ITR Filing 2025: Step-by-Step Guide and Key Deadlines for Individuals & Businesses
Dipali Waghmode- 1 day ago
- 11 min read
Filing your Income Tax Return (ITR) is a crucial legal responsibility for individuals and businesses in India. For the Assessment Year (AY) 2025-26, the process involves new updates and deadlines, making it important to stay informed and comply with tax regulations. Filing your ITR on time helps you avoid penalties, interest, and ensures smooth tax compliance. Let us explore a step-by-step breakdown of the ITR filing process for Financial Year (FY) 2024-25, including the necessary forms, important deadlines, and detailed instructions for each step of the filing process. Whether you are a salaried individual, a freelancer, or a business entity, it’s essential to understand which ITR form applies to your situation, as well as the tax regime options available. Additionally, we’ll walk you through important deadlines for filing, including advanced tax payments, and how to file your return accurately using the e-filing portal.
Table of Contents
Income Tax Return (ITR) Filing 2025 Last Date Extended
The Central Board of Direct Taxes (CBDT) has extended the due date for filing Income Tax Returns (ITRs) for the Financial Year 2024-25 (Assessment Year 2025-26) from July 31, 2025, to September 15, 2025.
Reasons for the Extension
This extension has been granted due to significant revisions in the ITR forms, which aim to simplify compliance, enhance transparency, and enable accurate reporting. The changes require additional time for system development, integration, and testing of the updated filing utilities. Moreover, since Tax Deducted at Source (TDS) statements are filed by May 31, 2025, and take some time to reflect, the extension provides taxpayers more time to file returns with complete information.
Key Changes in ITR Forms for AY 2025-26
Simplified Reporting for Capital Gains: Taxpayers can now report long-term capital gains (LTCG) up to ₹1.25 lakh directly in ITR-1 and ITR-4, provided there are no capital losses to carry forward.
Mandatory Disclosure of Tax Regime Choice: Taxpayers must explicitly declare their choice between the old and new tax regimes. First-time opt-outs from the new regime need to submit Form 10-IEA along with the acknowledgment number.
Enhanced TDS Reporting: The new forms require taxpayers to mention the TDS section under which tax was deducted from their income.
Expanded Eligibility for Simplified Returns: More taxpayers are now eligible to use ITR-1 and ITR-4 due to expanded scope and relaxed income thresholds.
Who Needs to File an ITR?
Filing your Income Tax Return (ITR) is mandatory for any individual or entity whose gross income exceeds the basic exemption limit set by the Income Tax Department. The exemption limits for Financial Year (FY) 2024-25 (Assessment Year 2025-26) are as follows:
₹3 lakh for individuals under the age of 60 years
₹5 lakh for senior citizens aged 60 to 79 years
₹7 lakh for super senior citizens aged 80 years and above
These exemption limits define the threshold income above which individuals or entities must file an ITR. However, there are additional situations where even if your income is below the exemption limit, you are still required to file an ITR. These situations include:
Claiming a Refund: If your total income is below the taxable limit but you have had tax deducted at source (TDS) or paid advance tax, you can file your ITR to claim a refund. This ensures that any excess tax paid is refunded to you.
Carrying Forward Losses: If you have incurred losses in any financial year (such as business losses, capital losses, etc.), you can carry forward these losses to offset future tax liabilities. To carry forward the losses, you must file an ITR even if your income is below the exemption limit. This allows you to set off these losses against your income in future years, reducing your tax burden.
Other Legal Requirements: There are legal requirements that necessitate filing an ITR regardless of your income level. For example:
If you hold assets outside of India, you are required to report them in your ITR.
If you are a resident and have foreign income, filing an ITR is required to declare your foreign assets and income.
Eligibility for the New Tax Regime: Even if you're eligible to opt for the new tax regime, which provides lower tax rates but eliminates most exemptions and deductions, filing an ITR is still mandatory. This is especially important for claiming benefits such as the Section 87A Rebate, which provides a tax reduction for income up to ₹12 lakh under the new tax regime. Filing an ITR is necessary to claim this rebate, which can significantly lower your overall tax liability.
Under the old tax regime, the basic exemption limit remains ₹2.5 lakh, and taxpayers can claim multiple deductions and exemptions such as Section 80C, 80D, HRA, etc., to reduce taxable income. The old regime uses higher tax slabs starting from ₹2.5 lakh to compute tax liability with applicable surcharge rates on higher income. Filing an ITR is necessary to claim these deductions and exemptions, and to comply with tax laws regardless of income level.
Thus, filing an ITR is not only a requirement based on income but also a strategic tool for managing your tax obligations and maximizing benefits, especially in the context of deductions, rebates, and the ability to carry forward losses. Even if your income is under the exemption limit, ensuring that you file your ITR on time can help you avoid complications and enable you to make full use of any eligible tax benefits.
Key ITR Filing Deadlines for FY 2024-25 (AY 2025-26)
Category | Deadline |
Individuals / Non-Audit Cases | 31st July 2025 |
Businesses Requiring Audit | 31st October 2025 |
Transfer Pricing Cases (Form 3CEB required) | 30th November 2025 |
Belated or Revised Return | 31st December 2025 |
Updated Return (ITR-U) | 31st March 2030 |
These deadlines are critical for compliance. Missing any deadline can lead to late fees and interest charges, though no penalty applies if your income is below the taxable limit.
Step-by-Step Guide to Filing ITR Online
1. Gather Required Documents Before starting your ITR filing, make sure you have the following documents:
PAN & Aadhaar Card
Form 16 (for salaried individuals)
Bank Statements
Investment Proofs (Section 80C, 80D, etc.)
TDS Certificates
Details of Other Income (capital gains, rent, etc.)
2. Choose the Correct ITR Form Select the appropriate form based on your income:
ITR-1 (Sahaj): For individuals earning up to ₹50 lakh from salary, house property, and other sources (excluding business income).
ITR-2: For individuals and HUFs not having income from business/profession.
ITR-3: For individuals/HUFs earning from business/profession.
ITR-4 (Sugam): For those with presumptive income up to ₹50 lakh.
Other Forms: For specific entities like firms, companies, or trusts (ITR-5, ITR-6, ITR-7).
3. Log In to the Income Tax E-Filing Portal Log in using your PAN number and password. If you’re new, you’ll need to register on the portal.
4. Start the ITR Filing Process Navigate to the “e-File” section and select "Income Tax Returns," then choose the option to “File Income Tax Return.”
5. Select the Tax Regime You must choose between the old tax regime (which allows deductions) and the new tax regime (which offers reduced tax rates with no deductions). For AY 2025-26, the new tax regime is the default option, but you can opt for the old one if needed.
6. Review and Update Pre-filled Data The portal pre-fills data like salary, TDS, and bank interest. Review and ensure all information is accurate, and make necessary updates.
7. Enter Additional Income and Deductions Add any additional income sources and deductions, such as investments under Section 80C or premiums for health insurance under Section 80D.
8. Compute Tax Liability and Pay Dues The system will calculate your tax liability. If any tax is due, ensure to pay it before submitting your return.
9. Verify and Submit the Return Once you review and confirm all details, submit the return. It’s necessary to e-verify your return using Aadhaar OTP, net banking, or other available options.
10. Download and Save the Acknowledgment After submission, download the ITR-V acknowledgment for your records. This is your proof of filing.
Advance Tax Deadlines for FY 2025-26
Due Date | Advance Tax to be Paid (Cumulative) |
15th June 2025 | 15% |
15th September 2025 | 45% |
15th December 2025 | 75% |
15th March 2026 | 100% |
For businesses opting for the presumptive tax scheme, 100% of the tax must be paid by 15th March 2025.
Consequences of Missing the ITR Filing Deadline
If you miss the Income Tax Return (ITR) filing deadline, there are several significant consequences that can impact your tax filing process and result in additional financial liabilities. Here’s a detailed breakdown of what happens if you miss the deadline:
1. Late Filing Fee
If you fail to file your ITR by the prescribed deadline, you will incur a late filing fee. The amount of the fee depends on the timing of your return:
Up to ₹5,000: If you file your return after the deadline but before 31st December 2025, you will be liable for a late filing fee of up to ₹5,000.
₹1,000: If your total income is less than ₹5 lakh, the late filing fee is reduced to ₹1,000. This ensures that individuals with lower income are not heavily penalized for delays. This fee is automatically added to your tax liability, and the amount must be paid along with any due tax while filing your belated return.
2. Interest Under Sections 234A, 234B, and 234C
In addition to the late filing fee, you will also incur interest on any unpaid tax dues:
Section 234A: Interest is charged at 1% per month or part of the month on any outstanding tax that remains unpaid after the deadline.
Section 234B: If you fail to pay at least 90% of your tax liability through advance tax, self-assessment tax, or tax deducted at source (TDS) before the deadline, interest will be levied at 1% per month or part of the month on the shortfall amount.
Section 234C: If you miss any of the advance tax payment deadlines, interest is charged at 1% per month on the shortfall in the installment amount. This interest continues until the balance is paid.
The interest charges under these sections accumulate, leading to an increased tax liability.
3. Delayed Refund
If you're entitled to a tax refund, missing the ITR filing deadline can delay its processing. Your refund will be issued only after the ITR is successfully filed and processed. The longer you wait to file, the later you will receive your refund. Additionally, if there are any discrepancies or issues in the filed return due to missing the deadline, it could further delay the refund.
4. Loss of Deductions/Exemptions
One of the significant consequences of missing the ITR filing deadline is the loss of deductions and exemptions. Certain deductions, exemptions, and rebates available under the Income Tax Act may no longer be applicable once the deadline is missed. For example:
Rebate under Section 87A: You may lose the rebate if you file your return after the prescribed deadline.
Section 80C/80D Deductions: If you miss the filing deadline, any deductions you are eligible for under sections such as 80C (for investments in PF, PPF, life insurance, etc.) or 80D (for health insurance) may not be available.This loss of deductions and exemptions can significantly increase your taxable income and the overall tax burden.
5. Belated Returns and Updated Returns
Even if you miss the original filing deadline, you are not entirely out of options:
Belated Return: You can still file a belated return by 31st December 2025. However, this comes with the late filing fee, interest, and loss of deductions or exemptions. The belated return is essentially a way to correct your tax filing status, but it doesn’t restore the benefits available for timely filers.
Updated Return (ITR-U): If you've already filed a belated return but later realize you need to make further amendments or corrections, you can file an updated return (ITR-U). This can be done up until 31st March 2030, but it involves paying additional tax and penalties. The updated return is an opportunity to correct any mistakes made in the belated return, but this comes at a cost, both financially and in terms of time.
How TaxBuddy Simplifies the ITR Filing Process
TaxBuddy offers a user-friendly mobile app that simplifies the entire ITR filing process. With TaxBuddy, you can:
Get expert assistance in choosing the right ITR form.
Track filing deadlines and receive timely reminders.
Access pre-filled data for quick filing.
Get help with calculating deductions and understanding tax regimes.
Easily file your returns directly from the mobile app with minimal hassle.
By using TaxBuddy, you can ensure that your ITR is filed on time, with all applicable deductions considered, and without missing important deadlines.
Conclusion
Filing your ITR is an essential step in staying compliant with tax laws. With clear deadlines and a streamlined process, it’s easy to complete your filing on time. Using the e-filing portal and expert tools like TaxBuddy, you can avoid penalties and maximize your returns. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
1. What happens if I miss the ITR filing deadline?
If you miss the deadline for filing your Income Tax Return (ITR), you can file a belated return by 31st December 2025. However, you will be liable to pay a late filing fee and interest under Sections 234A, 234B, and 234C. If you miss the belated return deadline as well, you can file an updated return (ITR-U) by 31st March 2030. This will include additional tax and penalties.
2. Which ITR form should I use as a salaried individual?
Most salaried individuals should use ITR-1 (Sahaj), provided their total income is up to ₹50 lakh, and they have no business or professional income. This form covers income from salary, one house property, and other sources (excluding lottery or gambling).
3. Can I revise my ITR after submission?
Yes, you can revise your ITR if you find errors or omissions. The revised return must be filed by 31st December 2025, which is the deadline for belated returns. The revised return will correct any mistakes made in the original filing.
4. Is e-verification mandatory after filing ITR?
Yes, e-verification is mandatory to validate your ITR submission. You can verify your return using various methods such as Aadhaar OTP, net banking, or through other available methods. If your return is not e-verified, it will not be considered valid by the Income Tax Department.
5. How can TaxBuddy help with ITR filing?
TaxBuddy simplifies the ITR filing process by guiding you through selecting the correct form, providing reminders for key deadlines, and offering expert assistance throughout. The TaxBuddy mobile app helps you track your filing progress, calculate tax liabilities, and ensure your ITR is filed accurately and on time.
6. What is the last date to file ITR for businesses requiring an audit?
For businesses that require an audit, the deadline to file ITR is 31st October 2025. Failing to meet this deadline will result in penalties, and you may have to file a belated return.
7. Can I file an ITR if my income is below the exemption limit?
Yes, you can file an ITR even if your income is below the exemption limit. Filing is recommended if you want to claim any refunds or carry forward any losses. It also helps in maintaining a record with the Income Tax Department.
8. What is the penalty for not paying advance tax?
If you fail to pay advance tax on time, you will be subject to interest under Sections 234B and 234C. The interest is charged on the shortfall in advance tax payments. Additionally, penalties may apply if the delay is prolonged.
9. Can I file an ITR for multiple years at once?
No, you cannot file ITR for multiple years at once. You must file separate returns for each assessment year. However, if you miss the filing deadline for a particular year, you can file a belated return within the allowed time frame.
10. How do I claim deductions under the old tax regime in ITR?
To claim deductions under the old tax regime, you need to select the old tax regime option while filing your ITR. This allows you to avail of various deductions like 80C, 80D, HRA, etc. The old tax regime provides more exemptions but comes with higher tax rates.
11. Can I use TaxBuddy to track my advance tax payments?
Yes, TaxBuddy helps you track your advance tax payments and sends reminders for upcoming due dates. The platform ensures that you stay on top of your tax obligations, helping you avoid penalties due to missed payments.
12. What if I’m unsure about choosing the correct ITR form?
If you're unsure about which ITR form to use, TaxBuddy offers guidance. The platform will help you select the appropriate form based on your income sources, tax regime preferences, and other relevant criteria. TaxBuddy ensures that your form selection is accurate to avoid errors in filing.
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