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Time of India
11-07-2025
- Business
- Time of India
ITR-1, ITR-2, ITR-3 or ITR-4: Which form applies to your income for ITR filing FY 2024-25 (AY 2025-26)?
Who can file income tax return using ITR-1 form? Eligibility to file ITR-1 Who can file income tax return using ITR-2 form? Eligibility to file ITR-2 Who can file income tax return using ITR-3 form? Eligibility to file ITR-3 Who can file income tax return using ITR-4 form? Eligibility to file ITR-4 Who can file income tax return using ITR-5 form? Eligibility to file ITR-5 Who can file income tax return using ITR-6? Eligibility to file ITR-6 Who can file income tax return using ITR-7? ITR filing is mandatory even if income is below basic exemption limit Last date for ITR filing for FY 2024-25 (AY 2025-26) The Income Tax Department has notified the income tax return (ITR) forms for the financial year 2024-25 (assessment year 2025-26). This year's ITR forms have been updated to incorporate the income-tax related changes announced in the Budget Wealth Online tells you which ITR form is applicable to your income while filing ITR this year i.e., for FY 2024-25 (AY 2025-26).The Income Tax Department has revised the eligibility criteria for taxpayers who can file their tax return using the ITR-1 form. This change will make it simpler for many taxpayers to file their the past, individual taxpayers with capital gains were not eligible to file their ITR usingITR-1 form. The new form allows individual taxpayers to file their ITR using ITR-1 even if they have long-term capital gains but subject to the condition that the gains are long term capital gains from sale of listed equity shares and/or equity mutual fund units and the amount of gain is only up to Rs 1.25 lakh in a financial to Shalini Jain, Tax Partner, People Advisory Services, EY India, taxpayers are eligible to file ITR- 1 if they satisfy the following conditions:a) Individual being ordinarily resident (ROR).b) Total taxable income does not exceed Rs 50 lakh in FY 2024-25.c) Have income from one or more of these income sources: Salary, one house property, other sources such as interest, dividend, pension, etc., long-term capital gains up to Rs 1.25 lakh from listed equity shares and/or equity mutual fund units and agricultural income up to Rs 5, term capital gains from listed equity shares and equity mutual fund units are taxed under Section 112A of the Income Tax Read: Is LTCG exemption on equity shares and equity mutual funds is Rs 1 lakh or 1.25 lakh? Taxpayers who are not eligible to file their ITR using ITR-1 can file it using ITR-2. They can use the ITR-2 form, provided they meet the eligibility criteria for the year ITR-2 will include the option to report capital gains incurred on transactions before/after July 23, 2024. This is because the new rules for calculating capital gains kicked in from July 23, 2024. The form also allows taxpayers to claim capital loss on share buybacks starting from October 1, Income Tax Department has also provided relief to taxpayers filing ITRs for FY 2024-25 by raising the income limit to Rs 1 crore for reporting assets and liabilities in their ITR. Earlier, taxpayers with income above Rs 50 lakh were required to report their assets and liabilities in their explains that individuals who fulfil any one or more of the following eligibility criteria have to file their tax returns using ITR-2:a) Individuals having any one of these residential status for income tax purposes: Resident but ordinarily resident (ROR), Resident but not ordinarily resident (RNOR) and Non-Residentb) Hindu Undivided Familyc) Total taxable income in FY 2024-25 (AY 2025-26) exceeds Rs 50 lakhd) Income from any source except profits and gains from business or profession i.e., income from the following sources is permissible for the purpose of using ITR- 2 - salaries, more than one house property, income from other sources such as interest income, dividend, capital gains (Short term and long term) such as sale of unlisted equity shares, gains from listed equity shares and equity mutual fund units exceeding Rs 1.25 lakh, house, debt mutual funds, other assets etc.e) Taxpayer being a director in a companyf) Taxpayer holding unlisted equity sharesg) Taxpayer having income from sources outside India, such as interest, dividend, rent, capital gains and/ or holding foreign assets such as foreign shares, immovable property, bank accounts, etch) Income from the sale/transfer of Virtual Digital Assets (VDAs) such as cryptocurrency, NFTs, Read: ITR filing changes that NRIs should know ITR-3 form is to be used to file ITR by taxpayers who have income and gains from business or profession. This year, ITR-3 has added references to Section 44BBC (Cruise business) for income derived from business and explains the eligibility requirements for taxpayers for filing ITR using the ITR-3 form. Taxpayers meeting any of the following criteria can file their ITR using ITR-3:a) Individuals/HUF having business income/income from professionb) Partner of a firmc) Individual taxpayers having gains/losses from Futures & Options or Intra-day form is to be used by taxpayers who opt for the presumptive taxation scheme under Section 44AD for businesses and Section 44ADA for explains which taxpayers are eligible to file ITR-4 for FY 2024-25:a) Resident Individuals, HUFs, and Firms (Other than LLP) with total income up to Rs 50 lakh who are taxed under Sections 44AD, 44ADA or 44AE and having long term capital gains of up to Rs. 1.25 lakhs from listed equity shares and equity mutual fund units. However, the limit of Rs 50 lakh can go up to Rs 75 lakh in case of professionals, provided 95% or more of the income receipts from the profession have been received through recognised banking channels, such as Net banking, UPI, debit cards, etc. Section 44ADA applies to professionals, including doctors, lawyers, engineers, and others.b) ITR-4 can also be filed by small businesses opting for presumptive taxation under Section 44AD and having business income up to Rs 2 crore. The limit increases to Rs 3 crore if 95% or more of the business receipts are received via banking is not for individuals and HUF says, "Any taxpayer not being an individual, HUF or company can file their ITR using ITR-5. This tax form is used by firms, LLPs, Association of Persons, business trusts and investment funds."ITR-6 form is applicable for says, "ITR-6 is for income tax return filing by companies who cannot file tax return using ITR-7 form."ITR-7 is meant to be used primarily by specified says, "Taxpayers, including companies which are charitable or religious trusts, political parties, research organisations, news agency or those specified in the Income Tax Act are required to furnish income tax return in ITR-7"ITR filing is mandatory even if the total taxable income is below the basic exemption limit if the following criteria specified in the income tax law is satisfied during the financial year:a) If you have incurred aggregate expenses on foreign travel for yourself or any other person for an amount exceeding Rs 2 lakhb) If you have paid aggregate electricity bills for an amount exceeding Rs 1 lakhc) If you have made aggregate deposits in current account exceeding Rs 1 crored) If you hold any foreign asset or have signing authority in foreign account either in own name or as a beneficiary or as a beneficial ownere) Practically, you may need to file ITR if you are claiming exemptions for capital gains under Section 54, 54B, 54EC, 54F etc.f) If aggregate TDS and/or TCS of Rs 25,000 or more has been deducted or collected during the financial year 2024-25. For senior citizens (individuals who are 60 years or more of age), this limit is Rs 50,000g) For claiming income tax refundThe Income Tax Department has extended the last date for filing income tax return for certain taxpayers from July 31, 2025, to September 15, 2025. This deadline extension applies to salaried individual taxpayers, HUFs, and taxpayers whose accounts are not required to be Read: ITR filing deadline extended to September 15, 2025 for these taxpayers For other taxpayers, whose books of accounts are required to be audited, the due date for ITR filing has not been extended as yet. For them, the last date is either October 31 or November 30, 2025, for FY 2024-25 (AY 2025-26), depending on whether their business includes international transactions or not.
News18
07-07-2025
- Business
- News18
ITR Filing FY2024-25: Why Can't Taxpayers File ITR-2 And ITR-3 Yet, Even After Deadline Extension?
Last Updated: The delay in releasing ITR-2 and ITR-3 forms is likely due to the complex nature of these returns and the major updates introduced this year. ITR Filing FY2024-25: The income tax filing return (ITR) season for the FY 2024-25 has been underway. 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. For that purpose, IT department has already opened the utilities for the form-1 and form-4 on the income tax portal. Moreover, most employees have received Form-16 by now, allowing salaried taxpayers to fill the ITR on Income Tax Portal. But Form 2 and Form 3 are still not available for taxpayers, which raises several questions. However, those who file ITR-2 or ITR-3 have not yet been able to start the process of ITR filing since the utilities have not yet been released online ( or offline by the tax department. Why Are There A Delay In ITR-2 And ITR-3 Forms? The delay in releasing ITR-2 and ITR-3 forms is likely due to the complex nature of these returns and the major updates introduced this year, experts say. According to Sonu Iyer, Partner and National Leader – People Advisory Services (Tax) at EY India, these forms are meant for individuals with more detailed financial profiles—including those with income from multiple properties, capital gains, foreign income or assets, business/professional earnings (for ITR-3), directorships, or unlisted shares. These forms also apply to people with total income over Rs 50 lakh or those carrying forward past losses. The delay, she said, is mainly due to technical changes needed in the filing utilities—especially after updates introduced through the Finance Act 2024. For example, taxpayers now have to report capital gains earned before and after July 23, 2024, give detailed breakdowns of deductions, and specify TDS section codes more clearly. ITR-2 Form This can be filled by individuals or Hindu Undivided Families (HUFs) whose total income for the Year 2025–26 includes different sources. It is suitable for those earning from a salary or pension, income from house property or income from other sources. It is also for people who are company directors or who have invested in unlisted shares during the year, along with Resident Not Ordinarily Residents (RNORs) and Non-Residents. If you have income from capital gains, foreign income or agricultural income of more than Rs 5000, you must use form 2. ITR-3 Form Individuals or Hindu Undivided Families (HUFs) who earn income from running a business are eligible to file this. The form should be used if the person is not using the presumptive income scheme and needs to maintain proper books of accounts or get them audited. Those who have invested in unlisted equity shares during the financial year.
Time of India
03-07-2025
- Business
- Time of India
ITR filing: Why are ITR-2 and ITR-3 forms still not available on Income Tax e-filing portal? Top reasons explained
Taxpayers have little reason to worry since this year the Income Tax Department has extended the deadline to file IT. (AI image) ITR filing FY 2024-25: It's the month of July and every year this time, taxpayers are usually scrambling to get together documents to file their income tax return or ITR. However, those who file ITR-2 or ITR-3 have not yet been able to start the process of ITR filing since the utilities have not yet been released online ( or offline by the tax department. However, taxpayers have little reason to worry since this year the Income Tax Department has extended the deadline to file ITR from July 31 to September 15, 2025. ITR: Why Are ITR-2 & ITR-3 Not Available For Filing? Experts are of the view that the extensive changes in the Income Tax Return forms and the complexity of ITR-2 and ITR-3 has possibly caused the delay in release from the Income Tax Department's end. Sonu Iyer, Partner and National Leader People Advisory Services - Tax, EY India explains, 'The ITR-2 / ITR-3 return forms are applicable for individuals with complex financial profiles such as income from multiple house properties, capital gains, foreign assets and foreign income, business or professional income (in the case of ITR-3), directorships, unlisted equity shares, total income exceeding INR 5 million, brought forward and carry forward of losses, etc. ' Also Read | Income Tax Return e-filing: Can you keep switching between new and old tax regime every year? What taxpayers should know 'These forms are significantly more detailed than the simpler ITR-1/ ITR-4 forms. The delay in releasing the e-filing utility (online and offline) for ITR-2 / ITR-3 can be attributed to the substantive changes introduced in the return forms such as separate reporting of capital gains earned before and after 23 July 2024, detailed reporting of deductions / exemptions, reporting of TDS section codes, etc,' Sonu Iyer tells TOI. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 2025 Top Trending local enterprise accounting software [Click Here] Esseps Learn More Undo According to the EY tax expert, such changes require comprehensive technical modifications to align the utility with the enhanced reporting requirements and provisions of the Finance Act, 2024. The Income Tax Department has extended the deadline for filing returns to 15 September 2025 recognizing the time required to update the utilities and the time required for system readiness,' she adds. Who Has To File ITR-2/ITR-3 for FY 2024-25? ITR-2 is for individual and HUF Taxpayers. This form is suitable for individuals and Hindu Undivided Families who receive: * Salary/pension earnings * Revenue from multiple residential properties * Any amount of capital gains * Overseas income or assets * Agricultural proceeds exceeding Rs.5,000 * Those with RNOR/NRI status * Company directors or holders of unlisted equity * Cases involving combined spousal income Exclusion criteria: Persons earning from business or professional activities Latest update: Excel-based utility now accommodates revised return submissions under Section 139(8A). Also Read | ITR e-filing AY 2025-25: What is Annual Information Statement (AIS) and how is it different from Form 26AS? Top points for taxpayers ITR 3 is applicable for self-employed individuals, independent contractors and firm partners Mandatory filing requirements - For individuals or HUF having: * Revenue from proprietorship ventures or professional activities. * Partnership income (excluding Limited Liability Partnerships). * Any amount of capital gains income or related loss carry-forward. * Ownership of non-listed equity shares. * Profits or losses from derivatives trading. * Additional earnings from employment, property rental or miscellaneous sources alongside business revenue. This form is suitable when your income composition makes you ineligible for ITR 1, ITR 2, or ITR 4. Submission of Form 10-IEA acknowledgement is necessary when choosing to opt out of the new taxation structure. ITR Deadline Extension: What I-T Department Has Said On May 27, 2025, the Central Board of Direct Taxes (CBDT) announced the extension of the due date to file ITR. '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, CBDT has decided to extend the due date for filing returns.' The reasons CBDT gave were: ITRs for Assessment Year 2025-26 feature significant modifications in structure and content, designed to streamline the compliance process, improve transparency and ensure precise reporting. Due to these alterations, additional duration is required for developing systems, integrating components and evaluating the associated utilities. Additionally, credits originating from Tax Deducted at Source (TDS) statements, which must be submitted by May 31, 2025, are anticipated to appear in early June, thus restricting the available timeframe for return submission without such an extension. Also Read | Income Tax Return: Are capital gains from MFs taxed differently under new & old regime? What taxpayers should know about new LTCG, STCG rules Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Forbes
19-06-2025
- Business
- Forbes
Top EY Researcher Says These 3 Things Are Missing For Gen Z Workforce
Building the future of work with Gen Z. The new EY Global Generations Report 2024, based on a survey of over 22,000 individuals across 22 countries, offers critical insights into the evolving ambitions and workplace expectations of Gen Z (those born between 1997-2007). Inside a challenging job market, where both employers and students are questioning the value of a college degree, a non-traditional career path is emerging for high-growth organizations. For business leaders, and Gen Z job seekers, a roadmap to the future of work is being brought to life via a revised understanding of the authentic desires of the youngest generation in the workforce. For companies that want to create greater employee engagement and retention, particularly when working with Gen Z, these three critical elements are where the conversation begins. Marcie Merriman, Cultural Anthropologist at EY. That's according to Marcie Merriman, EY Global People Advisory Services Leader. In an exclusive interview with Forbes, she shared what organizations are missing, when it comes to Gen Z - and how the youngest generation can still find ways to realize their career goals. 'The ambition of Gen Z extends beyond material possessions,' she says via Zoom, referencing the EY study. In the survey, only 31% of Gen Z respondents feel financially secure - but there's more to the story. While nearly 9 out of 10 respondents prioritize financial security, less than two thirds want to 'get rich'. Indeed, wealth can be measured in many ways - including some things that money can't buy. Understanding the values of Gen Z is crucial in the hiring process, for forward-thinking leaders today. "The Gen Z cohort measures success by their mental and physical health, the impact they make, and their ability to live authentically," Merriman says. For Gen Z, this means seeking out roles and cultures that genuinely support their holistic well-being and allow them to connect their daily work to a larger purpose. For organizations, generational expectations demand a rethink on incentive structures and career paths, emphasizing training, leadership development and growth. Contribution, challenge and personal development are places to concentrate. Fostering environments where employees feel genuinely valued, challenged and fulfilled beyond their paychecks isn't easy in the age of AI - but difficult is not the same as impossible. Here are three critical elements that employers need, in order to attract and retain the brightest and best: For Gen Z job seekers, Merriman offers this critical mindset shift for career success: move from a supported to supportive mentality, at work. She says we have to let go of preconceptions around the way the world is supposed to work, so that we can really get to work on what matters. 'Gen Z has lived in a world where the world was designed around serving them,' Merriman says. From parents who tried hard to avert every crisis (including COVID, but it hit us all nonetheless), the feeling that the world is supposed to come to you, support you and protect you is an outdated idea. 'The mindset is, ''I'm supposed to be taught, I'm supposed to be educated.' So whether it's middle school, high school, college, this world is here for my benefit,' she explains. The hard part is shifting into the understanding that the employer is not here for their benefit. 'When you go into an interview, go in with the mindset that you are here to support that employer," she urges. 'In the process of asking questions about what the employer needs and wants, plus how they work, it gives you the opportunity to learn whether this is a place that fits with your values - what a Gen Z employee is looking for.' The interview process, Merriman says, is filled with people jockeying for position - not positioning themselves around authentic and clear communication. And that clarity needs to come from both sides of the desk (or screen, as the case may be). The blueprint for navigating the interview process is leading to disillusionment and frustration, for new hires and hiring managers alike. 'Gen Z's not getting what they thought they would get,' Merriman says. 'Maybe they have a mentality that they could fix it and change it. The employer's not getting what they wanted because they've sold something different. Often they're selling a different value proposition than what they're delivering. There's also a requirement of that paradigm shift around honesty: why you are in that space and is that reason a good fit with what you want as an individual?' she explains. Acceptance, for employers and Gen Z workers, is key. From an understanding of what's expected, needed and required, the best companies arrive at the ability to navigate the future of work. And that acceptance goes both ways, when new hires don't reach into a bag of 'interview tricks and techniques' in order to get the job, because they can accept the importance of serving and supporting an employer. If you are presenting an interview persona, and not an authentic person, the hiring process is not going to lead to aligned outcomes for either party. Authenticity is key, for employers and employees at every level. Being able to authentically accept who you are (as an organization, as an employee) and express those puts and takes with acceptance, candor and courage is vital to effective communication. And for Gen Z in the workforce today, adaptability begins with deeper understanding of what employers really need.
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Business Standard
27-05-2025
- Business
- Business Standard
CBDT extends ITR filing deadline to September 15 amid major changes
In a relief to taxpayers, the Central Board of Direct Taxes (CBDT) has extended the last date for filing the income-tax return (ITR) for assessment year (AY) 2025-26 from July 31 to September 15. The decision follows revisions to the structure and content of the notified ITR forms, which have provisions and several new reporting requirements introduced by the Finance Act, 2024. 'In view of the extensive changes introduced in the notified ITRs and considering the time required for system readiness and rollout of Income Tax Return (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 CBDT said. In a statement to the media on Monday, the CBDT acknowledged that credits from statements on tax deducted at source (TDS), due for filing by May 31, would begin reflecting in early June, limiting the window for return filing without an extension. ITR-1 now includes an option to report long-term capital gains up to ~1.25 lakh. ITRs 2, 3, 5, and 6 require more detailed disclosures under the 'Capital Gains Schedule' with reporting required for transactions before and after July 23, 2024, owing to different tax implications following the changes made last year in the tax law. '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,' the CBDT said. Tax experts welcomed the move, calling it a step to ease taxpayer compliance amid evolving requirements. 'The ITR forms notified for FY2024-25 incorporate enhanced reporting, such as splitting capital gains before and after July 23, 2024, following rationalisation measures in the Finance Act,' said Sonu Iyer, partner and national leader, People Advisory Services (Tax), EY India. 'This provides taxpayers adequate time to comply,' Iyer added. Vivek Jalan, partner, Tax Connect Advisory Services LLP, said: 'Every year, TDS/TCS (tax collected at source) credits are reflected only by mid-June, leaving taxpayers just about six weeks for compliance. Extending the deadline to September 15 alleviates this hardship.' Jalan urged the government to consider a permanent extension of the due date to August 31 under the proposed Income Tax Bill 2025, which is expected to come into effect from April 1, 2026. While the extension offers much-needed relief to salaried individuals and small businesses not subject to audit, experts said the press release was silent on whether the due date for tax payment had also been extended and whether interest under Section 234A would apply. 'In the absence of clarification, there is a possibility that interest under Section 234A may apply if there is a tax liability and the return is filed after July 31 without full payment. To avoid this, taxpayers should pay any self-assessment tax by July 31,' said Gaurav Makhijani, associate partner, Rödl & Partner. Timely payment will avoid interest under Section 234B for shortfalls in advance tax, he said.
