clarification or audit, particularly if their tax returns show discrepancies or fail to meet the updated disclosure norms. Overall, the filing process has now become more meticulous. Any inconsistencies, particularly in high-value refund claims, house rent allowance (HRA) deductions without adequate substantiation, or capital gains and crypto income reporting, would be flagged for further scrutiny, including issuance of notices."
India Today
a day ago
- Business
- India Today
Haven't got your tax refund yet? Here's why it may be delayed
It's that time of year when many people are waiting for their income tax refunds to arrive. While some taxpayers have already got their money back, many are still waiting and wondering why it's taking so year, the Income Tax Department has released offline Excel tools for forms ITR-2 and ITR-3, which are used by many individual taxpayers. But there have been some early technical glitches. Due to this, some tax professionals have not yet started filing these returns for their the other hand, people who use ITR-1 (Sahaj) and ITR-4 (Sugam), mostly pensioners, salaried people and small business owners, are getting their refunds faster, as these forms are running smoothly for your refund hasn't arrived yet, here are some common reasons it might be held DEDUCTION CLAIMSSometimes, taxpayers claim deductions like HRA or medical insurance without having proper proof. If the tax department finds something suspicious, they may stop your refund and send you a notice for more IN ITR AND AIS DATAYour tax return must match the details in your Annual Information Statement (AIS) or Form 26AS. If there's a difference, your refund can get delayed until it's BANK DETAILSIf you make a mistake while entering your bank account number or IFSC code, your refund won't reach you. Also, your bank account must be pre-validated and linked correctly to the I-T ACCOUNT-PAN MISMATCHIf the name on your bank account does not match your PAN card, for example, if you have a joint account or a spelling difference, your refund can get held ISSUED BUT NOT CREDITEDSometimes, the refund is released but doesn't reach you because the account is inactive, the IFSC code has changed, or your KYC is incomplete. In these cases, you'll need to raise a refund reissue request on the I-T ADJUSTED AGAINST DUESIf you have unpaid tax from earlier years, the department may adjust it against your refund. They usually inform you about this by email or SMS. Sometimes, the full refund amount gets UNDER SCRUTINYIf your return has been picked up for extra checking or assessment, your refund will be on hold until that process is done. This can take longer than if your refund is delayed, check these points first and respond promptly to any notices from the tax department.- Ends advertisement
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First Post
3 days ago
- Business
- First Post
Income tax dept enables online ITR-2 filing with pre-filled data: How this is a big relief
The Income Tax Department has now made ITR-2 available for online filing with pre-filled data. This update makes it easier for salaried individuals, those owning multiple properties, and people with capital gains to file their returns without downloading Excel utilities or uploading files manually. Until now, only ITR-1 and ITR-4 could be filed online. ITR-2 was limited to the Excel utility, which involved a slower, more manual process read more As of July 18, more than 1.41 crore returns have been filed, and 1.12 crore of them have already been processed. (File Photo) The Income Tax Department has now allowed online filing of ITR-2 with pre-filled data available on the e-filing portal. Notably, this form is meant for people who need to file their Income Tax returns (ITR) on income earned through salary, pension, capital gains, or other sources. Those who have income from a business or profession are required to use Form ITR-3 instead. So, what's new this time? Who is expected to use this form? And what about the other ITR forms? STORY CONTINUES BELOW THIS AD Let's take a look: What's new? The Income Tax Department posted an update on X: 'Kind Attention Taxpayers! Income Tax Return Form of ITR-2 is now enabled for filing through online mode with pre-filled data at the e-filing portal.' This means salaried individuals, those who own more than one house, and people with capital gains can now file their returns more easily, without needing to download Excel sheets or deal with manual uploads. Kind Attention Taxpayers! Income Tax Return Form of ITR-2 is now enabled for filing through online mode with pre-filled data at the e-filing portal. Visit: — Income Tax India (@IncomeTaxIndia) July 18, 2025 Earlier, only ITR-1 and ITR-4 could be filed online. ITR-2 was only available through the Excel utility, which was a slower and more manual process. Now, those eligible for ITR-2 can either file it directly online using pre-filled data or download the Excel utility and upload it after filling it out. With this change, the portal now: Automatically fills in details from Form 26AS, AIS, PAN, and TIS Lets users file their returns directly on the portal Removes the need to create and upload JSON files This update makes it easier for people with more complex financial details to file their returns. Why was it delayed? Usually, the department rolls out online filing utilities by April or May. But this year, there was a delay of over 100 days in releasing ITR-2 and ITR-3, which left many taxpayers waiting. STORY CONTINUES BELOW THIS AD The last date for filing ITRs has been moved from July 31 to September 15, 2025. (File Image) Because of this delay and the changes made to ITR forms, the government extended the deadline for filing returns (for non-audit cases) from July 31 to September 15, 2025. As of July 18, more than 1.41 crore returns have been filed, and 1.12 crore of them have already been processed. Who should use ITR-2? Form ITR-2 is for individuals and Hindu Undivided Families (HUFs) who: Have income from salary or pension Own more than one residential property Have capital gains from shares, mutual funds, or property sales Hold foreign assets or earn income abroad However, this form cannot be used by anyone earning income from a business or profession, or by those receiving payments from a partnership firm. ITR forms: Who should use which one? ITR-1 This form is for resident individuals with a total income of up to Rs 50 lakh. Earlier, individuals with capital gains were not allowed to use ITR-1. However, the updated version now lets them file through ITR-1 if they have long-term capital gains from the sale of listed equity shares or equity mutual fund units, and the total gain does not exceed Rs 1.25 lakh in a financial year, according to The Economic Times. The government extended the deadline for filing returns (for non-audit cases) from July 31 to September 15, 2025 (File Image) ITR-3 ITR-3 is meant for individuals earning from a business or profession. This includes freelancers, consultants, traders (including those trading in stocks or cryptocurrency), and people with foreign assets or complex income structures. The Excel utility for ITR-3 has been made available, but the online filing with pre-filled data has not yet been enabled. So, people in this category must still use the Excel utility and upload a JSON file. ITR-4 This form is for resident individuals, Hindu Undivided Families (HUFs), or firms (excluding LLPs) with income up to Rs 50 lakh. It covers those with income from a business or profession under the presumptive taxation scheme (sections 44AD, 44ADA, or 44AE), along with income from salary or pension, one house property, agricultural income up to Rs 5,000, and income from other sources. STORY CONTINUES BELOW THIS AD ITR-5 This form is for entities such as firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), and Artificial Juridical Persons (AJPs).
India Today
4 days ago
- Business
- India Today
Filing ITR-2 Online? Check Eligibility & Key Changes First
Filing ITR-2 Online? Check Eligibility & Key Changes First 18 Jul, 2025 Credit: Getty Taxpayers can file directly on the Income Tax Department's e-filing portal using pre-filled data, which saves time compared to the offline Excel version. Online ITR-2 filing is now live Many prefer it over the offline Excel utility as some details get filled in automatically, reducing manual work. The online mode quicker & easier Taxpayers can still use this to fill forms offline and then upload them on the portal if they prefer. Excel utilities for ITR-2 released earlier It's for individuals and Hindu Undivided Families (HUFs) who have income from salary, pension, more than one house, capital gains, or other sources — but not business or professional income. Who should use ITR-2? Taxpayers must now report long-term capital gains separately for periods before and after 23 July 2024 due to revised indexation and tax rate rules. New capital gains rule Anyone earning over Rs 1 crore must now declare their assets and liabilities. Earlier, this was only required if income crossed Rs 50 lakh. Higher disclosure limit for assets
