The deadline for filing income tax return (ITR) has increased. Experts say that taxpayers should complete their preparations despite increasing deadline. However, salary taxpayers cannot file income tax returns until they get Form 16. Employees issue their employees Form 16. It is necessary to file income tax returns. It contains information about the salary income, TDS and Didctions of Employees.
Many changes in ITR forms this year
This year Income tax return Some changes have been made in the forms. In the union budget presented in July last year, the government had changed the rules of Capital Gens Tax. Then in the budget presented in February this year, the government had made changes in tax slabs in the new regimen of income tax. Therefore, it was necessary to change the income tax forms. For example, for the last year, Ordineri Residents could use Indian taxpayers ITR-1 (Sahaj) when their source was just salary/pension, a house property, savings/fixed deposits with interest, dividend and less than Rs 5,000.
Now you can also use ITR-1 on LTCG
This year, if a taxpayer has a long-term capital gains on selling units of listed shares or mutual fund equity scheme, it can still use ITR-1 form. The only condition is that the Capital Gens FY25 should not exceed Rs 1.25 lakh. In this way, the government has increased the scope of use of ITR-1 i.e. easy form. This is good news for taxpayers, especially salary taxpayers.
ITR-1 use the easiest
ITR-1 form is the easiest form. It is for taxpayers who receive salary or pension, who do not have many sources of income. Many information in this form is already full. For example, the details of income and information of financial transactions are very easy to file returns. Taxparens can check the data of ITR-1 form from Form 16, AIS and Form 26AS data.
Conditions for use of ITR-1
Sahaja i.e. ITR-1 form can only be used by individual taxpayers whose annual income is not more than Rs 50 lakh. Their source of income should only contain an interest, dividend and less than Rs 5,000 from salary/pension, a house property, savings/fixed deposits. From this year, such taxpayers can also use this form, which have been less than Rs 1.25 lakh for a long -term capital gains of less than Rs 1.25 lakh on selling units of shares or equity mutual funds.
ALSO READ: Income Tax Return 2025: When will the wait for the taxpayers do the wait 16 end?
ITR-2 used in these conditions
If the annual income of a taxpayers is more than Rs 50 lakh, then they cannot use ITR-1. If a taxpayer’s long-term capital gence is more than Rs 1.25 lakh in a financial year, it cannot use ITR-1. If a taxpayer is a director in a company, he cannot use ITR-1. If any taxpayers have shares of non-listed company, they cannot use ITR-1. Even if there is income from abroad, ITR-1 cannot be used. In such situations, taxpayers will have to use ITR-2 form.