Rates Of Income Tax – Finangel Advisory

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Rates Of Income Tax

Returns And Forms For Salaried Individuals
(AY 2025-26)

Disclaimer: The information below is only for basic guidance. For complete details, please refer to the Income Tax Act, Rules, and official Notifications.

ITR-1 (SAHAJ) – For Resident Individuals
This form is applicable for Resident Individuals (other than Not Ordinarily Resident) with total income up to ₹50 lakh from the following sources: Salary / Pension One House Property Other Income (Interest, Dividend, Family Pension, etc.) Agricultural Income up to ₹5,000 Not eligible to use ITR-1: Company Directors Individuals holding unlisted equity shares Persons with assets or financial interests outside India Those having authority over foreign bank accounts Income from foreign sources Tax deducted u/s 194N Deferred tax on ESOPs Having carried forward or brought forward losses Total income above ₹50 lakh

ITR-2 – For Individuals and HUF
This form is for Individuals and Hindu Undivided Families (HUFs) who:
Do not have income from Business or Profession	Are not eligible to file ITR-1

ITR-3 – For Individuals and HUF
Applicable for those:
Having income from Business or Profession	Not eligible for filing ITR-1, ITR-2, or ITR-4

ITR-4 (SUGAM) – For Individuals, HUFs, and Firms (excluding LLPs)
This form is for: Resident Individuals, HUFs, or Firms (other than LLPs) Total income up to ₹50 lakh Income from Business/Profession under presumptive taxation (u/s 44AD, 44ADA, 44AE) Salary, One House Property, Other Sources (Interest, Dividend, Family Pension), and Agricultural Income up to ₹5,000 Notes: Not applicable if total income exceeds ₹50 lakh, if the taxpayer is a company director, holds unlisted shares, has foreign assets, or foreign income. ITR-4 is optional – a simplified form for those declaring presumptive income.

Important Forms Applicable

Form 12BB – Particulars of claims by an employee for deduction of tax (u/s 192)
Provided by:	Details in the form:
Employee to Employer	It contains details of HRA (House Rent Allowance), LTC (Leave Travel Concession), home loan interest, and tax-saving investments like LIC, PPF, ELSS, health insurance, etc. Helps employer calculate correct TDS on salary.

Form 16 – Certificate of TDS on Salary
Provided by:	Details in the form:
Employer to Employee (at year-end)	Shows salary earned, deductions/exemptions claimed, and tax deducted at source (TDS). Used by employees while filing Income Tax Return.

Form 16A – TDS Certificate (for income other than salary)
Provided by:	Details in the form:
Deductor (like bank/tenant/company) to Deductee	Issued quarterly for TDS deducted on payments such as interest, rent, professional fees, or commission. Includes amount of TDS, type of payment, and challan details.

Form 67 – Statement for claiming Foreign Tax Credit
Provided by:	Details in the form:
Taxpayer to Income Tax Department (via e-filing portal)	Used to report income earned abroad and taxes paid in a foreign country. Required to claim Foreign Tax Credit (FTC) under Double Taxation Avoidance Agreement (DTAA). Must be filed before ITR due date.

Form 26AS & AIS – Annual Tax Information
Provided by:	Details in the form:
Income Tax Department to Taxpayer (available on e-filing portal)	Form 26AS shows TDS, TCS, advance tax, self-assessment tax, refunds, and demands. AIS (Annual Information Statement) provides wider financial details like savings account interest, securities transactions, dividends, and high-value spends.

Form 15G – Declaration for no TDS (for below 60 years)
Provided by:	Details in the form:
Resident individuals (below 60), HUFs, or others (not Companies/Firms) to Deductor (like bank)	Used to request no TDS deduction on interest income if total income is below the basic exemption limit.

Form 15H – Declaration for no TDS (for senior citizens)
Provided by:	Details in the form:
Resident individuals aged 60 or above to Deductor (like bank)	Used by senior citizens to avoid TDS on interest income when their taxable income is below the exemption limit.

Form 10E – Relief for arrears/advance salary (u/s 89(1))
Provided by:	Details in the form:
Employee to Income Tax Department (via e-filing)	Filed when an employee receives salary in arrears or advance. Includes details of gratuity, pension, leave encashment, and termination compensation. Helps in claiming tax relief under Section 89(1).