After the notification of ITR-1 and ITR-4, it is now expected that the rest of the forms will also be notified soon. There have been major changes in the new ITR form. Earlier there was no provision to show capital gains tax in ITR-1. Now after the new change, if there is long term capital gains from the sale of listed equity shares and equity mutual funds, then ITR-1 can be used to file tax returns.

Earlier, in case of capital gain, taxpayers had to file ITR-2 form. Apart from the inclusion of long-term capital gains from equity in the ITR-1 form, there has been no significant change.

Who can use ITR-1 for FY25 (AY26)?

According to the notification, ITR-1 form can be used in these situations-

a) Resident individuals with income up to Rs 50 lakh

b) Income from other sources like salary, one house property, interest

c) Long term capital gains up to Rs 1.25 lakh arising from sale of listed equities and mutual funds

d) Agricultural income up to Rs 5 thousand

You will not be able to use ITR-1 in these situations

Despite the provision to show long term capital gains in case of short term capital gains from sale of house property or sale of listed equity and equity mutual funds, in some cases one will not be able to use ITR-1 form for returns. Apart from this, if one is a director in a company or has invested in equity shares of an unlisted company or TDS has been deducted under section 194N or tax on ESOP is deferred or one has any property outside the country, then one will not be able to use ITR-1 form.

Who can use ITR-4 for FY25 (AY26)?

ITR-4 can be used by individuals having income from business and profession computed under sections 44AD, 44ADA or 44AE, resident individuals, HUFs and firms (other than LLPs) having income up to Rs 50 lakh and long term capital gains up to Rs 1.25 lakh under section 112A.

Who will not be able to use ITR-4 form

If you are a director in a company or have invested in equity shares of an unlisted company or have deferred tax on ESOP or have agricultural income of more than Rs 5,000 or have any property outside the country, then you will not be able to use ITR-4 form.

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The post ITR-1 and ITR-4 released, but do not rush to file returns, there has been a big change in the form first appeared on Rightsofemployees.com.

Late fee up to Rs 5000: According to Section-234F of Income Tax, if the total income of a taxpayer is more than five lakh rupees, then the late fee will have to be paid five thousand rupees. If the total income is less than five lakh rupees, then one thousand rupees will have to be paid. If the return is not required to be filed, no late fee will be charged. If the total income base is less than the exemption limit, but still filing the return late, then in this case also there will be no penalty.

Interest will be charged at one per cent every month: Late filing of ITR can lead to interest as well as penalty. According to Section-234A of Income Tax, interest will be charged at the rate of one per cent per month on the total income tax. Even one day after the month will be counted as a full month. For example, if a taxpayer files a belated ITR on 3rd November, the delay will be of 3 months and 3 days but interest will be charged for the full four months.

No interest on refund: If a taxpayer claims a refund, the department will release it only after the work of filing and verifying the ITR is complete. However, no interest will be paid on refund claim in belated ITR.

Will not be able to set off losses: Non-filing of ITR on time will not allow carry forward of capital gains, losses from house property, business and profession and other sources. Such loss can be carried forward up to eight years if ITR is filed on time.

The post ITR Last Date: You can file returns even after the last date of filing ITR, 31st July, but… first appeared on Rightsofemployees.com.

The last date for filing ITR for the financial year 2021-22 or assessment year 2022-23 is 31 July 2022.Many taxpayers have filed their returns so far in the hope that the government may extend the deadline for filing ITR. However, Revenue Secretary Tarun Bajaj clarified that the Center is not looking at extending the July 31 deadline.

The revenue secretary said, ‘People were thinking that the dates would be extended, because this has happened in the past. Due to this reason the pace of filing returns was slow in the beginning, but now 15-18 lakh returns are being submitted daily. In the coming days, it may increase to 25-30 lakhs.

How can I file Income Tax Return?

• First of all go to https://eportal.incometax.gov.in/iec/foservices/#/login.
• Enter your User ID here and then click on Continue. Enter your password and login. If you do not remember the password, click on Forgot Password and you can create a new password.
• After login, click on e-file. After that select the option of File Income Tax Return.
• Select the assessment year 2021-22 and then continue.
• You will get the option for Online and Offline. In this, you select Online and select the option ‘Personal’.
• Now choose either ITR-1 or ITR-4 option and continue.
• If you are salaried then select ITR-1. After that the form will be downloaded on your system. Then go to ‘Filling Type’ and select 139(1)- Original Return.
• After this the selected form will open in front of you, in which fill all the requested information and keep saving. Fill in the bank account details correctly.
• If you select offline mode above, then after filling all the information in the download form, you will see the option of Attach File, where to attach your form.
• After attaching the file, the site will validate the file and click on “Proceed to Verification” after validation.
• In this way your return will be filed and now you can do E-Verification to verify your return.

The post ITR Latest Update: Will the ITR filing date be extended? Learn the easy way to file returns sitting at home first appeared on Rightsofemployees.com.

Usually wait for the last date to file Income Tax Return (ITR Filing 2022-23). The last date to file RTI is July 31. The tax return should be filed before the deadline so that there is no mistake of any kind. The most important thing is that the portal becomes very slow in the last minute because in this way the load increases. In such a situation, to avoid any kind of problems, your work should be completed before the scheduled time. Most importantly, if you file your tax return first, you get many benefits. Let us know the income tax date, let us know which benefits are available for filing taxation before sitting.

You will get bank loan easily and quickly , if you file ITR before the deadline, then you will get bank loan easily and quickly. Banks and other lending institutions consider ITR receipt as the most reliable income proof. ITR will be of great help in availing any kind of loan including car, loan or home loan.

Many people who are required for TDS refund have low income and they are not in the purview of income tax. Despite this, returns are filed every year. If TDS is deducted for any reason for such people, then it gets refunded while filing ITR, only after ITR is filed, the Income Tax Department assesses it.

Ease of Getting Visa Many people find it difficult to get a visa. If you fill R ITR then it becomes easy for you. Visa authorities of many countries ask for ITR of 3 to 5 years for visa. ITR receipts are a solid proof of your income. This shows that you are able to bear the cost of travel.

Income and Address Proof

ITR is an important document for income and address proof. For government or private income or address proof, copy of ITR can be given. It gives complete information about your income and residence.

If you file ITR, then you get a lot of benefit in investing in shares or mutual funds . In the event of a loss, it is necessary to carry forward the loss to the next year and file an income tax return. If there is a capital gain in the next year, the loss will be adjusted against the profit and this will give you the benefit of tax exemption.

The post Income Tax Return 2022: File returns before this date, you will get these big 5 benefits first appeared on Rightsofemployees.com.