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Economic Times
3 days ago
- Business
- Economic Times
NRIs filing ITR in India should know these four income tax-related changes
ET Online The Income Tax Department has notified the income tax return (ITR) forms for FY 2024-25 (AY 2025-26). But, although software utilities for ITR-1 and ITR-4 have been released by the tax department, it still hasn't rolled out the software utilities for ITR-2 and the other ITR forms. Non-Resident Individuals (NRIs) mainly use ITR-2 to file their tax returns. For FY 2024-25 (AY 2025-26), there have been quite a few updates in the Income Tax Act, 1961, such as new capital gains regulations and changes in the income tax slabs. This might leave NRIs wondering how these changes will affect their ITR filing. ET Wealth Online explains the four updates that will affect ITR filing by NRIs in FY 2024-25 (AY 2025-26) 1) Threshold for reporting assets and liabilities increased: The government has increased the threshold for reporting assets and liabilities for individuals who would be filing ITR-2. Tarun Garg, Director, Deloitte India, says, "According to the new rule, an NRI filing ITR-2 is required to report his/her assets and liabilities only if his/her gross taxable income exceeds Rs 1 crore in FY 2024-25. It is important to note that NRIs are required to report their Indian assets and liabilities in ITR 2. Foreign assets and liabilities are not required to be reported by an NRI in the ITR-2 form." 2) Segregation of capital gains by date of sale: The new capital gains tax regime took effect on July 23, 2024. For capital gains (short-term or long-term) transactions that occurred before July 23, 2024, the old capital gains tax rate will apply. Hence, it is essential to know the actual date of sale or transfer to calculate the correct income tax liability. Garg says, "The ITR-2 form has simplified the compliance process for reporting capital gains for taxpayers, including NRIs. There is a segregation in the ITR-2 form to allow NRI taxpayers to report their capital gains (short-term or long-term) before and/or after July 23, 2024. This segregation will help taxpayers to report their (capital gains) incomes to the tax department accurately." 3) Enhanced disclosures in ITR forms: The ITR-1 and ITR-4 forms released by the Income Tax Department have enhanced the disclosure requirements. Garg says, "The ITR-1 and ITR-4 utilities released by the Income Tax Department have enhanced the disclosure requirements. A taxpayer is required to provide additional details with respect to deductions and exemptions claimed. For instance, if Section 80C deduction is claimed for a life insurance policy, then the taxpayer will be required to report the policy number. Similarly, NPS investments will require reporting of PRAN account number in the ITR form while claiming Section 80CCD deduction." 4) ITR filing deadline extended: The ITR filing deadline has been extended from July 31, 2025, to September 15, 2025, for FY 2024-25 (AY 2025-26). The extended deadline applies to salaried, pensioners, NRIs and other taxpayers whose accounts are not required to be audited. Garg says, "The extended deadline allows NRIs and other taxpayers more time to file their tax return. While filing ITR, NRIs should remember that they can claim tax benefits under the Double Tax Avoidance Agreement (DTAA), provided they have filed the Form 10F. There is no specific deadline to file Form 10F, and it is valid for one year from the date of filing. Form 10F filed between April 1, 2024, and March 31, 2025, would help NRI taxpayers to have lower TDS deducted from their income during FY 2024-25 and help them claim treaty benefits while filing ITR as well."The government tweaked the income tax slabs under the new tax regime for the financial year 2024-25. There were no changes in the income tax slabs under the old tax regime. Also Read: Income tax slabs for FY 2024-25 (AY 2025-26) under new and old tax regime Which ITR form is used for NRIs to file their tax return? NRIs typically use the ITR-2 form to file their income tax return in India. However, it is advisable to check the sources of income to identify the correct form for ITR filing. Is it mandatory for an NRI to file ITR? NRIs are mandatorily required to file their income tax return if their taxable income exceeds the specified threshold or if they have to claim an income tax refund. What is the difference between ITR 1 and ITR 2 for NRI? NRIs cannot file an income tax return using ITR-1 form. However, they can file their tax return using ITR-2 form. How can an NRI e-verify ITR? An NRI can e-verify their ITR using the Net Banking facility if they are unable to use the Aadhaar facility for ITR verification. NRIs can also use the EVC generated through a pre-validated bank account or demat account to verify the bank account. N.R. Narayana Murthy Founder, Infosys Watch Now Harsh Mariwala Chairman & Founder, Marico Watch Now Adar Poonawalla CEO, Serum Institute of India Watch Now Ronnie Screwvala Chairperson & Co-founder, upGrad Watch Now Puneet Dalmia Managing Director, Dalmia Bharat group Watch Now Martin Schwenk Former President & CEO, Mercedes-Benz, Thailand Watch Now Nadir Godrej Managing Director, of Godrej Industries Watch Now Manu Jain Former- Global Vice President, Xiaomi Watch Now Nithin Kamath Founder, CEO, Zerodha Watch Now Anil Agarwal Executive Chairman, Vedanta Resources Watch Now Dr. Prathap C. 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News18
4 days ago
- Business
- News18
ITR Filing FY2024-25: Which Tax Form To Choose For Capital Gains, F&O, Salary Income
Last Updated: ITR Filing 2025: Know which income tax return form to choose for your ITR, especially when you earn income from the stock market along with your salary income. ITR Filing FY2024-25: The income tax return (ITR) filing season is going on, with over one crore returns already filed. Currently, only ITR-1 and ITR-4 utilities have been enabled for e-filing. ITR-2 and ITR-3 filings are yet to start. The Income Tax department has extended the deadline to September 15, 2025 from July 31, 2025, giving taxpayers more time to complete their tax duties without any rush and avoid any errors and mistakes. Here's which ITR form to choose for your ITR, especially when you earn income from the stock market along with your salary income. The income tax department has specified different ITR forms for different income sources. If you use the wrong form, your return may be treated as defective, leading to unnecessary notices or even fines. In order to choose the correct ITR form, it is necessary to know the type of income you earn. Types of Income and Their Tax Treatment Salary Income: It is taxed under the head 'Income from Salary'. It is simple to file and allowed under most ITR forms. Delivery-based Equity Investments: If you hold shares more than 12 months, the profit earned from them is called long-term capital gain (LTCG). However, if you sell the shares within 12 months, it called short-term capital gain (STCG). It taxed under 'capital gains'. Intraday Stock Trading: It is treated as 'speculative' income. It is taxed under 'Profits and Gains from Business or Profession'. Losses can only be set off against speculative gains. Which ITR Form To Choose? ITR-2: Salary plus LTCG over Rs 1.25 lakh and delivery-based STCG. ITR-3: Salary plus business income (F&O and/or intraday), with or without capital gains. F&O and Salary: Do You Need to File ITR-3? Yes. If you have even one F&O trade, you are considered to be carrying on a business, and you must use ITR-3. F&O trading is considered a non-speculative business, and must be declared under 'Business & Profession'. Even a small loss or profit counts, and failure to report could invite a notice under misreporting of income. 'For taxpayers engaged in trading activities such as futures and options (F&O) or intraday equity trades, the income is characterised as business income. Intraday equity trading income is considered speculative business income, whereas income from F&O is treated as non-speculative business income. In such cases, the correct form for filing is ITR-3, which is designed for taxpayers having income under the head 'Profits and Gains of Business or Profession'," said Suresh Surana, a Mumbai-based chartered accountant. When Is a Tax Audit Required? According to an income tax expert, you will need to undergo tax audit under Section 44AB if your total trading turnover exceeds Rs 10 crore, or turnover is below Rs 2 crore, but you declare less than 6% profit and don't opt for presumptive taxation. Under presumptive taxation (44AD), audit is not required. But, this option is not available for intraday (speculative) trading, and once opted, you need to continue for at least 5 years, he added. 'You stand to lose presumptive tax benefits, if you do not continue them for at least 5 years," according to Do I Need to Maintain Books of Accounts? If you don't opt for presumptive taxation, and your business income (from F&O or intraday) is above Rs 2.5 lakh, you must maintain books of accounts such as day-wise trading log, contract notes from brokers, profit & loss statements, and bank and demat account statements. 'Books of accounts/accounting records have to be maintained if the income from business or profession exceeds Rs 1,20,000 or turnover/gross receipts exceeds Rs 10,00,000 in any of the 3 preceding years for an existing profession," according to However, in case of specified professionals, books of accounts are to be maintained only if income exceeds Rs 1,50,000 in all of the 3 preceding years. They include lawyers, doctors, engineers, accountants, film artists, etc, it said. How to Calculate Turnover for F&O and Intraday? F&O turnover is calculated based on absolute profit/loss: Turnover = Sum of absolute profits and losses of all trades top videos View all Intraday turnover = Total of positive and negative differences from buying and selling This method is used to determine audit applicability and whether you can file under presumptive scheme. tags : income tax income tax return ITR filing view comments Location : New Delhi, India, India First Published: July 09, 2025, 15:23 IST News business » tax ITR Filing FY2024-25: Which Tax Form To Choose For Capital Gains, F&O, Salary Income Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
5 days ago
- Business
- Time of India
NRIs' filing ITR in India should know these four income tax-related changes
Academy Empower your mind, elevate your skills The Income Tax Department has notified the income tax return (ITR) forms for FY 2024-25 (AY 2025-26). But, although software utilities for ITR-1 and ITR-4 have been released by the tax department, it still hasn't rolled out the software utilities for ITR-2 and the other ITR forms. Non-Resident Individuals (NRIs) mainly use ITR-2 to file their tax FY 2024-25 (AY 2025-26), there have been quite a few updates in the Income Tax Act, 1961, such as new capital gains regulations and changes in the income tax slabs. This might leave NRIs wondering how these changes will affect their ITR Wealth Online explains the four updates that will affect ITR filing by NRIs in FY 2024-25 (AY 2025-26)The government has increased the threshold for reporting assets and liabilities for individuals who would be filing ITR-2. Tarun Garg, Director, Deloitte India, says, "According to the new rule, an NRI filing ITR-2 is required to report his/her assets and liabilities only if his/her gross taxable income exceeds Rs 1 crore in FY 2024-25. It is important to note that NRIs are required to report their Indian assets and liabilities in ITR 2. Foreign assets and liabilities are not required to be reported by an NRI in the ITR-2 form ."The new capital gains tax regime took effect on July 23, 2024. For capital gains (short-term or long-term) transactions that occurred before July 23, 2024, the old capital gains tax rate will apply. Hence, it is essential to know the actual date of sale or transfer to calculate the correct income tax liability. Garg says, "The ITR-2 form has simplified the compliance process for reporting capital gains for taxpayers, including NRIs. There is a segregation in the ITR-2 form to allow NRI taxpayers to report their capital gains (short-term or long-term) before and/or after July 23, 2024. This segregation will help taxpayers to report their (capital gains) incomes to the tax department accurately."The ITR-1 and ITR-4 forms released by the Income Tax Department have enhanced the disclosure requirements. Garg says, "The ITR-1 and ITR-4 utilities released by the Income Tax Department have enhanced the disclosure requirements. A taxpayer is required to provide additional details with respect to deductions and exemptions claimed. For instance, if Section 80C deduction is claimed for a life insurance policy, then the taxpayer will be required to report the policy number. Similarly, NPS investments will require reporting of PRAN account number in the ITR form while claiming Section 80CCD deduction."The ITR filing deadline has been extended from July 31, 2025, to September 15, 2025, for FY 2024-25 (AY 2025-26). The extended deadline applies to salaried, pensioners, NRIs and other taxpayers whose accounts are not required to be says, "The extended deadline allows NRIs and other taxpayers more time to file their tax return. While filing ITR, NRIs should remember that they can claim tax benefits under the Double Tax Avoidance Agreement (DTAA), provided they have filed the Form 10F. There is no specific deadline to file Form 10F, and it is valid for one year from the date of filing. Form 10F filed between April 1, 2024, and March 31, 2025, would help NRI taxpayers to have lower TDS deducted from their income during FY 2024-25 and help them claim treaty benefits while filing ITR as well."The government tweaked the income tax slabs under the new tax regime for the financial year 2024-25. There were no changes in the income tax slabs under the old tax Read: Income tax slabs for FY 2024-25 (AY 2025-26) under new and old tax regime NRIs typically use the ITR-2 form to file their income tax return in India. However, it is advisable to check the sources of income to identify the correct form for ITR are mandatorily required to file their income tax return if their taxable income exceeds the specified threshold or if they have to claim an income tax cannot file an income tax return using ITR-1 form. However, they can file their tax return using ITR-2 NRI can e-verify their ITR using the Net Banking facility if they are unable to use the Aadhaar facility for ITR verification. NRIs can also use the EVC generated through a pre-validated bank account or demat account to verify the bank account.
India Today
04-07-2025
- Business
- India Today
Where are ITR-2 and ITR-3 forms? Why they're missing and what to do
It's that time of the year when taxpayers rush to file their returns. But many are stuck because ITR-2 and ITR-3 forms are still not available. This has caused confusion and worry among salaried individuals and professionals. Why the delay? Here's a simple look at the reasons behind TAKING SO LONG?Tax experts say that ITR-2 and ITR-3 are far more detailed than the basic ITR-1 or ITR-4 forms. People who file ITR-2 or ITR-3 usually have earnings from multiple houses, capital gains, foreign income, foreign assets, business or professional work, directorships, unlisted company shares and time, the government has made major changes to these forms. For example, taxpayers now need to report capital gains earned before and after July 23, 2024 separately. There's also extra reporting for deductions, exemptions and Tax Deducted at Source (TDS) section of these changes, the Income Tax Department needs more time to update the online and offline filing systems. This is one of the main reasons behind the NEEDS TO FILE ITR-2 AND ITR-3?Not everyone needs these forms. ITR-2 is for individuals and Hindu Undivided Families (HUFs) who have salary income, more than one house, capital gains, foreign assets or overseas income, or if they are company directors or hold unlisted shares. People earning from business or professional work do not use this the other hand, ITR-3 is for self-employed people, independent professionals and partners in firms. It covers income from business, profession, capital gains, unlisted shares, derivatives trading and more. Contrastingly, if your income is simple, only salary or pension, ITR-1 or ITR-4 is usually THE TAX DEPARTMENT SAYSMeanwhile, the government has already extended the last date to file your ITR to 15 September 2025. So, taxpayers who usually file by July 31, have extra time this May 27, 2025, the government in its press release said, 'In view of the extensive changes introduced in the notified Income Tax Returns (ITRs) and considering the time required for system readiness and rollout of ITR utilities for Assessment Year (AY) 2025-26, the Central Board of Direct Taxes (CBDT) has decided to extend the due date for filing returns.''The notified ITRs for AY 2025-26 have undergone structural and content revisions aimed at simplifying compliance, enhancing transparency, and enabling accurate reporting. These changes have necessitated additional time for system development, integration, and testing of the corresponding utilities,' it government further mentioned, "This extension is expected to mitigate the concerns raised by stakeholders and provide adequate time for compliance, thereby ensuring the integrity and accuracy of the return filing process."WHAT SHOULD YOU DO NOW?If you need to file ITR-2 or ITR-3, there's no need to panic. Use this extra time to collect all your papers, check your income details, get your Form 16, bank statements, capital gains statements and keep all proofs the forms are live, filing early will help you avoid last-minute stay patient, stay prepared, and keep an eye on the Income Tax website for the release of the ITR-2 and ITR-3 utilities.- Ends
News18
02-07-2025
- Business
- News18
ITR Filing For Freelancers & Gig Workers: Which Form To Use, What To Claim, And Docs To Keep
Last Updated: ITR Filing: From ITR form to documents they need, let's us know everything about ITR filing for freelancers, creators and gig workers. ITR Filing 2025-26: Though the deadline for the income tax return (ITR) filing for FY2025-26 has been extended to September 15, 2025, taxpayers are advised to complete their tax filing responsibility as soon as possible. It helps to avoid near-deadline rush and errors, which might occur in a hurry. There's a rising workforce in the country that includes freelancers, creators, and gig workers. They don't come under a formal job structure, which means their tax filing process might be different from the formal tax filing process. Freelancers, creators, and gig workers may face a challenge while filing the ITR. Thus, we asked experts to simplify the process, allowing them to understand things they should keep in mind. From ITR form to documents they need, let's us know everything about ITR filing for freelancers, creators and gig workers. Which ITR Form To Use? According to CA (Dr.) Suresh Surana, freelancers generally need to file either ITR-3 or ITR-4, depending on their income and the tax scheme chosen. ITR-4 (Sugam) is applicable to those opting for the presumptive taxation scheme under Section 44ADA, typically with gross receipts up to Rs 3 crore (if cash transactions are under 5%). In this case, 50% of the income is presumed to be profit. Gaurav Jain, Partner at Forvis Mazars India, adds that ITR-3 should be filed by those who wish to declare actual income after deducting expenses or whose receipts exceed the presumptive limit. It is also required for professionals who maintain books of accounts. Yes. Both experts confirm freelancers can claim expenses like laptop purchases, internet bills, travel costs, and software subscriptions, provided they are used wholly and exclusively for professional work. Assets like laptops qualify for depreciation, typically at 40%. However, Surana warns that those opting for the presumptive scheme under Section 44ADA cannot claim individual deductions—50% of income is considered net taxable profit. Documents You Must Keep Freelancers must retain invoices, receipts, contracts, bank statements, and proof of asset purchases. Jain notes that even a basic income-expense spreadsheet helps, especially for those not under presumptive tax.
