Income tax return Filing 2025: Employed taxpayers must have Form 16. They will be able to file returns only when they get Form 16. Employers issue Form 16 to their employees. It includes the salary income of the employees in the last financial year, TDS and deductions received on tax savings.
The Income Tax Department had notified all the ITR forms for return filing earlier this month. With this, the income tax return season has started. But, working people will have to wait till they get Form 16. Employers issue Form 16 to their employees. It includes the salary income of the employees in the last financial year, TDS and deductions received on tax savings. The information given in it is used to file income tax returns.
When will Form 16 be issued?
Employers are expected to issue Form-16 in the first or second week of next month. It is mandatory for employers to issue Form-16 to all employees by June 15. Tax experts say that employed people should start preparing to file ITR now. This is also important because this time the Income Tax Department has made some changes in the ITR forms. There has also been a change in the tax slabs.
Who can use Form-1?
These changes can be understood with the help of an example. For example, till last year, an ordinary resident could use the ITR-1 (Sahaj) form only when his sources of income included only salary/pension, one house (property), interest from savings/fixed deposits, dividends and agricultural income of less than Rs 5,000. This year, even if there is long term capital gain (LTCG) on selling shares and units of mutual funds, ITR Form-1 can be used. The only condition is that this LTCG should not exceed Rs 1.25 lakh in the financial year 2024-25.
Employed people can use either ITR Form-1 or ITR Form-2. Let us know what is the difference between the two.
Filing return with ITR form is the easiest
ITR-1 is also called Sahaj Form. As the name suggests, this is the easiest form to file income tax returns. It can be used by people who receive salary or pension, whose sources of income are limited and do not include any very different sources. In this form, you will see personal information already filled. Income details and financial transaction information will also be pre-filled in it. This has been done to make the process of filing income tax returns easier for taxpayers.
These things need to be kept in mind
ITR Form-1 i.e. Sahaj can be used by such individual taxpayers whose income does not exceed Rs 50,000. This income can include salary/pension, income from one house, agricultural income, income from savings/fixed deposits, dividend and family pension. From this year, this form can also be used by such taxpayers whose long term capital gains (from sale of shares or mutual funds) are up to Rs 1.25 lakh.
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