The Income Tax Department has introduced an Excel-based offline utility for filing ITR-1 (Sahaj) and ITR-4 (Sugam) for Assessment Year 2025-26 (FY 2024-25). This user-friendly tool allows salaried individuals, pensioners, freelancers, and small-business owners to prepare returns offline-without internet access-then validate and generate a JSON file for upload on the e-filing portal.
Additionally, the ITR filing deadline for non-audit cases-including ITR-1 and ITR-4 filers-has been extended from July 31 to September 15, 2025, by the CBDT to accommodate structural changes and utility rollout delays. However, taxpayers must still pay any self-assessment tax by July 31, 2025, to avoid interest penalties.
Here are 7 key points to remember when filing your Income Tax Return (ITR):
1. Choose the Correct ITR Form: Selecting the appropriate ITR form is crucial. The Income Tax Department offers seven different forms tailored to various taxpayer categories. Filing with the wrong form will invalidate your return, requiring you to re-file.
2. Carefully Select Your Tax Regime: Before filing, decide whether to remain in the old tax regime or opt for the new tax regime. If you prefer the old system, inform your employer. Otherwise, the new tax system will be selected by default. Understand the implications of each regime on your tax liabilities.
3. Verify Details with Form 26AS: In addition to Form 16, review Form 26AS for a comprehensive overview of your income. This includes verifying your salary, interest earned on savings accounts and fixed deposits, and other relevant financial details.
4. Obtain and Review Form 16: Form 16, provided by your employer, is an essential document that summarizes your TDS (Tax Deducted at Source) payments. Ensure you obtain and carefully review this form for accuracy.
5. Consider HRA Details: If your primary income is salary and you live in a rented property, the old tax regime may be more beneficial due to the HRA (House Rent Allowance) tax exemption. However, if you don't pay rent, the new tax regime may be a better choice. Carefully evaluate your rental situation when selecting a tax regime.
6. Evaluate Investment Options: If you've invested in government schemes like PPF, SSY, KVP, or NSC, carefully consider whether the new tax regime will offer equivalent tax benefits. These schemes typically provide tax exemptions under the old tax regime and can offer long-term advantages.
7. Declare Income from House Property Correctly: If you receive income from a single house property, you can file ITR-1. However, if you have income from multiple house properties, you'll need to file ITR-2. Ensure you select the appropriate form based on the number of properties you own and the income derived from them.
