Income Tax Return deadline next week: Taxpayers must file correct ITR forms to avoid notices, last minute chaos
Most individual taxpayers are expected to use ITR-1, commonly known as Sahaj, for filing their returns for AY 2025-26. Last year, 45.77% of the 7.28 crore ITRs filed by July 31 utilised the ITR-1 form, emphasising its popularity among taxpayers with simpler financial profiles.
- Sep 9, 2025,
- Updated Sep 9, 2025 3:13 PM IST
As the deadline for filing Income Tax Returns (ITR) for the Assessment Year (AY) 2025-26 approaches on September 15, taxpayers are urged to ensure they use the correct ITR form to avoid filing a defective return. The filing season is in full swing, with millions of taxpayers planning to submit their returns in the next few days. The choice of the right form is critical as inaccuracies may lead to processing delays and potential issues with tax refunds.
Most individual taxpayers are expected to use ITR-1, commonly known as Sahaj, for filing their returns for AY 2025-26. This form is specifically designed for individuals with an income source from salary, pension, or interest from savings accounts. Last year, 45.77% of the 7.28 crore ITRs filed by July 31 utilised the ITR-1 form, emphasising its popularity among taxpayers with simpler financial profiles.
ITR-1 is applicable only for resident individuals whose total income is up to ₹50 lakh and comes from salary, pension, one house property, or other sources such as interest. However, it excludes incomes such as those from lottery winnings, horse racing, foreign income, or properties abroad, which require different forms like ITR-2 or ITR-3. This distinction is essential to ensure that the tax return is not rendered invalid.
For those with income from business or profession, ITR-3 or ITR-4 should be filed instead of ITR-1. Additionally, taxpayers with capital gains from the sale of shares, mutual funds, or property are required to use ITR-2 or ITR-3. Accurate reporting of income categories is vital to avoid complications.
The introduction of new disclosure requirements adds complexity to the filing process this year. These include the need to report home loan interest under Section 24(b), a higher asset-liability reporting threshold of ₹1 crore, and additional schedules for deductions. Taxpayers must also be mindful of the bifurcation of capital gains based on transfer dates to ensure compliance with the updated rules.
The use of online ITR utilities continues to be popular, with over 43.82% of returns filed using these digital tools last year. The e-filing portal provides an accessible platform for taxpayers, ensuring that returns are filed conveniently and accurately. However, choosing the appropriate form remains the taxpayer's responsibility.
The importance of selecting the correct ITR form cannot be overstated. Filing an invalid return due to incorrect form usage can delay processing and potentially hold up tax refunds. Therefore, individuals should carefully assess their income sources and select the appropriate form to ensure timely and accurate filing.
As the filing deadline looms, taxpayers are advised to review their income sources and consult available resources if uncertain about the correct form to use. Ensuring compliance with the guidelines will facilitate a smooth filing process and prevent issues related to defective returns.
As the deadline for filing Income Tax Returns (ITR) for the Assessment Year (AY) 2025-26 approaches on September 15, taxpayers are urged to ensure they use the correct ITR form to avoid filing a defective return. The filing season is in full swing, with millions of taxpayers planning to submit their returns in the next few days. The choice of the right form is critical as inaccuracies may lead to processing delays and potential issues with tax refunds.
Most individual taxpayers are expected to use ITR-1, commonly known as Sahaj, for filing their returns for AY 2025-26. This form is specifically designed for individuals with an income source from salary, pension, or interest from savings accounts. Last year, 45.77% of the 7.28 crore ITRs filed by July 31 utilised the ITR-1 form, emphasising its popularity among taxpayers with simpler financial profiles.
ITR-1 is applicable only for resident individuals whose total income is up to ₹50 lakh and comes from salary, pension, one house property, or other sources such as interest. However, it excludes incomes such as those from lottery winnings, horse racing, foreign income, or properties abroad, which require different forms like ITR-2 or ITR-3. This distinction is essential to ensure that the tax return is not rendered invalid.
For those with income from business or profession, ITR-3 or ITR-4 should be filed instead of ITR-1. Additionally, taxpayers with capital gains from the sale of shares, mutual funds, or property are required to use ITR-2 or ITR-3. Accurate reporting of income categories is vital to avoid complications.
The introduction of new disclosure requirements adds complexity to the filing process this year. These include the need to report home loan interest under Section 24(b), a higher asset-liability reporting threshold of ₹1 crore, and additional schedules for deductions. Taxpayers must also be mindful of the bifurcation of capital gains based on transfer dates to ensure compliance with the updated rules.
The use of online ITR utilities continues to be popular, with over 43.82% of returns filed using these digital tools last year. The e-filing portal provides an accessible platform for taxpayers, ensuring that returns are filed conveniently and accurately. However, choosing the appropriate form remains the taxpayer's responsibility.
The importance of selecting the correct ITR form cannot be overstated. Filing an invalid return due to incorrect form usage can delay processing and potentially hold up tax refunds. Therefore, individuals should carefully assess their income sources and select the appropriate form to ensure timely and accurate filing.
As the filing deadline looms, taxpayers are advised to review their income sources and consult available resources if uncertain about the correct form to use. Ensuring compliance with the guidelines will facilitate a smooth filing process and prevent issues related to defective returns.