What is ITR Deadline?

The Income Tax Return (ITR) deadline for Assessment Year (AY) 2025-26 and Financial Year (FY) 2024-25 in case of Non-Audit Case was 16th September 2025. But what happens if you missed this due date? Don’t panic! You still have options to file your return, but certain conditions will apply. Let’s understand what you should do next.

1. File a Belated Return

If you missed the original deadline, you can still file your return as a Belated ITR under Section 139(4) of the Income Tax Act.

• You can file a belated return anytime up to 31st December 2025 (unless the government extends it further).
• Belated returns must be filed online via the Income Tax e-Filing portal.

2. Penalties for Late Filing

Filing after the due date comes with some penalties:

• Late Filing Fee (Section 234F):
  • ₹5,000 if total income exceeds ₹5 lakh.
  • ₹1,000 if total income is less than ₹5 lakh.
• Interest on Tax Due (Section 234A):
  • If you still owe taxes, interest at 1% per month will be charged on the unpaid tax from the due date until the date of filing.

3. Carry Forward of Losses Not Allowed

One major drawback of filing a belated return is that you cannot carry forward certain losses, like:

• Business loss
• Capital loss
• Loss from owning & maintaining racehorses

However, loss from house property can still be carried forward even if the return is belated.

This restriction applies equally under both the Old Tax Regime and the New Tax Regime.

4. File a Revised Return (If Needed)

If you make a mistake in your belated return, don’t worry. You can file a Revised Return under Section 139(5) to correct it. A revised return can be filed any time up to 31st December of the relevant assessment year or before the completion of assessment, whichever is earlier.

Important Note: An Updated Return (u/s 139(8A)) is not revisable. Once filed, it cannot be modified or corrected, so extra care should be taken while filing it.

5. Practical Steps to File Belated ITR

1. Log in to Income Tax e-Filing Portal.
2. Select Assessment Year 2025-26.
3. Choose the correct ITR form.
4. Enter your income, deductions, and taxes paid.
5. Pay the late filing penalty (if applicable).
6. Submit and verify your return online.

6. Why You Shouldn’t Delay Further

• Avoid notices from the Income Tax Department.
• Get your refunds (if any) faster.
• Maintain a clean financial record for future loans and credit score.

How TaxUnplug Helps You File Stress-Free

At TaxUnplug, we make sure that missing a deadline does not cause long-term stress. Here’s how we help:

• Expert Tax Consultation: Our professionals guide you on penalties, interest, and compliance.
• Fast & Hassle-Free Filing: We help you file a belated ITR quickly and correctly.
• Error-Free Compliance: Avoid mistakes that could invite tax notices.
• Affordable Services: Get professional help at pocket-friendly prices.
• Personalized Guidance: Whether you are salaried, a freelancer, or a business owner, we provide tailored solutions.

Don’t wait — let TaxUnplug handle your ITR filing smoothly.

Frequently Asked Questions on (Missed the ITR deadline)

1. Can I file ITR after due date in a Non-Audit Case i.e. after 16th September 2025?
Yes, you can still file a belated return under Section 139(4) until 31st December 2025 (unless assessment is completed earlier). However, certain consequences apply, such as late fees, interest, and loss of carry forward of some losses.

2. What if I don’t file even a belated return?
 You may face notices, higher penalties, and even prosecution in some cases.

3. Can I claim a refund in a belated return?
 Yes, you can still claim refunds, but only after filing your belated return.

4. Will I lose my deductions if I file late?
 No, deductions under 80C, 80D, etc., are allowed. But losses (except house property loss) cannot be carried forward.

5. Can I revise a belated return?
Yes. A belated return can be revised under Section 139(5) up to 31st December 2025 or before assessment completion, whichever is earlier.

6. Can I file an updated return if I miss even the belated return deadline?
Yes. Under Section 139(8A), you can file an Updated Return within 48 months from the end of the assessment year.

However, an updated return cannot be used to claim losses or refunds—it is only for disclosing additional income with tax payment.

7. Should I file even if I missed the deadline and have no taxable income?
Yes, in some cases. Filing ITR even with nil taxable income helps in:

• Claiming TDS refunds,
• Establishing income proof for loans/visas,
• Maintaining compliance record.

The post What To Do When You Miss the ITR Deadline? appeared first on Tax Unplug.

The Income Tax Department has rolled out the Excel-based utilities for ITR-1 and ITR-4 for filing returns for Assessment Year 2025–26 (FY 2024–25). Alongside this release, several validation rule updates have been introduced — especially for taxpayers choosing the old tax regime. These changes largely affect salaried individuals, as well as those with deductions related to house rent, home loans, electric vehicle loans, or health and education expenses.

Here’s a breakdown of the seven major updates every taxpayer should be aware of while filing this year’s return.

1. Mandatory Detailed Disclosure for HRA Claims

Taxpayers claiming House Rent Allowance (HRA) now need to furnish complete details, including:

• Place of employment
• HRA received during the year
• Actual rent paid
• Basic salary + Dearness Allowance
• Whether the city is metro or non-metro (to apply 50% or 40% rule)

This granular level of detail ensures that HRA claims are consistent with AIS data and rental proofs.

2. Section 80C: Investment Proof Now Mandatory

Deductions under Section 80C (up to ₹1.5 lakh) now require:

• Policy number or unique identification for each investment (like LIC, PPF, ELSS, etc.)

This change aims to cross-verify claims with financial institutions and minimize incorrect deductions.

3. Section 80D: Health Insurance Policy Details Required

To claim medical insurance deductions under Section 80D, you now need to provide:

• Name of insurer
• Policy number/document ID

This ensures deductions match with data reported by insurance companies.

4. Section 80E: More Transparency for Education Loan Interest

For claiming interest deduction on education loans under Section 80E, taxpayers must now disclose:

• Lender’s name and bank
• Loan account number
• Date of loan sanction
• Total loan sanctioned
• Loan outstanding as of 31st March
• Total interest paid

5. Section 80EE / 80EEA: Residential Home Loan Details Required

Deductions for interest on home loans now need to be backed with:

• Loan sanction details
• Lender’s name and bank
• Account number
• Loan amount & outstanding balance

These details will be cross-checked with AIS and bank data.

6. Section 80EEB: Electric Vehicle Loan Tracking

For interest claims on electric vehicle loans, taxpayers must submit:

• Lender/bank name
• Loan details including sanction date, account number, amount sanctioned, and outstanding balance

7. Section 80DDB: Specified Disease Treatment Details

To claim deductions under Section 80DDB, one must now mention:

• Name of the specified disease being treated

This aligns with the push for transparent and verifiable medical expense claims.

Why These Cross-Verification Changes Matter

With increasing digitization, the Income Tax Department is now:

• Matching rental data with AIS reports
• Verifying home loan claims with bank-reported information
• Confirming insurance and investment claims with issuer data
• Scrutinizing health and education-related deductions

Any inconsistency could lead to scrutiny notices or denial of deductions.

Pro Tips to Stay Compliant

To ensure a smooth filing experience:

• Reconcile Form 26AS & AIS before filing
• Keep digital proof of LIC, PPF, ELSS, NSC investments
• If claiming HRA over Rs. 1 lakh/year, ensure landlord’s PAN is provided

Use the AIS Reconciliation Tool to match your records

Need Expert Help?

The government’s systems are becoming smarter. That means taxpayers must be better prepared while filing their returns. Whether you’re salaried, a freelancer, or a business owner — start early, verify everything, and file with confidence. Taxunplug is here for you — a trusted platform for stress-free ITR filing, personalized advice, and complete support.

Connect with Taxunplug today for seamless and accurate ITR filing. Let us simplify your financial journey. And don’t forget to follow us on LinkedIn, X (formerly Twitter), Instagram, YouTube and Facebook.

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

The post 7 Key Changes in ITR-1 and ITR-4 Excel Utilities for AY 2025–26 That You Must Know appeared first on Tax Unplug.

The Central Board of Direct Taxes (CBDT) has extended the Income Tax Return (ITR) filing due date for non-audit cases for AY 2025-26 from July 31st, 2025, to September 15th, 2025. This news might bring a sigh of relief for many taxpayers. At Taxunplug, we believe in proactive tax management, and an extension is the perfect opportunity to get your filing done now rather than later.

Why the Rush When There’s an Extension? Here’s What You Need to Know:

Extensions are a safety net, not an invitation to delay. Here’s why you should use this extra time wisely and file your ITR as soon as your applicable form is released by the Income Tax Department:

• Gather Your Documents – Stress-Free:

The biggest hurdle for many taxpayers is compiling all the necessary documents. From 16, bank statements, investment proofs, and rent receipts to details of other income sources – gathering these takes time. Don’t wait until the last date. Use this extension to meticulously collect and organize everything you need. This proactive approach will make the actual filing process smoother and less prone to errors.

• Avoid Unnecessary Interest on Self-Assessment Tax:

An extended due date for filing doesn’t always mean an extended due date for paying your taxes. If your estimated tax liability exceeds Rs. 10,000, you are required to pay advance tax. If you have any remaining self-assessment tax due, delaying your filing could still lead to interest under Section 234B and 234C, even if the filing due date is extended. Filing early ensures you settle any tax dues on time, saving you from these avoidable interest charges.

• Claim Refunds Faster:

If you’re eligible for a tax refund, filing early means you’ll receive your refund sooner. The Income Tax Department processes returns on a “first-in, first-out” basis. Why wait for your hard-earned money when you can get it back quickly by filing your ITR now.

• Steer Clear of Late Fees (Section 234F):

While the current extension might push back the late fee applicability, relying on last-minute filing always carries the risk of missing the deadline. Technical glitches, internet issues, or unforeseen personal emergencies can derail your plans. A missed deadline, even by a day, can attract a late filing fee of up to Rs. 5,000 (for income over Rs. 5 lakh) or Rs. 1,000 (for income up to Rs. 5 lakh) under Section 234F. Why take the chance when you can file well in advance.

• Stand Clear at Your Stand – Avoid Scrutiny & Ensure Smooth Processing:

Filing your ITR promptly demonstrates compliance and responsibility. When you file early, your return gets processed sooner, and any potential discrepancies or refund claims are addressed without delay. Last-minute rushes often lead to mistakes, which can attract scrutiny from the Income Tax Department. A clean, timely filing helps you “stand clear at your stand” and provides peace of mind.

• Utilize the Opportunity – File as Soon as Forms are Available:

The Income Tax Department typically releases the ITR forms (ITR-1 and ITR-4) in a phased manner. As soon as the form applicable to your income structure is introduced and available, don’t hesitate. With Taxunplug by your side, you can easily navigate the filing process.

Taxunplug: Your Trusted Partner for a Seamless Tax Filing Journey

At Taxunplug, we understand that tax regulations can be complex, even with extensions. Our mission is to simplify this process for you, ensuring accuracy, compliance, and peace of mind.

• Expert Guidance: Our seasoned chartered accountants are up-to-date with the latest tax laws and can guide you through every step, addressing your specific queries.

• Hassle-Free Process: We streamline the entire filing experience, from document collection assistance to final submission and verification.

• Proactive Approach: We encourage early filing and help you identify potential issues before they become major problems.

file your itr early

Don’t let this ITR filing extension lull you into complacency. Use it wisely. Start gathering your documents now. Consult with Taxunplug, and file your Income Tax Return well in advance of September 15th, 2025.“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

The post Don’t Let Extensions Lead to Stress: File Your ITR Early with Taxunplug! appeared first on Tax Unplug.

The Central Board of Direct Taxes (CBDT) has announced a significant extension for filing Income Tax Returns (ITRs) for Assessment Year (AY) 2025-26. This is crucial information for every taxpayer and business in India!

The New Deadline You Need to Know

Originally, the due date for filing ITRs for AY 2025-26 was 31st July 2025. However, in a recent press release, the CBDT has officially extended this date to 15th September 2025 (For Official Press Release, Click Here). This provides taxpayers with an additional month and a half to ensure their compliance.

Why the Extension?

This extension comes in response to several key developments:

• Revised ITR Forms: The notified ITRs for AY 2025-26 have undergone significant structural and content revisions. These changes aim to simplify compliance, enhance transparency, and enable accurate reporting.
• System Readiness: Implementing these revised forms requires additional time for system development, integration, and comprehensive testing of the corresponding ITR utilities.
• TDS Statement Credits: Furthermore, credits arising from TDS statements, due for filing by 31st May 2025, are expected to begin reflecting in early June. This would have limited the effective window for return filing had the extension not been granted.

The CBDT’s decision aims to mitigate concerns raised by stakeholders and provide adequate time for compliance, thereby ensuring the integrity and accuracy of the return filing process.

What This Means for You

While the extension provides much-needed breathing room, it’s essential not to delay your tax preparations. This extra time should be utilized for:

• Gathering Documents: Collect all necessary income proofs, investment details, and other relevant documents.
• Understanding New Forms: Familiarize yourself with any changes in the ITR forms relevant to your income sources.
• Accurate Reporting: Ensure every detail is correctly reported to avoid future discrepancies.

How Taxunplug Can Be Your Guide

At Taxunplug, we understand that navigating tax laws and filing processes can be complex. As your Expert Guide to Tax, Business & Financial Success, we are fully equipped to assist you with this extended deadline and beyond. Our services include:

• Return Filing (Income Tax & GST): We ensure accurate and timely submission of your ITRs and other tax returns.
• Consultancy & Compliances: Get expert advice from Chartered Accountants on all your tax, business, and compliance needs.
• Assessment & Notice Resolution: We stand by you to resolve any assessments or notices from tax authorities.
• Virtual Accounting & Bookkeeping: Keep your financial records immaculate with our cloud based accounting solutions.

Don’t let the new deadline catch you off guard. Utilize this extension wisely!

Ready to File?

ITR Due Date AY 2025-26

Connect with Taxunplug today for seamless and accurate ITR filing. Let us simplify your financial journey. don’t forget to follow us on LinkedIn, X (formerly Twitter), Instagram, YouTube and Facebook.

Contact Us:

Call: +91 911 911 2372  |   Email:support@taxunplug.com   |  Visit:www.Taxunplug.com

The post Big News for Taxpayers: ITR Due Date for AY 2025-26 Extended to 15th September 2025 appeared first on Tax Unplug.

So, you’ve filed your Income Tax Return (ITR) — great job! But wait — you’re not done yet.

In India, filing an ITR is only part of the process. Unless you verify your return, it’s not considered valid by the Income Tax Department. Many taxpayers skip this crucial step or miss the timeline — which can have serious consequences.

Let’s understand how ITR verification works, what happens if you miss the 30-day deadline, and how it can affect late fees, interest, refunds, and more.

What is ITR Verification

Once you file your return, the Income Tax Department requires you to verify it within 30 days. Verification confirms that the return was genuinely submitted by you. If you did not verified your ITR, the following consequences can be faced by you:

• Your return remains incomplete
• It will not be processed
• Refunds (if any) will not be issued
• Certain benefits like carry forward of losses will be denied if verification is delayed

How Can You Verify Your ITR?

You have two ways to verify your Income Tax Return:

E-Verification (Quick and Paperless): E-verification is instant and requires no physical documents. You can e-verify through:

• Aadhaar OTP
• Net Banking
• Bank/Demat Account EVC
• Digital Signature Certificate (DSC) (mandatory in certain cases)

Steps to verify through E-verification:

1. Log in at your Income Tax Portal
2. You can find and e-File tab on dashboard
3. Navigate to the “e-Verify Return” in the “Income Tax Returns” Tab
4. You can find pending e-Verification option if e-Verification is pending
5. Click on “e-Verify”
6. Choose your preferred method
7. Enter the OTP or EVC or attach DSC (for mandatory cases) and Click “Submit”.

Physical ITR Verification: If you can’t e-verify, send the signed ITR-V acknowledgement via ordinary post or speed post to “Centralized Processing Centre, Income Tax Department, Bengaluru – 560500, Karnataka”.

Note:

• The ITR-V must reach within 30 days of filing
• No attachments or staples — just the signed ITR-V

What If You Verify the ITR After 30 Days?

This is where many taxpayers get confused. The submission of ITR form not authorized the ITR form. The taxpayer have to verify the ITR within 30 days from the date of submission of ITR form by above mentioned methods. If you verified your ITR after 30 days, following consequences of Late Verification would be faced by taxpayer:

1. Late Fee (Sec 234F) may apply if the effective filing date (i.e., date of verification) falls after the due date of verification.
2. Interest (Sec 234A/B/C) may increase depending on delay in effective filing.
3. Loss Carry Forward  Not allowed if verification happens after the due date.
4. Refunds may be delayed or reduced.
5. Return Status will be shown as “Verified” but with revised effective filing date.

So while your return may still be processed, the benefits of timely filing are lost.

Is There a Way to Avoid This?

Yes, by ensuring that your return is verified within 30 days from the date of filing — whether electronically or by post. If you missed this deadline due to genuine hardship, you may submit a condonation request under Section 119(2)(b) through the e-filing portal. However, acceptance is not guaranteed and is subject to the department’s discretion.

Key Takeaways

Filing your ITR is not enough — you must verify it

• Verify within 30 days to avoid late filing consequences
• If verified late, the date of verification becomes the filing date
• Late fees, interest, and denial of losses/refunds can apply
• Choose e-verification for instant confirmation and peace of mind

Stay Updated with Us!

If you’d like to keep yourself informed with valuable tax insights, updates, and easy-to-understand blogs, don’t forget to follow us on LinkedIn, X (formerly Twitter), Instagram, YouTube and Facebook. We regularly share practical tips, tax deadlines, and news that matters to you.

Why Choose Taxunplug

If you’re unsure whether your ITR is verified or missed the deadline, don’t worry. Our team at Taxunplug can help you to check your ITR verification status and in filing condonation requests.

No matter where you are—Mumbai, Surat, Pune, Jaipur, Jodhpur, or Ahmedabad—TaxUnplug is here to help you handle all your tax needs effectively and professionally.

Stay stress-free and compliant — every step of the way!

The post Your ITR Isn’t Complete Until It’s Verified — Don’t Miss This Step appeared first on Tax Unplug.

Background: Search & Requisition Assessments Resurrected

In a significant legislative move, the Finance (No. 2) Act, 2024 reintroduced the block assessment mechanism for income tax searches and requisitions. This mechanism, governed by Chapter XIV-B of the Income Tax Act, 1961, had been dormant since 2003. The rationale behind its comeback is to provide a distinct and focused tax computation regime for undisclosed income unearthed during search operations.

To implement this system, a dedicated return form ITR-B was promised. After months of anticipation, CBDT has now notified ITR-B via gazette Notification No. 30/2025, dated 07^th April 2025.

Concept of ITR-B

ITR-B is a specialized income tax return form meant exclusively for cases covered under Section 158BC, which deals with search or requisition assessments conducted under:

• Section 132 (Search & Seizure), or
• Section 132A (Requisition of Books or Assets) on or after 01^st September, 2024.

This form is not for regular income but rather to report “undisclosed income” for block period of last six years preceding the year in which a search was initiated or a requisition was made and an additional period starting from April 1st of the previous year in which the search was initiated or requisition made up to the date of execution of the last authorization or requisition.

When to Use ITR-B?

The taxpayer (or legal representative) must file ITR-B when a search or requisition has taken place. If the return of income required to be furnished by any person under clause (a) of sub-section (1) of section 158BC, relating to any search initiated under section 132 or requisition made under section 132A on or after the 01^st September 2024. 

It should be noted that only income discovered during search or requisition proceedings is to be reported here. There is no need to report the income from regular business, salary, or capital gains income, if already disclosed in earlier ITRs.

What Does ITR-B Contain?

The ITR-B form contain following parts:

The form also includes verification statements and space to report pending appeals or legal proceedings, if any.

Taxation of Undisclosed Income: Section 113 in Focus

All income reported in ITR-B is taxed at a flat rate of 60% under Section 113 (plus applicable surcharge and cess). Deductions under Chapter VI-A or set-off of losses are not allowed. This ensures that all hidden or unreported income faces heavy taxation, reflecting the intent to penalize concealment.

Legal Implications & Strategic Filing

The filing of ITR-B is a compliance opportunity and can help taxpayers reduce litigation risks if done truthfully and timely. However, misreporting or underreporting can attract further penalties, reopening of other assessments, or prosecution under Sections 277 & 278.

Hence, professional assistance is highly recommended in preparing and filing ITR-B.

To Download Official Notification, Click Here

ITR-B for Block Assessments

Need Help with ITR-B Filing?

At Taxunplug, we specialize in representation and compliance for search and seizure cases. From understanding your block period to accurately disclosing income and ensuring proper legal strategy, our expert team is here to support you.

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

The post ITR-B for Block Assessments: A Long-Awaited Clarity for Search Cases appeared first on Tax Unplug.

Managing taxes when you have multiple income streams can feel overwhelming but with the right approach, you can file accurately, maximize deductions, and avoid penalties. Whether you earn a salary, freelance income, rental earnings, capital gains, or side hustle money, this detailed guide will walk you through step-by-step on how to report all income sources correctly.

Why Proper Tax Filing for Multiple Incomes Matters

Many taxpayers underreport income or miss deductions simply because they don’t know how to consolidate different earnings. The Income Tax Department requires all income sources to be declared in a single return. Failing to do so can lead to:

• Penalties & notices
• Loss of tax-saving opportunities
• Higher tax liability due to unclaimed deductions

Understanding Different Types of Income Sources

1. Salary Income (From Employment)

• What it includes: Basic salary, HRA, bonuses, allowances, perks.
• Tax implications: TDS is deducted by the employer (Form 16).
• Key documents needed: Form 16, salary slips, investment proofs for deductions.

2. Freelancing / Business Income

• What it includes: Payments from clients, consultancy fees, part-time income from profession and freelancing income.
• Tax implications: Must file under “Profits & Gains from Business or Profession.”
• Key deductions: Office expenses, internet bills, travel costs (if related to work).

3. Rental Income (From Property)

• What it includes: Earnings from residential/commercial property.
• Tax implications: Gross rent is taxable.
• Deductions allowed: Municipal taxes, standard deduction (30%), home loan interest (if applicable).
• Key documents needed: Rent agreement, property tax receipts, home loan statements.

4. Capital Gains (From Investments & Property Sales)

• What it includes: Profits from selling stocks, mutual funds, real estate, or other assets.
• Tax implications: Tax can be be Short-term capital gains or long term capital gains depends on the period of holding the capital assets.
• Key documents needed: Broker statements, sale deeds, purchase proofs.

5. Interest & Dividend Income

• What it includes: Interest from savings accounts, FDs, bonds, or post office schemes and dividends from stocks, mutual funds (taxable in hands of investor).
• Tax implications: The interest and dividend can be taxable at normal tax slabs.
• Key documents needed: Bank statements, Dividend details, Form 16A (for TDS).

Step-by-Step process to file ITR for Multiple Income Sources?

Step 1: Gather Income Proofs & Documents

• Form 16 (for salaried individuals)
• Form 26AS (tax credit statement)
• AIS & TIS (Annual Information Statement & Taxpayer Information Summary)
• Bank statements & transaction records
• Capital Gain Statement ( For Capital Gain Details)
• TDS Certificates (Tax Deducted at Source details)
• Investment proofs (for deductions and exemptions)

Step 2: Choose the Right ITR Form

Different types of income require different Income Tax Return (ITR) forms:

• ITR-1: This return is applicable for a Resident (other than Not Ordinarily Resident) Individual having Total Income from any of the following sources up to ₹ 50 lakh.
  • Salary / Pension
  • One House Property
  • Other sources (Interest, Family Pension, Dividend etc.)
  • Agricultural Income up to ₹ 5,000

Further ITR-1 cannot be used by a person who:

• Is a Director in a company
• Has held any unlisted equity shares at any time during the previous year
• Has any asset (including financial interest in any entity) located outside India
• Has signing authority in any account located outside India
• Has income from any source outside India
• Is a person in whose case tax has been deducted u/s 194N
• Is a person in whose case payment or deduction of tax has been deferred on ESOP
• Has any brought forward loss or loss to be carried forward under any head of income
• Has total income exceeding Rs. 50 lakhs.

• ITR-2: For individuals with multiple income sources but no business income and who is not eligible to file ITR-1.

• ITR-3: For professionals, freelancers, or business owners having Income under the head Profits and Gains of Business or Profession and who is not eligible for filing ITR 1, 2 and 4.

• ITR-4:  This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than Not Ordinarily Resident or a Firm (other than LLP) which is a Resident having Total Income up to Rs. 50 lakh and having income from Business or Profession which is computed on a presumptive basis and income from any of the following sources:
  • Salary / Pension
  • One House Property
  • Other sources (Interest, Family Pension, Dividend etc.)
  • Agricultural Income up to ₹ 5,000

Further, ITR-4 not applicable to a person who:

• Is a Director in a company
• Has held any unlisted equity shares at any time during the previous year
• Has any asset (including financial interest in any entity) located outside India
• Has signing authority in any account located outside India
• Has income from any source outside India
• Is a person in whose case payment or deduction of tax has been deferred on ESOP
• Who has any brought forward loss or loss to be carried forward under any head of income.

Step 3: Declare All Sources of Income

Many taxpayers forget to report secondary incomes. Ensure that:

• Salary and freelancing/business income are reported separately.
• Rental income is correctly mentioned under ‘Income from House Property.’
• Capital gains are disclosed in the correct sections.
• Interest from savings accounts, FDs, or dividends is included.

Step 4: Claim Deductions & Exemptions

Reduce your taxable income by claiming deductions under:

• Section 80C – Investments in PPF, ELSS, LIC, etc.
• Section 80D – Health insurance premiums.
• Section 80E – Education loan interest.
• House Rent Allowance (HRA) for salaried individuals staying in rented accommodations.
• Standard deduction for salaried and pensioners.

Step 5: Compute Tax Liability & Pay Balance Tax

After considering deductions and exemptions, calculate your final tax liability. If your TDS (Tax Deducted at Source) is less than your actual tax liability, pay the remaining amount online via the income tax portal.

Step 6: File Your ITR Online

• Login to the Income Tax e-Filing Portal.
• Choose the correct ITR form.
• Enter all income details, deductions, and tax payments.
• Validate and verify your return using Aadhaar OTP or net banking.
• Submit your ITR before the deadline to avoid penalties.

Common Mistakes to Avoid When Filing Taxes

❌ Not reporting all income sources.
❌ Claiming deductions without valid proofs.
❌ Choosing the wrong ITR form.
❌ Missing tax-saving opportunities.
❌ Filing after the due date.

FAQs on Filing Taxes for Multiple Income Sources

Q. Do I need to file separate tax returns for each income source?

No, you must file a single ITR, combining all your income sources.

Q. What happens if I forget to report additional income?

Not reporting income can lead to penalties or tax notices from the Income Tax Department.

Q. Which ITR form should freelancers use?

Freelancers should use ITR-3 (if maintaining books of accounts) or ITR-4 (if opting for presumptive taxation).

Q. What is the last date to file ITR in India?

For individuals, the deadline is usually 31st July of the assessment year.

Conclusion

Filing taxes with multiple income sources doesn’t have to be complicated. By tracking all earnings, choosing the right ITR form, and claiming deductions, you can minimize tax liability and stay compliant.

If unsure, consult a tax advisor like Taxunplug by dropping your Name, Mobile and Email. Our team of experts will take care of all the sticky things and

helps to take timely action, and ensure compliance to avoid legal complications.The information provided in above blog is for general informational only and should not be considered as legal or tax advice. Request you to please follow latest updated in reference to above details. We advise to consult with a qualified tax professional such as “Taxunplug” for all your tax needs.

The post Income from Multiple Sources? A Complete Guide to Filing Your Taxes Correctly appeared first on Tax Unplug.

Determination of residential status for taxation purpose in India

For the purpose of income tax in India, the income tax laws in India classifies taxable persons as:

1. A resident
2. A resident not ordinarily resident (RNOR)
3. A non-resident (NR)

Each category has different tax implications. This guide will help you understand how residential status is determined and its impact on your tax obligations.

Resident

A taxpayer would qualify as a resident of India if he satisfies one of the following 2 conditions:

• Stay in India for a year is 182 days or more or
• Stay in India for the immediately 4 preceding years is 365 days or more and 60 days or more in the relevant financial year

Resident not ordinarily resident

If an individual qualifies as a resident, the next step is to determine if he/she is a Resident ordinarily resident (ROR) or an RNOR. He will be a ROR if he meets both of the following conditions:

• Has been a resident of India in at least 2 out of 10 years immediately previous years and
• Has stayed in India for at least 730 days in 7 immediately preceding years

Therefore, if any individual fails to satisfy even one of the above conditions, he would be an RNOR.

From FY 2020-21, a citizen of India or a person of Indian origin who leaves India for employment outside India during the year will be a resident and ordinarily resident if he stays in India for an aggregate period of 182 days or more.

However, this condition will apply only if his total income (other than foreign sources) exceeds Rs 15 lakh. Also, a citizen of India who is deemed to be a resident in India (w.e.f FY 2020-21) will be a resident and ordinarily resident in India.

NOTE: Income from foreign sources means income which accrues or arises outside India (except income derived from a business controlled in India or profession set up in India).

Non-Resident

An individual satisfying neither of the conditions of resident or nor resident not ordinary resident, as mentioned above would be a Non-Resident for the year.

Exceptions for determining residential status

There are following exceptions is there under which residential status will depends on various factors:

• An individual who is a citizen of India or person of Indian origin leaves India for employment during an FY, he will qualify as a resident of India only if he stays in India for 182 days or more. Such individuals are allowed a longer time greater than 60 days and less than 182 days to stay in India.

However, from the financial year 2020-21, the period is reduced to 120 days or more for such an individual whose total income (other than foreign sources) exceeds Rs 15 lakh.

• An individual who is a citizen of India who is not liable to tax in any other country will be deemed to be a resident in India. The condition for deemed residential status applies only if the total income (other than foreign sources) exceeds Rs 15 lakh and nil tax liability in other countries or territories by reason of his domicile or residence or any other criteria of similar nature.

The amendment can be further simplified as below-

Taxability in following different residential status

Resident: A resident will be charged to tax in India on his global income i.e. income earned in India as well as income earned outside India.

NR and RNOR: Their tax liability in India is restricted to the income they earn in India. They need not pay any tax in India on their foreign income. Also note that in a case of double taxation of income where the same income is getting taxed in India as well as abroad, one may resort to the Double Taxation Avoidance Agreement (DTAA) that India would have entered into with the other country in order to eliminate the possibility of paying taxes twice.

Determination of residential status of a company in India

Residential status of a company is determined as follows –

Notes:

1. An Indian company is always resident in India. Even if an Indian company is controlled from a place located outside India (or even if shareholders of an Indian company controlling more than 51 per cent voting power are non-resident and/or located outside India), the Indian company is resident in India. An Indian company can never be non-resident.

• A foreign company is resident in India if its place of effective management (POEM), during the relevant previous year, is in India. For this purpose, the place of effective management means a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance made.

• Provisions of section 6(3)(ii) shall not apply to a foreign company having turnover or gross receipts of Rs. 50 crore or less in a financial year. In other words, a foreign company (whose annual turnover/gross receipts is Rs. 50 crore or less) cannot be resident in India from the assessment year 2017-18 onwards.

Place of effective management (POEM)

“Place of effective management” (POEM) is an internationally recognized test for determination of residence of a company incorporated in a foreign jurisdiction. Any determination of the POEM will depend upon the facts and circumstances of a given case. The POEM concept is one of substance over form.

An entity may have more than one place of management, but it can have only one place of effective management at any point of time. Since “residence” is to be determined for each year, POEM will also be required to be determined on year to year basis. The process of determination of POEM would be primarily based on the fact as to whether or not the company is engaged in active business outside India.

Place of effective management in case company engaged in active business outside India

The place of effective management in case of a company engaged in active business outside India shall be presumed to be outside India if the majority meetings of the board of directors of the company are held outside India.

Active business outside India – A company shall be said to be engaged in “active business outside India” if –

• The passive income is not more than 50 per cent of its total income;
• Less than 50 per cent of its total assets are situated in India;
• Less than 50 per cent of total number of employees are situated in India or are resident in India; and
• The payroll expenses incurred on such employees is less than 50 per cent of its total payroll expenditure.

Passive income – “Passive income” of a company shall be aggregate of:

• Income from the transactions where both the purchase and sale of goods is from/to its associated enterprises; and
• Income by way of royalty, dividend, capital gains, interest or rental income;

However, any income by way of interest shall not be considered to be passive income in case of a company which is engaged in the business of banking or is a public financial institution, and its activities are regulated as such under the applicable laws of the country of incorporation.

Indian Income

Any of the following three is an Indian income —

1. If income is received (or deemed to be received) in India during the previous year and at the same time it accrues (or arises or is deemed to accrue or arise) in India during the previous year.
2. If income is received (or deemed to be received) in India during the previous year but it accrues (or arises) outside India during the previous year.
3. If income is received outside India during the previous year but it accrues (or arises or is deemed to accrue or arise) in India during the previous year.

Foreign Income

If the following two conditions are satisfied, then such income is “foreign income” —

1. Income is not received (or not deemed to be received) in India; and
2. Income does not accrue or arise (or does not deemed to accrue or arise) in India.

The Incidence of Tax of “Indian Income” and “Foreign Income” is as Follows:

Frequently Asked Questions (Residential Status in India)

Q. Can I be a Resident and RNOR at the same time?

No, you can only be one of the three: Resident, RNOR, or Non-Resident.

Q. Is foreign income taxable for RNORs?

No, RNORs are only taxed on their Indian income.

Q. What is POEM for foreign companies?

POEM is the place where key management decisions are made. If POEM is in India, the company is considered a Resident.

Q. How can I avoid double taxation?

You can claim relief under the DTAA if your income is taxed in India and another country.

Conclusion(Residential Status in India)

Determining your residential status is essential for accurate tax compliance. Whether you are a Resident, RNOR, or Non-Resident, understanding the rules can help you optimize your tax liabilities. For personalized advice, consult a qualified tax professional like Taxunplug for all your tax needs.

The information provided in above blog is for general informational only and should not be considered as legal or tax advice. Request you to please follow latest updated in reference to above details. We advise to consult with a qualified tax professional such as “Taxunplug” for all your tax needs.

The post Residential Status in India: A Complete Guide for Tax Purposes appeared first on Tax Unplug.

The Permanent Account Number (PAN) and Aadhaar Card are crucial identification documents for taxpayers in India. They play a significant role in tax compliance, financial transactions, and government verification processes. The recent Income Tax Bill 2025 has reinforced their importance with updated rules. This blog covers the essentials, recent changes, and their impact on taxpayers.

What is PAN?

PAN (Permanent Account Number) is a 10-digit alphanumeric identifier issued by the Income Tax Department of India. It is primarily used for:

• Filing income tax returns (ITR)
• Opening bank accounts
• Buying or selling assets above specified limits
• Conducting high-value financial transactions
• Applying for loans and credit cards

What is Aadhaar?

Aadhaar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI). It serves as proof of identity and address and is widely used for availing government benefits, financial services, and e-KYC verification.

PAN-Aadhaar Linkage & Its Importance

The Indian government has made linking PAN with Aadhaar mandatory to:

• Reduce tax evasion and prevent duplicate PANs
• Ensure accurate taxpayer identification
• Facilitate smooth e-verification of ITR

How to Link PAN with Aadhaar?

• New applicants of PAN card: The Aadhaar PAN linking is done automatically during the application stage.

• Existing PAN holders: The existing PAN holders who were allotted PAN on or before 01-07-2017 it is mandatory to link PAN with Aadhaar. The Link Aadhaar service is available to individual taxpayers (both registered and unregistered) on e-Filing Portal.

Taxpayers who have been allotted a PAN as on 1st July 2017 and are not exempted from linking are liable to pay a non-refundable fee of Rs. 1000 for submission of PAN-Aadhaar linkage request. If linking is not done till 30th June 2023, the PAN will be marked as inoperative with effect from 1st July 2023.

Is there any exemption for PAN-Aadhaar linkage:

Following categories are exempted from Aadhaar-PAN linking

• NRIs
• Not a citizen of India
• age > 80 years at any time during the previous year
• state of residence is ASSAM, MEGHALAYA or JAMMU & KASHMIR

Income Tax Bill 2025: Key Updates on PAN and Aadhaar

The Income Tax Bill 2025 has introduced new regulations regarding the mandatory quoting and linking of PAN and Aadhaar:

• When is Aadhaar mandatory: Every person who is eligible to obtain Aadhaar number shall quote such number in the application form for allotment of Permanent Account Number and in the return of income.

• When is PAN mandatory: Every individual is required to mention their Permanent Account Number (PAN) in all income tax returns, correspondence with any income-tax authority, and on all challans for payment under the Income Tax Act 2025.

• Mandatory Quoting: Aadhaar and PAN must be quoted for tax-related transactions, including filing returns, bank deposits over ₹50,000, property purchases, and high-value investments.

• PAN Inoperability: If not linked with Aadhaar, PAN becomes inoperative, leading to restrictions on financial transactions and higher TDS/TCS deductions.

• Aadhaar as an Alternative to PAN: Under certain conditions, Aadhaar can be used instead of PAN for tax compliance.

• Higher TDS/TCS Deduction: Failure to quote PAN or Aadhaar in specified transactions can attract higher rates of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS).

Consequences of Not Linking PAN with Aadhaar

If PAN is not linked with Aadhaar by the prescribed deadline, the following consequences apply:

• PAN Becomes Inoperative: In such cases, taxpayers cannot file ITR, process refunds, or conduct financial transactions requiring PAN.

• Higher Tax Deduction: Transactions may attract higher TDS/TCS rates as per Section 206AA of the Income Tax Act.

• Banking and Investment Restrictions: Certain banking and investment activities may be blocked.

PAN-Aadhaar Interchangeability

The government allows PAN-Aadhaar interchangeability for select transactions, meaning taxpayers can use Aadhaar instead of PAN. However, linking both remains essential for seamless compliance with tax laws.

FAQs

Can I file my ITR without linking PAN and Aadhaar

No, the Income Tax Department requires PAN and Aadhaar to be linked for ITR processing.

What happens if I have two PAN cards

Holding multiple PANs is illegal and may result in penalties. You should surrender any duplicate PAN immediately.

Is Aadhaar mandatory for NRIs

No, Aadhaar is not mandatory for NRIs. However, if they possess an Aadhaar card, they should link it with PAN for compliance.

How can I check if my PAN is active?

You can check your PAN status on the Income Tax Department’s official website using your PAN number.

Can I apply for a duplicate PAN if I lose my original?

Yes, you can apply for a duplicate PAN through the NSDL or UTIITSL portal. The PAN number will be same and new card with same PAN number will be issued.

Can I apply for a new PAN number in case change in my name?

No, you cannot apply for a new PAN number. Once PAN is issued there will be no change in PAN number for forever. You can simply update the name and other records like address, email, mobile etc. in your existing PAN records. The PAN number will be same and other things will be changed.

Can I file an income tax return without a PAN card?

If you want to file your Income Tax Return in India, you have to register yourself at Income Tax Portal. For registering on the portal, you have to provide your PAN number. Hence the PAN is mandatory and you cannot file income tax return without PAN.

PAN & Aadhaar Impact on Income Tax Filing in 2025:

With the latest updates in the Income Tax Bill 2025, PAN and Aadhaar linkage has become more significant. Ensuring compliance with the new rules will prevent financial and legal complications. Stay updated and take the necessary steps if needed. You can connect with us by dropping you name, mail and number at Taxunplug for all you tax need.

The post How PAN Card and Aadhaar Card Impacts Your Income Tax Filing in 2025 appeared first on Tax Unplug.

The central Board of Direct Tax (CBDT) has extended the direct tax Vivad se Vishwas scheme deadline from 31^st December 2024 to 31^st January 2025 via Circular No.20/2024.

From 1^st February 2025 extra 10% tax will be payable on applying for Vivad se Vishwas scheme 2024.

Taxpayers who file declaration on or before 31^st January 2025 will get the benefit wherein amount payable will be determined as per column (3) of the table specified in section 90 of the scheme and not as per column (4). For better understanding column (3) and column (4) is stated below:

Key Forms under Vivad se Vishwas Scheme are:

Form-1: The declaration form through which taxpayers express their intent to settle disputes under the VSV Scheme.

Form-2: A “Certificate of Settlement” issued by the Income-tax Department upon receipt of Form-1 and successful payment by the taxpayer.

Timeline for VSV scheme:

Taxpayers can file Form 1 declaration for settlement of dispute till 31 Jan 2025. However, this extension is not for those cases where Form 2 has been issued where Form 1 has been already filed by the taxpayer. Payment of disputed tax needs to be made within 15 days from the date of receipt of Form 2.

CBDT has already issued 2 sets of FAQs (last on 16^th December) to resolve certain ambiguities in the provisions of VSV for better understanding of taxpayers.

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