Income Tax Return Filing for AY 2025-26: A Comprehensive Guide

Filing your Income Tax Return (ITR) is a fundamental financial responsibility for every taxpayer in India. For Assessment Year (AY) 2025-26, several changes and updates have been introduced to streamline the process, making it more accessible and efficient. This guide provides an in-depth look at everything you need to know about ITR filing for AY 2025-26, including deadlines, new forms, eligibility, tax regimes, and practical steps for a smooth filing experience

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Key Highlights for AY 2025-26

• Extended Deadline: The last date for filing ITR for non-audit cases has been extended to 15th September 2025, giving taxpayers more time to comply.
• Updated ITR Forms: New ITR forms (ITR-1 to ITR-4) have been notified with expanded eligibility and simplified reporting requirements.
• Pre-filled Forms: The government is moving towards pre-filled ITR forms for easier and more accurate filing.
• Revised Tax Slabs: The New Tax Regime (NTR) continues to offer revised tax slabs and higher standard deductions.
• Digital Filing: Online filing remains the most efficient and preferred method for most taxpayers.

Understanding Assessment Year and Financial Year

• Financial Year (FY): The period during which income is earned. For AY 2025-26, the relevant FY is 2024-25 (April 1, 2024, to March 31, 2025).
• Assessment Year (AY): The year following the FY, during which the income earned is assessed and taxed. For income earned in FY 2024-25, the assessment happens in AY 2025-26.

ITR Filing Deadlines for AY 2025-26

• Belated Return: If you miss the deadline, you can file a belated return by 31st December 2025, with applicable penalties.
• Updated Return: An updated return can be filed within four years from the end of the relevant assessment year if required.

Who Should File an ITR?

Filing an ITR is mandatory if:

• Your gross total income exceeds the basic exemption limit (Rs 2.5 lakh for individuals below 60, Rs 3 lakh for senior citizens, Rs 5 lakh for super senior citizens).
• You want to claim a refund of the excess TDS/TCS.
• You have foreign assets or income.
• You are required to file under specific sections (e.g., for carrying forward losses, claiming deductions, etc.).
• You are a company or firm, regardless of income or loss.

Types of ITR Forms for AY 2025-26

Key Changes in AY 2025-26:

• Taxpayers with long-term capital gains (LTCG) up to Rs 1.25 lakh from equity/equity mutual funds can now use ITR-1 or ITR-4, provided there are no capital losses to carry forward.
• The eligibility for simpler forms has been expanded to benefit small investors and salaried individuals.

Tax Regimes: Old vs. New

Updated Tax Slabs under NTR for FY 2024-25:

• Up to Rs 3 lakh: Nil
• Rs 3 lakh - Rs 6 lakh: 5%
• Rs 6 lakh - Rs 9 lakh: 10%
• Rs 9 lakh - Rs 12 lakh: 15%
• Rs 12 lakh - Rs 15 lakh: 20%
• Above Rs 15 lakh: 30%

Step-by-Step Guide to Filing ITR for AY 2025-26

1. Collect and Verify Documents

• PAN, Aadhaar, and bank account details
• Form 16 (from the employer)
• Form 26AS and AIS (Annual Information Statement)
• TDS/TCS certificates
• Investment proofs (for deductions)
• Details of capital gains, other incomes

2. Choose the Appropriate ITR Form

• Refer to the eligibility criteria above or use the Income Tax Department's online tool.

3. Download or Access the ITR Utility

• Visit the official Income Tax e-filing portal.
• Download the relevant ITR utility (Excel/Java) or use the online filing option.

4. Fill in the Details

• Pre-filled data will be available for many fields (salary, TDS, interest, etc.).
• Verify and edit as necessary.
• Report all sources of income and claim eligible deductions.

5. Calculate Tax Liability

• The utility auto-calculates tax based on the data entered.
• Pay any self-assessment tax due before submission.

6. Validate and Submit

• Validate all entries and check for errors.
• Submit the return online.
• E-verify using Aadhaar OTP, net banking, or other options.

7. Acknowledgement

• Upon successful submission, download the ITR-V (acknowledgement).
• If not e-verified, send a signed copy of ITR-V to CPC, Bengaluru within 30 days.

Penalties for Missing the Deadline

• Late Filing Fee: Up to Rs 5,000 under Section 234F (Rs 1,000 if income is below Rs 5 lakh).
• Interest: Under Section 234A for any outstanding tax.
• Delayed Refunds: Refunds may be delayed if returns are filed late

Recent Changes and Their Impact

1. Extended Filing Window

• The extension to 15th September 2025 is due to system upgrades and the introduction of pre-filled forms.
• TDS credits will start reflecting from early June, allowing for more accurate filings.

2. Simpler Forms for More Taxpayers

• LTCG exemption limit increased to Rs 1.25 lakh; small investors can now use ITR-1/4.
• This reduces the compliance burden for salaried individuals and small business owners.

3. Technology and Automation

• The government is investing in automation for a seamless taxpayer experience, aiming for a future where filing is as simple as reviewing and clicking 'submit'.

Special Cases: Who Files Which Form?

Tips for a Smooth Filing Experience

• Start Early: Use the extended window to gather documents and clarify doubts.
• Check Pre-filled Data: Always cross-verify pre-filled information for accuracy.
• Claim Deductions Wisely: Under the old regime, maximize deductions under Sections 80C, 80D, 80TTA, etc.
• Report All Income: Include interest, dividends, capital gains, and any foreign assets.
• E-Verify Promptly: E-verification is mandatory for processing; do it immediately after filing.

Frequently Asked Questions

Q1. Can I revise my ITR after filing?
Yes, you can revise your return any number of times before the end of the assessment year or before the assessment is completed, whichever is earlier.

Q2. What if I miss the belated return deadline?
You can file an updated return within four years from the end of the relevant assessment year, subject to additional tax and conditions.

Q3. Is it mandatory to file ITR if my income is below the exemption limit?
No, but you may want to file to claim a refund or for a visa, loan, or other official purposes.

Q4. What is the benefit of filing ITR even if not mandatory?
Proof of income, ease in obtaining loans/visas, and eligibility for refunds.

Conclusion

Filing your Income Tax Return for AY 2025-26 is now more convenient than ever, thanks to digital advancements, expanded eligibility for simpler forms, and a focus on taxpayer-friendly processes. With the extended deadline and pre-filled forms, taxpayers have a greater opportunity to ensure accuracy and compliance. Whether you are a salaried individual, a small business owner, or an investor, understanding the latest rules and following a systematic approach will help you file your return confidently and on time.

Stay informed, file early, and make the most of the new features for a hassle-free tax season!

For detailed instructions and updates, always refer to the official Income Tax Department portal and consult a tax professional if needed.