ITR 2025: This time you need to be very careful while filing Income Tax Return (ITR). If the information filled in the return does not match with your documents, then you may get a notice from the Income Tax Department.
Income Tax Notice: This time you need to be very careful while filing Income Tax Return (ITR). If the information filled in the return does not match with your documents, then you may get a notice from the Income Tax Department. The department has clearly said that before filing the return, match the tax deduction and other details thoroughly. If any tax is due on you, then deposit it first and then file the return. If there is a possibility of getting a refund, then claim the refund.
The return will be checked very closely
This time the department has installed a more powerful system for checking the return. This system matches the return information and documents very closely. Artificial Intelligence (AI) is also being used in this. That is why all the necessary documents are being asked for while filing the return.
Especially if you are filing returns under the old tax system, you will have to upload all the documents related to your investments, loans and other tax saving claims online. Also, while filing the return, you will have to provide information about all your bank accounts. If any account is not visible in the Annual Information Statement (AIS), then its details will also have to be given.
Keeping these things in mind, the Income Tax Department has made many changes in the ITR forms this time. It is especially important for employed people and small businessmen to understand ITR Form-1 and Form-4.
ITR Form-1 (Sahaj)
This form is just one page long and is mostly designed for employed people, pensioners or low income people.
If your annual total income is Rs 50 lakh or less, then you can use this form.
In this, you can show income from employment, income from one house (rent or sale), income from other sources like interest, long-term gain on shares up to Rs 1.25 lakh (under section 112A), and income from farming up to Rs 5,000.
ITR Form-4 (Sugam)
This form can be filed by an individual, Hindu Undivided Family (HUF) or firm.
For this also, the total annual income should not exceed Rs 50 lakh.
In this, income from business or profession is calculated in a special simplified method (Section 44AD, 44ADA or 44AE).
People having income from job/pension, income from one house, or income from farming up to Rs 5,000 can also fill this form.
While filing the return, do match Form 26AS
It is very important to check the information in Form 26AS thoroughly before filing the return. This is your official tax statement. It contains details of TDS deducted on your PAN number, advance tax deposited, TCS collected, refunds received earlier and some big transactions.
By looking at this form, you can estimate how much tax you have to pay or how much refund you can get. Also make sure whether your TDS and TCS are shown correctly or not.
Why is Form 26AS necessary despite seeing AIS?
Some people fill the return by just looking at the Annual Information Statement (AIS). AIS contains details of your financial transactions of the previous year like mutual funds, shares, credit card payments, purchase and sale of land and property. But Form 26AS is different and very important because it directly shows the official information related to your tax, like how much tax was deducted, how much was deposited etc. Therefore, do check Form 26AS along with AIS.
