The commencement of the income tax return filing season for the Assessment Year (AY) 2025-26 is approaching, with the process set to begin on April 1, 2025. This assessment year pertains to the income earned during the financial year 2024-25, which spans from April 1, 2024, to March 31, 2025.
For salaried individuals, a crucial document for this filing process is Form 16, which employers are expected to provide. It contains comprehensive details of the employee's salary and the tax deducted at source (TDS) throughout the financial year. Understanding the nuances of income tax return filing is paramount for taxpayers to ensure compliance with the regulations and avoid potential penalties or audits.
For the Assessment Year (AY) 2025-26, which aligns with the Financial Year (FY) 2024-25, salaried individuals in India must submit their income tax returns using the appropriate ITR forms. The main forms for these individuals are ITR-1 and ITR-2, chosen based on the sources and complexity of their income. Here’s a detailed summary:
Returns Applicable
ITR-1 (SAHAJ)
| Applicable For | Resident Individuals (excluding Not Ordinarily Resident) |
| Income Limit | Total Income up to ₹50 lakh |
| Eligible Income Sources | Salary/Pension One House Property Other Sources (Interest, Family Pension, Dividend, etc.) Agricultural Income up to ₹5,000 |
| Not Applicable For Individuals Who | Are Directors in a company Hold unlisted equity shares Have foreign assets/signing authority in a foreign account Earn income from outside India Have tax deducted u/s 194N Have deferred tax on ESOPs Have brought forward/carry forward losses Have total income exceeding ₹50 lakh |
ITR-2
| Applicable For | Individuals and Hindu Undivided Families (HUFs) |
| Eligible Income Sources | Not applicable if you have income from business or profession |
| Additional Condition | Use if not eligible for ITR-1 (SAHAJ) |
ITR-3
| Applicable For | Individuals and Hindu Undivided Families (HUFs) |
| Eligible Income Sources | Having income under ‘Profits & Gains from Business or Profession |
| Additional Condition | Use if not eligible for ITR-1, ITR-2, or ITR-4 |
ITR-4 (SUGAM)
| Applicable For | Resident Individuals, HUFs, and Firms (other than LLPs) |
| Income Limit | Total Income up to ₹50 lakh |
| Eligible Income Sources | Income from Business or Profession (Computed on presumptive basis u/s 44AD, 44ADA, 44AE) Salary/Pension One House Property Other Sources Agricultural Income (Up to ₹5,000) |
| Not Applicable For Individuals Who | Are Directors in a company Hold unlisted equity shares Have foreign assets/signing authority in a foreign account Earn income from outside India Have deferred tax on ESOPs Have brought forward/carry forward losses Have total income exceeding ₹50 lakh |
Forms Applicable
Form 12BB – Employee’s Declaration for Tax Deduction (u/s 192)
| Provided By | Employee to Employer |
| Details Provided In The Form | Provides details for TDS calculation, including: HRA, LTC, Home Loan Interest, Tax-Saving Investments |
Form 16 – TDS Certificate on Salary (u/s 203)
| Provided By | Employer to Employee (Year-End) |
| Details Provided In The Form | Details of salary income, deductions, exemptions, and TDS for tax computation. |
Form 16A – TDS Certificate on Non-Salary Income (u/s 203)
| Provided By | Deductor to Deductee (Quarterly) |
| Details Provided In The Form | Form 16A is a Tax Deducted at Source (TDS) Certificate issued quarterly that captures the amount of TDS, Nature of Payments and the TDS Payments deposited with the Income Tax Department |
Form 67 – Foreign Income & Tax Credit Statement
| Submitted By | Taxpayer (Before ITR Due Date u/s 139(1)) |
| Details Provided In The Form | Declares foreign income and claims Foreign Tax Credit (FTC). |
Form 26AS & AIS – Tax & Financial Information
| Criteria | 26AS | AIS |
| Provided By | Income Tax Department (Available on e-Filing Portal) | Income Tax Department (e-Filing Portal) |
| Details Provided In The Form | Shows TDS, TCS, Advance Tax, Refunds, and High-Value Transactions (SFT). | Expanded version of 26AS, including GST data, foreign reports, pending cases, and tax demands. |
Note: Information regarding (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS are now available in AIS
Online and Offline Filing Options
Although the online method of submitting ITR-1 via the Income Tax Department’s e-filing portal is the most effective and user-friendly option for the majority of taxpayers, certain categories may have the option to file offline as per existing regulations.
Nevertheless, the online approach is generally recommended due to its simplicity and quicker processing time. Salaried individuals need to stay informed about the key dates and deadlines for the assessment year 2025-26 to ensure they file on time and avoid penalties.
The deadline for individuals not subject to an audit to file their income tax returns is July 31, 2025, and employers are required to issue Form 16 by June 15, 2025.
Deadlines for Revised and Belated Returns
As per the information provided, both revised and belated returns for AY 2025-26 must be filed by December 31, 2025. It's essential for taxpayers to be aware of these deadlines to ensure compliance and avoid penalties. Taxpayers should also carefully review their returns for any omissions or errors before filing a revised return, and keep documentation supporting any changes made.
Conclusion
In summary, salaried individuals gearing up to file their income tax returns for the Assessment Year 2025-26 should take a methodical approach. It's essential to evaluate various income sources to determine the suitable ITR form—a majority may use ITR-1, while others might need ITR-2, 3, or 4 depending on their financial scenarios.
A clear understanding of the New Tax Regime as the default option, alongside the choice to opt for the Old Tax Regime, is fundamental.
Additionally, paying attention to the importance of Form 16 and the recent updates issued by CBDT circulars is vital for accurate filing.
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