How To File ITR For Multiple Income?
The Income Tax Department has opened the window for filing Income Tax Returns (ITR) for the Financial Year 2024-25 (Assessment Year 2025-26). While navigating tax season can be straightforward for those with a single income source, individuals juggling multiple streams of earnings often find it a bit more complex. If you’re one of them, don’t worry! Here’s a simplified guide to help you file your ITR smoothly.
1. Gather All Your Financial Clues
Think of this as your treasure hunt! Before you begin filing, it’s crucial to have all your financial documents in one place. This includes:
- Salary Slips: If you earn a salary from one or more employers.
- Rental Agreements: For any income you receive from property.
- Investment Proofs: Receipts or statements related to your investments.
- Bank Statements: To track interest income or other financial transactions.
- Form 26AS: This is a crucial document that provides a consolidated view of all tax deducted at source (TDS) and tax collected at source (TCS) on your income throughout the financial year. It also shows advance tax paid and any refunds received. Ensure the TDS amounts reflected in your Form 26AS match your income proofs.
2. Choose the Right ITR Form
This is a critical step, as selecting the wrong form can lead to issues. The Income Tax Department has different ITR forms for various income profiles:
- ITR-3: This form is generally for individuals and Hindu Undivided Families (HUFs) who have income from a business or profession. It also covers income from salary, house property, and capital gains.
- ITR-4 (Sugam): This is a simpler form for individuals, HUFs, and partnership firms (excluding LLPs) who opt for the “presumptive taxation scheme.” This scheme allows small businesses and professionals to declare income at a fixed percentage of their turnover or gross receipts, simplifying their accounting.
Understanding your income sources will guide you to the correct form.
3. Calculate Your Total Taxable Income
Once you’ve gathered your documents and identified the correct form, it’s time to assess your total income. This involves adding up all your earnings from different sources, such as:
- Salary
- Rental income
- Business or professional income
- Capital gains (from sale of property, shares, etc.)
- Income from other sources (like interest from savings accounts, fixed deposits, dividends, etc.)
Remember, different income sources might have different tax treatments.
4. Smartly Utilize Deductions and Exemptions
This is where you can potentially lower your tax bill! The Income Tax Act offers various deductions and exemptions that can reduce your taxable income. The deductions you can claim will largely depend on whether you choose the Old Tax Regime or the New Tax Regime.
- Old Tax Regime: Offers a wider range of deductions under various sections like 80C (for investments in PPF, ELSS, EPF, etc.), 80D (for health insurance premiums), 80TTA (for interest on savings accounts), and more.
- New Tax Regime: Offers lower tax rates but fewer deductions and exemptions.
Choose the regime that best suits your financial situation and allows you to maximize your tax savings.
Important Deadlines to Remember for FY 2024-25 (AY 2025-26)
The Income Tax Department has extended some key deadlines for the current filing season to ensure a smoother experience for taxpayers. Mark these dates on your calendar:
- Individuals and Non-Audit Cases: September 15, 2025 (Extended from July 31, 2025)
- Audited Accounts (Businesses or Professionals): October 31, 2025
- Taxpayers requiring transfer pricing cases (Form 3CEB): November 30, 2025
- Belated or Revised Return: December 31, 2025
Why is adhering to deadlines important?
Missing the ITR filing deadline can lead to a notice from the Income Tax Department. If your explanation isn’t accepted, you could face penalties and, in some rare cases, even legal consequences.
By following these simplified steps and keeping track of the important dates, filing your ITR with multiple income sources can be a straightforward process, helping you stay compliant and avoid any last-minute stress.