Income Tax Filing 2025:
As the deadline to file Income Tax Returns (ITR) for the financial year 2024-25 approaches, it’s important to understand some key tax-related terms to make the filing process easier. While seeking expert advice is recommended, especially for complex cases, many individuals prefer to file their returns independently, particularly younger salaried professionals and freelancers. Below are 10 essential terms every taxpayer should know:

Income Tax Filing 2025:

1. Gross Income: This refers to the total income earned during the year, including salary, freelance earnings, rental income, and gains from the sale of assets like property or shares.

2. Deductions: These are amounts that can be subtracted from your gross income, such as contributions to Provident Fund (PF), health insurance, and donations, reducing your taxable income.

3. Exemptions: Certain incomes are exempt from tax. For example, interest on a Public Provident Fund (PPF) or agricultural income may not be taxable.

4. Rebate: A rebate reduces the amount of tax payable. Under Section 87A, taxpayers earning below ₹7 lakh can claim a rebate of up to ₹25,000 under the new tax regime.

5. Capital Gains: This term refers to the profit from selling an asset such as property, gold, or securities. Depending on how long the asset was held, capital gains can be classified as short-term or long-term.

6. ITR Form: Taxpayers must select the appropriate ITR form based on their category, such as salaried, self-employed, or business owners.

7. New Tax Regime (NTR): The new tax regime, introduced in FY 2020-21, offers lower tax rates but does not allow for deductions. Taxpayers can choose between the old and new regimes based on what benefits them the most.

8. Cess: A 4% cess is levied on your total tax (including surcharge) to fund health and education initiatives.

9. TDS (Tax Deducted at Source): TDS is the tax deducted by your employer or any other payer before disbursing your income. This amount is adjusted against your total tax liability.

10. Total Tax Payable: After considering all deductions, rebates, and adding the cess, the final amount of tax payable is calculated. If you have already paid taxes via TDS, your total tax payable could be zero or even result in a tax refund.

Understanding these terms will make it easier for you to file your ITR accurately and on time, ensuring you comply with the tax laws and avoid any penalties.

ALSO READ: Top 5 Foods To Avoid After Taking Medication

Share

• 
• 
• 
• 
• 
•