Latest news with #ITR
Time of India
6 hours ago
- Business
- Time of India
ITR e-filing FY 2024-25: What is the benefit of pre-filled ITR forms on the income tax portal? Top points
ITR filing FY 2024-25: Pre-filling of ITR forms has several advantages. (AI image) Income Tax Return Filing FY 2024-25: The Income Tax Department has been aiming to make the e-filing of income tax returns easier for taxpayers, and one such step in that direction is pre-filled ITR forms. If you have been filing tax returns, you would know that the ITR forms have been pre-filed on the tax portal for some years now. With pre-filled ITR forms, the Income Tax Department aims to enhance accuracy, encourage timely filing of income tax returns and reduce compliance burden on taxpayers. The process of filing electronic Income-tax Return forms by taxpayers has evolved over a period of time and we have seen that every year Central Board of Direct Taxes (CBDT) introduces new features in the process to enhance user experience, reduce revenue leakage and ensure full compliance. 'The Government has strived to achieve a mature ITR filing process wherein all the information is accurately pre-filled in the form and taxpayers' role is limited to verification of the information. In order to achieve this level of automation, the CBDT has invested in the technology upgradation, mandated various agencies to share data with CBDT which is filtered and used to prepare a pre-filled ITR,' says Preeti Sharma, Partner, Tax & Regulatory Services, BDO India LLP. Also Read | ITR filing FY 2024-25: Do you need to file your income tax return if TDS has been deducted? Explained Preeti Sharma explains that till last year, your pre-filled ITR form was automatically capturing the following information: Personal Information, such as name, PAN, date of birth, address, etc. Income details, which have been reported by registered persons in India under a Statement of Financial Transactions such as Salary, from Form-16 submitted by employers Interest income, from Banks & Financial Institutions Reports Dividend income, from Companies & Mutual Funds Reports Tax payment details (TDS, TCS and advance tax) The IT Department can also track sale and purchase of land or immovable properties, with the tax deduction or collection requirements that have been introduced in India recently. The CBDT has already launched online utility for ITR-1 (Sahaj - Available for Individuals & HUF) and ITR-4 (Available for Individuals & HUF with Presumptive Business or Professional Income) with limited enhancements. However, the new online form ITR-2, ITR-3 for Individual tax-payers is still to be launched. According to Preeti Sharman, it is likely to be more advanced with pre-filled data such as: Pre-filled Capital Gains schedule – mapping the information received from brokers & Depository Reports and scrip wise bifurcation of capital gain rather than a cumulative amount. Pre-filled Deductions tab, which have been reported by the employer. Update of all the bank account numbers already linked with your PAN and Aadhaar in the Bank's systems. This pre-filling of ITR forms has the following advantages: Minimizing human efforts and errors Full disclosure of income Easy access to past records – for comparison purpose / reporting of previous year's income / carry forward of previous year's losses Reduced litigation as any mismatch of details reported in tax return with information available with the tax department is addressed at this stage only. Pre-filled ITRs makes it easier for a taxpayers' to file ITR correctly without in-depth knowledge of taxation, thereby reducing the dependence on experts (for simple cases). Also Read | Income Tax Return e-filing: Can you keep switching between new and old tax regime every year? What taxpayers should know Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
10 hours ago
- Business
- Mint
ITR 2025: How tax calculator can help you file your return with ease?
Income Tax Return (ITR): Before filing income tax return, taxpayers are supposed to use a tax calculator. As you enter the income tax portal, you can navigate to the tax tools section. Here there is an option to choose among multiple tax calculators: tax calculator and old regime vs new tax regime calculator. As one enters the relevant details, it gives the calculation of income tax. I. First you have to navigate to the income tax tools. Here there are several options to choose from: tax calculator, old regime Vs new regime calculator. II. If you choose a tax calculator, you will reach here. III. At this link, you need to enter the following details: Assessment year which is 2026-27. Then you have to write the category of taxpayer: individual, HUF, AOPs, domestic company, foreign company, LLP or cooperative society. Then one has to enter the age i.e., whether age is less than 60, between 60-80 or above 80. Finally, one has to declare the residential status i.e., resident or non resident. Screengrab of tax calculator on Income Tax department's website IV. Now, you have to enter net taxable income. Then it will show you income tax relief under 87A. This is because of 87A rebate that taxpayers are not supposed to pay any income tax on income upto ₹ 5 lakh in the old tax regime and upto ₹ 7 lakh under the new tax regime (FY 2024-25). The limit for the new tax regime was raised to ₹ 12 lakh in Budget 2025, which will come into force for income earned in FY 2025-26. Read this article to know more about 87A. V. The system shows the surcharge if any. It also adds health and education cess. VI. Finally, at the bottom, one would be able to see the total tax liability. Additionally, taxpayers can also use another calculator to evaluate whether the old tax regime is better or the new tax regime in terms of total tax outgo. For the unversed, the new tax regime offers lower tax slabs but no deduction against investments in tax-saving instruments. Conversely, the old tax regime carried higher tax rates but allows taxpayers to claim HRA exemption, deductions under 80C, 80D and others. For all personal finance updates, visit here.
Time of India
a day ago
- Business
- Time of India
ITR e-filing AY 2025-25: What is Annual Information Statement (AIS) and how is it different from Form 26AS? Top points for taxpayers
ITR filing FY 2024-25: When filing your income tax return for FY 2024-25 (AY 2025-26), the Annual Information Statement is an important document that every taxpayer should be aware of. Tired of too many ads? go ad free now Introduced a few years ago, the Annual Information Statement is a helpful document for transparent and easy tax compliance. The Annual Information Statement serves as a crucial document that displays comprehensive details of a taxpayer's financial transactions throughout the fiscal year. The Annual Information Statement (AIS) and Form 26AS are tools provided by the Income Tax Department to help taxpayers with accurate tax reporting. Individuals paying taxes have the ability to cross-check their income sources and ensure they align with their Form 16, Form 16A or personal financial records. The AIS system enables taxpayers to identify any inconsistencies in their declared income or tax remittances. Also Read | As AIS effectively records the majority of income sources, it aids in preventing omissions and understatements, thereby reducing the likelihood of tax avoidance penalties or evasion charges. To view their AIS, taxpayers need to visit the official e-filing website at and sign in with their account details. The statement is accessible under the 'Services' section, where users can select 'Annual Information Statement'. Users have the option to obtain their yearly statement in either PDF or JSON formats for their preferred financial year. What is the Annual Information Statement (AIS)? Sudhakar Sethuraman, Partner, Deloitte India explains that AIS is a comprehensive report capturing a taxpayer's financial transactions during a financial year such as interest income, dividends, securities transactions, and foreign remittances, offering a broader view of income sources. These transactions are reported in AIS even if there is no associated tax deduction/ collection at source (TDS/TCS). AIS allows the taxpayer to provide feedback on the transactions reported therein. The tax office considers the feedback provided by the taxpayer and AIS is updated to show original and modified values based on this feedback. There is also a facility to view all feedback provided in the form of 'AIS Consolidated Feedback' file which can be downloaded from the portal. As AIS provides securities-related transactions, it aids in comparison of the information reported in AIS with the information provided by the demat account. Securities transactions can be downloaded into excel and can be used for uploading into tax returns in the relevant sections (capital gains/business income). How is AIS different from Form 26AS? Sudhakar Sethuraman explains that unlike AIS, Form 26AS is more oriented towards TDS/TCS. Tired of too many ads? go ad free now It provides a list of incomes (such as salary, interest), TDS/TCS on these and types of tax payments such as advance tax. 'Form 26AS helps taxpayers verify the taxes paid in various forms (such as TDS, TCS, advance tax, self-assessment tax) and the total tax credit available for the relevant financial year,' Sudhakar Sethuraman tells TOI. In short, AIS gives a detailed overview of income and transactions, while Form 26AS focuses on taxes. Also Read |
Indian Express
a day ago
- Business
- Indian Express
Income Tax Returns FY 2024-25 (AY 2025-26): Key differences between Form 16, 16A, and 16B
Tax filing season begins for the financial year 2024-25, and the assessment year 2025-26 has officially commenced, with salaried employees in India having received their Form 16 documentation. There are new changes in Form 16 that have been announced in the Union Budget 2025 to improve transparency by giving a detailed explanation of compensation components, tax-exempt allowances, and deductions, as well as which salary perks are subject to taxation. Form 16 is a TDS (Tax Deducted at Source) certificate provided by employers to salaried employees, allowing them to accurately submit their Income Tax Returns (ITR) and comply with tax requirements. READ: ITR Filing Last Date FY 2024-25 (AY 2025-26): Updated deadline for filing income tax returns in India for salaried individuals, companies, and more It's also important to note that employees who have changed employment throughout the fiscal year must obtain Form 16 from each employer. Form 16, along with its two components: Form 16A and Form 16B, are certificates issued as proof that Tax Deducted at Source (TDS) has been collected and deposited with the government. Employers give Form 16 to salaried employees for TDS on their salaries, whereas Form 16A is for TDS on non-salary income, like interest, commission, or rent. Form 16B is for property deals under Section 194-IA of the Income Tax Act. The buyer hands this form to the seller after taking out TDS on the sale of immovable property. Source: Clear Tax
Time of India
2 days ago
- Business
- Time of India
Income Tax Return e-filing: Can you keep switching between new and old tax regime every year? What taxpayers should know
The new income tax regime offers lower tax rates and higher standard deduction compared to the old tax regime. (AI image) ITR filing FY 2024-25 (AY 2025-26): When filing your income tax return every year, the choice between the old and the new income tax regime is an important one. The new income tax regime offers lower tax rates and higher standard deduction compared to the old tax regime. On the flip side, the old tax regime allows for popular deductions and exemptions like Section 80C, 80D, House Rent Allowance (HRA), Leave Travel Allowance (LTA) and more. As your financial situation evolves over years, you may find it beneficial to be in the old regime versus the new or vice-versa. What if you opted for the new tax regime last year, but realise that for this year's ITR filing the old tax regime results in lower tax outgo? A common question that taxpayers have is: can they choose between the new and old income tax regime every year, or is it a one time choice? Also Read | ITR filing FY 2024-25: Do you need to file your income tax return if TDS has been deducted? Explained Old vs New Tax Regime: Can you switch every year? According to Sudhakar Sethuraman, Partner at Deloitte India, the Income-tax Act, 1961 allows individual taxpayers (who do not have business income) to choose between the regular (old) and simplified (new) tax regimes each financial year. 'The choice of income tax regime is at the discretion of the individual and they can choose every year (provided they don't have business income) depending on what is beneficial for them,' he tells TOI. Sudhakar Sethuraman goes on to explain, 'Further, even if an individual had declared one tax regime to the employer for TDS purposes, he/she can change the choice of tax regime at the time of filing tax return (if he/she does not have business income).' It's important to note that the new income tax regime is now the default tax regime. In case you wish to file ITR under the old income tax regime, then you will have to opt for it. This can either be done at the start of the financial year by informing your employer, or at the time of filing the income tax return. Yet another fact that is of consequence is: you can opt for the old income tax regime at the time of ITR filing only if you file your tax return within the due date. Once the deadline to file ITR is crossed, you will automatically be switched to the new income tax regime. Also Read | ITR filing FY 2024-25: Several changes in Form 16! Top things salaried taxpayers shouldn't miss Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
