New Delhi, April 30 — The Income Tax Department has notified ITR-1 (Sahaj) and ITR-4 (Sugam) forms for the Assessment Year 2025-26. These simplified forms cater to individual taxpayers and Hindu Undivided Families (HUFs) with total income up to Rs 50 lakh.

As per agency report, a significant update in this year’s filing process is that individuals earning up to Rs 1.25 lakh in long-term capital gains (LTCG) in a financial year can now file their returns using ITR-1. Previously, such taxpayers were required to file ITR-2. This change especially benefits salaried individuals earning small amounts of LTCG from shares or mutual funds.

The ITR-1 form can be filed by resident individuals with income up to Rs 50 lakh, derived from salary, one house property, other sources such as interest, and agricultural income up to Rs 5,000. Meanwhile, ITR-4 is meant for individuals, HUFs, and firms (excluding LLPs) whose income includes business or professional earnings under the presumptive income scheme.

Individuals and entities eligible under these conditions can now begin filing their income tax returns for the financial year 2024–25 (April–March cycle).

Tax advisory firm AKM Global's Partner (Tax) Sandeep Sehgal stated that the Central Board of Direct Taxes (CBDT) has introduced changes aimed at streamlining compliance for small investors and salaried taxpayers. Under the new provision, individuals with LTCG not exceeding Rs 1.25 lakh under Section 112A, and who have no capital losses to carry forward or set off, can now file their returns using the simpler ITR-1 or ITR-4 forms.

Sehgal added that this revision simplifies the tax filing process, making it more accessible and less cumbersome for a broader group of taxpayers. The goal is to promote timely and accurate tax compliance through user-friendly return mechanisms.

New Delhi, March 30 – With less than 48 hours remaining for the start of the new financial year, several key changes in income tax rules are set to come into effect from April 1, 2025. These changes, announced by Finance Minister Nirmala Sitharaman in the Union Budget 2025, are expected to significantly impact salaried individuals.

As per agency report, one of the most notable changes is the expansion of the tax exemption limit under the new tax regime. Starting April 1, annual incomes up to Rs 12 lakh will now be exempt from income tax, a significant increase from the previous limit of Rs 7 lakh. When combined with the standard deduction of Rs 75,000 for salaried individuals, the effective tax-free income threshold rises to Rs 12.75 lakh.

However, capital gains are excluded from this exemption and will continue to be taxed separately. The government has introduced new tax slabs under the revised tax regime, while the old regime remains unchanged. Under the new structure, income up to Rs 4 lakh will be tax-free, income between Rs 4 lakh and Rs 8 lakh will be taxed at 5 percent, and the rate will progressively increase, reaching up to 30 percent for income exceeding Rs 24 lakh.

The tax rebate under Section 87A has also been enhanced, increasing from Rs 25,000 to Rs 60,000. This change further ensures that income up to Rs 12 lakh will remain tax-free under the new regime.

In a move to provide relief to depositors, the threshold for TDS (Tax Deducted at Source) on bank interest income has been raised from Rs 40,000 to Rs 50,000. This means that no TDS will be deducted on interest earnings up to Rs 50,000.

From April 1, benefits and allowances provided by employers will no longer be classified as taxable perks. Additionally, any expenses incurred by employers for the medical treatment of employees or their families abroad will not be considered taxable income.

The deadline to file updated income tax returns (ITR-U) has been extended from two years to four years, allowing taxpayers more time to correct errors or omissions in their filings.

A new tax-saving option has also been introduced for parents. Those contributing to their child’s NPS Vatsalya account can claim an additional deduction of Rs 50,000 under the old tax regime.

These changes reflect the government’s effort to simplify the tax structure and provide greater flexibility and benefits to taxpayers ahead of the new fiscal year.

New Delhi, March 27 – To assist taxpayers in completing their pending income tax-related tasks for the current financial year, all income tax offices across India will remain open from March 29 to March 31, 2025. This decision comes despite the upcoming weekend and the observance of Eid-ul-Fitr on Monday.

As per agency report, the Central Board of Direct Taxes (CBDT) has issued an official order ensuring that the offices stay operational during these three days. The financial year 2024–25 concludes on March 31, making it a crucial deadline for government payments, tax filings, and departmental settlements.

The CBDT noted that the move aims to support the completion of all pending departmental work and provide convenience to taxpayers before the financial year ends. Additionally, March 31 marks the last date for filing updated income tax returns for the assessment year 2023–24.

In coordination with this decision, the Reserve Bank of India (RBI) has also directed all authorized banks handling government business to remain open on March 31. The RBI has taken steps to ensure that necessary arrangements for special clearing operations are in place, allowing for smooth processing of government receipts and payments on the final day of the fiscal year.

New Delhi, March 10 – Under the proposed new Income Tax Bill, tax authorities will only be allowed to access digital records and computer devices during raids, according to a top official from the Income Tax Department. The provision aims to ensure that taxpayers' online privacy remains intact and is not violated under normal circumstances.

As per agency report, the official clarified that even if a taxpayer is under investigation, their digital privacy will be maintained. Addressing concerns raised by some media reports and experts, he dismissed claims that tax officials were being given additional powers to access emails, social media accounts, and cloud storage.

The official emphasized that such powers already existed under the Income Tax Act of 1961 and are merely being reiterated in the new 2025 tax bill. He called the reports suggesting expanded surveillance on taxpayers' digital activities as misleading and fear-inducing.

The official further explained that even during raids, access to digital storage, emails, cloud services, and messaging platforms like WhatsApp and Telegram would only be sought if the taxpayer refuses to disclose passwords or necessary information. The Income Tax Bill 2025 is currently under parliamentary review.

Ahmedabad, Aug 29 (IANS) Gujarat has witnessed a significant surge of 49 per cent in the number of 'crorepati' taxpayers, individuals declaring an annual income of Rs 1 crore or more, for the assessment year 2022-23, as per the latest data from the Central Board of Direct Taxes (CBDT).

Comparatively, the count of individuals with taxable income exceeding Rs 1 crore surged by 4,500, reaching a record-breaking figure of 14,000, as indicated by official statistics, in contrast to the 9,300 individuals in the same bracket in the preceding year of 2021.

Remarkably, this marks the highest number of crorepati taxpayers recorded over the past five years, exhibiting a remarkable doubling from 7,000 to 14,000 individuals within this time frame. This surge gains even more significance when juxtaposed with the average taxpayer count of the Rs 1
crore-plus income category in the four preceding years, which stood at 8,200 individuals.

In the corporate realm as well, the number of crorepati taxpayers observed an increase, with an additional 1,000-odd individuals joining the ranks, resulting in a rise from 3,700 to 4,700 individuals. This data reflects a notable rise of 28 per cent.

The broader tax base in non-corporate categories within the state has also undergone growth, expanding by 4 per cent from 71.2 lakh taxpayers in the assessment year 2021-22 to 73.8 lakh taxpayers in 2022-23.

Five years ago in 2018, the overall tax base was 62.5 lakh.

New Delhi, Aug 19 (IANS) Employees having high grade salaries and also rent-free accommodation given by their employers, will be able to save more tax and take home a higher salary, as per amendments notified by the Central Board of Direct Taxes (CBDT) in income tax rules.

These shall come in effect from September 1, 2023.

The Income Tax Department has revised norms for valuing such accommodations, which will lead to more tax saving by the above-mentioned category of employees, thus resulting in greater take home salary.

As per the notification, where unfurnished accommodation is provided to employees other than the central or state government employees and such accommodation is owned by the employer then the valuation shall be: (i) 10 per cent of salary (reduced from 15 per cent) in cities having population exceeding 40 lakh as per 2011 census (earlier, 25 lakh as per 2001 census), (ii) 7.5 per cent of salary (reduced from 10 per cent) in cities having population exceeding 15 lakh but not exceeding 40 lakh as per 2011 census (earlier, 10 lakhs but not exceeding 25 lakhs as per 2001 census).

New Delhi, July 30 (IANS) Almost six crore income tax returns (ITRs) have been filed till Sunday (July 30), the income tax department said.

July 31, 2023 is the last day for filing income tax returns.

As of now the government has not given any indication of extending the deadline.

Last year too, the deadline had not been extended.

"5.83 crore #ITRs have been filed till 1 pm today (30th July) crossing the number of ITRs filed till 31st July, last year," the income tax department said in a tweet.

"We have witnessed more than 46 lakh successful logins till 1 pm today and more than 1.78 crore successful logins on the e-filing portal yesterday," it said further.

The department also informed that 10.39 lakh ITRs have been filed up to 1 p.m. Sunday and 3.04 lakh ITRs have been filed in the last one hour.

New Delhi, July 16 (IANS) The government has urged the taxpayers to file their income tax returns before July 31, 2023 to avoid the last minute rush, as there is no possibility of any extension of the deadline.

Finance Ministry sources have indicated that taxpayers should file their returns as soon as possible as unlike last year, there is no likelihood of the July 31 deadline getting extended. 

Taxpayers have to file the returns for 2022-23 with the assessment year being 2023-24. 

According to the Income Tax Department, more than 2 crore returns had already been filed till July 11, compared to 2 crore returns filed till July 20 last year. 

"Our taxpayers have helped us reach the 2 crore milestone 9 days early this year, compared to the corresponding period in the preceding year, and we appreciate the effort! We urge those who haven't filed ITR for AY 2023-24, to file their ITR at the earliest to avoid last minute rush," the Income Tax Department had tweeted on July 11. 

Last year a total of 5.8 crore returns were filed and the government expects that this year, the tally could be much higher. 

If income tax returns are filed after the deadline of July 31, 2023, then a fine of Rs 5,000 will have to be paid by the taxpayer. 

Kanpur, June 27 (IANS) In a first, an artificial intelligence (AI)-backed system was used for income tax (I-T) raids at the premises of top Kanpur jeweller and a big realtor, who have been found involved in super heavy transactions in cash with each other.