Income Tax Return (ITR) filing for the Assessment Year (AY) 2025-26 is quickly approaching, with the deadline set for September 15. To avoid complications and last-minute stress, taxpayers need to ensure they file the correct ITR form.
Choosing the Right Form is Crucial
The Income Tax Department has different forms for different types of taxpayers and income sources. Selecting the wrong one can lead to your return being classified as “defective,” causing delays in processing and potential issues with tax refunds.
- ITR-1 (Sahaj): This is the most popular form, used by nearly half of all filers last year. It is designed for resident individuals with a total income of up to ₹50 lakh. You should use this form if your income comes from:
- Salary or pension
- One house property
- Other sources like interest from savings accounts
- When to Use Other Forms: You’ll need a different form if your financial situation is more complex. For example:
- ITR-2 or ITR-3: Required for those with income from capital gains (e.g., from selling shares or property), foreign income, or winnings from lotteries or horse races.
- ITR-3 or ITR-4: Necessary for individuals with income from a business or a profession.
Important Changes and Reminders for AY 2025-26
This year’s filing process includes new disclosure requirements that taxpayers must be aware of:
- Reporting home loan interest under Section 24(b).
- A higher asset-liability reporting threshold of ₹1 crore.
- New schedules for certain deductions.
The use of online e-filing portals remains a convenient way to file, but the responsibility of choosing the correct form and providing accurate information rests with the taxpayer.
To ensure a smooth filing experience, review your income sources carefully and consult available resources if you’re unsure which form to use. Filing correctly and on time will help you avoid penalties, delays, and potential notices from the tax department.