Recent changes in the income tax return (ITR) forms may have left some taxpayers confused when it comes to reporting their financial statements and total taxable income. It could be a tedious process for taxpayers with incomes from multiple sources such as property, lottery, equity investments and more, due to complex calculations.
Unlike salaried employees, taxpayers with income from multiple sources may not have a straightforward ITR filing due to the complexities in computing the total taxable income. As the ITR filing for Financial Year 2024-25 and Assessment Year 2025-26 is underway, here is a handy guide for taxpayers with income from multiple sources.
Meanwhile, the deadline for filing ITR has been extended till September 15, 2025, to enable a smoother filing experience for taxpayers after the changes in the ITR forms.
Kind Attention Taxpayers!
CBDT has decided to extend the due date of filing of ITRs, which are due for filing by 31st July 2025, to 15th September 2025
This extension will provide more time due to significant revisions in ITR forms, system development needs, and TDS credit… pic.twitter.com/MggvjvEiOPHow To File ITR If You Have Multiple Incomes
Gather All The Relevant Documents: Ensure you have the relevant salary slips, rental agreements (for rental income), investment receipts and Form 26AS before you start the process. Form 26AS is essential for Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) claims during the financial year.
Choose The Correct Form: For taxpayers with multiple income sources, they can choose either ITR 3 or ITR 4. These two forms are meant for taxpayers with income from business and other professions. The ITR-4 is meant for the taxpayers who opt for presumptive business income.
Check the Annual Income Statement (AIS): If you find any discrepancies in the tax you are supposed to pay for AY 2025-26, go through your AIS to get a comprehensive overview of all your financial transactions. If there is an error in the date, raise a request through the AIS portal to get it corrected.
Go through deductions applicable: Since you have income from different sources, the tax implications on the sources might be different. The new tax regime is the default regime and offers lower tax rates, but limited exemptions. The old tax regime offers more deductions under various sections like 80C, 80DD and 80G of the Income Tax Act, 1961. Choose the regime wisely based on the deductions you want to claim.
Verify your return: Once you have gone through everything and submitted your ITR, verify your return to complete the filing process. Without verifying your ITR, your return will become invalid. You can verify the ITR either online or offline.
Failure to file your ITR properly may result in a notice from the Income Tax Department. If you do receive a notice from the I-T department, review the notice carefully, gather supporting documents for your answer and file the response within the stipulated deadline.
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