In such a situation, if you are preparing to file your return, then it is very important for you to know on which income sources tax has to be paid. Tax experts say that it is common for a taxpayer to have more than one income. This can be from salary, rental income or business. In such a situation, it is necessary to give information about all income in the return. You may get a notice from the Income Tax Department for hiding the income source. If the mistake is caught, you may have to pay a fine. So let us tell you on which 5 income sources tax is levied.

5 sources of income on which tax is levied

1. Income from Salary: Taxable salary includes basic salary, all allowances, perks and bonuses etc. which fall under the taxable category. Taxpayers whose monthly salary is their sole income should file their income tax return through ITR-1 form.

2. Rental Income:

If one owns a property that is rented out, the rent earned from it is taxable. Eligible taxpayers under this income section can file their ITR through ITR-1 form.

3. Capital Gains:

Long and short term capital gains, as well as profits earned from the sale of shares, mutual funds and property, are income taxable.

4. Income from Business:

Small businesses, freelancers, small agency owners and those with professional income or entrepreneurs fall into the tax slab. Taxpayers in this income category should fill the forms numbered ITR-4, ITR-5 or ITR-6 depending on their respective income categories.

5. Income from other sources:

Citizens receiving interest income of more than ₹50,000 from fixed deposits or bonds, share dividends, gifts, game shows, lucky draws, lottery prizes, etc. fall under the ‘other sources’ slab.

According to tax experts, it is necessary to give information about these 5 incomes while filing returns. If your income is outside the scope of tax, then you will not have to pay any tax. If it comes within the scope of tax, then you will have to pay tax according to the income tax slab you fall in.

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Tax experts say that even though the Central Board of Direct Taxes (CBDT) has extended the last date, taxpayers should not wait for the last date to file their returns. The reason for this is that in the rush to file returns near the last date, you can make a mistake, which can cost you a lot.

Be careful and vigilant while filing returns

The Income Tax Department wants to bring maximum people under the purview of compliance. For this, it is constantly strengthening its surveillance system. It keeps a watch on the high value transactions of people. If the department feels that the high value transactions of a taxpayer do not match his income, it sends a notice to the taxpayer.

Therefore, you need to be very careful while filing your income tax return. You have to remember that every income, big or small, has to be declared in the return. If you have earned profit by investing in cryptocurrency, then you have to declare it in the return.

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In case of error, a revised return can be filed.

A partner at a tax consultancy firm said that you should take your income tax return very seriously. Before filing your return, you should collect complete information about all your income. If you forget to declare any income in your return, you may later get a notice from the Income Tax Department. If the department feels that you have done it intentionally, then you can get into big trouble.

Taxpayers may have to pay penalty

Section 276C of the Income Tax Act, 1961 states the steps that the Income Tax Department can take against a taxpayer if it is proven that he is at fault. These include claiming wrong deduction, using fake receipt or certificate for deduction, action to be taken for not disclosing any income in the income tax return.

According to this section, if a taxpayer is found guilty, he may have to pay a fine of up to 200 percent of his tax liability. Not only that, he may also have to go to jail.

A deliberate mistake can result in imprisonment.

Section 276C states that if a taxpayer intentionally evades tax and the amount evaded exceeds Rs 100,000, he can be sentenced to imprisonment. Initially, the sentence will be for 6 months, but later it can be increased to 7 years.

Apart from this, a penalty can be imposed on the taxpayer. Tax experts say that if a taxpayer unintentionally forgets to disclose any income, then he does not need to worry. If he remembers, then he can file a revised return. If you do not remember later and the Income Tax Department sends you a notice, then you can tell the department the truth.

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The post ITR 2025: Giving wrong information in ITR can lead to jail, know what are the rules… first appeared on Rightsofemployees.com.

The new financial year has started from 1 April 2025. After which taxpayers have started preparing to file their income tax return (ITR 2025) for the previous financial year.

At the same time, the Income Tax Department is expected to notify the filing form for the financial year 2024-25 or assessment year 2025-26 soon. In such a situation, before filing income tax return, it is important for taxpayers to ensure that they have all the necessary documents. It is very important to have updated Form-16, especially for salaried people.

The post CBDT notifies ITR-1 Sahaj, ITR-4 Sugam for financial year 2024-25, All You Need To Know first appeared on Rightsofemployees.com.