ITR Filing FY 2024-25 (AY 2025-26): Extended deadline is 15-09-2025
The Income Tax Return (ITR) filing season for Financial Year 2024-25 (Assessment Year 2025-26) is here, and for millions of salaried individuals, getting it right is crucial. With the extended ITR filing deadline now September 15, 2025, there’s a bit more breathing room, but accuracy and awareness remain paramount. This comprehensive guide will help you understand the essentials of ITR filing for AY 2025-26, highlight common ITR mistakes to avoid, offer tips for ITR-1 and ITR-2 filing, and even touch upon smart tax planning strategies for salaried employees.
Whether you’re a first-time filer or seasoned taxpayer, mastering your Income Tax Return ensures compliance and helps you claim all eligible refunds and deductions. Let’s dive in!
Choosing the Right ITR Form for Salaried Individuals (ITR-1 vs. ITR-2)
Selecting the correct ITR form is the first critical step. Filing with the wrong form can lead to a defective return notice.
- ITR-1 (Sahaj): Ideal for salaried individuals who are resident Indians with a total income up to ₹50 lakh. Income sources include:
- Salary/Pension
- Income from One House Property
- Income from Other Sources (e.g., interest from savings accounts, fixed deposits).
- You cannot use ITR-1 if you have income from capital gains, business/profession, more than one house property, are a Director in a company, hold unlisted equity shares, or have foreign assets.
- ITR-2: This form is for individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. It’s commonly used by salaried individuals with additional income sources such as:
- Salary/Pension
- Income from more than one House Property
- Capital Gains (from sale of shares, mutual funds, property, etc.)
- Foreign income or foreign assets
- Agricultural income exceeding ₹5,000
- If you are a Resident Not Ordinarily Resident (RNOR) or Non-Resident (NRI).
Top Common Mistakes Salaried Individuals Make While ITR Filing
Even with pre-filled data, errors can occur. Be vigilant to avoid these frequent ITR filing mistakes:
- Incorrect ITR Form Selection: As mentioned, verify your income sources carefully to choose between ITR-1 and ITR-2.
- Wrong Assessment Year (AY 2025-26 is for FY 2024-25): Always confirm you’re filing for the correct period.
- Inaccurate Personal Details: Double-check your PAN, Aadhaar, bank account details (for refunds), name, and address.
- Failure to Disclose All Income Sources: Don’t forget to report interest from savings accounts, fixed deposits, or capital gains, even if small or exempt. AIS and TIS are your best friends here.
- Not Reconciling with AIS, TIS, and Form 26AS: These crucial documents show all your financial transactions and tax credits. Discrepancies with your Form 16 or other TDS certificates can trigger a notice. Always cross-verify.
- Improper HRA Exemption Claims: Ensure you have valid rent receipts and landlord’s PAN (if rent exceeds ₹1 lakh/year) for your House Rent Allowance (HRA) claim.
- Ignoring Tax Regime Choice (Old vs. New Tax Regime): The New Tax Regime is now the default. If you prefer the deductions of the Old Tax Regime, you must explicitly opt out while filing your ITR.
- Missing Out on Deductions & Exemptions: Many taxpayers forget to claim eligible deductions under Chapter VI-A (e.g., 80C, 80D, 80G, 80CCD(1B) for NPS) or exemptions like LTA. Keep all proofs ready.
- Not E-Verifying ITR On Time: Your ITR filing is incomplete without e-verification within 30 days of submission.
- Ignoring Income Tax Notices: Always respond promptly to any communication from the Income Tax Department to avoid penalties.
- Non-Disclosure of Foreign Assets/Liabilities (for ITR-2 Filers): If you fall under ITR-2 and have foreign financial interests, complete and accurate disclosure is mandatory.
Essential Tips for Smooth ITR Filing (ITR-1 & ITR-2)
Follow these tips for a hassle-free ITR filing experience:
- Gather All Documents First: Collect your Form 16, Form 26AS, AIS, TIS, bank statements, investment proofs, interest certificates, rent receipts, and capital gains statements.
- Thorough Reconciliation is Key: Match all income, TDS, and deductions across your documents and the pre-filled ITR form.
- Compare Old vs. New Tax Regime: Use online calculators to determine which regime offers lower tax liability for your specific income and investment profile.
- Pre-Validate Your Bank Account: This ensures your tax refund is credited without delay.
- File Early: Avoid the last-minute rush to prevent technical glitches or missed deadlines, which can lead to penalties.
- E-Verify Immediately: Complete the e-verification process right after filing your ITR.
Frequently Asked Questions (FAQs) about ITR Filing AY 2025-26
Q1: What is the last date to file ITR for FY 2024-25 (AY 2025-26)? A1: The extended due date for ITR filing for salaried individuals and most non-audit taxpayers for FY 2024-25 (AY 2025-26) is September 15, 2025.
Q2: Can I file ITR after the September 15, 2025 deadline? A2: Yes, you can file a belated ITR by December 31, 2025, but it will incur a late fee (up to ₹5,000, or ₹1,000 for income up to ₹5 lakh) and interest on any unpaid tax. Certain losses may also not be carried forward.
Q3: How do I know if I should choose the Old Tax Regime or the New Tax Regime? A3: The New Tax Regime is now default. If you make significant tax-saving investments or claim deductions like HRA, home loan interest, and medical insurance premiums, the Old Tax Regime might be more beneficial. If you prefer simpler tax laws with fewer deductions, the new regime could be better. Use a tax calculator to compare. Click here for comparison of OLD tax Regime vs New tax Regime for FY 2024-25.
Q4: Is it mandatory to report all my bank accounts in the ITR? A4: Yes, you must disclose all active bank accounts (excluding dormant ones as prescribed) in your ITR, even if you only pre-validate one for refunds.
Q5: What if there’s a mismatch between my Form 16 and Form 26AS/AIS? A5: Contact your employer or deductor immediately to rectify the discrepancy. File your return only once the details are correctly reflected in Form 26AS and AIS.
Smart Tax Planning Tips for Salaried Individuals (Ongoing)
Effective tax planning isn’t just for filing season; it’s a year-round activity. Here are some strategies relevant even now for the current financial year:
- Maximize Section 80C Investments: Utilize the ₹1.5 lakh limit by investing in PPF, ELSS, EPF, life insurance, or paying home loan principal.
- Health Insurance (Section 80D): Avail deductions for health insurance premiums for yourself, family, and parents.
- National Pension System (NPS): Besides 80C, an additional deduction of up to ₹50,000 under Section 80CCD(1B) is available for NPS contributions. Employer’s NPS contribution is also deductible.
- Home Loan Benefits: Claim deductions on interest paid (Section 24(b)) and principal repayment (Section 80C).
- Education Loan Interest (Section 80E): The entire interest paid on an education loan for self, spouse, or children is deductible.
- Regular Review of Tax Regime: Annually assess whether the Old Tax Regime or the New Tax Regime is more advantageous for you based on your income and investment patterns. The new regime has seen some enhancements, making it increasingly attractive for some income groups.
By staying informed and proactive, you can ensure a smooth and optimized ITR filing experience for FY 2024-25 (AY 2025-26). Don’t wait until the last moment – gather your documents and file your Income Tax Return accurately!