ITR 2025: Multiple Incomes And Investments? Here’s Your Guide To Filing Returns

As the deadline for Income Tax Return filing for financial year 2024–25 and AY 2025–26 is approaching fast, many taxpayers with income from multiple sources could be facing difficulty due to the complexity of tax computation. The income from multiple sources, such as investments, capital gains, rental properties and multiple employers, should be declared properly in the ITR filing to avoid notices and penalties.

In May, the Income Tax Department extended the ITR filing deadline to Sept. 15, from the usual July 31, for taxpayers who are not liable for tax audit. The I-T Department allowed more time to taxpayers due to the modifications to the ITR forms.

For taxpayers with multiple sources of income, it’s advisable to declare all income sources and amounts clearly in the ITR form. It’s also necessary to submit relevant documents where needed.

For salaried employees, Form 16 is a crucial document while filing the ITR. It contains details of the tax deductions by the employer. Taxpayers often experience confusion while filing their ITR using multiple Form 16, especially in case of job changes in a financial year. Although filing is similar, you should calculate the total income and TDS deductions by all employers in the financial year. 

Here are the steps to follow when you have multiple source of income:

Taxpayers should first gather all necessary paperwork, including all Form 16 (from each employer), pay slips, proof of donations and investments, home loan documentation, rent receipts, rent agreements for property income, capital gains statements, and—most importantly—Form 26AS (for TDS/TCS credits) and the Annual Information Statement.

Taxpayers will have multiple Form 16s if they have worked for different employers or changed jobs in a financial year. In such cases, it’s advisable to calculate the gross pay and TDS information for each employer. Salary slips, bank statements and Form 26AS are some of the documents that must be used for tax computation if an employer declines to provide Form 16.

It’s important to choose the right ITR form to avoid rejection of the income tax returns later. Taxpayers with business or professional income are required to use the ITR-3 form. On the other hand, taxpayers opting for the presumptive taxation scheme with incomes up to Rs 2 crore (Rs 50 lakh for professionals) should use ITR-4.

Compute all of your income and receipts, including your salary and any additional sources of income. Claim any deductions for investments that you have made under Sections 80C to 80U. This will provide you with your "Total Taxable Income." Calculate your overall tax obligation after deducting any applicable advance tax and TDS.

Verify that the values listed on Form 16(s) match those on Form 26AS/AIS (Annual Income Statement). Employers should be contacted to address any discrepancies. Include all sources of income, including capital gains, house property, salaries and other sources, and be sure to account for deductions.

Verify your return, online or offline, after finishing all the steps and submitting your ITR in order to complete the filing procedure. Your return will be deemed void if your ITR is not verified. The Income Tax Department may issue a notification if your ITR is not filed correctly. Watch for potential interest under sections 234A, B, and C if taxes are not paid on time.

Following these steps can help ensure full compliance, minimise the chance of receiving notifications from the tax department, and potentially maximise tax benefits in case of multiple income sources and investments.