Income Tax deadline approaches: Details on forms, processing delays

The deadline for the filing of income tax returns for the financial year 2024-2025 is September 15. Many of those who want to file their tax returns are confused about which income tax form to use. Who should use whichform? Here are the details.

ITR-1: Those who have a total income of up to Rs 50 lakh must fill this form. It is used by those who have many sources of income, including from one house, interests from savings accounts, and fixed deposits. Youare not eligible to use this form if you are a directorof a company. If you have business incomefrom a business, or you own foreign assets or foreign income, you can't use this form. Those with more capital gains than thethresholdand whose long-term capital gains are over Rs 1.25 lakhmust also refrain from filling this form.

ITR-2: Those not eligible for the first form can file the second form. Those who don't have income from the profits of a business or don't have income from interests, salary, bonus, and commission from a partnership firm can use this form. It can be used for taxpayers who want to club the income of their spouse or minor child into their income tax return.

ITR-3: This form is used by those who have income from business and professions that require the maintenance of books of accounts. This includes doctors, lawyers, chartered accountants, or other such professions in which income is calculatedfrom their profits.

ITR-4: This is used by individuals, firms that have an income of up to Rs 50 lakh. This can be used for those with a business or profession on a presumptive basis. This includes income from salary and pension, house property, other sources, and agricultural income.

Here are some FAQs about the income tax:

How long does it take for ITR processing?

After the ITR is filed, they can e-verify their claim by using Aadhaar OTP and net banking. They can also send a signed form by post. After the verification is completed, the department verifies if the claims made by the taxpayer are accurate or if there are tax calculation mismatches. The procession can take between a few hours to 6 months, depending on the complexity of the return.

Delayed ITR processing

When the details match the detailswith the Income Tax Department, ITR processing takes less time. However, when there are discrepancies, it takes more time. Incorrect compliance details involving banks, PAN, and Aadhaar cards can also delay the process.

If there are some issues with the ITR, which is causing the delay, the income tax department may issue a notice. Then the taxpayer will be required to fill out the income tax return with changes.