File Income Tax Return For A.Y. 2025-26
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How to File Income Tax Return for AY 2025-26: A Complete Guide
Filing your income tax return (ITR) is an essential responsibility for every eligible individual and business in India. For Assessment Year (AY) 2025-26, the Income Tax Return will reflect income earned during Financial Year (FY) 2024-25, i.e., from 1st April 2024 to 31st March 2025.
Whether you’re a salaried employee, freelancer, self-employed professional, or a business owner, filing your return accurately and on time can save you from penalties and even help you claim refunds. In this article, we’ll walk you through everything you need to know to file income tax return for AY 2025-26.
Understanding FY 2024‑25 and AY 2025‑26
India’s tax system separates Financial Year (FY) from Assessment Year (AY). For example:
- FY 2024‑25: April 1, 2024 to March 31, 2025.
- AY 2025‑26: The year when taxpayers file returns for income earned in FY 2024‑25, that is, April–September 2025.
When you file income tax return for AY 2025‑26, you report all income sources earned during FY 2024‑25.
Why File Income Tax Return?
Filing an ITR is not just a legal obligation—it offers several benefits:
- Avoid penalties: Filing late or not filing at all can lead to penalties.
- Claim tax refunds: If you’ve paid excess tax, you can claim a refund.
- Proof of income: Useful for loan applications, visa processing, and more.
- Carry forward losses: You can carry forward business or capital losses.
- Stay compliant: It keeps you in good standing with tax authorities.
Income Tax Return Filing Fees Based on Income Source
Basic Plan
- Business Income
- Salary Income
- Interest Income
Standard Plan
- Basic Plan Income +
- Share Trading Income
- Game and Lottery Income
Special Plan
- Standard Plan +
- Balance Sheet and P & L account
- CA Attestation with UDIN
Key changes introduced for FY 2024‑25 (AY 2025‑26)
1. New tax regime is now default
From FY 2024‑25, the new tax regime under Section 115BAC is the default option for most individual taxpayers and HUFs. Taxpayers who wish to stick with the old tax regime must actively choose it during filing, including filing Form 10‑IEA if they have business income.
2. Higher standard deduction
The standard deduction (especially for salaried or pension income) is now ₹75,000, up from ₹50,000.
3. Tax rebate limit under Section 87A
For FY 2024‑25, under the new tax regime, taxpayers with net taxable income up to ₹7 lakh can claim a rebate up to ₹25,000, essentially giving zero tax liability if taxable income is below ₹7 lakh.
4. Expanded ITR‑1 / ITR‑4 eligibility (ITR‑1 “Sahaj” & ITR‑4 “Sugam”)
You can now file ITR‑1 or ITR‑4 even if you have long‑term capital gains (LTCG) up to ₹1.25 lakh from listed equities or mutual funds, as long as there are no brought‑forward or carried‑forward losses.
5. TDS section code mandatory
You must now clearly specify the exact TDS section codes (like 192 for salary, 194A for interest) when entering tax credits, aiding automatic matching with Form 26AS.
6. Asset‑liability reporting threshold raised
If your gross total income exceeds ₹1 crore, you must report assets and liabilities. Earlier the threshold was ₹50 lakh. This change reduces compliance burden for many taxpayers.
7. New reporting for capital gains and buy‑backs
- Gains from listed or unlisted shares, mutual funds, house land sales, etc., must report sale dates (pre‑ or post‑23 July 2024) to apply the correct indexing and rate rules.
- Proceeds from buy‑back of shares post 1 October 2024 are now treated as deemed dividends, requiring separate reporting and zero sale value if capital loss is to be generated
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8. Additional detail requirements for deductions
Deductions like 80C, 80D, 80DD, 80E, 80EEA/B require additional disclosure such as receipt numbers, policy/loan account numbers, insurer/bank names, disease names (for medical), etc. Also HRA deductions require specifics like rent paid, employer details, place of work, etc
Which ITR form should you use?
- ITR‑1 (Sahaj)
Eligible if you have salary, one house property, and other income (like interest or upto ₹1.25 lakh LTCG). No business or professional income. - ITR‑2
For individuals or HUFs with income from capital gains, more than one house property, foreign income, etc. No business or profession income. - ITR‑3
If you earn from business or profession, including F&O trading, influencers, commission agents, etc., use ITR‑3. The portal now allows e‑filing ITR‑3 as well. - ITR‑4 (Sugam)
For small taxpayers under presumptive income schemes. Expanded eligibility now includes income from LTCG upto ₹1.25 lakh. New profession codes apply (like influencers, traders) using specified forms.
Important dates & deadlines
ITR filing season for AY 2025‑26 opened around May 30, 2025 and continues through July–September.
- Regular due date for non‑audit taxpayers (individuals/HUF) extended to 15 September 2025.
- Belated return can be filed until 31 December 2025, but only under the new regime.
- Updated returns (ITR‑U) can now be filed up to two years after AY end (i.e. until March 2028)
Summary table
| Topic | Highlights for AY 2025‑26 (FY 2024‑25) |
|---|---|
| Tax regime default | New regime default; old regime via Form 10‑IEA |
| Standard deduction | ₹75,000 |
| Rebate limit u/s 87A | ₹25,000 for taxable income ≤ ₹7 lakh |
| LTCG threshold for ITR‑1/4 | LTCG ≤ ₹1.25 lakh allowed |
| TDS section codes | Mandatory |
| Asset reporting threshold | ₹1 crore gross income |
| Reporting buyback | Treated as deemed dividend |
| Deductions details | Policy/loan/receipt numbers required |
| Filing due date | 15 September 2025 (non‑audit cases) |
| Belated return deadline | 31 December 2025 |
| Updated return (ITR‑U) | Up to 2 years post AY end (March 2028) |
File Income Tax Return for AY 2025–26 Today
Avoid penalties and claim your refund early—file income tax return for AY 2025–26 with the latest updates now!
Frequently Asked Questions
1. What is Assessment Year (AY) 2025–26?
AY 2025–26 is the year when you file returns for income earned during FY 2024–25 (April 1, 2024 – March 31, 2025).
2. Is it mandatory to file an ITR for AY 2025–26?
Yes, if your total income exceeds the basic exemption limit (₹2.5L/₹3L/₹5L depending on age) or if you meet other specified conditions.
3. Which tax regime is applicable by default for AY 2025–26?
The new tax regime (Section 115BAC) is now the default. You must opt for the old regime explicitly if you want to use it.
4. What is the due date to file ITR for AY 2025–26?
For individuals (non-audit cases), the due date is 15 September 2025.
5. Can I file ITR after the due date?
Yes, a belated return can be filed until 31 December 2025, but only under the new tax regime.
6. What are the new standard deduction and rebate amounts?
Standard deduction: ₹75,000
Rebate under Section 87A: ₹25,000 for net taxable income up to ₹7,00,000 under the new regime.
7. Which ITR form should I use?
ITR-1: Salaried individuals with income ≤ ₹50L (plus small LTCG)
ITR-2: Capital gains, multiple properties
ITR-3: Business/profession income
ITR-4: Presumptive income (eligible businesses and professions)
8. Do I need to file Form 10‑IEA?
Yes, if you have business/professional income and want to opt for the old tax regime, file Form 10‑IEA before the due date.
9. What are the major changes in ITR forms for AY 2025–26?
Mandatory TDS section code entry
LTCG up to ₹1.25L allowed in ITR‑1/4
Detailed disclosures for deductions, rent, capital gains, and TDS
10. What documents do I need to file my ITR?
PAN, Aadhaar
Form 16, Form 26AS, AIS
Interest, rent, capital gains details
Receipts for deductions (80C, 80D, etc.)
11. How do I e-verify my ITR?
You can e-verify via Aadhaar OTP, net banking, bank ATM, or DSC. This must be done within 30 days of filing.
12. Can I revise my return after filing?
Yes, you can revise your return before 31 December 2025, and file an updated return within 2 years from AY end.
13. Is LTCG allowed in ITR-1/4 this year?
Yes, if your LTCG (from listed shares or mutual funds) is up to ₹1.25 lakh and no carry-forward is involved.
14. What happens if I enter wrong TDS details?
Your tax credit may not match, delaying refund or triggering notices. Always match entries with Form 26AS.
15. Can I claim HRA and 80D deductions under the new regime?
No. Deductions like HRA, 80C, 80D are only allowed under the old regime, except for limited ones in the new regime.
16. What if I miss the rebate under Section 87A in the form?
The utility does not auto-apply rebate if capital gains are present. You must manually claim the rebate to avoid excess tax.
17. What is the exemption limit under new regime?
Effective tax-free income is up to ₹7 lakh due to the ₹25,000 rebate under Section 87A.
18. Can business owners use ITR-1?
No. If you have business or professional income, you must use ITR-3 or ITR-4 (presumptive scheme).
19. How are buybacks taxed from October 2024?
Buybacks are treated as deemed dividends, and reporting is mandatory with ₹0 sale value if claiming capital loss.
