Income Tax Return (ITR) filing season in India is an important time for taxpayers. For the Assessment Year (AY) 2025-26, filing your ITR correctly is not only a legal obligation but also a step towards better financial planning. Many beginners feel confused about forms, documents, deadlines, and the actual filing process. This article is designed to give you a complete, beginner-friendly, step-by-step guide on how to file ITR in 2025 with practical examples and real data.
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✅ Why Filing ITR in 2025 is Essential
Some people believe that if their income is below the taxable limit, they can ignore ITR filing. While technically true, filing an ITR has several benefits:
- Legal Requirement: If your income exceeds the exemption limit, ITR filing is mandatory under the Income Tax Act.
- Avoid Penalties: Late filing may attract a penalty of up to ₹5,000 under Section 234F.
- Loan and Credit Approval: Banks often ask for ITR receipts when you apply for home loans, personal loans, or credit cards.
- Visa Processing: Many embassies demand ITR proofs for visa applications as evidence of financial stability.
- Refund Claims: If more tax has been deducted at source (TDS), filing ITR is the only way to claim a refund.
- Income Proof: ITR serves as official proof of income for various government and private purposes.
- Carrying Forward Losses: Business or capital losses can only be carried forward if ITR is filed on time.
📄 Documents Required for ITR Filing in 2025
Before filing, ensure that you have all the required documents ready. Missing any document may delay filing or lead to errors.
- PAN Card (mandatory for login and verification)
- Aadhaar Card (must be linked with PAN)
- Form 16 from employer if salaried
- Form 26AS & AIS (download from the income tax portal)
- Bank account details including IFSC code for refund
- Salary slips, rent receipts, and investment proofs for deductions
- Capital gains statements from mutual funds, stocks, property, or crypto
- Interest certificates from banks and post office deposits
- Details of home loan interest, education loan, and insurance premiums
📊 Income Tax Slabs for FY 2024-25 (AY 2025-26)
The Indian government allows taxpayers to choose between two regimes — the New Tax Regime and the Old Tax Regime. Each has different tax rates and deduction benefits.
🔹 New Tax Regime (Default Option)
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 3,00,000 | Nil |
| 3,00,001 – 7,00,000 | 5% |
| 7,00,001 – 10,00,000 | 10% |
| 10,00,001 – 12,00,000 | 15% |
| 12,00,001 – 15,00,000 | 20% |
| Above 15,00,000 | 30% |
Note: A rebate u/s 87A makes income up to ₹7 lakh tax-free under the new regime.
🔹 Old Tax Regime (With Deductions)
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Advantage: Old regime allows deductions like 80C (₹1.5 lakh), 80D (health insurance), HRA, LTA, and home loan benefits.
📌 Example: Tax Calculation for a Salaried Person
Suppose Ramesh earns ₹8,50,000 annually.
- Under the New Regime, he pays about ₹41,500 tax (after rebate adjustments).
- Under the Old Regime, with deductions of ₹1.5 lakh (80C) + ₹25,000 (80D), his taxable income becomes ₹6,75,000, and tax liability is lower at about ₹33,800.
Conclusion: Those with higher deductions may save more under the old regime.
🖥️ Step-by-Step Guide to File ITR in 2025
- Login: Visit incometax.gov.in and log in with PAN and password.
- Choose the Assessment Year: Select AY 2025-26.
- Select ITR Form: Pick the correct form (ITR-1, ITR-2, ITR-3, or ITR-4).
- Check AIS and Form 26AS: Download and verify income and TDS.
- Enter Income Details: Salary, business, house property, or other income.
- Claim Deductions: Enter deductions under 80C, 80D, 80G, etc.
- Tax Computation: The system auto-calculates total tax.
- Pay Tax (if due): Use Challan 280 for additional payments.
- Submit Return: Review and submit online.
- E-Verify: Verify via Aadhaar OTP, net banking, or Demat account. Without verification, ITR is not valid.
⚠️ Common Mistakes to Avoid
- Filing with the wrong ITR form
- Not linking PAN and Aadhaar
- Mismatch between Form 26AS and AIS
- Forgetting to claim deductions
- Submitting without e-verification
- Incorrect bank account details for refund
📅 ITR Filing Deadlines for AY 2025-26
| Category | Due Date |
|---|---|
| Individuals, HUFs, AOPs, BOIs (not requiring audit) | 15th September 2025 |
| Businesses & Professionals requiring audit | 31st October 2025 |
| Businesses requiring transfer pricing report (Form 3CEB) | 30th November 2025 |
| Belated or Revised Return | 31st December 2025 |
💡 Tip: File your ITR early to avoid last-minute portal issues and delayed refunds.
💰 How to Track ITR Refund Status
- Login to the Income Tax portal.
- Go to My Account → Refund/Demand Status.
- Check whether refund is approved, sent, or failed due to incorrect bank details.
- If refund is delayed beyond 30–45 days, raise a grievance on the portal.
📌 Who Should File ITR Even if Income is Below ₹2.5 Lakh?
- Individuals who want to claim TDS refund
- Those applying for loans or visas
- People holding foreign assets or bank accounts
- Individuals earning above ₹2.5 lakh before deductions
- Residents depositing ₹1 crore or more in a bank account
❓ Frequently Asked Questions (FAQs)
1. Is ITR filing mandatory for students with part-time jobs?
If their income exceeds ₹2.5 lakh (old regime), yes. Otherwise, it is optional but recommended.
2. Can I file ITR without Form 16?
Yes, you can use salary slips, Form 26AS, and AIS to file returns.
3. How long does it take to get an ITR refund?
Usually within 7–30 days after successful e-verification.
4. What if I miss the due date?
You can file a belated return until 31st December 2025 with a late fee.
5. Can I revise my ITR after submission?
Yes, revisions are allowed before 31st December 2025.
6. Which regime is better — Old or New?
If you claim many deductions, the old regime is often better. For simpler tax filing, choose the new regime.
7. Do freelancers need to file ITR?
Yes, freelancers must file ITR under ITR-3 or ITR-4 depending on income type.
8. Can NRIs file ITR in India?
Yes, if they earn income from India (rental, salary, capital gains, or investments).
9. What happens if PAN is not linked to Aadhaar?
Your PAN becomes inoperative, and you cannot file ITR.
10. What is the penalty for late filing?
₹1,000 for income below ₹5 lakh and up to ₹5,000 for higher income groups.
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📝 Final Thoughts
Filing ITR in 2025 is no longer a complex process. With pre-filled forms, AIS, and online verification, even beginners can file returns within 30 minutes if documents are ready. The key is to start early, choose the right tax regime, and verify all income sources.
Remember: Filing ITR is not just about taxes, it’s about building a strong financial record that supports your future goals like buying a home, applying for visas, or starting a business.
