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Time of India
3 days ago
- Business
- Time of India
IT department releases Excel utilities for ITR-1 and ITR-4 for AY 2025-26
The Income tax department on Friday announced that the Excel utility for filing (ITRs) using forms ITR-1 and ITR-4 for Assessment Year 2025–26 is now available. "The Excel Utility for ITR-1 and ITR-4 for AY 2025-26 has been enabled and is now available for taxpayers," the department said in a post on X. Tired of too many ads? go ad free now With the release of these utilities, taxpayers can now begin filing their returns for income earned during the financial year 2024–25. This year, the deadline for filing ITR-1 and ITR-4 has been extended to September 15, from the usual July 31, giving taxpayers additional time to comply. The forms were officially notified on April 29. However, the enabling of the filing utilities was delayed due to 'structural and content revisions' introduced this year. According to the department, additional time was needed for system development, integration, and testing. Himank Singla, Partner at SBHS & Associates, welcomed the move. 'It's a big relief to see that the Excel Utilities for ITR-1 and ITR-4 for Assessment Year 2025–26 have been released. I have already filed ITR-4 using the utility, and the process was smooth. There are no major changes in the ITR-4 schema compared to last year,' he said, as quoted an ET report. However, he highlighted a significant change in the ITR-1 schema. 'A new validation rule has been added: if certain TDS section codes appear—like 194B, 194BB, 194S, 194LA, 195, 196A, 194Q, or 194R—the utility will disqualify the return from being filed under ITR-1. This is particularly relevant for those earning from sources such as online gaming, crypto, lotteries, or property transfers,' Singla explained. 'This is a very welcome and practical change. In earlier years, many filers unknowingly submitted ITR-1 with such income types, only to receive defective return notices. This rule prevents incorrect filings at the source and saves time and confusion,' he added. Who can file ITR-1 and ITR-4? ITR-1 is available for resident individuals (excluding "not ordinarily resident") with total income up to Rs 50 lakh. Eligible income sources include salary, one house property, interest income, long-term capital gains under Section 112A (up to Rs 1.25 lakh), and agricultural income up to Rs 5,000. Company directors, individuals with unlisted equity investments, income-tax deferral on ESOPs, foreign assets, or deductions under TDS section 194N are not eligible. ITR-4 applies to individuals, HUFs, and firms (excluding LLPs) with income up to Rs 50 lakh, and income from business or profession under presumptive taxation (Sections 44AD, 44ADA, 44AE), as well as long-term capital gains under Section 112A (up to Rs 1.25 lakh).
India Today
4 days ago
- Business
- India Today
Which tax form should salaried individuals choose: ITR-1 or ITR-2?
As the income-tax filing season for 2025-26 commences, salaried individuals face the decision of choosing the appropriate tax form between ITR-1 and ITR-2. Understanding the eligibility criteria and recent updates is crucial for ensuring accurate tax Income Tax Department has notified all ITR forms earlier this month, prompting individuals to start preparing their documents, although Form 16s are typically released in the month of June. Notably, the changes introduced in the recent Budget have introduced modifications in tax slabs and capital gains tax regulations, affecting the selection of tax forms this IS ITR-1 (SAHAJ)?ITR-1, also known as Sahaj, is designed for resident individuals whose income does not exceed Rs 50 lakh. This simple form is appropriate for those whose income sources are limited to salary, pension, one house property, and income from savings or fixed deposits, dividends, and family pension. Additionally, taxpayers with long-term capital gains (LTCG) up to Rs 1.25 lakh from listed equity shares or equity mutual funds under Section 112A can utilise this form for the current financial year. The ease of use is further enhanced by pre-filled personal information and income details, allowing for online verification against documents like Form-16 and bank account not every salaried individual qualifies for ITR-1. Several conditions outlined by the income-tax department render some taxpayers ineligible for this form. These include having a total income exceeding Rs 50 lakh, capital gains under Section 112A surpassing Rs 1.25 lakh, directorship in a company, ownership of unlisted equity shares, or having foreign income, accounts, or deferred tax on ESOPs, and any carried forward or brought forward losses also disqualify individuals from using ITR-1, necessitating the use of SHOULD USE ITR-2?ITR-2 is meant for individuals or Hindu Undivided Families (HUFs) who don't qualify to file ITR-1 and have no income from a business or form is also suitable if you haven't earned income in the form of interest, salary, bonus, commission, or any other payment from a partnership firm. Moreover, those who are clubbing income—like that of a minor child or spouse—must choose ITR-2 if the income involved matches these is imperative for taxpayers to carefully review their financial activities against the eligibility criteria for ITR-1 and ITR-2. By understanding the nuances of each form, taxpayers can make informed decisions, streamlining their tax filing process for the year. As the income-tax department continues to roll out updates, staying informed about these changes can significantly benefit those navigating the complexities of tax returns.
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Business Standard
20-05-2025
- Business
- Business Standard
Start early, choose right ITR form: Tax guide for professionals
Professionals must select the correct ITR form and assess whether presumptive taxation or regular provisions suit their income, expenses and documentation requirements Premium Sanjeev Sinha New Delhi Listen to This Article With the tax filing season underway, professionals should initiate the process early. This will enable them to file timely and accurate tax returns. Early filing of returns will also help them receive tax refunds sooner. Choose correct ITR form Resident professionals opting for the presumptive taxation scheme (PTS) regime under Section 44ADA typically file using ITR-4 (Income Tax Return Form 4). However, if total income exceeds ₹50 lakh or includes capital gains (excluding long-term gains under Section 112A up to ₹1.25 lakh), foreign income or assets, income from multiple house properties, or agricultural income over ₹5,000, ITR-3 becomes applicable.
India Today
20-05-2025
- Business
- India Today
ITR-1 Sahaj vs ITR-4 Sugam: Which ITR form should you use?
Filing your income tax return can be confusing, especially when it comes to choosing the right form. Two forms that often leave people puzzled are ITR-1, also known as Sahaj, and ITR-4, also known as Sugam. Both are for people earning up to Rs 50 lakh, but they are meant for different types of article will help you understand the difference between ITR-1 and ITR-4 clearly and help you decide which one suits you IS ITR-1 (SAHAJ)?'ITR-1 is designed for resident individuals whose total income does not exceed Rs 50 lakh. This form is suitable for those earning income from a salary or pension, income from one house property, and income from other sources such as interest,' stated CA Shefalii this form isn't allowed if the person has capital gains (other than certain long-term capital gains exempt under Section 112A), business or professional income, agricultural income over Rs 5,000, multiple house properties, or any foreign income or assets, pointed out CA (Dr) Suresh IS ITR-4 (SUGAM)?If you earn through freelancing, run a small business, or practice a profession like medicine, consultancy, or retail, ITR-4 might be for you. This form is designed for those opting for the presumptive taxation scheme, where income is declared at a fixed rate instead of maintaining detailed also known as Sugam, is applicable to taxpayers, Hindu Undivided Families (HUFs), and firms (other than LLPs) whose total income does not exceed Rs. 50 lakhs and who opt to declare income under the presumptive taxation scheme under sections 44AD, 44ADA, 44AE of the IT Act,' said CA ITR-4 is valid for those earning up to Rs 50 lakh from presumptive business or professional income, plus additional income from salary, pension, a single house property, and other sources, stated CA DO ITR-1 AND ITR-4 DIFFER?The main difference between the two forms lies in the type of income they cover. ITR-1 is for straightforward income from salary or pension, while ITR-4 is suitable if you're into small business or freelance work and are using the presumptive taxation scheme. If you have business or professional income, ITR-1 won't work for you—you'll need ITR-4 instead, as mentioned above. Credit: CA Shefalii Mundra NEW UPDATE: LTCG UNDER SECTION 112ABoth forms now allow reporting of long-term capital gains (LTCG) under Section 112A up to Rs 1.25 lakh. According to CA Mundra, this change benefits those who have LTCG from stocks or mutual funds but otherwise meet the Sahaj or Sugam criteria, making tax filing smoother without needing to shift to ITR-2 or choosing between ITR-1 and ITR-4 depends on how you earn your money. Picking the correct form helps avoid delays, errors, and notices from the tax department. So take a few minutes to understand your income sources and file smartly.
News18
15-05-2025
- Business
- News18
Income Tax Department Notifies All ITR Forms: Which Form Should You Choose For AY 2025-26?
Last Updated: Though ITR filing is yet to be enabled, it is necessary to know which tax return form should you choose to file income tax return. ITR Filing Season 2025: The income tax department has now notified all seven income tax return (ITR) forms for the assessment year 2025-26. Though ITR filing is yet to be enabled, it is necessary to know which tax return form should you choose to file income tax return. Most individual taxpayers will have to file their income tax returns by July 31, 2025, while different categories of assessees, including companies and those requiring audits, have different deadlines. Who Needs to File Their ITR by July 31? The July 31 deadline is applicable to most individual taxpayers. This includes salaried employees, pensioners, freelancers, and small business owners who are not subject to audit requirements. According to the income tax department, this deadline applies to individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs), and Bodies of Individuals (BOIs) whose accounts are not required to be audited. Taxpayers opting for the new concessional tax regime under Section 115BAC or availing various exemptions will also have to submit the relevant declarations and forms before this date. This July 31 deadline will not be applicable for corporate-assessees as well as individuals whose books of account are required to be audited. The July 31 deadline also does not apply to: Which ITR Form Should You Use? The Income Tax Department has notified seven forms—ITR-1 to ITR-7—for different categories of taxpayers. Here's who can file which form: ITR-1 (Sahaj): This is for resident individuals having a total income up to Rs 50 lakh, and income from salary, one house property, long-term capital gains up to Rs 1.25 lakh under Section 112A, other sources (like interest), and agricultural income up to Rs 5,000. ITR-4 (Sugam): This form can be used by resident individuals, HUFs, and firms (excluding LLPs) having total income up to Rs 50 lakh and income from business or profession under the presumptive taxation scheme. It is also applicable to long-term capital gains up to Rs 1.25 lakh under Section 112A. ITR-2: This is applicable to individuals and HUFs who do not have income from business or profession, but have income from capital gains, more than one house property, or foreign income/assets. ITR-3: For individuals and HUFs who have income from profits and gains of business or profession. It is also applicable to long-term capital gains up to Rs 1.25 lakh under Section 112A. ITR-5: To be filed by firms, LLPs, AOPs, BOIs, and cooperative societies. ITR-6: This is meant for companies other than those claiming exemption under Section 11 (such as charitable or religious organizations). ITR-7: To be filed by trusts, political parties, charitable institutions, and others who are required to file returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D). With all forms now available, taxpayers are advised to start collecting necessary documents such as Form 16, interest certificates, capital gains statements, and investment proofs to ensure timely filing. Filing early can also help in faster processing of refunds, and avoids last-minute errors or technical glitches on the portal. When Will ITR Filing Start? ITR filing usually starts in April and forms are notified in February every year. However, this year, ITR forms have been notified during April-May, the ITR filing has not been enabled yet. Experts expect ITR deadline to extend this time due to delay in the commencement of ITR filing. 'It's been 45 days, and yet Income Tax India has not released the Income Tax Utilities for filing. Does this mean we're getting an automatic extension? Or will taxpayers and professionals once again be left to suffer due to the inefficiency of the Income Tax Department?" said a tax practitioner. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! First Published: May 15, 2025, 10:16 IST
