Income Tax Return Filing for A.Y. 2025-26
Income Tax Return filing for A.Y. 2025–26 has started! Don’t wait—file your ITR now and avoid last-minute hassle. The extended due date is 15th September 2025. Stay stress-free, avoid penalties, and keep your finances in order. Act early, file on time! Need help? We’re here to guide you.
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Income Tax Return Filing for AY 2025-26
Filing your Income Tax Return (ITR) isn’t just a responsibility — it’s also your right. It helps you claim refunds, build financial credibility, and stay compliant with the law. For the Assessment Year 2025–26 (i.e. income earned between April 2024 and March 2025), several changes have come into effect, making tax filing both easier and more structured.
What is Income Tax Return (ITR) Filing?
Filing an Income Tax Return means filling out a prescribed form (called an Income Tax Return form) and submitting it electronically (online) or physically (less common now) to the Income Tax Department. This act informs the government officially about your income and taxes.
- The department then reviews this information to:
- Check if you paid the right amount of tax
- Calculate any refund owed to you if you paid excess tax
- Assess penalties if tax payment is insufficient or if you failed to file on time
Income Tax Return Filing Fees
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
Required Documents For ITR filing
- Pan card and Adhaar card of taxpayers
- Salary Slip and Form 16 – if any
- Rent as per rent agreement – if any
- Home loan interest certificate – if any
- Stamp duty payment for property purchase – if any
- School fee amount with receipt – If any
- Medical expenses
- Health insurance receipt – if any
- LIC receipt – if any
- Education loan – if any
- Any Other Tax saving investment detail that you want to disclose
- Business name and Business activity
Income Tax Return Filing Due Date for A.Y. 2025-26
For AY 2025–26, the government has extended the filing deadline for most taxpayers:
| Category | Due Date |
|---|---|
| Individual (non-audit) | 15 September 2025 |
| Business/Profession (Audit Required) | 31 October 2025 |
| Entities needing Transfer Pricing Report | 30 November 2025 |
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.
Comparison of Deductions under Old Regime vs. New Regime (FY 2024–25)
| Available Exemptions / Deductions | Old Tax Regime | New Tax Regime |
|---|---|---|
| Standard Deduction u/s 80TTB (Senior Citizens) | ✅ YES | ✅ YES |
| Standard Deduction (for salaried/pensioners) | ✅ ₹50,000 | ✅ ₹75,000 (as per Union Budget July 2024) |
| Employment / Professional Tax u/s 10(5) | ✅ YES | ❌ NO |
| House Rent Allowance (HRA) u/s 10(13A) | ✅ YES | ❌ NO |
| Free Food & Beverages (Vouchers / Coupons) | ✅ YES | ❌ NO |
| Deductions up to ₹1.5L under Chapter VI-A (80C, 80CCC, 80CCD(1), 80D, 80E, etc.) | ✅ YES | ❌ NO |
| Employer’s Contribution to NPS u/s 80CCD(2) | ✅ YES | ✅ YES |
| Additional NPS Deduction u/s 80CCD(1B) (up to ₹50,000) | ✅ YES | ❌ NO |
| Medical Insurance Premium u/s 80D | ✅ YES | ❌ NO |
| Home Loan Interest (Self-Occupied/Vacant Property) | ✅ YES (u/s 24(b)) | ❌ NO |
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
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.
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 Dec 2025.
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.
Income Tax Return Filing for AY 2025-26
We help you file your Income Tax Return (ITR) smoothly and accurately using the latest portal for AY 2025-26.
Frequently Asked Questions (FAQ)
1. What is the last date to file ITR for AY 2025–26?
- For individuals and non-audit cases: 15 September 2025 (extended from the original due date).
- For taxpayers requiring audit: 31 October 2025.
- For those requiring transfer pricing reports: 30 November 2025.
2. Who is required to file an ITR even if income is below the exemption limit?
ITR filing is mandatory if:
- Total deposits in a bank exceed ₹50 lakh in a financial year.
- Foreign travel expenses exceed ₹2 lakh.
- Electricity bill payments exceed ₹1 lakh in a year.
- TDS/TCS exceeds ₹25,000 (₹50,000 for senior citizens).
- Income is exempt but from foreign sources or other special cases.
3. Which ITR form should I use?
- ITR-1: For salaried individuals with income up to ₹50 lakh and long term capital gain uptoo 1.25lac.
- ITR-2: For individuals with capital gains or income from multiple properties.
- ITR-3: For individuals with business or professional income.
- ITR-4: For presumptive income under sections 44AD, 44ADA, or 44AE.
4. Can I switch between old and new tax regimes?
- Salaried taxpayers can choose between regimes every year.
- Business/profession taxpayers need to file a declaration (Form 10-IEA) to switch, and once opted out of the new regime, switching back is limited.
Choice must be made before the due date of filing.
5. What documents should I keep ready before filing?
- PAN, Aadhaar (linked), and bank account details.
- Form 16 from employer.
- Form 26AS and AIS (Annual Information Statement).
- Interest certificates from banks.
- Capital gains statements (for shares, mutual funds, property).
- Rent receipts, loan interest certificates.
- Investment proofs for deductions (under 80C, 80D, etc.).
6. Are there any changes in the ITR forms for AY 2025–26?
Yes, some important changes include:
- Capital gains split reporting before and after 23 July 2024.
- Detailed disclosures for deductions and exemptions.
- Separate codes for influencers, traders, agents, etc.
- Higher threshold (₹1 crore) for mandatory asset/liability reporting.
7. What if I miss the due date?
- You can file a belated return with a penalty of up to ₹5,000.
- Losses (like capital losses) cannot be carried forward.
- Interest under sections 234A, 234B, and 234C may apply.
- Refunds may be delayed.
8. What are the tax rates under the new regime (default)?
- 0–3 lakh: Nil
- 3–6 lakh: 5%
- 6–9 lakh: 10%
- 9–12 lakh: 15%
- 12–15 lakh: 20%
- Above 15 lakh: 30%
(No exemptions like 80C, 80D allowed except NPS, EPF, etc.)
9. How are capital gains taxed for AY 2025–26?
- Short-term capital gains: 15% (for shares), taxed at slab for others.
- Long-term capital gains:
- On shares/mutual funds: 10% beyond ₹1 lakh (without indexation).
- On property: 12.5% (new rate) or 20% with indexation, depending on sale date.
10. Which new categories need special disclosure?
- Influencers and gig workers.
- F&O traders.
- Crypto or betting income earners.
- Income from affiliate marketing or commissions.
11. Is Aadhaar mandatory for filing ITR?
- PAN and Aadhaar must be linked.
- Aadhaar is required for e-verification and login; Aadhaar enrolment ID is not accepted.
12. Can I revise my return after filing?
Yes, you can revise your return any number of times before 31 December 2025, unless it is a belated return.
