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Income Tax Return Filing for AY 2025-26
As the financial year 2024-25 comes to a close, it’s that time again—Income Tax Return (ITR) filing for AY 2025-26 is just around the corner! Whether you’re a salaried professional, a freelancer, a business owner, or someone with multiple income streams, filing your ITR on time is crucial to ensure compliance with Indian tax laws and avoid penalties. At SetupFiling.in, we understand the complexities involved in the filing process and are here to provide you with a seamless, secure, and hassle-free experience. Let’s explore everything you need to know about Income Tax Return Filing for AY 2025-26 in India, and how our platform can make the process easier for you.
What is Income Tax Return Filing?
Income Tax Return (ITR) filing is the process by which individuals and businesses report their annual income to the Income Tax Department of India. The purpose of filing an ITR is to calculate and pay the appropriate taxes based on the income earned during the financial year. The government uses this data to determine the amount of tax payable or refundable. In India, every taxpayer must file an ITR if their total income exceeds the exemption limit specified by the government.
For the Assessment Year (AY) 2025-26, the Income Tax Return filing process will cover the income earned during the Financial Year (FY) 2024-25. It’s important to note that each individual or business must file their ITR annually by the due date, which typically falls on July 31st of the assessment year, though extensions may be provided in some cases.
Why is Timely Income Tax Return Filing Important?
Filing your Income Tax Return for AY 2025-26 on time holds several advantages:
- Avoid Penalties and Interest: Delayed filing can attract penalties and interest charges on the tax due. By filing within the deadline, you can avoid these additional costs.
- Claim Refunds: If you have paid more tax than required, filing an ITR allows you to claim a refund. The sooner you file, the sooner you’ll receive your refund.
- Carry Forward Losses: If you have incurred losses in any head of income, such as business loss or capital loss, filing your return on time enables you to carry forward those losses and set them off against future income.
- Compliance with the Law: Filing an ITR is a legal obligation. Non-compliance can result in penalties, legal issues, or prosecution.
- Loan Approvals: Many financial institutions require proof of ITR filing for loan applications, including home loans and personal loans.
- Avoid Tax Scrutiny: Timely filing of your ITR reduces the chances of your return being selected for scrutiny or audit.
Who Should File Income Tax Returns for AY 2025-26?
Not everyone needs to file an Income Tax Return, as there are specific criteria that determine whether you are required to file. However, even if you are not required to file, it is often beneficial to do so. Here are the categories of people who must file an ITR for AY 2025-26:
- Individuals with Income Above the Exemption Limit: If your total taxable income exceeds the threshold limit set by the government (currently ₹2.5 lakh for individuals below 60 years), you must file your ITR.
- Freelancers and Self-Employed Individuals: If you are earning income through freelancing or self-employment, you are required to file your return regardless of the amount of income.
- Salaried Individuals: If you earn a salary and your income exceeds ₹2.5 lakh in the financial year, you need to file your return.
- Business Owners: If you own a business and your turnover exceeds the prescribed limit, you must file your ITR. Even if your turnover is below the limit, it’s advisable to file to show compliance with tax laws.
- Individuals with Income from Multiple Sources: If you have income from multiple sources, such as interest, capital gains, or rental income, filing your ITR ensures that all your income is reported and taxed accordingly.
- Foreign Income: If you have income from foreign sources, it must be declared in your ITR.
- TDS Deducted, but Not Filed: If tax is deducted at source (TDS) from your income but you haven’t filed your ITR, you may lose out on claiming refunds.
- People Who Wish to Claim Deductions: If you wish to claim deductions under various sections (like 80C, 80D, etc.), filing your ITR is necessary.
Income Tax Return Filing Fees
Basic Package
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Computation
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ITR acknowledgment
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Filed ITR form
Standard Package
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Basic Package +
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Balance sheet
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Profit and Loss account
Premium Package
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Basic Package +
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Standard Package +
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CA Attestation with UDIN
Required Documents For ITR filing
- PAN Card
- Aadhaar Card
- Bank Statement
- Email ID and Mobile Number
- Tax Saving Investment Detail (if any)
- Business name (if any)
- Business Activity ( if any)
- Any Other Detail
Income Tax Return Filing Process for AY 2025-26
1. Determine Your Income Sources
- Salary: Income from employment.
- House Property: Rental income from property.
- Business or Profession: Income from self-employment or business.
- Capital Gains: Profit from the sale of assets like shares or property.
- Other Sources: Interest income, dividends, etc.
2. Choose the Correct ITR Form
- ITR-1 (Sahaj): For individuals with income up to ₹50 lakh from salary, one house property, and other sources.
- ITR-2: For individuals with income from capital gains, multiple house properties, or foreign income/assets.
- ITR-3: For individuals with income from business/profession.
- ITR-4 (Sugam): For individuals opting for the presumptive taxation scheme.
3. Collect Required Documents
- Form 16: Provided by your employer, detailing your salary and tax deductions.
- Form 26AS: A consolidated tax statement available on the Income Tax Department’s website.
- Bank Statements: For interest income and other transactions.
- Investment Proofs: For claiming deductions under sections like 80C, 80D, etc.
- Property Details: For income from house property.
- Capital Gain Statements: For income from the sale of assets.
4. Calculate Your Taxable Income
- Gross Total Income: Sum of all income sources.
- Deductions: Under sections 80C, 80D, 80G, etc.
- Taxable Income: Gross Total Income minus Deductions.
5. Compute Tax Liability
- Use the applicable income tax slabs to calculate your tax liability.
- Deduct any advance tax or TDS already paid.
6. File Your ITR Online
- Register/Login: Visit the Income Tax e-filing portal www.incometax.gov.in and log in using your credentials.
- Select Form: Choose the applicable ITR form and select the assessment year 2025-26.
- Fill Details: Enter your personal details, income details, and tax computation.
- Validate: Validate the details entered.
- Upload: Upload any required documents.
E-Verify: Complete the process by verifying your return using Aadhaar OTP, net banking, or other available method
Income Tax Return Filing Due Date for A.Y. 2025-26
Income Tax Return filing last date for Financial Year 2024-25 (AY 2025-26) is July 31, 2025. However, if you miss filing within the due date, you can still file a belated return before December 31, 2025.
Common Deductions and Exemptions
Filing your Income Tax Return (ITR) can be less taxing if you are aware of the various deductions and exemptions available under the Income Tax Act. These benefits can significantly reduce your taxable income and thereby lower your tax liability. Here’s a comprehensive list of common deductions and exemptions you should consider for AY 2024-25:
Section 80C: Deductions on Investments
- Public Provident Fund (PPF)
Investments up to ₹1.5 lakh are eligible for deduction. - Employees’ Provident Fund (EPF):
Contributions by employees to EPF are deductible. - National Savings Certificate (NSC):
Investments qualify for deduction under Section 80C. - Equity-Linked Savings Scheme (ELSS):
Investments in ELSS funds are eligible for deductions. - Life Insurance Premiums:
Premiums paid for life insurance policies can be deducted. - Sukanya Samriddhi Yojana (SSY):
Contributions to SSY accounts are deductible. - 5-Year Bank Fixed Deposit:
Fixed deposits with a tenure of 5 years with banks qualify for deduction. - Home Loan Principal Repayment:
Repayment of the principal amount of a home loan is eligible for deduction. - Tuition Fees:
Tuition fees paid for up to two children are deductible.
Section 80D: Deductions for Medical Insurance
Health Insurance Premiums:
>> Up to ₹25,000 for self, spouse, and dependent children.
>> Additional ₹25,000 for parents (₹50,000 if parents are senior citizens).Preventive Health Check-Up
Deduction up to ₹5,000 within the overall limit of ₹25,000/₹50,000.
Section 80E: Deduction on Education Loan Interest
Interest paid on education loans for higher studies is fully deductible.
Section 80G: Deductions for Donations
- Donations to specified relief funds and charitable institutions are eligible for deduction.
- Deduction amount can be 50% or 100% of the donation amount, subject to certain limits.
Section 80GG: Deductions for House Rent Paid
- Deduction for house rent paid if HRA is not received.
- Maximum deduction is ₹5,000 per month or 25% of total income, whichever is less.
Section 80GGA: Deductions for Donations for Scientific Research or Rural Development
- Contributions made to certain research associations or institutions are deductible.
Section 80TTA: Deductions on Savings Account Interest
- Interest up to ₹10,000 earned from savings accounts with banks, co-operative banks, and post offices is deductible.
Section 80TTB: Deductions on Interest for Senior Citizens
- Interest income up to ₹50,000 from deposits with banks, co-operative banks, and post offices for individuals aged 60 years and above is deductible.
Section 10(14): Allowances Exempt Under Special Conditions
House Rent Allowance (HRA)
Exempt up to the minimum of:Actual HRA received
50% of salary (for metros) or 40% (for non-metros).
Rent paid minus 10% of salary.
Leave Travel Allowance (LTA)
Exempt for travel expenses for self and family, subject to certain conditions.Children Education Allowance
Up to ₹100 per month per child (maximum 2 children).Hostel Expenditure Allowance
Up to ₹300 per month per child (maximum 2 children).
Section 24(b): Deduction on Home Loan Interest
- Interest on home loan up to ₹2 lakh for a self-occupied property is deductible.
Section 10(10D): Exemption on Life Insurance Maturity Proceeds
- Maturity proceeds of life insurance policies are exempt, subject to certain conditions.
Important Dates for ITR for AY 2025-26
| Category of Taxpayer | Due Date for Tax Filing – FY 2024-25 *(unless extended) |
| Individual / HUF/ AOP/ BOI (books of accounts not required to be audited) | 31st July 2025 |
| Businesses (Requiring Audit) | 31st October 2025 |
| Businesses requiring transfer pricing reports (in case of international/specified domestic transactions) | 30th November 2025 |
| Revised Income Tax return | 31 December 2025 |
| Belated/late Income Tax return | 31 December 2024 |
| Updated return | 31 March 2028 |
Drawbacks of late ITR filing
The following are the disadvantages of filing a belated return:
- Interest may be applicable under sections 234A, 234B and 234C.
- A late fee will be levied under Section 234F while filing a belated return:
- Gross total income is up to Rs 2.5 lakh: No Penalty
- Gross total income is Rs 2.5 lakh – Rs 5 lakh: Rs 1,000 fee
- Gross Total income more than Rs 5 lakh: Rs 5,000 fee
- If you file a loss return after the due date, many losses, like business and capital losses, cannot be carried forward for set off in the subsequent years. However, an exception is available for losses from house property that can be carried forward even if you file your returns late.
- Deductions/ Exemptions Disallowed: Deductions/ exemptions u/s 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE shall not be available if you delay ITR filing. These tax-saving benefits are allowed only if the ITR is filed before the original deadline.
Types of Income Tax Return Forms
There are various types of Income Tax Returns, known as ITR forms, categorized based on the nature of income and the taxpayer’s status. The most common ITR forms include:
- ITR-1 (SAHAJ): For individuals having income from salary, house property, or other sources.
- ITR-2: For individuals and Hindu Undivided Families (HUFs) not having income from business or profession.
- ITR-3: For individuals and HUFs having income from a proprietary business or profession.
- ITR-4 (SUGAM): For individuals, HUFs, and firms (other than LLP) having presumptive income from business or profession.
- ITR-5: For LLPs, Association of Persons (AOPs), and Body of Individuals (BOIs).
- ITR-6: For companies other than those claiming exemption under Section 11 of the Income Tax Act.
- ITR-7: For persons including companies required to furnish a return under Sections 139(4A) or 139(4B) or 139(4C) or 139(4D) of the Income Tax Act.
Ensure you choose the correct ITR form based on your income sources and taxpayer category.
Income Tax Refunds
If you have paid more tax than your actual liability, you are eligible for an income tax refund. The income tax department processes refunds after the successful filing and verification of Income Tax Returns. The refund amount is credited directly to the taxpayer’s bank account.
To ensure a smooth refund process, provide accurate bank account details and keep track of the refund status using the income tax department’s online portal. Due Date to Claim TDS Refund without Penalty is 31st July 2024.
Penalty For Not Filing The ITR
If you fail to file your income tax return by the due date, you may incur a penalty and interest charges. The penalty for late income tax return filing is Rs. 5,000 for returns filed after the due date but before December 31, 2025. The penalty increases to Rs. 10,000 for returns filed after December 31, 2023. However, if your total income does not exceed Rs. 5 lakh, the maximum penalty cannot exceed Rs. 1,000.
Interest is also charged on the outstanding tax liability at the rate of 1% per month or part of the month until the tax liability is paid in full.
Frequently Asked Questions (FAQ)
The deadline for filing Income Tax Returns for Assessment Year 2025-26 is usually July 31, 2025. However, the government may extend the deadline, so it’s important to stay updated with announcements from the Income Tax Department.
You need to file your Income Tax Return if:
- Your total taxable income exceeds the exemption limit (₹2.5 lakh for individuals below 60 years).
- You have income from multiple sources such as salary, business, capital gains, or other investments.
- You wish to claim deductions under various sections like 80C, 80D, etc.
- You want to carry forward any losses (like business or capital loss).
Here’s a list of essential documents you’ll need:
- Form 16 (from your employer).
- Form 26AS (consolidated tax statement).
- Bank statements showing interest income.
- Proof of tax-saving investments (PPF, ELSS, insurance premiums, etc.).
- Interest certificates from financial institutions.
- Details of capital gains (if applicable).
- Other income documents (freelance, rental, etc.).
The Income Tax Department provides various ITR forms based on your type of income and taxpayer category. Generally:
- ITR-1 is for individuals with income from salary, pension, or one house property.
- ITR-2 is for individuals with income from salary, house property, and other sources, including capital gains.
- ITR-3 is for individuals or HUFs with income from business or profession.
- ITR-4 is for individuals opting for the presumptive taxation scheme.
At SetupFiling.in, we will automatically suggest the correct form based on the information you provide during filing.
Yes, you can file your return after the deadline, but there are consequences:
- Late Filing Penalty: If you file after the due date, you may be charged a penalty under Section 234F. The penalty can range from ₹1,000 to ₹5,000 depending on when you file.
- Interest: You may also have to pay interest on the tax due if your filing is delayed.
We recommend filing your return as soon as possible to minimize penalties.
If excess tax has been deducted from your salary or other income, you can claim a refund after filing your Income Tax Return. Once your return is processed by the Income Tax Department, they will verify your details, and if you’re eligible, a refund will be credited to your bank account.
We take your privacy and data security very seriously. SetupFiling.in uses advanced encryption technology to protect your personal and financial information. Our platform follows strict security protocols to ensure that your data is stored safely and is not shared with third parties without your consent.
Yes, if you discover any mistakes after submitting your ITR, you can file a Revised Return within the assessment year. The revised return should be filed using the same ITR form, and it must be done before the end of the assessment year.
Once your Income Tax Return is filed and processed, you can check the status on the Income Tax Department’s official website. If you file through SetupFiling.in, we will send you updates regarding your return status and any refunds due.
No, SetupFiling.in is designed for all types of taxpayers, including individuals, businesses, and professionals. We cater to:
- Salaried individuals
- Freelancers
- Self-employed individuals
- Small businesses
- Corporates Our platform provides tailored solutions for various types of income and business needs.
If you do not file your Income Tax Return, you may face several consequences:
- Penalties: The Income Tax Department may impose penalties for non-filing under Section 271F.
- Loss of Refund: You cannot claim any tax refund if you do not file your ITR.
- Legal Consequences: Non-filing may attract legal actions, including prosecution in some cases.
- Difficulty in Loan Approvals: Financial institutions may require proof of ITR filing for loan approval.
Filing your return on time is the best way to avoid these issues and ensure compliance
If you have any questions or need assistance, you can reach out to our support team at SetupFiling.in through:
Email: [email protected]
Phone: +91-9818209246
