Income Tax Return (ITR) for AY 2025-26: Deadlines, Filing Process, and Key Details
Introduction to Income Tax Return (ITR)
Income Tax Return (ITR) is a mandatory document filed by individuals and businesses declaring their income, tax liabilities, deductions, and exemptions to the Income Tax Department of India. Filing ITR is crucial for tax compliance, loan approvals, visa applications, and avoiding penalties.
Assessment Year (AY) vs. Financial Year (FY)
Understanding the difference between AY and FY is essential for correct tax filing:
- Financial Year (FY): The year in which income is earned. FY 2024-25 starts from April 1, 2024, and ends on March 31, 2025.
- Assessment Year (AY): The year following the financial year in which the income is assessed and taxed. AY 2025-26 corresponds to FY 2024-25.
Key Deadlines for AY 2025-26
| Category of Taxpayer | ITR Filing Deadline |
|---|---|
| Individuals, HUFs, salaried employees | July 31, 2025 |
| Businesses requiring audit | October 31, 2025 |
| Businesses requiring TP report (Transfer Pricing) | November 30, 2025 |
| Belated ITR (Late filing with penalty) | December 31, 2025 |
| Revised ITR (Correction of errors) | December 31, 2025 |
ITR Forms for Different Taxpayers
- ITR-1 (Sahaj): For salaried individuals and pensioners with income up to ₹50 lakh.
- ITR-2: For individuals/HUFs with income from capital gains or foreign income.
- ITR-3: For individuals/HUFs with business or professional income.
- ITR-4 (Sugam): For presumptive taxation under Sections 44AD, 44ADA, and 44AE.
- ITR-5: For firms, LLPs, AOPs, and BOIs.
- ITR-6: For companies other than those claiming exemption under Section 11.
- ITR-7: For trusts, political parties, and other entities filing under specific sections.
ITR Filing Process
- Gather Documents: PAN, Aadhaar, Form 16, bank statements, investment proofs, and capital gain statements.
- Choose the Right ITR Form: Select the appropriate form based on your income type.
- Compute Taxable Income: Include salary, business income, capital gains, and deductions.
- Pay Self-Assessment Tax (if applicable): Clear any outstanding tax liabilities.
- File ITR Online (E-Filing): Visit the Income Tax e-filing portal and submit your return.
- Verify Your ITR: Use Aadhaar OTP, net banking, or send a signed ITR-V to CPC, Bengaluru.
Late Filing Penalties and Consequences
- Filing after July 31, 2025, attracts a penalty of up to ₹5,000.
- Filing after December 31, 2025, may result in additional penalties and interest on unpaid taxes.
- Delayed filing can impact credit scores and loan approvals.
Benefits of Filing ITR on Time
- Avoid penalties and legal complications.
- Claim refunds for excess TDS deducted.
- Smooth loan processing and visa approvals.
- Carry forward losses to offset against future income.
- Ensures compliance with tax laws and reduces future scrutiny.
Deductions and Exemptions Available for AY 2025-26
Several deductions help taxpayers reduce their taxable income:
- Section 80C: Deductions up to ₹1.5 lakh on investments like PPF, EPF, LIC premiums, ELSS, NSC, and tuition fees.
- Section 80D: Health insurance premium deduction up to ₹25,000 (₹50,000 for senior citizens).
- Section 24(b): Interest on home loan deduction up to ₹2 lakh.
- Section 10(14): HRA (House Rent Allowance) exemption for salaried individuals.
- Section 80E: Interest on education loan deduction.
- Section 80G: Deductions on donations to charities and relief funds.
Documents Required for Filing ITR
- Form 16 (for salaried individuals).
- Form 26AS (tax credit statement).
- Bank statements and passbooks (for interest income verification).
- Investment proof receipts (PPF, FD, ELSS, NSC, LIC, etc.).
- Capital gains statements (if applicable).
- Rental income details (if applicable).
- Aadhaar and PAN card details.
ITR Filing for Businesses and Self-Employed Individuals
- Businesses with turnover below ₹2 crore can opt for presumptive taxation under Section 44AD.
- Freelancers and professionals can file under ITR-3 or ITR-4 based on their income type.
- GST-registered businesses must ensure GST reconciliation with ITR filings.
- Startups and MSMEs can avail tax benefits under specific government schemes.
How to Revise or Correct Filed ITR?
If an ITR is filed with incorrect details, it can be revised before December 31, 2025:
- Log in to the e-filing portal.
- Select ‘Revised Return’ under the ITR filing section.
- Make necessary corrections and submit the revised return.
What Happens If You Don’t File ITR?
- A penalty of up to ₹10,000 for non-filing.
- Prosecution under Section 276CC if high tax evasion is detected.
- Interest on outstanding tax amount under Section 234A.
- Loss of eligibility to carry forward business losses.
Conclusion
Filing ITR for AY 2025-26 is a crucial responsibility for every taxpayer. Adhering to deadlines, choosing the correct ITR form, and ensuring timely submission can help avoid penalties and make the tax process seamless. Stay updated with changes in tax laws to maximize benefits and remain compliant with the Income Tax Act. Planning and filing taxes on time not only helps in financial stability but also ensures peace of mind regarding compliance.
