How to file ITR in India 2025

ITR India 2025

How to File ITR in India 2025: Complete Step-by-Step Guide for AY 2025-26

Filing your Income Tax Return (ITR) for Assessment Year 2025-26 is now mandatory for most Indian taxpayers, and with the deadline set for September 15, 2025, it's crucial to understand the process. This comprehensive guide will walk you through every step of filing your ITR online, helping you navigate the updated tax regime options and avoid common pitfalls.

Who Needs to File ITR in India 2025?

You must file an ITR for AY 2025-26 if:

• Your total income exceeds ₹2.5 lakh (basic exemption limit)
• You want to claim a tax refund
• Your income is below taxable limits but you meet specific criteria like foreign travel expenses above certain thresholds
• You have capital gains from investments
• You hold foreign assets or have foreign income

Understanding ITR Forms for 2025

ITR-1 (Sahaj) - Most Common Form

Perfect for salaried individuals with:

• Income up to ₹50 lakh
• Salary and pension income
• One house property income
• Interest from savings accounts
• Small capital gains (newly added for AY 2025-26)

ITR-2 - For Complex Income Sources

Required for individuals with:

• Capital gains from investments
• Income from multiple house properties
• Foreign income or assets
• Income exceeding ₹50 lakh

ITR-4 - For Business Income

Used for presumptive business income under sections 44AD, 44ADA, or 44AE

Essential Documents Required

Before starting your ITR filing, gather these documents:

Personal Documents:

• PAN Card
• Aadhaar Card
• Bank account details (for refund)

Income Documents:

• Form 16 (from employer)
• Form 26AS (tax credit statement)
• Interest certificates from banks
• Capital gains statements
• House property documents

Investment Proofs:

• 80C investments (PPF, ELSS, insurance premiums)
• 80D medical insurance premiums
• Home loan interest certificates
• Donation receipts (80G)

Step-by-Step ITR Filing Process for 2025

Step 1: Access the E-Filing Portal

1. Visit the official Income Tax e-filing portal at incometaxindia.gov.in
2. Log in using your PAN as User ID and password
3. If you're a first-time user, register by providing basic details

Step 2: Navigate to ITR Filing

1. Click on 'e-File' from the main menu
2. Select 'Income Tax Returns'
3. Choose 'File Income Tax Return'

Step 3: Select Assessment Year and Mode

1. Choose 'AY 2025-26' for FY 2024-25 income
2. Select 'Online' mode for easier filing
3. Click 'Continue'

Step 4: Choose Filing Status

Select 'Individual' (most common option) and proceed

Step 5: Select ITR Form

Choose the appropriate form based on your income sources:

• ITR-1 for simple salary income
• ITR-2 for capital gains or complex income

Step 6: State Reason for Filing

Select applicable reasons such as:

• "Income exceeds basic exemption limit"
• "Claiming tax refund"
• Other specific criteria

Critical Decision: Old vs New Tax Regime

New Tax Regime (Default for AY 2025-26)

• Lower tax rates but no major deductions
• Default option - you don't need to opt out
• Cannot claim 80C, 80D, HRA deductions

Old Tax Regime (Opt-Out Required)

• Higher tax rates but multiple deductions available
• Must explicitly opt out of new regime
• Can claim 80C, 80D, HRA, and other deductions

Important: The form will ask "Do you want to opt out of New Tax Regime?" - select "Yes" if you want to use old regime with deductions

Detailed Filing Process

Step 7: Verify Personal Information

• Review pre-filled personal details
• Update any incorrect information
• Confirm employment nature (Government/Private/Pensioner)

Step 8: Income Details Entry

Most income details are auto-populated from Form 26AS:

• Salary income from Form 16
• Interest income from banks
• Capital gains from investments
• House property income

Pro Tip: Cross-verify auto-filled data with your actual documents

Step 9: Claim Deductions (Old Regime Only)

If you opted for old regime, claim deductions under:

• Section 80C: Up to ₹1.5 lakh (PPF, ELSS, insurance)
• Section 80D: Medical insurance premiums
• HRA: House Rent Allowance
• Home loan interest: Under 24(b)
• Other applicable deductions

Step 10: Tax Calculation and Payment

• System automatically calculates tax liability
• Pay any outstanding tax before submission
• Review the tax summary carefully

Step 11: Preview and Submit

1. Preview your complete return in read-only format
2. Verify all details are correct
3. Accept the declaration confirming information accuracy
4. Click 'Submit'

E-Verification: Final Mandatory Step

Your ITR is not complete until verified! You have 30 days to e-verify:

E-Verification Options:

• Aadhaar OTP (fastest method)
• Net banking credentials
• Bank ATM or Demat account OTP
• Electronic Verification Code (EVC)

Alternative Verification:

Send signed ITR-V acknowledgment to CPC Bengaluru within 30 days

Important Deadlines for AY 2025-26

• Primary Deadline: September 15, 2025
• Audit Cases: October 31, 2025
• Belated Return: Up to December 31, 2025 (with penalty)
• Updated Return: Up to 4 years from assessment year end

Penalties for Late Filing

Late Filing Penalties:

• ₹5,000 if taxable income exceeds ₹5 lakh
• ₹1,000 if taxable income is between ₹2.5-5 lakh
• 1% monthly interest on unpaid tax amounts

No penalty if income is below taxable limit

Common Mistakes to Avoid

1. Wrong tax regime selection - Choose carefully between old and new
2. Incomplete e-verification - Return is invalid without verification
3. Ignoring pre-filled data errors - Always cross-verify auto-populated information
4. Missing investment proofs - Keep all 80C, 80D documents ready
5. Incorrect bank details - Ensure accurate account information for refunds

Benefits of Timely ITR Filing

• Faster loan approvals from banks
• Income proof for visa applications
• Claiming tax refunds promptly
• Avoiding penalties and legal complications
• Building financial credibility

Pro Tips for Smooth Filing

1. File early to avoid last-minute technical issues
2. Keep digital copies of all documents
3. Use Form 26AS to cross-verify TDS credits
4. Calculate tax under both regimes before choosing
5. Save frequently while filling the form online
6. Download acknowledgment after successful e-verification

Conclusion

Filing your ITR for AY 2025-26 doesn't have to be complicated if you follow this systematic approach. With the September 15, 2025 deadline approaching, start gathering your documents and choose the right tax regime based on your deductions. Remember, e-verification within 30 days is mandatory to complete the process.

The new tax regime is now the default option, but if you have significant deductions under sections 80C, 80D, or HRA, the old regime might be more beneficial. Take time to compare both options before making your final selection.

Start your ITR filing today to avoid last-minute rush and ensure compliance with Indian tax regulations. A timely filed and verified return not only keeps you legally compliant but also serves as crucial financial documentation for various future needs.