Latest news with #TarunKumarMadaan
Time of India
02-08-2025
- Business
- Time of India
How to file ITR-1 online: A step-by-step guide for salaried taxpayers also having income from house property, LTCG and other source under new tax regime
Eligibility to file ITR-1 Different ways to file ITR-1 Step-by-step guide to file ITR-1 online on income tax e-filing website Step 3 Step 6 Step 7 Section 1: Personal Information Step 8 Section 2: Gross Total Income Gross salary – Less: Allowances exempted u/s 10 Less: Income relief claimed u/s 89A Net salary Less: Standard Deduction Income chargeable under the head Salaries Gross rent received Rs 3,60,000 Tax paid to authorities (Rs 1,000) Annual Value Rs 3,59,000 30% of Annual Value (Rs 1,07,700) Interest payable on borrowed capital (Rs 4,00,000) Arrears received during the year less 30% NIL Income chargeable under House property (Rs 1,48,700) House Property Reporting of exempt income LTCG under Section 112A not chargeable to Income Tax Section 3: Total deduction Section 4: Tax paid Section 5: Verify your tax liability Many salaried employees use ITR-1 to file their tax returns since they don't usually have complex income sources. This year, the Income Tax Department extended the deadline for filing ITR from July 31, 2025, to September 15, 2025, for FY 2024-25 (AY 2025-26).ET Wealth Online spoke to Tarun Kumar Madaan, a senior consultant at Coherent Advisors, who shared a step-by-step guide on how salaried employees can file their tax returns on the income tax e-filing ITR-1 Form is for Ordinary Resident (ROR) Individuals who have a total income of up to Rs. 50 lakh. This includes income from salary, income from one house property and other sources like bank interest, dividends, and agricultural income up to Rs 5, year, the tax department has revised the eligibility criteria for those taxpayers who can use the ITR-1 form. Now, taxpayers with long-term capital gains (LTCG) of up to Rs 1.25 lakh from listed shares and equity-oriented mutual funds can also file their tax returns using the ITR-1 Read | Who can file ITR-1 and who cannot file it You can file your income tax return in two ways on the income tax e-filing website – using either Excel utilities or Java utilities, or you can do it directly on the e-filing you file your ITR directly on the income tax e-filing website, it automatically fills in your basic information and tax details into the ITR-1 form without any manual intervention, which really saves your time and provides a step-by-step guide to file ITR-1 online for a salaried taxpayer who has opted for the new tax regime:Visit Here, click on Login. A new webpage will open on your screen. Enter your PAN/Aadhaar and password to log in to the logged in, the income tax portal will show the ITR filing webpage. Alternatively, go to E-File > Income Tax Returns > File Income Tax Return from the assessment year 2025-26 (current AY), mode of filing – online and click on continue. The assessment year is the year in which income earned in the previous financial year is assessed.A new webpage will open. Select 'Start New filing', select status as 'Individual' and click 'Continue'.Next, you have to select the ITR form. Select ITR-1 and click on 'Proceed with ITR-1'. Select 'Let's Get Started' to proceed with this year's ITR filing. Remember to keep your documents, such as Form 16, interest certificate, and others, to make the ITR filing process Read | Documents you need to file your ITR this yearSelect the reason for ITR filing. Here we have selected, 'Taxable income is more than the basic exemption limit'.Taxpayers need to keep in mind that the new tax regime is the default one. If they want to change tax regime, they can do so in the personal information section as outlined below.A new webpage will show the following sections:a) Personal Informationb) Gross Total Incomec) Total Deductionsd) Tax paide) Verify your tax liability detailsThis section shows your personal details such as name, PAN, date of birth and others. You can also edit your contact details here. In this section, you need to select the nature of employment, ITR filing Section 139(1), tax regime option (YES/NO). You should also check your bank account details to ensure that all bank accounts held by you between April 1, 2024, and March 31, 2025, are reported in your section shows the gross total income of a salaried taxpayer from various sources such as income from salary/pension, interest income, dividends, LTCG from listed equity, equity mutual funds, etc. In the online ITR form, most of the columns are auto-filled from Form 16, Form 16A, Annual Information Statement, etc.A taxpayer should verify the auto-populated information in the ITR form. If not populated, details are required to be entered of salary income in ITR-1: The columns for reporting salary income in ITR-1 form are the same as how salary income is shown in the Form 16. Click on the edit button on the right-hand side to edit salary a salaried individual opts for the new tax regime for ITR filing for FY 2024-25 (AY 2025-26), the salary details will be reported as follows:Under the new tax regime, a salaried taxpayer can claim a standard deduction of Rs 75,000 from salary income. Further, allowances such as House Rent allowance (HRA), Leave Travel allowance (LTA) are not allowed under the new tax ITR-1 form allows a taxpayer to report income from one house property only. If the taxpayer occupies the house, then it will be considered as 'Self-occupied property'.On the other hand, if the house was on rent during FY 2024-25, then rental income is required to be reported in the ITR form. Here is an example of how rental income from house property will be you have earned rental income of Rs 3.60 lakh, paid house tax of Rs 1,000 and have interest on home loan of Rs 4 lakh. From the drop-down menu, select 'let-out property'. Reporting of income will be done as follows:Madaan says, 'Under the new tax regime, a taxpayer can claim 30% standard deduction on annual value as well as deduction for interest paid on home loan in specific cases. No deduction for interest on housing loan is allowed if the house property is self-occupied. For let-out properties, there is no upper limit on the deduction for interest on a home loan, it is permitted even if the interest exceeds the annual value of the property. But under the new tax regime, the total income is computed without setting off any loss under the head 'Income from house property' against income from any other the example above, even though the interest on the home loan results in a loss of Rs. 1,48,700, this loss can't be offset against any other income if the taxpayer is following the new tax regime. So, even though the total home loan interest amounts to Rs. 4 lakh, only Rs. 2,51,300 is effectively interest must be reported separately under Section 24(b), along with the following details: name of the bank or financial institution, loan account number, date of sanction, total loan amount, outstanding loan amount, and interest paid on the borrowed capital.'Taxpayers should remember that rent arrears received are taxable in the year of receipt under the head "Income from House Property." A standard deduction of 30% of the arrears or unrealised rent is allowed from such rental income. However, ITR-1 does not provide the option to show a 30% deduction for arrears separately. Therefore, the taxpayer should report only the taxable portion of the rent arrears received during the year, which is the arrears of rent received minus 30%.In this section, a salaried taxpayer needs to report income from other sources such as interest income from savings accounts, fixed deposits, Sovereign Gold bonds, among others, dividends from listed shares, equity mutual funds and any other income that is not taxed under any other online ITR-1 form automatically populates the other incomes from AIS. However, a taxpayer is required to ensure that all taxable incomes are the financial year, a taxpayer can receive certain types of income which are tax-exempt. Still, it's important for taxpayers to report this income to avoid any tax notices due to underreporting of income. Examples of exempted incomes include– the maturity amount from a Public Provident Fund (PPF), EPF withdrawal amounts (under specified conditions), the maturity amount from a life insurance policy, among report exempted income, click on the head - 'Exempt Income: For reporting purpose and Income on which no tax is payable'. Here, click on 'Add another'.A new webpage will open on your screen. From the drop-down menu, select the nature of income and enter the amount in the corresponding column. Once the exempted income is added, click on mentioned above, this year, the ITR-1 form allows reporting of LTCG from listed shares and equity mutual funds. The reporting can be done provided LTCG does not exceed Rs 1.25 lakh. It is important to note that no tax is payable on the LTCG from listed shares and equity mutual funds if the gains are less than Rs 1.25 lakh in a financial this section, a taxpayer is required to mention the sale value and cost of says, 'Once the taxpayer enters the sale value and cost of acquisition, the ITR-1 form automatically calculates the LTCG. If the LTCG value exceeds Rs 1.25 lakh, then the taxpayer will not be able to file ITR-1.'In the next section, a salaried taxpayer can claim deductions that he/she is eligible for. The new tax regime does not allow claiming of any deduction except under Section 80CCD (2) and 80CCH. The deduction under Section 80CCD(2) can be claimed if, during the financial year, the employer has deposited a contribution to the employee's NPS account. A salaried taxpayer can claim a maximum deduction of up to 14% of basic salary under the new tax deduction under Section 80CCH is available for contributions made to the Agniveer Corpus Fund. Individuals enrolled in the Agnipath Scheme ('Agniveers') can claim this deduction for the amount contributed to the fund. However, this benefit is restricted to those employed under the 'Central Government' category and is not available to individuals in any other form of the deductions are entered, the ITR-1 form automatically calculates the net taxable section will show the taxes that are deducted from income or collected from expenses in the FY 2024-25 (AY 2025-26). This section is auto-populated from Form 26AS and AIS. This includes TDS from Salary, TDS on other incomes, TCS , Advance Tax, and Self-Assessment Tax.A taxpayer should cross-check Form 26AS, AIS, TDS certificates such as Form 16, Form 16A and the tax paid section. Cross-checking will ensure that there is no mismatch in the tax amount deducted and deposited to the says, 'A taxpayer needs to contact the deductor for correction if there is a mismatch in the tax deducted/collected amount and tax deposited amount.'In the last section, a salaried taxpayer needs to review their final tax liability. This is automatically based on the net taxable income, tax paid and balance tax pending (if any). If you have an income tax refund due, it will be shown your ITR isn't the final step in the ITR filing process. It needs to be verified as well. The ITR must be verified within 30 days after submission. The Income Tax Department will only start processing the tax return after the taxpayer has completed verification. You can verify your income tax return through different methods, including a Digital Signature Certificate (DSC), an Electronic Verification Code, an Aadhaar-based OTP, or by mailing a signed copy of the acknowledgement to CPC verification, you will receive an SMS and/or email confirmation that your ITR has been successfully filed. Now, the Income Tax Department will start processing the ITR. You will receive an intimation notice once your ITR is processed.
Time of India
22-07-2025
- Business
- Time of India
Is filing ITR tougher this year? Experts decode new tax return forms, tax refund delays, and stricter scrutiny
Has the ITR filing process become tougher this year with the introduction of new forms and utilities? Academy Empower your mind, elevate your skills Many people usually file their ITR to claim an income tax refund. Will there be a delay in income tax refunds this year due to the late release of ITR utilities, date mismatches, etc.? Will there be increased scrutiny of ITRs this year, and is the process more stringent than before? As the tax filing season for FY 2024-25 (AY 2025-26) begins, taxpayers are preparing to file their Income Tax Return ( ITR ). However, this year's ITR filing experience will be different from previous years due to several modifications introduced by the Income Tax Act of 1961 for FY 2024-25, which are proving to be a challenge for many taxpayers. The revised ITR forms for FY 2024-25 (AY 2025-26) and a more rigorous data collection and verification process have raised concerns about the increased complexity of filing ITR this Wealth Online spoke to several tax experts to gain insights into the changes in this year's ITR filing process, the reasons behind the increased complexity, and the potential for enhanced scrutiny by the Income Tax changes introduced in the ITR filing this year have significantly increased the complexity of the ITR filing process. This includes providing details to claim various deductions and exemptions, as well as capital gains bifurcations depending on the date of asset sales, among other things. According to tax experts, while the modifications aim to improve transparency and ensure accurate reporting, they have also increased the level of diligence and preparation required by read: ITR filing last date for FY 2024-25 is not same for all: Check due dates for salaried individuals, professionals, companies, proprietorship firms, other taxpayers Tarun Kumar Madaan, a practicing chartered accountant (CA), says, "While the fundamental structure of the ITR forms has not undergone a complete overhaul, the detailed information and disclosures required within them have expanded significantly this year, presenting new challenges for taxpayers. The primary issue has been the delayed release of ITR-2 and ITR-3 utilities, which are essential for individuals with capital gains, foreign income, or business/professional income. While ITR-1 and ITR-4 utilities were made available earlier, the significant delay in releasing ITR-2 and ITR-3 (until mid-July 2025) meant that although the filing season officially began, it could not commence in full swing for a large section of taxpayers. Though the due date has now been extended to September 15, 2025, the reduced effective filing window has led to considerable stress and backlog."Suresh Surana, a practicing CA, concurs, saying, "Yes, the process of filing ITR has become more complex this year, primarily due to the introduction of revised ITR forms. The Income Tax Department released the Excel utilities for ITR-1 and ITR-4 in late May 2025, whereas the utilities for ITR-2 and ITR-3 were made available only on 11 July 2025, significantly delaying the start of the filing window for taxpayers with more complex income structures. There are key structural changes in the ITR forms that have contributed to the increased compliance burden. Taxpayers are now required to provide detailed disclosures of capital gains, including bifurcation based on gains accrued before and after the Finance Act amendments effective from July 23, 2024. Additionally, detailed requirements are now required. For instance, to claim deductions or exemptions, taxpayers must furnish policy numbers, landlord PAN details for HRA claims, and insurer details for health insurance deductions. These requirements necessitate thorough record-keeping and accurate data input."Also read: Income Tax Dept cracks down on bogus claims of tax deductions like 80GGC; What can taxpayers do? The threshold for mandatory disclosure of assets and liabilities has been revised upwards from Rs 50 lakh to Rs 1 crore this year. "While this may offer relief to some, those falling within the reporting threshold must still comply with rigorous asset classification and disclosure norms. Moreover, any mismatch between the taxpayer's financial profile and the ITR form selected, such as choosing ITR-1 despite having capital gains exceeding Rs 1.25 lakh, may trigger defect notices and render the return invalid," Surana told ET Wealth Online."Over 1.08 crore returns for AY 2025-26 have already been verified and processed out of 1.27 crore filed returns. This year, the income tax refunds are witnessing delays primarily due to a combination of systemic and procedural factors. One of the key reasons is the delayed release of ITR utilities. While ITR-1 and ITR-4 utilities were made available by the end of May 2025, utilities for ITR-2 and ITR-3 were released only on July 11, 2025. This significantly compressed the window for the timely filing and processing of returns, causing a cascading delay in refund issuance," Surana told ET Wealth with this view, Madaan says, "Yes, the delay in releasing ITR utilities, particularly for taxpayers with capital gains, has directly contributed to delays in income tax refunds. Many taxpayers expecting refunds were unable to file their returns on time and, therefore, could not initiate their refund claims. Since refunds are processed only after the return is filed and verified, this delay has had a cascading impact."Apart from the delay in releasing ITR utilities, other reasons can also impact the income tax refunds. Surana says, "Refunds may be held in cases where there are pending assessments or outstanding tax demands from earlier years. In such scenarios, the department may adjust the current year's refund against past dues, which can prolong the refund process until the issue is resolved.""Refunds may be withheld or adjusted if there are mismatches between the tax return and data in Form 26AS, Annual Information Statement (AIS), or Taxpayer Information Statement (TIS), or if there are outstanding demands or pending assessments from previous years. However, the department is obligated to pay interest on delayed refunds under Section 244A of the Income Tax Act. This interest typically applies from April 1st of the assessment year, if the tax return is filed by the due date, or from the date of filing if it is filed after the due date, until the date the refund is issued," Madaan told ET Wealth says, "The tax department's increased use of data analytics and artificial intelligence to cross-verify information means that discrepancies are identified much faster and more frequently than before. If there are mismatches or underreported income, especially in high-value transactions, the system automatically flags the tax return and proposes an adjustment. To avoid such notices or delays, it is crucial for taxpayers to meticulously cross-verify their return data with Form 26AS, AIS, and TIS before submission. This year, accuracy and data matching are more important than ever."Surana says, "The tax department has introduced more comprehensive reporting requirements across various sections, from capital gains to claiming deductions, which further enhances the level of detail that taxpayers must provide. This increased scrutiny is likely to be complemented by enhanced automated systems designed to flag inconsistencies or missing details, making the process both more precise and more stringent. As a result, taxpayers can expect a higher likelihood of receiving tax notices for further clarification or audit, particularly if their tax returns show discrepancies or fail to meet the updated disclosure norms. Overall, the filing process has now become more meticulous. Any inconsistencies, particularly in high-value refund claims, house rent allowance (HRA) deductions without adequate substantiation, or capital gains and crypto income reporting, would be flagged for further scrutiny, including issuance of notices."
India Today
23-04-2025
- Business
- India Today
Forgot to declare your tax regime choice to employer? Here's what happens
If you're a salaried employee, your employer must have asked you to choose between the old and new tax regimes for the current financial year (2025-26) for TDS the right regime according to your income and eligible deductions, can help you save a fair bit of money during the year. However, forgetting to inform your employer or being late with a deadline can understand in this article what happens if you miss informing your employers about your preferred tax TELL THE EMPLOYER ABOUT TAX REGIME? Your employer deducts tax from your salary every month. This is called TDS (Tax Deducted at Source). To calculate the correct amount, your employer needs to know which tax regime you've chosen. If you don't inform them, they'll go with the default option, which is the new tax government made the new tax regime the default one from April 1, 2023. So, if you say nothing, tax will be deducted as per the new regime, even if the old regime would've saved you more COULD GO WRONG?If the old regime is better for you, and you have invested heavily under Section 80C, but don't inform your employer, more tax might be deducted from your salary during the year. You'll have to wait till next year to claim a refund when you file your income tax return (ITR). That means your money will stay stuck with the tax department for the other hand, if the new regime suits you anyway, there's no loss. But it's still a good idea to confirm your choice with your YOU CHANGE THE REGIME MIDWAY?The tax rules don't say if you can switch regimes halfway through the year for TDS purposes. Usually, employers don't allow it, because switching mid-year makes tax calculations tricky. So, it's best to make an informed choice early on and stick to IF YOU CHANGE JOBS DURING THE YEAR?You can choose a different regime with your new employer. The declaration you make is only for that employer's TDS calculation. When you join a new job, you'll need to tell them which regime you want for salary processing."You can switch tax regimes when changing employers. Each employer uses your declaration to deduct TDS based on your preferred tax regime at that point in time. There is no restriction on informing your new employer of a different regime, even within the same financial year. The declaration to employers is solely for TDS purposes. When you join a new company, you are required to fill out a declaration form to indicate your preferred tax regime for salary processing and TDS calculations. This choice is independent of what you selected with your previous employer," said Tarun Kumar Madaan, CA, while speaking to The Economic added, 'When filing your ITR, you have the flexibility to choose either the old or new regime, regardless of what you declared to one or more employers during the year.'Hence, informing your employer early can help you avoid delays, confusion, and unexpected deductions, thereby ensuring that the right amount of tax is deducted from your salary throughout the Watch
