Latest news with #IncomeTaxDepartment
News18
4 hours ago
- Business
- News18
ITR Filing 2025 Begins: Who Needs To File Income Tax Return? All You Need To Know
Last Updated: ITR filing for FY 2024-25 has begun, with a deadline of September 15 for non-audit ITRs; check a detailed guide on who needs to file the income tax return. ITR Filing 2025: The filing of income tax returns has commenced for the financial year 2024-25 (assessment year 2025-26), with a deadline of 15 September for non-audit ITRs. The Income Tax Department permitted Excel Utility-based return filing on 30 May, but online filing is yet to begin. As of 10:30 am on 2 June, a total of 54,389 income tax returns have been filed, of which 48,975 have been verified. Who needs to file an ITR? Here's a detailed guide: Whether you are a salaried employee, a freelancer, a business owner, or even someone without taxable income, there are several situations where filing an ITR is either mandatory or highly recommended. 1. Income Above Basic Exemption Limit For AY 2025-26, the basic exemption limit under the new tax regime is Rs 4 lakh, applicable to all individuals irrespective of age. Under the old tax regime, the exemption limits remain at Rs 2.5 lakh for individuals below 60 years, Rs 3 lakh for senior citizens, and Rs 5 lakh for super senior citizens. (Note: Under the old tax regime, these limits apply before claiming deductions under sections like 80C, 80D, etc.) Who Should Voluntarily File ITR? According to income tax experts, even if you are not legally required to, filing an ITR can be extremely beneficial: To claim income tax refunds (e.g., TDS deducted from salary or bank interest). For visa or loan applications (ITR is accepted as proof of income). To carry forward losses (only allowed if ITR is filed on time). To build financial credibility (helps in business registration, securing funding, or applying for tenders). ITR-1 To ITR-7: Which ITR Form To Choose? ITR-1 (Sahaj): For resident individuals (not HUFs) with income up to Rs 50 lakh from salary, long-term capital gains tax up to Rs 1.25 lakh under Section 112A, one house property, other sources (interest, etc.), and no capital gains or business income. ITR-2: For individuals and HUFs with income from capital gains, more than one house property, foreign income/assets, but no business or professional income. ITR-3: For individuals and HUFs with income from a business or profession, including partners in firms. ITR-4 (Sugam): For resident individuals, HUFs, and firms (other than LLPs) with presumptive income under sections 44AD, 44ADA, or 44AE, and income up to Rs 50 lakh (for individuals). ITR-5: For partnership firms, LLPs, AOPs, BOIs, cooperative societies, and other persons not filing ITR-7. ITR-6: For companies other than those claiming exemption under section 11 (income from charitable or religious activities). ITR-7: For persons including trusts, political parties, research institutions, universities, or funds claiming exemption under sections 139(4A) to 139(4F). Due Date for Filing ITR for AY 2025-26 Individual taxpayers not subject to audit: September 15, 2025 Businesses requiring audit: October 31, 2025. Late filing attracts a penalty under Section 234F and may delay refunds. Frequently Asked Questions (FAQs) A: No, unless you fall under specific cases like high-value transactions or owning foreign assets. A: Yes, it is recommended for refunds, visas, loans, and establishing a financial history. Q: I'm a student earning via freelancing. Should I file ITR? A: Yes, if your income exceeds Rs 4 lakh or TDS has been deducted. top videos View all Q: What if I miss the deadline? A: You can file a belated return until 31 December 2025, with a penalty and interest. Location : New Delhi, India, India First Published: June 02, 2025, 10:54 IST News business » tax ITR Filing 2025 Begins: Who Needs To File Income Tax Return? All You Need To Know
Time of India
9 hours ago
- Business
- Time of India
Which ITR form you should use to file your income tax return depends on your income sources and taxpayer category: Here's how to pick right
Choosing the right ITR form is the first and most crucial step, as a wrong form can lead to defective returns, penalties, or refund delays. The Income Tax Department has notified the updated forms for Assessment Year 2025-26 . Here's a quick guide to help you identify the correct form based on your income type and tax situation . ITR 1 (Sahaj) For salaried individuals with simple income YOU CAN USE THIS IF You are a resident individual (not HUF or NRI/RNOR). Your total income is less than or equal to Rs.50 lakh. Your income includes: Salary or pension. One house property (no carry-forward loss). Interest or other sources (excluding lottery/racehorses). Agricultural income up to Rs.5,000. Capital gains up to Rs.1.25 lakh from shares/mutual funds (Section 112A, new from FY 2024-25). No carry-forward loss allowed. You cannot use this if: You're a director in a company. Hold ESOP/unlisted shares. Profit from virtual digital assets (crypto). Have foreign assets or income. Own more than one house. Have business or professional income. Have capital losses to carry forward. New for this year Live Events You can now declare up to Rs.1.25 lakh in LTCG from shares or equity mutual funds in ITR 1 without needing ITR 2 or ITR 3. ITR 2 For investors, NRIs, and those with capital gains or multiple properties YOU CAN USE THIS IF You are an individual or HUF. Your income includes: Salary/pension. Income from multiple house properties. Capital gains (any amount). Foreign income or assets. Agricultural income > Rs.5,000. You're an RNOR/NRI. You're a director or hold unlisted shares. You have clubbing of income (spouse's income). You cannot use this if: You have income from business or profession. New feature: The Excel utility now supports filing revised returns under Section 139(8A). ITR 3 For business owners, freelancers, and partners in firms YOU MUST USE THIS IF You are an individual or HUF with: Income from business or profession (proprietorship). You are a partner in a firm (not an LLP). Income includes capital gains (any amount or with carry-forward loss). You hold unlisted equity shares. Income/loss from futures & options. You also earn salary, rent, or other income along with business income. Use this if you cannot file ITR 1, ITR 2, or ITR 4 due to your income mix. If you're opting out of the new tax regime, Form 10-IEA confirmation is required ITR 4 (Sugam) For small businesses and professionals under presumptive tax YOU CAN USE THIS IF You are a resident individual, HUF, or partnership firm (not LLP). Your total income is less than or equal to Rs.50 lakh. You earn from: Presumptives (Section 44AD or 44AE). Presumptiven (Section 44ADA). One house property. Salary/pension. Other sources (excluding lottery/racehorses). LTCG under Section 112A: Rs.1.25 lakh (no carry-forward loss). You cannot use this if: Income is > Rs.50 lakh. You have foreign assets or income. You are an RNOR or NRI. You're a company director or hold unlisted equity. Your business turnover is > Rs.2 crore. You have capital losses to carry forward. Freelancer tip Use ITR 4 only if you're under presumptive taxation (44ADA). Otherwise, file using ITR 3. ITR 5 For LLPs, AOPs, co-operative societies, and others You can use this if you are: A partnership firm (excluding proprietorships). An LLP. Association of Persons (AOP). Body of Individuals (BOI). Estate of a deceased or insolvent person. Business trust or investment fund. Certain cooperative societies or trusts (not filing ITR 7). You cannot use this if: You are an individual, HUF, or company. You are a trust required to file ITR 7. Note If you opt out of the new tax regime, submit Form 10-IEA Don't forget... If you've received ESOPs or hold startup shares not listed on stock exchanges, you own unlisted equity even if you haven't sold it. This disqualifies you from using ITR 1 or ITR 4. Even if your salary is under Rs.50 lakh, having capital gains above Rs. 1.25 lakh or owning more than one property requires ITR 2. Using ITR 1 here can lead to a defective return notice. Only ITR 2 or ITR 3 lets you carry forward capital losses to offset future gains. If you use ITR 1/4, these losses lapse, potentially costing you thousands in future tax savings. If you've returned to India recently after living abroad, you may be an RNOR, not a regular resident. You are an RNOR if you were an NRI in nine out of the last 10 years or stayed in India for 729 days or less in the last seven years. If you're a freelancer, small business owner, or professional with modest income, you can opt for presumptive taxation to simplify filing. Under this, you declare a fixed percentage of your total receipts as income. There's no need to maintain detailed books or get audited. Use this only if your turnover is within limits (Rs.2 crore for business, Rs.50 lakh for profession). If you're salaried and traded in F&O, you must file ITR 3. F&O income is treated as business income, not capital gains, even if it's just a side activity.
NDTV
a day 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.
Time of India
2 days ago
- Business
- Time of India
Got an income tax notice? Here are common types of tax notices and what to do to avoid penalties
Filing the income tax return (ITR) isn't always the end of your tax journey. Even after submission and verification of returns, you may get a notice from the Income Tax Department . While this can seem intimidating, most notices are routine and manageable. Understanding these and responding correctly can help avoid penalties , save time, and maintain peace of mind. If you do get a notice, following these tips can keep you from panicking and inviting further trouble. DON'T IGNORE: Every notice has a deadline; missing it can result in penalties. USE FORM 26AS & AIS: These will help you to verify and reconcile your income and TDS data. BE ACCURATE: Mismatches can lead to additional scrutiny or tax demands. ACT PROMPTLY: Even minor notices can lead to complications if unaddressed. SEEK EXPERT HELP: For complex notices, consult a chartered accountant or a tax professional immediately. Here is a simple guide to common income tax notices and how to deal with them. Section 143(1) Intimation after return processing by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Fastest Selling Plots of Mysore from 40L | 40+ Amenities PurpleBrick Learn More Undo This is the most frequent notice. It compares your filed return with the department's records. It is sent if there is a TDS mismatch, calculation errors, incorrect deductions, or in case of delayed filing. What to do Log in to the income tax portal and review the notice. If correct, no action is needed. If tax is payable, pay within 30 days. If incorrect, file a rectification with documents. Section 245 Adjustment against previous dues Live Events If you're eligible for a refund, but have pending tax dues from previous years, the department may adjust it. What to do Check the notice in your portal under 'e-Proceedings'. Agree or disagree with the reasons within 15 days. No response leads to the automatic adjustment of your refund. Section 142(1) Inquiry before assessment This is a preliminary inquiry when your return isn't filed or the department needs extra details. What to do File your return, if pending. Submit the requested documents by the given deadline . Ignoring this can lead to penalties or scrutiny. Section 139(9) Defective return If your return has errors or is missing data, it's considered defective. The common issues it deals with are missing income details and incorrect deduction entries. What to do You have 15 days to correct and re-file. Log in, access the notice under 'e-Proceedings', and respond. Failing to act may make your return invalid. Section 133(6) Request for financial information This notice seeks clarification on transactions like high-value cash deposits or property purchases. What to do Share relevant documents, such as bank statements or agreements. Submit within the deadline to avoid further scrutiny. HRA and TDS mismatch notices These are sent when your house rent allowance (HRA) claim or TDS details don't align with the department's records. What to do Ensure tenant TDS compliance if rent exceeds Rs. .50,000 a month. Keep rent receipts and the landlord's PAN. If the mismatch is real, file an updated return and retain documents for future reference. Section 143(2) Scrutiny notice This notice means your return has been selected for a detailed check. What to do Cooperate by submitting all proofs, including income, deductions, or expense claims. Attend hearings if called, or respond through the portal. No response may lead to tax assessments based on estimates. Section 148 Income escaping assessment It is issued when the department believes some income was left undisclosed in previous returns. What to do File a revised return or give explanation as per the notice. Justify the source of income and submit relevant proof. Ignoring this can lead to the reopening of past assessments and penalties. Section 271AAC(1) Penalty for unexplained income If unexplained income, like sudden large deposits, is found during scrutiny, this notice may be issued. What to do Provide documentation explaining the source of income. Penalties of up to 60% apply if the income is found to be unexplained.
India.com
3 days ago
- Business
- India.com
Filing ITR-1 Or ITR-4? Excel Utilities Are Out—Check Eligibility And What's New This Year
New Delhi: Good news for taxpayers! The Income Tax Department has made the Excel utilities for ITR-1 and ITR-4 available for Assessment Year 2025–26. These can now be downloaded from the official portal to help you prepare your return for the financial year 2024–25. The IT Department posted on X, 'Attention taxpayers! The Excel Utility for ITR-1 and ITR-4 for AY 2025-26 has been enabled and is now available for taxpayers.' The update follows the extension of the ITR filing deadline to September 15, 2025. It gives taxpayers extra time to file their returns. The extension was announced due to updates in ITR forms, technical improvements on the portal and the need to correct TDS information. Here's a quick overview of who can file using ITR-1 and ITR-4, and what's different this year. Who Can File ITR-1? (SAHAJ) ITR-1, also known as Sahaj, is the simplest income tax return form and is perfect for salaried individuals or pensioners. You can use it if your income comes from a salary, one house property or other sources like interest from savings or fixed deposits. A recent update now allows you to file ITR-1 even if you have long-term capital gains (LTCG) up to Rs 1.25 lakh under Section 112A, as long as no tax is payable on it. Earlier, such taxpayers had to use ITR-2. However, you can't use ITR-1 if you have taxable capital gains, short-term capital gains, have sold property, or want to carry forward any losses. Who Can Use ITR-4 (Sugam)? ITR-4, also called Sugam, is designed for individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) who opt for the presumptive income scheme. You can file this form if your income comes from a business or profession under Sections 44AD, 44ADA, or 44AE, and your total income for the year is up to Rs 50 lakh. However, ITR-4 isn't for you if you're a company director, own unlisted shares, have income or assets abroad, or earn more than Rs5,000 from agriculture. Now that the Excel utilities are available, eligible taxpayers can get an early start on filing. Just make sure to pick the right form to avoid issues later on. New ITR Deadline Announced: September 15, 2025 The Income Tax Department has given taxpayers more time to file their returns for the financial year 2024–25 (assessment year 2025–26). The original deadline of July 31, 2025, has now been extended to September 15, 2025. This extension comes as a relief, especially after delays in issuing the ITR form notifications.
