Be Wise While Choosing The Right ITR Form Or Else Pay The Price

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Posted by AI on 2025-05-15 11:36:08 | Last Updated by AI on 2025-12-21 06:39:00

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Taxpayers, take note! For those who haven't filed their ITR yet, do you know you can get penalized for filling out the wrong form? In a recent notification, the Income Tax Department has clarified which forms are to be used for which taxpayers for the upcoming assessment year 2025-26.

Dear Taxpayers,

As you may know, the Income Tax Department notifies different ITR forms every year, and these forms come with new rules and regulations. Taxpayers are expected to be aware of these new notifications and select the proper form to file their income tax returns accordingly.

This pursuit for awareness brings us to the recent notification by the Income Tax Department. On December 31st, 2024, the department released the new ITR forms for the upcoming assessment year 2025-26. Generally, these forms are released in April, but this year we saw a delay. According to a statement from the revenue department, the forms were released proactively to facilitate early filing of ITRs by taxpayers whose accounts are normally settled by December 31st.

Now, coming to the forms themselves. As per the notification, there are currently 10 ITR forms: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7, ITR-8, ITR-V, and ITR-U. These forms are applicable for the normal residents and non-residents of India.

Furthermore, the notification also clarifies that the ITR-U is solely for the taxpayers who have income from a property that is contested in a court case. This form gives an option to choose between splitting the income and paying tax on it or waiving the right to split the income and paying the entire tax by the taxpayer.

Now, the most important part of this notification is the applicability of these ITR forms. For instance, if you are a normal resident individual, your house property income is more than Rs.2 lakhs, and you have income from speculative sources then, ITR-3 is the form you should be filling out. If the sources of income are the same but the income from speculation is less than Rs.2 lakhs, then ITR-2 is the form you should use.

Did you notice how crucial it is to choose the right form to avoid any penalties? Believe it or not, several thousands of taxpayers are penalized every year for filling out the wrong form, so please be wise and educate yourself to make the right choice.

We hope this information was helpful. Don't forget to recommend and share this article on social media to spread the word on this important notification.

No matter what happens, we'll always be here to keep you informed.

Team

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