ITR-1 and ITR-4 are not applicable in this case, as both forms do not support reporting of capital gains (except long-term capital gains exempt up to ₹1.25 lakhs under section 112A).

ITR-2 may be used if tuition receipts are reported under "Income from Other Sources".

ITR-3 would be required if the tuition receipts are classified as "Income from Profession", considering teaching is a notified profession under Section 44AA of the Income-tax Act.

ITR-4 (Sugam), which allows presumptive taxation under Section 44ADA, is not suitable here as it does not accommodate capital gains income.

ITR-4 should not be filed by the following taxpayers:

• If you are earning more than ₹50 lakh in a year

• If you are a Director in a company

• If you own more than one house property

• If you have capital gains (profit from selling shares, property, etc.), including long-term gains above ₹1.25 lakh under Section 112A

• If you have held unlisted company shares at any time during the year

• If you own assets outside India or have foreign income

• If you have authority to operate a bank account outside India

• If you have deferred tax on ESOPs

• If you have any brought forward loss or loss to be carried forward under any head of income

ITR-4 can be filed by the following taxpayers:

• Individuals, Hindu Undivided Families (HUFs), and Firms (other than LLPs) who are residents

• Those who have income from business or profession calculated on a presumptive basis

• Along with business income, they can also have salary or pension, income from one house property, income from other sources (such as bank interest, family pension, or dividend), and agricultural income up to ₹5,000

The Old Regime continues the traditional system of higher tax rates but provides a wide range of exemptions and deductions under the Income Tax Act, making it more suitable for individuals who plan their finances through investments and savings. In contrast, the New Regime aims to simplify taxation by offering reduced slab rates with minimal exemptions.

The new regime is helpful for taxpayers who prefer a straightforward system without the need for detailed tax planning or documentation.

From FY 2023–24 onwards, the New Regime has been made the default option, though taxpayers retain the flexibility to opt for whichever system benefits them more. (Source: PIB)

According to PIB, out of the total filings, 72% of taxpayers (5.27 crore) opted for the New Tax Regime, while 28% (2.01 crore) continued with the Old Regime in FY 2023-24.

The e-filing portal also handled record activity on the due date (31 July 2024), with 69.92 lakh returns filed in a single day. Importantly, the tax base continued to expand, with 58.57 lakh first-time filers joining in AY 2024–25.

You should choose ITR 2 or ITR 3 if your total income include income from the following sources:

Income from foreign sources • Foreign Assets including financial interest in any foreign entity • Signing authority in any account outside India

Please note that ITR-3 should be chosen when your income includes earnings from business and profession. In another cases, ITR-2 will be sufficient.

In case of income from foreign sources, it is always better to consult a tax advisor, preferably a chartered accountant.

The following are the tax slab and rates in the new tax regime for individuals, senior citizens and super senior citizens:

The following are the tax slab and rates in the old tax regime for individuals, senior citizens and super senior citizens:

Ahead of ITR filing deadline, the 'Extend Due Date Immediately' campaign on X by tax professionals continues to gain momentum.

Tax professionals have been citing multiple reasons behind their demand to immediately extend the due date. Some of them are the following:

• Delay in release of various ITR filing utilities

• Massive workload cause by delay in utilities

• More time taken for ITR filing because of additional information asked in ITR for AY 2025-26.

Here’s a quick comparison between the Old Tax Regime and the New Tax Regime relevant for ITR filing for AY 2025-26:

(Source: PIB)

The Income Tax Department extended the due date for AY 2025-26 from July 31, 2025 to September 15, 2025. The extension has resulted in an unexpected financial benefit for taxpayers who are eligible for refunds.

An analysis by DD News says, "Interestingly, the extension brings an unexpected financial benefit: taxpayers can now receive up to 33% more interest on refunds due to the delayed filing window."

However, such interest will be taxable.

Salaried taxpayers can use an income tax return form based on their sources of income.

ITR-1: If your income is below ₹50 lakh and the source of such income is salary, bank interest, LTCG from equity up to ₹1.25 lakh

ITR-2: If your income is below or above ₹50 lakh and the source of such income is salary, bank interest, capital gains (including STCG and LTCG).

ITR-3: If your income includes salary and income from business and profession.

ITR-4: If your income includes salary and income from presumptive business and profession under sections 44AD, 44ADA, 44AE

No. You should not wait for any extension in the due date for AY 2025-26. There are still 7 days left before the September 15 deadline to file your returns.

Yes. The initial exemption of ₹1.25 lakh under section 112A is available to both residents and non-residents.

As per Section 112A, LTCG exceeding ₹1.25 lakh in a financial year from the transfer of listed equity shares or units of listed equity-oriented mutual funds or units of a business trust (where STT is paid) is taxed at 12.5% (plus surcharge and cess).

As per the Income Tax Department's e-filing portal, 5,00,09,951 returns for AY 2025-26 were filed till September 8, 2025. Of these, the taxpayers have verified over 4.72crore returns, while the Income Tax department has processed more than 3.39 crore verified returns.

Data shows that only around 10 lakh returns were filed on September 8.

In today's blog, we will deep dive further into issues you may encounter while filing your returns before the deadline.

Please note that filing ITR before September 15 is mandatory. Do this to avoid penalty and interest charges.