Filing an Income Tax Return (ITR) is a legal obligation for taxpayers in India and an essential financial responsibility. The process has seen significant digital upgrades, regulatory changes, and extended deadlines in the 2025 assessment year. Here’s an up-to-date, step-by-step guide to help you navigate ITR filing for FY 2024-25 (AY 2025-26).
Key Updates for 2025
- Extended Due Date: The deadline for filing ITR for individuals (whose accounts do not require audit) has been extended from July 31, 2025, to September 15, 2025. This extension allows more time to adapt to the updated forms and digital systems.
- Late Filings: If the due date is missed, you can file a belated return by December 31, 2025, but this will attract a penalty and interest.
- Penalty: Filing after the deadline leads to a maximum penalty of ₹5,000 (₹1,000 if income is below ₹5 lakh), and interest at 1% per month on any unpaid tax.
- Revised Tax Regimes: The New Tax Regime is now the default, but taxpayers may opt for the Old Regime to claim traditional deductions. Choose your regime carefully—the system will prompt you during the filing process.
- Updated ITR Forms: Changes in the reporting format and content mean carefully reading each form’s instructions is now more important than ever.
Who Needs to File an ITR?
You must file an ITR if:
- Your total income exceeds the basic exemption limit (₹2.5 lakh for individuals below 60).
- You want to claim a refund of excess TDS/deducted tax.
- You have foreign assets, income, or interests.
- You meet specified spending or deposit thresholds (foreign travel, electricity bills, etc.).
Step-by-Step: How to File Your ITR Online
1. Gather Documents
- PAN and Aadhaar.
- Bank account details.
- Form 16 (for salaried), TDS/TCS certificates.
- Investment proofs for deductions.
- Details of all income sources (salary, rent, capital gains, interest, etc.).
2. Log Into the Income Tax Portal
- Go to the official portal: [incometax.gov.in].
- Log in using PAN as user ID and your password.
3. Start the ITR Filing Process
- Navigate to: e-File > Income Tax Returns > File Income Tax Return.
- Select:
- Assessment Year: 2025-26
- Status: Individual, HUF, etc.
- “Online” mode is recommended for simplicity.
4. Select the Appropriate ITR Form
- ITR-1 (Sahaj): For resident individuals (income from salary/pension, one house property, other sources, agricultural income up to ₹5,000).
- ITR-2: For individuals with income from capital gains, more than one house property, etc.
- ITR-3/ITR-4: For income from business/profession.
5. Choose Tax Regime
- You’ll be asked if you want to opt out of the New Tax Regime. Select as per your situation; if you choose the old regime, fill in deductions (80C, 80D, HRA, etc.), otherwise, most deductions will be disabled.
6. Fill in Details Carefully
- Review and verify your pre-filled personal and financial details.
- Input all sources of income and validate/confirm each section.
- Enter deduction details as per the chosen regime.
7. Validate and Calculate Tax
- The portal will compute your tax or refund automatically.
- Check for errors and validate all sections.
8. Submit and Verify Your Return
- Select ‘Preview & Submit.’
- Complete verification:
- e-Verify instantly via Aadhaar OTP, EVC via bank/Demat account, or
- Send signed ITR-V to CPC Bengaluru within 120 days, if not e-verifying digitally.
After Filing
- Save the acknowledgment.
- Track refund status via the portal if eligible.
- Revise return (if needed) by December 31, 2025.
- File “updated return” under Section 139(8A) up to March 31, 2030, in rare cases.
Common Pitfalls to Avoid
- Missing the due date.
- Forgetting to e-verify (unverified returns are not processed).
- Not reconciling Form 26AS (tax credit statement) with TDS claimed.
- Selecting a wrong ITR form—results in defective return.
Final Tips
- E-filing is mandatory for most individual taxpayers.
- Always cross-check details before submitting.
- Start early to address discrepancies or technical issues.
- Consult a tax advisor if you have foreign income, capital gains, or complex taxes.
Stay compliant and avoid penalties by staying updated and filing your return before the deadline. Happy filing!
