The July 31 deadline applied to individuals and taxpayers who were not required to get their accounts audited. Taxpayers who need to file other forms, including certain business and professional income cases, have a later deadline of August 31, 2026.
ITR-1, or Sahaj, is used by resident individuals with total income of up to ₹50 lakh. It covers taxpayers with income from salary, one house property and agricultural income up to ₹5,000 annually.
ITR-2 is applicable for individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession but report income such as capital gains.
Tax filing base sees rise in diverse income sources
The nature of tax filings has changed over the years, with more taxpayers reporting income beyond traditional salaries, according to data from tax filing platform ClearTax.
Only 42% of taxpayers filing returns this year reported salary as their sole source of income, compared with 82% in AY 2022-23, the data showed.
Capital gains have emerged as a larger component of tax filings, with 39% of taxpayers reporting such income this year, compared with 9% in AY 2022-23. The increase reflects wider participation in equity markets and other investment avenues.
The share of taxpayers reporting business income has also increased to 26% this year from 4% in AY 2022-23, indicating a rise in filings involving self-employment, freelancing and other non-salaried income sources.The trend is visible across age groups. ClearTax data showed that 76% of taxpayers below 25 years are filing complex returns this year, compared with 14% in AY 2022-23. Among senior citizens, the share of complex return filers has risen to 53% from 28% during the same period.
Gig workers join formal tax system
The expansion of the taxpayer base is also visible among gig workers. Zomato and Blinkit said they helped more than 1 lakh delivery partners file their ITRs this year across 905 cities.
The initiative helped delivery partners access refunds worth ₹18 crore, according to the companies. Nearly 73% of those who filed through the platforms were first-time filers.
An ITR serves as a formal record of income and can help individuals access financial services such as loans, credit cards and rental agreements.
With income sources becoming more varied, tax filing is moving beyond a compliance exercise for salaried employees and becoming a record of individuals’ broader financial activity, including investments, business income and independent work.
