Important Information on Filing Income Tax Returns for AY 2025-26

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Important Information on Filing Income Tax Returns for AY 2025-26

Introduction

As the financial year 2024-25 comes to an end, taxpayers need to prepare for filing their Income Tax Returns (ITRs) for the Assessment Year (AY) 2025-26. The ITR filing process will start from April 1, 2025, and can be done through both online and offline modes.

The Income Tax Department releases updated ITR forms every year to streamline the filing process. It is crucial for taxpayers to choose the correct form based on their income sources and ensure compliance with the latest tax regulations.

Why is Filing ITR Important?

Filing an Income Tax Return is a legal obligation under the Income Tax Act, and it offers several financial benefits, including:

• Proof of Income – Serves as an official record of income.
• Loan Approvals – Required for home loans, car loans, and personal loans.
• Visa Applications – Many foreign embassies ask for ITR documents for visa processing.
• Claiming Tax Refunds – Essential for getting a refund on excess tax paid.
• Avoiding Penalties – Non-filing or late filing may result in financial penalties and legal issues.

Types of ITR Forms – Which One is Right for You?

The Income Tax Department provides different ITR forms based on income sources and taxpayer category. Choosing the correct ITR form ensures smooth processing of tax returns and prevents rejections or penalties.

ITR-1 (Sahaj) – For Small Taxpayers

Eligibility:

• Resident individuals with total income up to ?50 lakh.
• Income sources include salary, one house property, and interest income.

Not Eligible:

• Individuals with capital gains.
• Business owners and professionals.
• Those with foreign assets or foreign income.

ITR-2 – For Individuals with High Income and Capital Gains

Eligibility:

• Individuals earning more than ?50 lakh.
• Income sources include salary, multiple house properties, capital gains, and foreign assets.
• Agricultural income above ?5,000.

ITR-3 – For Business Owners and Professionals

Eligibility:

• Individuals earning from business or profession (e.g., freelancers, doctors, lawyers).
• Those with capital gains from stock trading or investments.

ITR-4 (Sugam) – For Small Business Owners and Professionals

Eligibility:

• Individuals opting for presumptive taxation.
• Income from business or profession up to ?50 lakh.
• Suitable for shopkeepers, traders, electricians, plumbers, etc.

Not Eligible:

• Individuals with foreign income.
• Those claiming exemptions under special sections.

ITR-5 – For Partnership Firms and Trusts

• Used by partnership firms, LLPs, societies, and trusts.

ITR-6 – For Companies

• Applicable for companies that do not claim exemptions under Section 11.

ITR-7 – For Charitable Trusts and Political Parties

• Used by charitable institutions, political parties, and research organizations.

Last Dates for Filing ITR (AY 2025-26)

• July 31, 2025 – For individuals and firms not requiring audit.
• October 15, 2025 – For businesses requiring audit.
• November 30, 2025 – For businesses requiring transfer pricing reports.

How to File ITR Online?

Filing an Income Tax Return online has become convenient through the Income Tax e-Filing portal. Follow these steps:

Step 1: Login to the Portal

• Visit the Income Tax e-Filing portal.
• Enter PAN/Aadhaar and password to log in.

Step 2: Start ITR Filing

• Go to the e-File section and select ‘File Income Tax Return’.
• Choose the Assessment Year 2025-26.
• Select the appropriate ITR form based on income sources.

Step 3: Fill in Income Details

• Provide income details, deductions, and exemptions.
• Verify tax liability and TDS deductions.

Step 4: Preview and Submit

• Review the information carefully.
• Submit the return and verify using Aadhaar OTP, Net Banking, or DSC.

Step 5: Download Acknowledgment

• Once submitted, download the ITR-V acknowledgment for reference.

Common Mistakes to Avoid While Filing ITR

• Selecting the wrong ITR form.
• Mismatching income details with Form 16 and Form 26AS.
• Failing to report all sources of income (e.g., bank interest, dividends).
• Incorrectly claiming deductions and exemptions.
• Not verifying the ITR after filing.

Latest Changes in ITR Filing for AY 2025-26

• Updated Tax Slabs – Verify the applicable slab rates under the new and old tax regimes.
• E-Invoicing for Businesses – Mandatory for businesses with an annual turnover of ?5 crore or more.
• Pre-filled ITR Forms – The government will provide pre-filled data for easier filing.
• New ITR Forms Released – Check for any modifications in ITR forms and reporting requirements.

Conclusion

Timely and accurate filing of Income Tax Returns for AY 2025-26 is crucial to ensure compliance and avoid penalties. Choose the correct ITR form, ensure all income details match official records, and verify your return to complete the process successfully.

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