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Mint
7 days ago
- Business
- Mint
ITR Filing: Income tax slabs for salaried individuals under new regime and old regime
The Income Tax (I-T) Department has extended the deadline for filing income tax return (ITR) for FY 2024-25. The revised due date is now September 15, 2025, extended from the original deadline of July 31, 2025, giving taxpayers an extra 45 days to complete their filings. The Central Board of Direct Taxes (CBDT) extended the deadline for filing returns due to significant changes introduced in the notified ITRs and considering the time required for system readiness and rollout of ITR utilities for Assessment Year (AY) 2025-26. The new tax regime is the default option for taxpayers. Salaried individuals can opt out and choose the old regime if they wish to while filing ITR for FY 2024-25. A belated ITR, submitted after the due date has expired, can only be filed under the new tax regime. Income tax slabs under new tax regime Income slabs (in INR) Income tax rate (in %) 0-3,00,000 0 3,00,001-7,00,000 5 7,00,001-10,00,000 10 10,00,001-12,00,000 15 12,00,001-15,00,000 20 15,00,001 and above 30 Source: Income Tax Department Standard deduction: Under the new tax regime, salaried individuals and pensioners can claim a standard deduction of ₹ 75,000 from their salary or pension income. 75,000 from their salary or pension income. Section 87A rebate: Under the new tax regime, a resident individual whose net taxable income does not exceed ₹ 7 lakh is eligible for a tax rebate of up to ₹ 20,000. This effectively means zero tax liability for those individuals whose taxable income does not exceed ₹ 7 lakh. NPS contribution: Salaried employees can also claim a deduction of up to 14% of their basic salary under Section 80CCD (2) if they opt for the new tax regime when filing the ITR. It's important to note that the government's announcement of zero tax on incomes up to ₹ 12 lakh applies to the current financial year, 2025-26. Hence, this is not applicable to the current ITR filing for FY 2024-25 and will only exempt tax on the income earned between April 1, 2025 and March 31, 2026. There is no change that has been announced in the income tax slabs under the old tax regime. A taxpayer can choose to opt for this regime while filing their ITR on or before the due date. The slabs depend on the taxpayer's age in FY 2024-25, i.e., between April 1, 2024, and March 31, 2025. Income tax slabs for people below 60 years Income slabs (in INR) Income tax rate (in %) 0-2,50,000 0 2,50,001-5,00,000 5 5,00,001-10,00,000 20 10,00,001 and above 30 Source: Income Tax Department Income tax slabs for people aged above 60 years but below 80 years Income slabs (in INR) Income tax rates (in %) 0-3,00,000 0 3,00,001-5,00,000 5 5,00,001-10,00,000 20 10,00,001 and above 30 Source: Income Tax Department Income tax slabs for people aged over 80 years Income slabs (in INR) Income tax rate (in %) 0-5,00,000 0 5,00,001-10,00,000 20 10,00,001 and above 30 Source: Income Tax Department
Indian Express
30-04-2025
- Business
- Indian Express
ITR notified by Income Tax department: Taxpayers can now disclose capital gains in ITR-1
The Income Tax (I-T) Department has notified income tax returns for assessment year 2025-26 (financial year 2024-25) enabling the filing of returns effective April 1. This year onwards, the tax department has included a provision to file details of long-term capital gains within the ITR-1 and ITR-4 formats. Earlier, taxpayers filing ITR-1 had to file the details of capital gains in ITR-2 separately. Taxpayers are required to file details of capital gains where the assessee has only long-term capital gains under section 112A not exceeding Rs 1.25 lakh and does not have any brought forward loss or loss to be carried forward. Ease of filing LTCG The I-T Department, which functions under the Central Board of Direct Taxes (CBDT), will soon operationalise the filing functionalities for the commonly used segments ITR-1 Sahaj and ITR-4 Sugam. ITR-1 can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property, other sources (interest, etc), long-term capital gains under section 112A up to Rs 1.25 lakh, and agricultural income up to Rs 5,000. Section 112A of the Income-tax Act provides for the taxation of long-term capital gains (LTCG) arising from the sale of listed equity shares, equity-oriented mutual funds, and units of business trusts. A long-term capital gain is the profit earned from the sale of shares or other assets when they are held for more than 12 months (for listed securities) or 24 months (for other assets) at the time of sale. ITR-4 can be filed by individuals, Hindu Undivided Families (HUFs) and firms with total income up to Rs 50 lakh, having income from business and profession, and having long-term capital gains under section 112A upto Rs 1.25 lakh. Sandeep Sehgal, Partner-Tax, AKM Global, a tax and consulting firm said, 'Previously, any LTCG under Section 112A, regardless of the amount, necessitated the use of the more complex ITR-2 form. With the latest amendments, individuals can now utilise the simpler ITR-1 (Sahaj) or ITR-4 (Sugam) forms if their LTCG under Section 112A does not exceed Rs 1.25 lakh and they have no capital losses to carry forward or set off. This change streamlines the tax filing process, making it more accessible and less burdensome for small investors and salaried individuals, thereby encouraging timely and accurate compliance.' Details sought by Income Tax Department in ITR Apart from disclosing the income earned from various sources, taxpayers need to provide details of any expenditure over Rs 2 lakh for travel to a foreign country for self or for any other person in the ITR. Any expenditure of over Rs 1 lakh incurred on consumption of electricity during the previous year should also to be declared in the tax return. Taxpayers must also disclose the deposit of an amount or aggregate of amounts of over Rs 1 crore in one or more current accounts during the previous year while filing ITR. Importance of AIS and Form 26AS In addition, while filing the income tax return, the detailed summary through Annual Information Statement (AIS) and Form 26AS is available to the taxpayer, who can either accept it as correct, or provide feedback if there are discrepancies. The AIS is a summary of a taxpayer's financial transactions given in Form 26AS, which contains details of all Tax Deducted or Collected at Source (TDS/ TCS) along with other details regarding interest, dividend, and stock market and mutual fund transactions. Since AIS includes details of financial transactions from reporting entities, the information will be available only after it gets updated from reporting entities such as banks and financial institutions. Similarly, Form 26AS gets updated after the I-T Department processes the TDS returns. Since the last date for filing TDS returns for the January-March quarter is May 31, the updated information is available only in the first week of June. Taxpayers can file their ITR at
