Latest news with #Section115BAC
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
Time of India
02-05-2025
- Business
- Time of India
Row over rebate on capital gains tax settled in taxpayers' favour
Ahmedabad: The rebate row over capital gains tax has taken a decisive turn. With the Centre amending Section 87A through the Finance Act, 2025, the law now clearly denies rebates on income taxed under special rates, including capital gains. Tired of too many ads? go ad free now But here's the twist — the change is forward-looking, not retrospective. That gives taxpayers a strong legal footing to claim missed rebates from previous years. The debate over the eligibility of rebate under Section 87A of the Income-Tax Act — particularly concerning tax on short-term capital gains (STCG) from equity shares under Section 111A and long-term capital gains (LTCG) from listed securities under Section 112 — has been a long-standing one. The Central Board of Direct Taxes (CBDT), in its Budget 2025 FAQs, clarified that rebates under Section 87A are only available for taxes calculated as per slab rates under the new tax regime (Section 115BAC) and not on capital gains, lotteries, or other special-rate incomes. International tax expert Mukesh Patel explained that the legislative amendment now restricts the rebate to only the tax payable under Section 115BAC(1A). "This amendment, applicable from Assessment Year 2026–27, shuts the door on future claims based on capital gains. But since it has been made prospectively, taxpayers can still claim such rebates for AYs 2024–25 and 2025–26," he said. This update could offer significant relief to many taxpayers who faced rejection of their rebate claims after the CBDT, on July 5, 2024, instructed the Centralised Processing Centre (CPC) to block such claims in the ITR utility. Tired of too many ads? go ad free now The govt had earlier enhanced the scope of rebate — increasing the income threshold from Rs 5 lakh to Rs 7 lakh and the rebate amount from Rs 12,500 to Rs 25,000 — to push taxpayers toward the new regime under Section 115BAC. However, the tax department refused to extend these benefits to capital gains incomes, which sparked protests and legal challenges. "The Bombay high court directed the reopening of the ITR utility. However, the department continued to reject claims for rebate in this regard, without heeding the view that taxpayers could not be deprived of their legitimate claim, as there was no amendment in law to support its interpretation," said Patel. Mukesh Patel said, "After above-referred amendment, introduced only with prospective effect, there is no room for controversy any longer. Taxpayers can easily defend their claims under appeal or even press for relief by way of revision or rectification in respect of concluded matters for Assessment Year 2024-25."
