Latest news with #ITR-1
Mint
17 hours ago
- Business
- Mint
Income Tax: Why are taxpayers urging department to release excel utilities of ITR-2 and ITR-3?
Barring ITR-1 and ITR-4, the income tax department has yet not released the excel utilities of other income tax forms. Although the last date to file income tax return is still three months away after it was deferred to Sept 15, taxpayers are still looking forward to the release of excel utilities of tax forms. Read here to know which income tax form you need to file while filing your income tax return ITR). Some taxpayers have expressed their discomfort on social media. One user Raisaar, for instance, wrote on X platform demanding the ITR-2 and ITR-3 to be enabled. In the same post, one Vishwa Sivan also urged the department to release the ITR-2's excel utility. Screenshot of a user's post on X Another user Sarath said that the tax department should first release form 2 before anything else such as telling taxpayers how to validate bank account. Screenshot of a user's post on X Another user Niteen Nihal Dwivedi also asked when will ITR2 and ITR2 start in reference to excel utilities. Screenshot of a user's post on X Meanwhile, it is vital to mention here that CBDT had notified income tax return filing forms (ITR-1 and ITR-4) via notification dated April 29, 2025. Those who are not aware, ITR-1 (also known as Sahaj) is meant for the individuals who are residents (other than not ordinarily resident) earning an income upto ₹ 50 lakh and having Income from Salaries, one house property, other sources, long-term capital gains under section 112A up to Rs. 1.25 lakh, and agricultural income up to Rs. 5000. ITR-4, also known as SUGAM, is essentially meant for the Individuals, HUFs and Firms (other than LLP) being a resident having total income upto ₹ fifty lakh and who have an income from business and profession computed under sections 44AD, 44ADA or 44AE, and having long-term capital gains as per provisions of section 112A upto ₹ 1.25 lakh. For all personal finance updates, visit here
NDTV
5 days ago
- Business
- NDTV
Faked Tax Deductions? You Could Face A 200% Penalty Under Income Tax Rules
Timely and accurate tax payment is crucial for ensuring the government has the funds to support public welfare initiatives. To enforce compliance, the Income Tax Act prescribes penalties for failure to pay taxes or for providing inaccurate information in income tax returns. According to a PTI report citing government sources, as many as 90,000 salaried individuals-employed across both public sector undertakings (PSUs) and private companies-have withdrawn wrongful tax deduction claims amounting to Rs 1,070 crore as of December 31, 2024. The Income Tax Department uncovered the issue during search, seizure, and survey operations. It found that several individuals had falsely claimed deductions under various sections such as 80C, 80D, 80E, 80G, 80GGB, and 80GGC, effectively reducing their tax liability. Sources revealed that most of these individuals worked in the same companies, spanning sectors including MNCs, LLPs, private limited firms, and PSUs. The income department has updated ITR-1 and ITR-4 forms to prevent false declarations. Now, taxpayers must provide specific proof for deductions, including document IDs, policy numbers, and other details. For example: Section 80C claims require document IDs or policy numbers for investments like PPF, ELSS, or insurance premiums. Section 80D claims require the insurer's name and policy number for health insurance. Home loan or education loan deductions require lender details, loan account numbers, and sanction dates. Claiming deductions for electric vehicles under Section 80EEB requires the vehicle's registration number. This aims to increase transparency and authenticity in tax filings. Concealing income to evade tax Section 270A of the Income Tax Act empowers the Assessing Officer (AO), Commissioner (Appeals), Principal Commissioner, or Commissioner to impose a penalty on individuals who underreport or misreport their income. Introduced by the Finance Act of 2016 and effective from the financial year 2016-17, this provision aims to curb tax evasion and promote accurate income reporting in Income Tax Returns (ITR). The penalty under this section ranges from 50% of the tax payable on under-reported income to 200% in cases of misreporting.
Mint
5 days ago
- Business
- Mint
ITR 2025: Salaried taxpayers must be aware of these 7 key points before filing their income tax return
ITR 2025: The income tax return (ITR) filing season is back and taxpayers are busy arranging documents for filing of their return. Here, we list out top 7 things that salaried taxpayers should be aware of as they go through the maze. These key points include the reasons which influence the choice of income tax regime, documents they need to procure, and tax return forms to submit. For instance, if a salaried taxpayer has accured capital gain income on account of stock market trading then s/he needs to file return via ITR-2 instead of ITR-1. Let is understand this in more detail here. 1. Choosing tax regime: Taxpayers can choose the tax regime based on their investment history and their income level. However, they are supposed to inform their employer if they want to opt for the old tax regime. Else by default, new tax regime will be selected. 2. Form 16: One document that salaried taxpayers must procure from their employer is form 16 which shows the payment of TDS on behalf of employees paid by the employer. 3. Cross referencing information via 26AS: Taxpayer can cross verify the TDS information given on form 16 with that on form 26AS. It is a statement that provides details of any amount deducted as TDS or TCS from various sources of income of a taxpayer including salary and interest on savings & FDs. 4. Investment Vs tax saving: Just because you are not entitled to claim deduction on account of investing in certain tax saving instruments, it does not mean that you should not invest in those instruments. There could still be a strong case for investing in financial instruments for the purpose of wealth creation with or without tax saving. These instruments could include PPF, SSY, KVP and NSC, among others. 5. HRA exemption: If you are entiled to claim significant exemption on account of HRA, you can file your tax return under the old tax regime. On the other hand, if you are not entiled to it, you – as a salaried taxpayer – may file your return under the new tax regime. 6. Investments in stocks: If salaried taxpayers are investing in stocks then they can file their income tax return (ITR) via ITR-2. 7. Income through house property: If a salaried taxpayer has income from one house property, they can file ITR-1 but if they have income from more than one house property, then they need to file ITR-2. For all personal finance updates, visit here
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Business Standard
10-06-2025
- Business
- Business Standard
Excel Utility revised for filing tax returns: Here's what has changed
Spreadsheets templates in Excel Utility to file Income Tax returns for assessment year 2025-26 have changed, particularly for ITR-1 and ITR-4. The templates have stricter disclosure norms and additional reporting fields, prompting the government to extend the ITR filing deadline for non-audit cases from July 31 to September 15, 2025. Stricter disclosure requirements for old regime Ashish Mehta, partner at law firm Khaitan & Co, said the new ITR forms for the old tax regime require much more detailed information. 'For claiming old regime deductions such as 80C, 80D, 80U, HRA (house rent allowance) and home loan interest, detailed disclosures including PPF (public provident fund) details, insurance policy numbers, lender names, addresses, and disease names must now be provided,' said Mehta. A new section has also been added to report income from pass-through entities like Real Estate Investment Trusts (ReITs), Infrastructure Investment Trusts (InvITs), and Alternative Investment Funds (AIFs). Additionally, the Assets and Liabilities schedule is now mandatory only if income exceeds Rs 1 crore up from the earlier Rs 50 lakh threshold. Further, taxpayers must specify the section of tax under which tax has been deducted across income types, a move aimed at improving traceability and accuracy. Capital gains and exempt income According to Mehta, ITR-1 and ITR-4 now allow disclosure of exempt long-term capital gains from listed shares and equity mutual funds up to Rs 1.25 lakh. 'These forms also reflect amendments from Finance Act No. 2 of 2024, with clear bifurcation for gains before and after July 23, 2024, in line with the revised capital gains taxation rules,' he added. Changes for salaried, senior citizens Salaried individuals and senior citizens opting for the old regime will face greater scrutiny due to the expanded disclosure norms. However, the government has made it easier for small investors to use simpler forms. 'ITR-1 Sahaj can now be used by those earning exempt long-term capital gains up to Rs 1.25 lakh. This simplifies filing for salaried individuals and senior citizens, reducing the compliance burden,' said Mehta. Simplified tax filing The updates align with the government's broader strategy to promote the default new tax regime and minimize errors. 'These changes are clearly a step towards cleaner filings. By pushing for detailed disclosures under the old regime, the tax department can curb false claims, expedite refunds, and reduce litigation,' Mehta said.
India Today
10-06-2025
- Business
- India Today
Filing under old tax regime? New ITR rules you should know in 2025
If you're a salaried person and usually file your income tax return (ITR) under the old tax regime, there's something new you need to be aware of this year. Just using Form 16 won't be enough any more. The tax department now wants a little more proof from your CHANGED IN ITR FILING THIS YEAR?Earlier, if your only income was from your salary, you could easily file your return using Form 16 through ITR-1. You would declare any tax-saving investments, like LIC, ELSS mutual funds, or health insurance, to your employer. They included everything in Form 16, and that was good enough. You didn't need to upload any say that the tax department is focusing more on transparency and preventing false claims. So, you'll need to keep records ready when DOCUMENTS FOR SPECIFIC DEDUCTIONS Some deductions now need more detailed information, such as while claiming for a disabled dependent under Section 80DD or 80U, you'll need to give details like Form 10-IA, their PAN/Aadhaar, and UDID (if available). Further, if you are claiming interest on an education loan under Section 80E, be ready to share details of the lender, as these may be verified by the tax must provide proof of deductions under sections like 80C, 80D, and HRA, which was not mandatory in previous years. The new rules demand comprehensive record-keeping, placing a greater responsibility on taxpayers to gather and maintain all relevant documentation before filing their it must be pointed out that if you claim something but don't have the documents, your claim may be rejected. You might even have to pay extra IN LONG-TERM CAPITAL GAINS REPORTINGKey changes include the ability for taxpayers to report long-term capital gains of up to Rs 1.25 lakh in the ITR-1 form, provided these gains are from equity mutual funds or gains realised after July 23, 2025, will not be taxed. Additionally, the deadline for filing ITR for those not requiring an audit has been extended from July 31 to September 15, 2025. This extension provides additional time for taxpayers to ensure compliance with the new documentation if you're sticking with the old tax regime this year, take a little extra time to get organised. Keep all your receipts, policy documents, rent proofs, and other records ready before you start filing. It'll not only make the process smoother but also help avoid any issues later with the tax Reel
