ITR stands for Income Tax Return. It is a form through which taxpayers in India report their income, expenses, taxes paid, and tax liability for a financial year. There are seven types of ITR, namely ITR-1 to ITR-7. The type of ITR a taxpayer needs to file differs based on her income sources, level of income and the residential status. Therefore, choosing of the right ITR form becomes crucial.The ITR due date for non-tax audit cases for FY 2025-26 (AY 2026-27) is 31st July 2026.

When it comes to filing income tax returns, choosing the right ITR form is essential. If a taxpayer files a wrong ITR form, the IT department can reject the return and even charge a penalty for missing the deadline. In this regard, individual taxpayers usually have confusion when it comes to choosing between ITR 1 and ITR 2.ITR-1 and ITR-4 Filing Enabled AY 2026-27The Income Tax Department has started filing process for FY 2025-26 (AY 2026-27), by enabling both online filing and excel utility for ITR-1 and ITR-4. for FY 2025-26 (AY 2026-27). Taxpayers can file their ITR either online, or using offline utility.Both income tax return forms cover almost the same income categories but have subtle differences that set them apart.

ITR-4 (Sugam) is an income tax return for resident individuals, HUFs and firms with total income up to Rs. 50 lakhs and having business or professional income under the presumptive taxation scheme as per Sections 44AD, 44ADA or 44AE along with salary, one house property and other incomes. Tax audit is generally not applicable for ITR-4 as it is designed for small taxpayers with business income. However, tax audit becomes applicable when income crosses certain limits. ITR-1 and ITR-4 Filing Enabled AY 2026-27The Income Tax Department has started filing process for FY 2025-26 (AY 2026-27), by enabling both online filing and excel utility for ITR-1 and ITR-4. for FY 2025-26 (AY 2026-27). Taxpayers can file their ITR either online, or using offline utility.Who can File ITR-4?ITR-4 is to be filed by the individuals/HUF/Partnership firm who fulfill the following conditions:Is a Resident of India as per Income Tax ActHaving Business or Professional IncomeIncome from business calculated under Section 44AD or 44AEIncome from profession calculated under Section 44ADALong-term capital gains income on equity share & mutual funds up to Rs.

ITR-1 (Sahaj) is the income tax return form for resident individuals with total income up to Rs. 50 lakh from salary or pension, two house property, and other sources like interest. It can also be used when you have long-term capital gains under Section 112A up to Rs. 1.25 lakh, provided there are no brought forward or carry forward capital losses.However, ITR-1 cannot be used if you have business or professional income, more than two house property, capital gains above the specified limit, foreign assets, or total income exceeding Rs. 50 lakh.

ITR-1 (Sahaj) and ITR-4 (Sugam) are the most common forms used by taxpayers, catering to different types of taxpayers and income sources. The key difference between ITR-1  and ITR-4 is that salaried individuals or pensioners file ITR-1, while ITR-4 is filed by individuals with business or professional income opting for the presumptive taxation scheme under sections 44AD, 44ADA, and 44AE.ITR-1 and ITR-4 Filing Enabled AY 2026-27The Income Tax Department has started filing process for FY 2025-26 (AY 2026-27), by enabling both online filing and excel utility for ITR-1 and ITR-4. for FY 2025-26 (AY 2026-27). Taxpayers can file their ITR either online, or using offline utility.What is ITR-1 (Sahaj)?ITR-1 or SAHAJ is a type of income tax return filing form meant for resident individuals, and this form includes the Income primarily form:Pension or salaries, Two house propertiesOther sources (excluding betting, gambling, and lotteries)Agricultural Income of up to Rs 5,000However, this form is eligible for Income up to Rs.50 lacs in the Financial year. Additionally, if the Income of your spouse or minor is clubbed together, you can also file this particular form.

Form 16 is a TDS certificate issued by an employer that shows the tax deducted from your salary and a detailed breakup of your income, exemptions, deductions, and taxable amount for the financial year. It is an important document for salaried taxpayers to verify TDS and file their income tax return accurately, and can be downloaded from the employer or payroll portal once issued.This blog explains in detail about Form 16, which is applicable for FY 2025-26 and preceding years. Form 16 Renamed as Form 130Under the Income Tax Act 2025, Form 16 has been renumbered as Form 130 effective from Tax Year 2026-27 (April 1, 2026) and onwards. For FY 2025-26, your employer will still issue Form 16 as usual.  What is Form 16?Form 16 is a TDS certificate issued by the employer containing TDS deducted on salary, the salary income during the financial year. It serves as a handy document for ITR filing process as it contains various information related to employer, the taxpayer, TDS deducted, income estimate, deductions claimable etc. It is issued under section 203 of the Income Tax Act, 1961.Form 16 is divided into 2 parts: Part A and Part B.

Professional tax is state-imposed tax which is levied on salaries employees, professionals, and self employed individuals engaged in various professions, trades and occupations. In Tamil Nadu this serves as an essential source of revenue for the state government and is applicable to both employees and business owners based on their income. Hence, it is essential to understand professional tax rules, slab rates,payment and due dates for timely compliance and avoid penalties.Professional Tax in Tamil NaduThe Tamil Nadu state government imposed a professional tax on every salaried employee working in government and private sectors and self-employed individuals in any business or profession, such as doctors, engineers, lawyers, chartered accountants, freelance professionals, etc. Those working in Tamil Nadu must pay professional tax according to the applicable income slab and professional tax rate.Employers deduct professional tax from employees' salaries monthly or half-yearly, and self-employed people deposit professional tax half-yearly (in six months). However, professional tax paid by salaried employees can be claimed as a deduction under the old income tax regime while filing an ITR.Professional tax in Tamil Nadu is levied under the Tamil Nadu Panchayats, Municipalities and Municipal Corporations Rules, 1998.

Digital payments through UPI apps and e-wallets are rapidly replacing physical cash as a payment method. UPI payment platforms or e-wallets come with a user-friendly interface; anyone can use it with just a few clicks. However, did you know that you might need to pay tax on UPI transactions? Read on to know more. What does a UPI transaction mean?The Unified Payments Interface (UPI) is a user-friendly, and real-time payment solution, which adopts substantial growth in digital payments. It facilitates the inter-bank  transactions by just few clicks. UPI transactions usually provide seemless transfer of payments between ‘peer to peer’ or ‘peer to business’. UPI transactions can be made whenever requested by the receiver of payment.

In order to claim deduction for rent paid on a rented property as per Section 80GG, an individual needs to submit Form 10BA. This provision was introduced to help people who don't receive House Rent Allowances (HRA). Self employed individuals and HUFs can also claim this deduction by filing Form 10BA, provided they must pay rent for their residential accommodation. Form 10BA DownloadWhat is Form 10BA?Form 10BA is a declaration submitted by the taxpayer for claiming deduction under section 80GG To claim the deduction, the taxpayer must declare that they are not claiming the deduction for a self-occupied property in another location or the exact location where they are employed. What is the applicability of Form 10BA ?The following points justify the Form 10BA applicability:The taxpayer can be salaried or self-employed; however, they should not receive a house rent allowance from an employer.If the taxpayer, their minor child, spouse, or the assessee is a member of a HUF (Hindu Undivided Family), then the HUF must not possess any self-occupied residential property.Is Form 10BA Mandatory?Yes. It is compulsory to claim a deduction for rent remunerated under Section 80GG of the Income Tax Act. The Form 10BA is mandatory for the following reasons:Non-filing of this form can incur interest, penalties, or legal consequences.This form works as documentary evidence to approve your claim for deductions under Section 80GG. It offers a certifiable record of your rental payments.It presents legitimate tax compliance records that help those individuals who apply for visas, loans, or background checks.What are the limits as per Form 10BA ?The Form 10BA limit for claiming a deduction for the rent paid under Section 80GG is as follows:The deduction amount is the lowest of the following:Rs.5,000 per month or Rs.60,000 per year.25% of the total income (excluding short-term capital gains under Section 111A, long-term capital gains, Income under Section 115A or 115D, and deductions under Sections 80C to 80U.Actual rent (-) 10% of income.Form 10BA Due DateForm 10BA of the Income Tax Act should be filed before the income tax return.

Section 80G of the Income Tax Act has allowed donors to claim deductions on the contributions made to approved charitable institutions. The compliance framework around Section 80G was strengthened with the introduction of From 10BD and Form 10BE which makes the donation reporting process transparent. As per existing rules, the charitable institutions have to file Form 10BD which states statement of donations. In order to ensure seamless tax deduction it is essential for both donee and donors must have understanding of these forms. What is Form 10BE Income Tax Act ?With Form 10BE, the Central Government can ensure that the donation received by different charitable institutions matches the taxpayer's deduction claims. This Form 10BE is proof of evidence to validate the deduction claimed under Section 80G.