The Ultimate Guide to Filing Your Income Tax Return in India (2025)
- Bhavika Rajput
- 5 hours ago
- 15 min read
Filing your income tax return is one of the most important tasks for the financial year. It helps you stay compliant with tax laws, avoid penalties, and get any refunds due. For FY 2024-25 (AY 2025-26), a few things have changed. The new tax regime is now the default, and choosing the right ITR form has become even more important.
Many people find the process confusing, forms, documents, deadlines, and new rules can make it hard to file correctly. That’s why more taxpayers now use platforms like TaxBuddy. It makes the process easier by guiding you step by step. From picking the right form to checking for errors and filing your return, TaxBuddy helps you get it right the first time.
Table of Contents
The Ultimate Guide to Filing Your Income Tax Return in India (2025): Answering Questions on ITR Filing
Filing your income tax return for FY 2024-25 (AY 2025-26) means reporting your total income, claiming eligible deductions, paying any remaining tax, and submitting your return before the deadline. It’s a yearly obligation that helps you stay tax-compliant, avoid late fees, and receive refunds if excess tax has been paid.
Who Needs to File and By When?
If your total income before deductions exceeds ₹2.5 lakh (or ₹3 lakh under the new tax regime), filing a return is mandatory. For salaried individuals, the due date is July 31, 2025. For businesses and professionals requiring audit, it extends to October 31, and for those with international or specified transactions, November 30.
Even if your income is below the limit, it’s wise to file your ITR if:
You’ve had TDSdeducted and want a refund
You need a valid income proof for loans, visas, or credit cards
You want to carry forward capital or business losses
Why the Default Shift to the New Regime Matters
From FY 2024-25, the new tax regime is now the default. This means if you don’t actively choose the old regime while filing, your return will be processed under the new one. The new regime offers concessional rates but removes most deductions like 80C, HRA, and 80D. This change makes it essential to compare both regimes before filing.
How to File ITR in 2025
Gather documents:Form 16, PAN, Aadhaar, salary slips, and investment proofs
Log in to the Income Tax Portal: Using your PAN and password
Select the correct ITR form: Based on your income sources and filing type
Verify pre-filled data: Cross-check income, tax credits, and deductions
Pay remaining tax, if any: Use the online challan system
Submit the return: After thorough review
E-verify within 30 days: Via Aadhaar OTP, net banking, or EVC
With the right ITR filing platform, these steps become a guided experience. ITR filing platform such as TaxBuddy, also checks for errors, recommends the best form, and auto-fills based on your documents. Whether you’re salaried, self-employed, or earning from multiple sources, it’s designed to simplify your journey and reduce the chances of a notice or rejection.
Income Tax Return (ITR) Forms for FY 2024-25 Notified by CBDT
TheCentral Board of Direct Taxes (CBDT) has officially announced the Income Tax Return (ITR) forms for FY 2024-25 (AY 2025-26), marking the beginning of the 2025 tax filing season. These forms define what details taxpayers must share based on their income sources, and choosing the correct one is the first step to a valid return.
Here’s a quick overview of the ITR forms and their key updates:
ITR-1 (Sahaj): For resident individuals earning up to ₹50 lakh from salary, one house property, and other sources. A key update allows reporting of long-term capital gains (LTCG) up to ₹1.25 lakh under Section 112A, making it easier for small investors to file under ITR-1.
ITR-2: Designed for individuals and Hindu Undivided Families (HUFs) who do not have business income but may have capital gains, foreign assets, or income clubbed from family members. Ideal for those with investments or property beyond basics.
ITR-3: Required for individuals or HUFs with business or professional income—such as freelancers, consultants, or doctors. This form involves detailed reporting and account disclosures.
ITR-4 (Sugam): Meant for residents with income up to ₹50 lakh from presumptive business or profession (under Sections 44AD, 44ADA, or 44AE). Also includes salary, pension, and LTCG up to ₹1.25 lakh. Not applicable if you're a company director or hold foreign assets.
ITR-5: Applies to firms, LLPs, AOPs, BOIs, and certain legal entities. Not for individuals or HUFs.
Summary Table: ITR Forms for AY 2025-26
ITR Form | Applicable To | Income Sources | LTCG Allowed | Key Exclusions |
ITR-1 (Sahaj) | Resident individuals (₹ ≤ 50 lakh) | Salary, one house property, interest, agri income ≤ ₹5,000 | Yes, up to ₹1.25 lakh | Directors, unlisted shares, foreign assets |
ITR-2 | Individuals/HUFs (no business income) | Capital gains, foreign assets, clubbed income | Yes | Business/profession income |
ITR-3 | Individuals/HUFs with business /profession | Business, profession, capital gains | Yes | — |
ITR-4 (Sugam) | Residenst individuals/HUFs/firms (non-LLPs, presumptive income ≤ ₹50 lakh) | Presumptive income, salary, LTCG ≤ ₹1.25 lakh | Yes | Directors, agri income > ₹5,000, foreign assets |
ITR-5 | Firms, LLPs, AOPs, BOIs, AJPs | Business, capital gains, others | Yes | Individuals, HUFs, companies |
What Documents Are Required for ITR Filing in 2025?
Before filing your income tax return, make sure you have all the necessary documents ready. Missing even a single document can lead to errors, mismatches, or delays in processing your return or receiving a refund. Preparing early helps you file confidently and avoid last-minute stress.
Here’s a checklist of documents most taxpayers need for FY 2024-25:
Basic Identification
PAN card: Mandatory for filing the return
Aadhaar card: Should be linked with your PAN
Bank account details: For refund processing (include IFSC and account number)
Income Proof
Form 16: Issued by your employer, shows salary income and TDS deducted
Salary slips: For calculating allowances like HRA
Form 26AS: A consolidated statement of TDS, advance tax, and high-value transactions
Annual Information Statement (AIS): Provides additional income and investment details
Investment and Deduction Proofs (if opting for old tax regime)
PPF, EPF, NSC, ELSS statements
Life and health insurance premium receipts
Education loan interest certificates (for 80E deduction)
Home loan interest certificate from bank or NBFC (for 24(b) and 80EEA)
Rent receipts and landlord’s PAN (for HRA claims)
Donations made (under Section 80G)
Additional Income Documents
Interest certificates from banks or post offices
Capital gains statements from shares, mutual funds, or property sales
Rental income details, including municipal taxes paid
Foreign income/assets, if applicable
Business income records, if you are self-employed or a freelancer
Having these documents in hand ensures your ITR matches the records with the tax department. Even small mismatches, like a missing interest entry, can lead to a notice or delayed refund.
Choosing the Correct ITR Form for FY 2024-25
Most taxpayers don’t realize how easy it is to choose the wrong ITR form, and how costly that mistake can be. Choosing the correct form isn’t just about matching your salary or turnover; it’s about reading the fine print: capital gains, foreign assets, presumptive income, director status, and more.
Instead of showing you the standard table again, let’s decode how to choose the right form based on following scenarios.
Scenario-Based Guide to ITR Form Selection
Profile | ITR Form | Why? |
Salaried employee with only EPF and FD interest | ITR-1 | Straightforward income, no exclusions |
Salaried + LTCG of ₹90,000 from mutual funds | ITR-1 | Within new ₹1.25L LTCG allowance |
Salaried + Capital gains of ₹2.4L from shares | ITR-2 | LTCG exceeds ITR-1 limit |
Consultant earning ₹12L under 44ADA | ITR-4 | Eligible for presumptive income |
Freelancer with clients abroad + expenses tracked | ITR-3 | Detailed reporting needed |
Startup employee with unlisted shares & ESOPs | ITR-2 or ITR-3 | ITR-1/4 not allowed |
Firm or LLP with rental + business income | ITR-5 | Applicable for legal entities |
How to File Your Income Tax Return Online for AY 2025–26
Filing your ITR online has become easier than ever, especially with tools that guide you step-by-step. But while the Income Tax Department has improved its portal, many users still struggle with choosing the right options, matching their data with Form 26AS, and making sure everything adds up before submission.
Here’s how to file your ITR correctly for the assessment year 2025–26 using the government portal, and how TaxBuddy makes it even smoother.
Step-by-Step Process for Online ITR Filing
Log in to the e-Filing Portal: Visit www.incometax.gov.in, click on "Login", and enter your PAN, password, and Captcha code.
Choose “File Income Tax Return”: Go to the ‘e-File’ tab and select ‘Income Tax Return’. Pick the correct assessment year, AY 2025–26.
Select Mode of Filing: Choose “Online” as the filing mode. If you're using the offline utility, you can upload the JSON/XML file later.
Pick the Right ITR Form: Select the form applicable to your income category (e.g., ITR-1, ITR-3). If unsure, TaxBuddy’s AI driven platform instantly identifies the correct one based on your income profile.
Review Pre-filled Data: Most fields will be auto-filled from Form 26AS, AIS, and Form 16. Cross-check for:
Income from salary, interest, rent
TDS already deducted
Advance/self-assessment tax paid
Declare Deductions (if opting for old regime): Enter details for Sections 80C, 80D, 80G, and others. If you’re under the new tax regime, deduction fields will be inactive (except allowed benefits like standard deduction, NPS, etc.).
Compute Tax and Pay Dues (if any): The system will auto-calculate tax payable or refund. If there's outstanding tax, pay it online via Challan 280, then enter the BSR code and payment details.
Validate and Preview Return: Review all entries, especially personal information, bank account, and income summary.
Submit Return: Click “Submit” and proceed to verification.
E-Verify within 30 Days: Choose one of the methods:
Aadhaar OTP
Net banking
Demat account
Offline verification by sending signed ITR-V to CPC, Bengaluru
Filing ITR with TaxBuddy: Easier, Smarter, and More Reliable
TaxBuddy removes the technical complexity. Instead of guessing which form to choose or worrying about mismatches:
You upload Form 16 or enter basic details
The system automatically recommends your regime and ITR form
Pre-fills and reviews all fields to avoid rework
Calculates income tax with logic built for FY 2024–25 updates
Sends instant alerts for common errors or missed disclosures
You can file directly through TaxBuddy’s platform or mobile app, and still get full compliance with the Income Tax Department’s backend.
ITR Filing Checklist: Before You Hit Submit
Accuracy is key when filing your income tax return. A small error or omission can lead to refund delays, notices, or rejected filings. This checklist helps you confirm all critical elements are in place before submission.
1. Identity & Basic Information
PAN and Aadhaar are correctly entered and linked
Name and date of birth match official records
Contact details and address are accurate
2. Income Reporting
Salary details match Form 16
Interest income from all bank accounts is reported
Capital gains from stocks, mutual funds, or property are correctly disclosed
Rental income is included with deductions like municipal taxes and interest on housing loan
Agricultural income is declared (if applicable), even if exempt
Foreign income and assets are reported (if any)
3. Tax Credit Reconciliation
TDS entries match Form 26AS and AIS
Advance tax and self-assessment tax are entered with correct BSR codes and challan numbers
4. Deductions and Exemptions (If Opting for Old Regime)
Deductions under 80C, 80D, 80G, and others are properly claimed
HRA, LTA, and standard deduction are calculated from salary slips
Housing loan interest under Section 24(b) is reported where applicable
5. Tax Regime and ITR Form Accuracy
Old or new tax regime is correctly selected
ITR form matches income type and eligibility
No restricted disclosures made in ITR-1 or ITR-4 (e.g., foreign assets, high LTCG, director status)
6. Refund and Bank Details
Primary bank account for refund is correctly selected
IFSC code and account number are accurate
Bank account is pre-validated and linked with PAN
7. Final Validation and E-Verification
Previewed entire return before submission
No system-generated errors or validation issues
Return submitted successfully
E-verification completed within 30 days via Aadhaar OTP, net banking, or other accepted method
Filing the ITR with the help of tax expert can reduce the chances of errors and mistakes.
Common Mistakes While Filing ITR in 2025 (And How to Avoid Them)
Filing your income tax return may seem straightforward, especially with pre-filled data and online utilities. But even small errors can lead to delayed refunds, notices, or even defective return status. Here are the most frequent mistakes taxpayers make, and how to avoid them.
1. Choosing the Wrong ITR Form
Many filers mistakenly use simplified forms like ITR-1 or ITR-4 without ensuring their eligibility. If you have capital gains exceeding ₹1.25 lakh, foreign assets, or are a director, these forms are not suitable.
How to avoid it: Always verify the eligibility criteria for each form. Check if your income sources align with the form’s specifications.
2. Filing Under the Wrong Tax Regime
Starting from FY 2024-25, the new tax regime is the default. If you wish to claim deductions (like 80C, HRA, or 80D), you must opt for the old tax regime before filing your return.
How to avoid it: Compare both tax regimes to see which one results in lower tax. Make sure to actively select the one that works best for your financial situation.
3. Missing or Incorrect Income Reporting
It’s common to overlook income from interest, capital gains, or rental income, especially if not captured in Form 16. Income details from Form 26AS and AIS can help reconcile discrepancies.
How to avoid it: Cross-check your income details with Form 26AS and AIS, ensuring all sources of income are accurately reported.
4. Ignoring TDS and Advance Tax Mismatches
Sometimes, taxpayers forget to include self-assessment or advance tax payments in their returns or enter incorrect BSR/challan details.
How to avoid it: Ensure that all TDS entries and tax payments are correctly entered, matching Form 26AS. Double-check BSR codes and challan numbers before submission.
5. Declaring Deductions Incorrectly
Claiming the wrong amounts under Sections 80C, 80D, or for donations under 80G often results in mismatches or missed benefits.
How to avoid it: Keep all receipts and proofs for investments or donations, and ensure you enter the correct figures when declaring deductions.
6. Using Incorrect Bank Details
Incorrect account numbers or IFSC codes can delay refund credits or cause errors in the processing of refunds.
How to avoid it: Verify that your bank account details are correct, including the IFSC code, and ensure that the account is linked with your PAN for seamless processing.
7. Not Verifying the Return
Submitting your return isn’t enough; it must be e-verified within 30 days—either through Aadhaar OTP, net banking, or by sending the signed ITR-V to CPC Bangalore.
How to avoid it: Always complete the e-verification process promptly after submitting your return to avoid any discrepancies or delays.
8. Ignoring Income Tax Notices
Failing to respond to notices or queries from the Income Tax Department, especially for mismatched or missing information, can result in penalties or reassessment.
How to avoid it: After filing, keep an eye on your account for any communications from the tax department and respond to any notices promptly.
Tip
Most filing mistakes come from rushing, misinterpreting form fields, or relying solely on pre-filled data. Using a platform like TaxBuddy that combines AI automation with expert review significantly reduces these risks. It’s designed to catch what you might miss, and correct it before it becomes a problem.
Filing Tips for FY 2024-25 (AY 2025-26)
Filing your income tax return doesn’t have to be a stressful task. With a little preparation and attention to detail, you can file smoothly and avoid common issues. Here are some bonus tips to ensure a seamless filing experience and maximize your benefits.
1. File Early to Avoid Last-Minute Rush
The last few days before the ITR deadline can be overwhelming. The portal experiences high traffic, and errors or delays may occur due to the heavy load. By filing early, you avoid the rush and reduce the chances of errors in your return.
Tip: Aim to complete your filing well before the deadline to allow for troubleshooting and corrections, if necessary.
2. Keep Digital Copies of All Documents
In the age of digital transactions, keeping physical copies of your documents may be cumbersome. Make sure to keep digital copies of Form 16, Form 26AS, investment receipts, and other important documents. These can be easily uploaded when needed and save you time during the filing process.
Tip: Use cloud storage for easy access and to ensure you don't lose any crucial information.
3. Regularly Check Form 26AS for Accuracy
Form 26AS is an important document that shows all the taxes deducted and paid on your behalf. However, discrepancies sometimes arise between your income records and those in Form 26AS, such as unreported income or missed TDS entries.
Tip: Regularly check Form 26AS and reconcile it with your records to ensure everything matches up before filing.
4. Keep Track of Income and Deductions Throughout the Year
Rather than waiting until the last moment, keep track of your income and deductions throughout the year. This will help you avoid rushing to collect documents and calculate deductions in the final month.
Tip: Maintain a simple spreadsheet or use an expense-tracking app to keep track of investments, loans, and other eligible expenses for deductions.
5. Use the Offline Utility for Large Returns
If you have a complex return, such as multiple income sources or capital gains, using the offline utility (Excel or Java-based) provided by the Income Tax Department might be a better option than filing online directly. This allows you to work offline and then upload the filled return once you're ready.
Tip: After filling out the offline form, double-check for any inconsistencies before uploading it on the e-filing portal.
6. Review Pre-filled Data and Make Adjustments
The Income Tax portal now pre-fills many of your details based on your Form 16, Form 26AS, and AIS. While this saves time, it’s important to check for errors or outdated information. Double-check that everything is up-to-date, particularly if there’s any significant change in your income or deductions.
Tip: Take a few extra minutes to review pre-filled data, especially if you’ve changed employers or had substantial income changes.
7. Don't Forget the E-Verification Process
The e-filing process isn’t complete until your return is verified. If you fail to e-verify your return, it will be considered invalid, and the tax department may not process your return.
Tip: Complete the e-verification process immediately after submission using one of the available methods: Aadhaar OTP, net banking, or by sending the ITR-V to the CPC Bangalore.
8. Stay Updated with Tax Law Changes
Income tax laws and forms often undergo revisions, and staying informed will help you avoid mistakes. Keep an eye on any updates or changes introduced by the Finance Act for the current financial year, especially with respect to deductions, exemptions, and tax slabs.
Tip: Follow official tax channels or use trusted platforms to stay updated on any changes to tax laws that could impact your filing.
Conclusion
Filing your income tax return for FY 2024-25 (AY 2025-26) doesn't need to be overwhelming. With the right information, preparation, and tools, you can ensure a smooth and hassle-free process. Whether you're a salaried employee, self-employed, or have income from investments or business, the key is understanding your income sources, selecting the correct ITR form, and ensuring your details match across all documents.
By following the steps outlined in this guide, you can avoid common mistakes, ensure compliance, and maximize your tax benefits. Additionally, online platforms like TaxBuddy streamline the process, making it even easier to navigate, from selecting the right form to filing your return and handling income tax notices.
FAQs
Q1. What is the last date to file ITR for FY 2024-25?
The last date to file your Income Tax Return for FY 2024-25 is July 31, 2025, for most taxpayers. However, if you are under tax audit or involved in transfer pricing, the deadline is October 31, 2025. If you miss these deadlines, you can still file a belated return by December 31, 2025, but penalties and interest may apply.
Q2. Can I file my ITR after the due date?
Yes, you can file your ITR after the due date, but it will be considered a belated return. The last date for filing belated returns is December 31, 2025, for FY 2024-25. However, you will have to pay a penalty for filing late, and the interest on tax payable will be charged under Section 234A. Additionally, you will lose out on certain deductions, such as carry-forward of losses.
Q3. What if I make a mistake while filing my ITR?
If you realize you’ve made a mistake after submitting your ITR, you can file a revised return under Section 139(5) before the end of the relevant assessment year. Make sure to amend your mistake as soon as possible to avoid penalties. A revised return can be filed even after the original return has been processed.
Q4. Do I need to disclose exempt income while filing my ITR?
Yes, all income, including exempt income, must be disclosed in your tax return. This includes income from agricultural activities (up to ₹5,000), dividend income, and long-term capital gains below the exempt limit. Failing to disclose exempt income could lead to discrepancies and tax department notices.
Q5. How do I verify my ITR?
Once you’ve filed your return, it must be e-verified within 30 days of submission. You can verify your return using:
Aadhaar OTP (for Aadhaar-linked users)
Net banking (if your bank supports it)
Bank account-based EVC
Alternatively, you can send the signed ITR-V form to the CPC Bangalore for verification.
Without verification, the ITR will be considered invalid.
Q6. What should I do if I don’t receive my tax refund?
If you don’t receive your tax refund within the expected timeframe, first ensure that your bank account details are correct in your ITR. You can track your refund status on the Income Tax Department’s website by logging in and checking the status. If there’s still no update, you can file a grievance through the Income Tax Department portal.
Q7. Is it mandatory to link Aadhaar with PAN for filing ITR?
Yes, it is mandatory to link your Aadhaar with PAN for filing your ITR. Without this linkage, your ITR will not be processed. If you haven’t linked them yet, you must do so before filing. You can link your Aadhaar with PAN through the official Income Tax website or via SMS.
Q8. Which ITR form should a salaried individual use?
Salaried individuals usually file ITR-1 (Sahaj) if they have income from salary, one house property, and other sources like interest income. If you have more complex sources of income, such as capital gains, foreign income, or income from multiple houses, you may need to use ITR-2.
Q9. Can I file ITR offline?
Yes, you can file your ITR offline by downloading the relevant ITR utility (Excel or Java-based) from the Income Tax Department’s website, filling it offline, and then uploading the XML file through the portal.
Q10. What documents are required for ITR filing?
The documents required for ITR filing include:
Form 16 (Salary details)
Form 26AS (Tax credit statement)
PAN card and Aadhaar details
Bank account details for refund processing
Investment proofs (e.g., PPF, ELSS, life insurance, NPS)
Interest certificates from banks/post offices
Details of capital gains, rental income, and any other income sources
Q11. What happens if I ignore notices from the Income Tax Department?
Ignoring notices from the Income Tax Department can result in penalties or legal action. It’s important to respond promptly to any notices or requests for clarification regarding your tax return. Failure to do so may result in reassessment of your return or additional taxes being levied.
Q12. How can TaxBuddy assist me with my ITR filing?
TaxBuddy guides you through the entire ITR filing process, from form selection based on your income profile to document submission, error-checking, and e-verification. With its smart document checklist, pre-filled data reconciliation, and expert support, TaxBuddy ensures that your filing is fast, accurate, and stress-free.
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