If you make mistakes in ITR, then not only will you come under the scrutiny of the Income Tax Department, but you may also have to pay a heavy fine along with punishment.

Lakhs of cases identified by Income Tax Department

The last date for filing ITR is approaching, in such a situation, the department has identified about 1.5 lakh cases for detailed investigation under section 143 (2). Your responsibility does not end just by filing ITR. If you have made mistakes in the income tax return, then notices can be issued by the Income Tax Department.

Let us know about 5 such mistakes which if done while filing income tax return, then you will come under the eyes of the Income Tax Department-

1. Matching of documents

You have filed your ITR, but if there is a difference in the TDS details and the income details declared by you, then it can be investigated by the Income Tax Department. Such problems are generally common among salaried and freelancers. Therefore, while filing income tax return, match the declared income with your TDS details in advance.

2. False claims in greed for higher refund

If you are also among those taxpayers who give wrong information in the income tax return to get more refund, then the Income Tax Department can take action against you. To avoid such problems, it is better to file all the correct information. If the taxpayer declares less income, then a penalty of 50% can be imposed on him. On the other hand, a penalty of 200% may have to be paid under section 270A for submitting fake documents.

3. Income Tax Department’s eye on high value transactions

High value transactions are monitored by the Income Tax Department. If you do not include details of such major activities in your ITR, then you may get into trouble.

4. Avoid disclosing all sources of income

Many taxpayers do not include information about all the sources of income earned in their income tax returns. Due to which they can also come under the radar of the Income Tax Department. For example, if you are a salaried person and have made capital gains in the financial year, have received income from rent, have received bank interest or have earned profit through shares or crypto, then all such income will have to be included in your income tax return. If you do not include the details of income earned from all sources in your ITR, then you may have to pay a penalty on it later. Along with this, you may also have to face questions from the Income Tax Department.

5. Sudden decrease in income

In many cases, if the taxpayer’s income suddenly decreases compared to the previous year, the Income Tax Department may ask for an explanation. In response to this, the taxpayer will have to submit the necessary documents.

If you are also thinking of filing income tax return, then enter the correct information of all your documents. If necessary, you can consult a financial advisor. So that your income tax return is filed without any mistakes and you can avoid action by the Income Tax Department.

The post 5 Common ITR Filing Mistakes That Can Trigger an Income Tax Notice first appeared on Rightsofemployees.com.

With the beginning of August, a big question has arisen for crores of taxpayers of the country whether the deadline for filing income tax return (ITR) can be extended this year as well? For the past few days, there has been a discussion on social media as well as among experts and tax consultants whether the government will extend the last date for ITR filing, or will the extended deadline of 15 September 2025 remain final.

What do the experts say?

For the financial year 2024-25 (assessment year 2025-26), the Income Tax Department has extended the last date for filing ITR from 31 July to 15 September 2025. The reason for this was said to be major changes in the ITR form, delay in updating the digital system and to provide a better experience to taxpayers. According to experts, this time the extension has been extraordinary, because the deadline was not extended for the last three years.

The post ITR Filing Deadline 2025: Will It Be Extended? Here’s What Experts Predict first appeared on Rightsofemployees.com.

If you are a content creator or influencer and social media platforms are a source of income for you, then there is a big update in this tax season. Actually, the Income Tax Department has made a big change in the ITR-3 and ITR-4 forms.

Under this, a new code 16021 has been introduced for those earning from social media. This code created by Income Tax Return (ITR) Utilities for the financial year 2024-25 (assessment year 2025-26) is specifically for those influencers who earn through promotion, product endorsement or digital content creation.

It will be easier for influencers to file returns

According to a Business Today report, Chartered Accountant Himan Singla said, these codes are now active under the ‘profession’ category in both ITR-3 and ITR-4 (Sugam). These codes have been added to both online and offline methods for filling the form. That is, now influencers will have to fill either ITR-3 or ITR-4 (Sugam) on the basis of their income and tax selection. Whereas till now there was no separate category for the income of influencers. The aim of this move is to make tax compliance easier for creators, online coaches, bloggers and gig workers.

The digital economy in the country is growing rapidly. According to a report, its market can reach $2.8 billion (about Rs 23,500 crore) by the end of 2025. Now through this new code, the Income Tax Department will be able to keep a strict watch on the income of influencers and tax evasion will also be reduced.

Which form of influencers to choose?

Social media influencers can choose either ITR-3 or ITR-4 (Sugam) to file ITR depending on their income. ITR-3 form is for those people whose source of income is a business or profession. Also, their income is from salary, property or any other source.

ITR-4 form is for those who opt for preemptive tax scheme, that is, those who want to pay a part of their income as tax. There is no need to maintain detailed accounting in this. If you opt for preemptive tax and your income is up to Rs 50 lakh, then fill ITR-4 form. If the income is more than this and from multiple sources, then use ITR-3 form.

Those opting for presumptive taxation under section 44ADA should note that it is applicable to professionals with gross receipts up to Rs 50 lakh and income up to Rs 75 lakh if their cash receipts are less than 5 per cent of their gross receipts.

The most important thing during this time is that before filing tax return, do not forget to check your Annual Information Statement (AIS) and Form 26AS because it contains all the information related to TDS and your income.

Why is this change necessary?

The number of people earning more than 20 lakhs annually from social media has increased rapidly in the last 2 years. Some earn crores, so they should be brought under the tax net. Earlier, influencers or traders used to file returns in the ‘other’ category. Now, with the implementation of a separate code, the Income Tax Department will be able to find out their actual income, which will make it easier to collect taxes.

Full list of new codes

• Social Media Influencers – 16021
• Futures-Options Trader (F&O) – 21010
• Share purchase and sale- 21011
• Speculative Business – 21009
• Commission Agent- 09029

The post Content Creators Alert! Govt Rolls Out New ITR Rule – Here’s What You Need to Know first appeared on Rightsofemployees.com.

A few years ago, we both used to work in the same company. Seeing her upset, I asked if she had any problem. At first, she said no, but after a while she said that she wanted to ask something. I said that she can ask without hesitation.

Jain said that her employer has issued her digital Form 16. She wants to file income tax return but she does not know which regime will be best for her? The second question was that at the beginning of the last financial year, she had told her employer that she wanted to use the old regime. The question is, can she change it now?

First I told Jain to come out of his worry. Actually, this problem is not only of Jain. There are lakhs of salaried taxpayers who are confused about this question. The reason for this is the old and new regime of income tax. This system was implemented about 5 years ago. Now taxpayers have the option to choose any one of the new and old regimes as per their wish. In the old regime, one gets the benefit of deductions. Especially, one gets the benefit of deduction on section 80C, 80D and home loan principal and interest. These benefits are not available in the new regime.

Jain has been using the old income tax regime since the beginning. Actually, she has taken term insurance. She has bought a health policy. She also makes tax saving investments every year under section 80C. These include tax saving schemes of mutual funds and PPF. Now someone has told her that despite getting deduction on tax saving investments, if she uses the new income tax regime, she will have to pay less tax. That is why she is confused.

If Neha feels that she will have to pay less tax by using the new regime to file income tax return for the financial year 2024-25, then she can use the new regime. It is important to understand that even if you have told your employer about using the old regime at the beginning of the previous financial year, you can still use the new regime instead of the old one at the time of filing income tax return. Yes, it is true that your employer will deduct your TDS as per the old regime. But, if your tax is less by using the new regime, then the TDS deducted will be refunded to you in the form of a refund.

Tax experts say that if salaried taxpayers do not have income from business, that is, they only have income from salary, bank interest etc., then they can change their income tax regime every year. There is no limit on how many times he can make changes. This means that if you do a job and at the beginning of the last financial year i.e. April 2024, you told your employer that you will use the old regime, then you still use the new regime at the time of filing ITR this year. Therefore, Jain has no need to worry. After I told her this, she looked satisfied.

Most Read Articles:-

Government’s new guideline, new SIM card will not be available without KYC

India launches “Operation Sindhu” to evacuate Indian citizens from Iran

Bank Holidays in July 2025: Banks will remain closed for 13 days in July, know the holidays of banks in your city

The post Income Tax Return 2025: How many times can taxpayers change their tax regime? first appeared on Rightsofemployees.com.

Because taxpayers can choose any one of the two different regimes while filing their Income Tax Return (ITR Filing 2025). Both regimes have different exemptions and benefits. If you do not choose any regime yourself while filling the form, then your return will be filed under the New Tax Regime. Actually, from the financial year 2023-24, the New Tax Regime has been made the default tax regime.

Old Tax Regime vs New Tax Regime

There is no single answer when it comes to choosing the right tax regime for each individual, the choice of regime depends on many factors such as your income, investments and how many deductions you are eligible for. Opting for the new tax regime will give a tax exemption to salaried individuals on income up to Rs 7 lakh for the recently ended financial year. The standard deduction has been increased to Rs 75,000 under the new tax regime from FY 25.

On the other hand, the old tax regime allows taxpayers to claim several deductions and exemptions such as Section 80C, Section 80D, Housing Rent Allowance, etc. However, the limit of standard deduction under this has not been increased, it is still Rs 50,000.

How many times can I change tax regime while filing ITR?

According to the information given on the website of the Income Tax Department, a person with non-business income can switch between the old tax regime and the new tax regime every year. The old tax regime can be chosen before the due date of filing the return under section 139(1) of the Income Tax Act.

Can everyone switch tax regimes?

For individuals with business or professional income, the facility to switch between tax regimes is limited. These taxpayers cannot switch regimes every year. According to the Income Tax website, an individual, HUF, AOP (not cooperative societies), BOI or artificial juridical person with business or professional income will not be eligible to choose between two tax regimes every year.

Once they exit the New Tax Regime, they have only one chance to switch to the New Tax Regime. Remember that once they switch back to the New Tax Regime, they will never be able to opt for the Old Tax Regime in the future.

Is there a deadline to switch?

The option to choose the tax regime is available only if the ITR is filed by the due date. Taxpayers who file belated returns will be able to file returns only under the new tax regime. In such cases, the income tax portal does not allow switching to the old tax regime.

The post Tax Regime Calculator: How many times can you change the tax regime while filing ITR? first appeared on Rightsofemployees.com.