ITR Filing 2025: As the date for filing Income Tax Return (ITR) is approaching, the importance of Form 16, the most important document for working people, has increased. This form is the first step in the process of filing returns and it is not possible to file ITR unless this document is in hand. Wrong or incomplete information in the document can also cause the return to be rejected.
It has become very easy for employed people to file Income Tax Return (ITR). The reason for this is that the Income Tax Department has made Form 16 easier. Form 16 is a certificate issued by the employer to his employees. It contains complete information about the salary given during the previous financial year, TDS (Tax Deducted at Source) deduction and deduction on tax savings. Incorrect or incomplete information can cause the return to be rejected. This year, some changes have been made in Form 16 by the Income Tax Department, which will make it easier for taxpayers to file returns.
When do I get Form 16?
Every year employers give this form to their employees after the end of the financial year, usually by the end of June. This year this form will be issued by June 15. Only after this can employees file their tax returns. The information given in this form, such as salary breakup, tax savings made under TDS etc. are directly used to fill ITR. Wrong or incomplete information can cause the return to be rejected.
what is the new update
This year, some changes have been made in Form 16 by the Income Tax Department. Now there is a relief news for those filing ITR-1. Earlier this form was only for those people whose income was limited to salary, pension, one house property, interest on savings or fixed deposits, dividends and agricultural income of less than Rs 5000, but now the rules have been changed and from the financial year 2024-25, if a person has earned long term capital gain (LTCG) by selling shares or mutual fund units, then he can also use ITR-1 form. The only condition is that this long term capital gain should not exceed Rs 1.25 lakh in a year. This change will provide relief to those taxpayers who earn some profit from small investments and now they will not need to fill difficult ITR forms.
What is ITR Form 1
ITR Form 1, also known as Sahaj Form, is meant for ordinary taxpayers who have income from simple sources, such as salary, pension, income from one house property, bank interest or dividends. This form is considered to be the simplest and most straightforward form that can be used by salaried persons or people with limited income to file their income tax returns. If your total income is less than Rs 50 lakh and your sources of income are simple, then this form is perfect for you.
