Latest news with #ITR-3
Mint
3 days ago
- Business
- Mint
ITR 2025: Sahaj or Sugam — Which is the right income tax form for you?
After the income tax department has extended the last date to file income tax return by 45 days till September 15, taxpayers are likely to be nonchalant. Meanwhile, it is worth noting that CBDT has enabled excel utilities for ITR-1 and ITR-4. As a taxpayer, you are supposed to know which tax form applies to you based on the source of your income. Here, we give a lowdown on the common income tax forms from ITR-1 (sahaj) to ITR-4 (sugam). ITR-1: Also known as sahaj, this form is meant for those taxpayers whose total income does not exceed ₹ 50 lakh during the financial year. The income should be from salary, one house property, family pension income, agricultural income (up to ₹ 5,000), and other sources, which include interest from savings accounts, interest from deposits (bank / post office / cooperative society), interest from income tax refund, interest received on enhanced compensation, any other interest income and family pension. ITR-2: This can be filed by individuals or Hindu undivided family (HUF) who are not eligible to file ITR-1 (Sahaj). Additionally, those who 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, commission or remuneration received from a partnership firm. ITR-3: The ITR-3 form is primarily meant for those taxpayers who are engaged in business or profession, who are required to maintain books of accounts. Those who do not have income from business or profession are not eligible to file their returns under ITR-3. ITR-4: Also known as sugam, ITR-4 can be filed by a resident individual/ HUF/ firm (other than LLP) who has income not exceeding ₹ 50 lakh during the financial year and has income from business and profession which is computed on a presumptive basis under sections 44AD, 44ADA or 44AE or income from salary/ pension, one house property, agricultural income (up to ₹ 5,000). Other sources which include interest from savings account, interest from deposit (bank/ post office / cooperative society), interest from income tax refund, family pension, interest received on enhanced compensation and any other interest income (such as interest income from unsecured loan). Visit here for all personal finance updates.
News18
22-05-2025
- Business
- News18
ITR Filing FY2024-25: 7 Types Of Taxpayers In India; Know Which ITR Form Applies To You
Last Updated: ITR Filing FY2024-25: It's quintessential to choose the correct ITR form based on one's income sources and entity type to ensure compliance and avoid penalties. ITR Filing FY2024-25: The new Income Tax filing season kicks in on April 1, 2025. To avoid any violation and penalty, taxpayers must file their income tax return (ITR) before the deadline, which is July 31. The Income Tax Department has notified all forms from ITR-1 to ITR-7 for the financial year 2024-25 (AY 2025-26). There are seven types of taxpayers under the income tax rules in India, from individual to company. Understanding your category will help you to choose the right ITR form for you based on income sources and entity types, which eventually decreases the risk of being rejected due to an anomaly or discrepancy. Let's understand the seven types of taxpayers in the country and which one is appropriate for you. 1. Individual Who: Single taxpayers, including salaried employees, freelancers, and professionals. Taxation: Based on income slabs; different rates for general, senior (60–80 years), and super senior citizens (80+ years). ITR Forms: ITR-1 (Sahaj): For salaried individuals with income up to ₹50 lakh. ITR-2: For those with capital gains or multiple properties. ITR-3: For income from business/profession. ITR-4 (Sugam): For presumptive income under Sections 44AD, 44ADA, or 44AE. 2. Hindu Undivided Family (HUF) Who: A family unit with common ancestors, treated as a separate entity. Taxation: Similar to individuals, with applicable deductions and exemptions. ITR Forms: ITR-2, ITR-3, or ITR-4, depending on income sources. 3. Company Who: Private or public limited companies registered under the Companies Act. Taxation: Flat corporate tax rates; special provisions like Minimum Alternate Tax (MAT) may apply. ITR Form: ITR-6 (except for companies claiming exemption under Section 11). Taxation: Taxed either at individual rates or maximum marginal rate, based on specific conditions. ITR Form: ITR-5. Who: Municipalities, Panchayats, and other local governing bodies. Taxation: Income from commercial activities is taxable; certain incomes may be exempt. ITR Form: ITR-5 7. Artificial Juridical Person (AJP) Who: Entities not covered above, like trusts, societies, and other legal entities. Taxation: Varies based on the nature of the entity and its income. ITR Forms: ITR-5: For general AJPs. ITR-7: For entities claiming exemptions under Sections 11, 12, etc., like charitable trusts. It's quintessential to choose the correct ITR form based on one's income sources and entity type to ensure compliance and avoid penalties. First Published: May 21, 2025, 06:26 IST
Mint
16-05-2025
- Business
- Mint
ITR Forms Sahaj and Sugam: All you need to know before you file your income tax return
As income tax return (ITR) filing season is here, taxpayers will start filing their returns as soon as the excel utility is released. The tax department has already notified various tax forms including ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7. Meanwhile, the tax department is also running an awareness campaign to apprise taxpayers about various nuances of tax filing. In the latest post of 'Let's learn tax', the income tax department answered these questions -- who should file, why to file, when to file and how to file. Here, we give a lowdown on different income tax return (ITR) forms which taxpayers are supposed to file: It can be filed by a resident individual whose total income does not exceed ₹ 50 lakh during the financial year. The income can be from salary, one house property, family pension income, agricultural income (up to ₹ 5,000), and other sources, which include interest from savings accounts, interest from deposits (bank /post office/ cooperative Society), interest from income tax refund, interest received on enhanced compensation, any other interest income and family pension. ITR-1 can also be filed by someone whose income of spouse (other than those covered under Portuguese Civil Code) or Minor is clubbed (only if the source of income is within the specified limits as mentioned above). But ITR-1 can not be filed by an individual who is a resident not ordinarily Resident (RNOR), and Non-Resident Indian (NRI), has total income exceeding ₹ 50 lakh, has agricultural income exceeding ₹ 5,000, has income from lottery, racehorses, legal gambling, has taxable capital gains (short term and long term), has invested in unlisted equity shares, has income from business or profession, is a director in a company, has tax deduction under section 194N of Income Tax Act, has deferred income tax on ESOP received from employer being an eligible start-up, owns and has income from more than one house property. ITR-4 can be filed by a resident individual who has income not exceeding ₹ 50 lakh during the financial year and has income from business/profession which is computed on a presumptive basis under sections 44AD, 44ADA or 44AE. The return is also filed by someone who has income from salary/pension, one house property, agricultural income (upto ₹ 5,000) and other sources which include interest from savings account, interest from deposit, interest from income tax refund, family pension, interest received on enhanced compensation and any other interest income (e.g., interest income from unsecured loan). But ITR-4 can not be filed by someone who is a resident but not ordinarily resident (RNOR), or non-resident Indian, has total income exceeding ₹ 50 lakh, has agricultural income in excess of ₹ 5,000, is a director in a company, and has income from more than one House Property. Visit here for all personal finance updates.
India Today
13-05-2025
- Business
- India Today
ITR Filing 2025: All 7 forms out, key changes taxpayers must know
The Income Tax Department has released all seven ITR (Income Tax Return) forms for the Assessment Year 2025-26. These forms are used to file returns for the financial year 2024-25.A QUICK LOOK AT WHO SHOULD USE WHICH FORMThe ITR-1 (Sahaj) and ITR-4 (Sugam) forms continue to serve as the go-to options for small and medium is meant for resident individuals with a total annual income of up to Rs 50 lakh, coming from salary, one house property, and interest income, along with a small agricultural income of up to Rs 5, ITR-3 is applicable to individuals and Hindu Undivided Families (HUFs) with income from business or profession, while ITR-4 is used by individuals, HUFs and firms other than Limited Liability Partnerships (LLPs) who earn up to Rs 50 lakh through business or professional those with capital gains but no business income, ITR-2 is the right is used by firms, LLPs and cooperative societies. Companies registered under the Companies Act file ITR-6, while ITR-7 is meant for trusts and charitable CHANGE FOR SALARIED AND SMALL TAXPAYERSOne big change this year affects salaried individuals and small business owners who earn long-term capital gains (LTCG) from listed shares or mutual funds. If the gains are up to Rs 1.25 lakh a year, they can now file returns using ITR-1 or ITR-4 last year, they had to use ITR-2, which is a bit more complex. This makes the return-filing process smoother for small taxpayers with minor capital THIS MATTERSUnder tax rules, LTCG up to Rs 1.25 lakh from listed equities and mutual funds is tax-free. If your gains go beyond Rs 1.25 lakh, the extra amount is taxed at 12.5%.So, if you're a salaried person or a small trader with some capital gains, you can now avoid the hassle of filling out a complicated CHANGE IN CAPITAL GAINS REPORTINGThere's also a new requirement in ITR-2, 3, 5, 6 and 7 when it comes to reporting capital gains. Now, any gains from the sale of assets have to be separated based on whether they were made before or after July 23, 2024. This change follows the budget announcement made on 24 July change links to the budget update from 24 July 2024. The government reduced the LTCG tax on real estate from 20% (with indexation) to 12.5% (without claiming indexation), only if the property was bought before 23 July 2024. So, you get the flexibility to pick whichever tax method benefits you REPORTING BURDEN FOR BUSINESS OWNERSadvertisementFor those who file ITR-3 (typically business owners and professionals), there's some if your total wealth crossed Rs 50 lakh, you had to give a detailed list of assets and liabilities in 'Schedule AL'. Now, this limit has been raised to Rs 1 if your net worth is under Rs 1 crore, you no longer have to share all those details. This move benefits middle-income business REMINDERFor most individuals, the deadline to file income tax returns is July 31, 2025. If your accounts don't need auditing, it's best not to wait till the last the latest updates aim to make tax filing easier and fairer, especially for salaried individuals, small businesses, and those selling property. It's always a good idea to double-check which form suits your situation best and stay updated on tax changes.
India Today
12-05-2025
- Business
- India Today
ITR Filing 2025: Opting for old tax regime? Here's why Form 10-IEA is a must
It's that time of the year again when taxpayers gear up to file their income tax returns. For the financial year 2024–25 (assessment year 2025–26), the Income Tax Department has already released ITR-1, ITR-3, ITR-4, and ITR-5 forms. Now, if you're planning to go with the old tax regime instead of the default new regime, there's an important step you must not miss, i.e., filing Form form is a must for certain taxpayers who wish to switch back to the old regime. Let us know more about this IS FORM 10-IEA?Form 10-IEA is a declaration form for those who do not want to follow the new tax regime. If you earn income from a business or profession, and you wish to continue with the old tax regime (which allows various deductions and exemptions), this form is essential. Individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), or Artificial Juridical Persons with such income must submit Form 10-IEA before the due date for filing their the other hand, salaried individuals or pensioners without business or professional income don't need to file this form. They can opt for the old tax regime by simply selecting the appropriate option in their ITR MUST FILE IT?advertisementTo file Form 10-IEA, taxpayers need to have business or professional income and must use ITR-3 or can simply choose the "Opting out of new regime" option while filing their ITR. The form must be submitted within the deadline set by Section 139(1).Skipping this step could mean being taxed under the new regime, even if you wanted to claim benefits allowed under the old TO FILL FORM 10-IEATo complete Form 10-IEA, you'll need to enter some essential information. This includes your full name as per PAN, and the correct assessment year (such as AY 2025–26 for income earned in FY 2024–25).It's important to state whether you're discontinuing or returning to the default tax regime, as it determines how your income will be taxed, including what exemptions and deductions you can claim. If you are switching regimes, you must also mention the date from which the new regime with business or professional income need to confirm that their earnings fall under "Profits and Gains of Business or Profession."A simple yes/no confirmation is needed for owning any units in an International Financial Service Centre (IFSC), and if the answer is yes, further details must be given. Other important information includes the taxpayer's address, date of birth, PAN, type of business or profession, any earlier Form 10-IE filed, and a declaration to complete the process.
