Income tax return Filing 2025: Employed taxpayers must have Form 16. They will be able to file returns only when they get Form 16. Employers issue Form 16 to their employees. It includes the salary income of the employees in the last financial year, TDS and deductions received on tax savings.
The Income Tax Department had notified all the ITR forms for return filing earlier this month. With this, the income tax return season has started. But, working people will have to wait till they get Form 16. Employers issue Form 16 to their employees. It includes the salary income of the employees in the last financial year, TDS and deductions received on tax savings. The information given in it is used to file income tax returns.
When will Form 16 be issued?
Employers are expected to issue Form-16 in the first or second week of next month. It is mandatory for employers to issue Form-16 to all employees by June 15. Tax experts say that working people should start preparing to file ITR now. This is also important because this time the Income Tax Department has made some changes in the ITR forms. There has been a change in the tax slabs as well.
Who can use Form-1?
These changes can be understood with the help of an example. For example, till last year, an ordinary resident could use ITR-1 (Sahaj) form only when his source of income included only salary/pension, one house (property), interest from savings/fixed deposits, dividends and agricultural income of less than Rs 5,000. This year, even if there is long term capital gains (LTCG) on selling shares and units of mutual funds, ITR Form-1 can be used. The only condition is that this LTCG should not exceed Rs 1.25 lakh in the financial year 2024-25.
Filing return with ITR form is the easiest
ITR-1 is also called Sahaj form. As the name suggests, it is the easiest form to file income tax return. It can be used by people who receive salary or pension, whose sources of income are limited and do not include any very different sources. You will find personal information pre-filled in this form. Income details and financial transaction information will also be pre-filled in it. This has been done to make the process of filing income tax return easier for taxpayers.
These things need to be kept in mind
ITR Form-1 i.e. Sahaj can be used by such individual taxpayers whose income is not more than Rs 50,000,00. This income can include salary / pension, income from one house, agricultural income, income from savings / fixed deposits, dividend and family pension. From this year, this form can also be used by taxpayers whose long term capital gains (from sale of shares or mutual funds) are up to Rs 1.25 lakh.
Who can use ITR-2?
If a salaried taxpayer has an annual income of more than Rs 50 lakh, capital gains (from sale of shares or MF) of more than Rs 1.25 lakh, is a director in a company, holds shares in an unlisted company, has income from abroad, has deferred deduction or tax on ESOPs or has carried forward loss under any income head, then he must use the ITR-2 form.
The post ITR Filing 2025: Good News! Filing income tax return has become easier for employed people, understand the complete process here first appeared on informalnewz.
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