Latest news with #ITR-4
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.
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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.
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Business Standard
05-06-2025
- Business
- Business Standard
ITR-1, ITR-4 forms go live: Know what has changed, who can file online
People can file their Income Tax returns (ITR) for assessment year 2025-26 as the Central Board of Direct Taxes (CBDT) has enabled the online filing of ITR-1 and ITR-4 forms on its e-filing portal The website has pre-filled data, aimed at simplifying the return filing process for millions of salaried and small business taxpayers. Who can file ITR-1 and ITR-4? Both ITR forms are designed for individuals with relatively simple income profiles, said Naveen Wadhwa, vice-president of Taxmann. ITR-1 (Sahaj) is for resident individuals (not Hindu Undivided Families, HUF) or firms) having: Salary or pension income One-house property (no carried-forward losses) Income from other sources (excluding lottery or racehorse winnings) Total income up to Rs 50 lakh Long-term capital gains under Section 112A up to Rs 1.25 lakh (new inclusion) ITR-4 (Sugam) is for resident individuals, HUFs, or firms (other than LLPs) having: Presumptive income under sections 44AD, 44ADA, or 44AE Total income up to Rs 50 lakh Income from one-house property and other sources Long-term capital gains under Section 112A up to Rs 1.25 lakh, with no capital losses carried forward According to CBDT's rules, individuals earning capital gains up to Rs 1.25 lakh under Section 112A (from listed equity shares, mutual funds, or business trusts) can now file ITR-1 or ITR-4, provided there is no carried forward loss. This change addresses a long-standing concern among small investors. Calculate Income Tax: Income Tax Calculator Tool 'This amendment will benefit a large number of small taxpayers who earlier had to switch to complex forms like ITR-2 or ITR-3 just because of minor capital gains,' said Wadhwa. Wadhwa explained the changes that taxpayers need to keep in mind this time: Aadhaar Enrolment ID not accepted: From October 1, 2024, only the actual Aadhaar number (not the enrolment ID) can be used for PAN applications and return filing. Capital gains disclosures: If your capital asset was sold after July 23, 2024, new tax rules apply. Taxpayers must now disclose the transfer date, as tax rates and indexation benefits differ based on that. Detailed tax regime disclosure: ITR-4 now requires more specifics on whether the taxpayer wants to opt out of the new tax regime under Section 115BAC. Where to file returns Taxpayers can log in to to access the pre-filled ITR-1 and ITR-4 forms and submit them online. With the ITR forms now live, experts suggest early filing to avoid last-minute rush or errors. 'Taxpayers should cross-check their prefilled data, especially TDS and bank interest, before submission,' said Wadhwa. For AY 2025–26, the deadline for most individual taxpayers is September 15 (for non-audit taxpayers).
NDTV
04-06-2025
- Business
- NDTV
ITR-1 And ITR-4 Online Filing Now Open For AY 2025-26; Deadline Extended To September 15
Quick Read Summary is AI generated, newsroom reviewed. The Income Tax Department of India has launched online filing for ITR-1 and ITR-4 forms. Taxpayers can now prepare and submit returns for FY 2024-25 via the e-filing portal. The deadline for filing ITR-1 and ITR-4 has been extended to September 15 from July 31. The Income Tax Department of India has enabled online filing of income tax returns for FY 2024-25 through ITR-1 and ITR-4 forms on its e-filing portal. Salaried individuals, pensioners, freelancers, and small business owners can now prepare and upload their returns online. "Kind attention, taxpayers! Income Tax Return Forms of ITR-1 and ITR-4 are now enabled to be filed through Online mode with prefilled data for Assessment Year 2025-26 for taxpayers. Visit the Income Tax department said in a post on X. Kind attention taxpayers! Income Tax Return Forms of ITR-1 and ITR-4 are now enabled to file through Online mode with prefilled data for Assessment Year 2025-26 for taxpayers. Visit: @FinMinIndia @nsitharamanoffc @officeofPCM @PIB_India — Income Tax India (@IncomeTaxIndia) June 3, 2025 The last date to file income tax returns in ITR-1 and ITR-4 has been extended this year to September 15 from July 31. Who can use ITR-1 and ITR-4? ITR-1 (Sahaj) is designed for resident individuals with income up to Rs 50 lakh from salary, one house property, interest, or pension. ITR-4 (Sugam) suits individuals, HUFs, and firms (excluding LLPs) with income up to Rs 50 lakh from business or profession under presumptive taxation. These forms cater to a large number of taxpayers, simplifying the filing process for salaried individuals, small businesses, and professionals. They're user-friendly and efficient. The ITR-1 and ITR-4 forms are filed by individuals, HUFs and entities with total income up to Rs 50 lakh a year and who do not have to get their accounts audited. Also, entities with long-term capital gains of up to Rs 1.25 lakh from listed equities can show such income in ITR 1 and 4. Earlier, they were required to file ITR-2. For now, individuals requiring ITR-2 or ITR-3 forms will have to wait, as the current release only includes utilities for ITR-1 and ITR-4 forms.
