What is Income Tax Return (ITR)? How to File ITR Online for FY 2024-25 (AY 2025-26)?
Filing income tax is always considered a complex process. However, it is not as tedious as it sounds. The Income Tax Department is rigorously working to make the filing process smooth and easy.
The Income Tax Department has also embraced digital technology, and one of the major conveniences that have come through it is electronic filing (ITR e-filing).
From introducing the provision u/s 234F for non-filers of income tax returns to making most of the processes accessible online, the department's objective is very clear it wants your files to be clean and compliant with the law.
While filing an ITR, a lot of questions cross the mind, like How to file ITR. Which ITR form is the correct one to choose? What documents are required to file ITR? Can I file ITR for FY 2024-25 (AY 2025-26)? And many.
This article will share the details and latest updates you must know while filing your income tax return (ITR) for FY 2024-25 (AY 2025-26).
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Budget Update 2025
The Union Budget 2025 has brought significant relief for taxpayers. The Section 87A rebate limit has been increased from ₹7 lakh to ₹12 lakh, which means individuals earning up to ₹12 lakh annually will not have to pay any income tax. Additionally, a standard deduction of ₹75,000 for salaried individuals further increases the tax-free income limit to ₹12.75 lakh.
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New Income Tax Slab Structure (New Regime)
The new simplified slab rates under the 2025 tax regime are as follows:
- ₹0 – ₹4 lakh → No Tax
- ₹4 lakh – ₹8 lakh → 5%
- ₹8 lakh – ₹12 lakh → 10%
- ₹12 lakh – ₹16 lakh → 15%
- ₹16 lakh – ₹20 lakh → 20%
- ₹20 lakh – ₹24 lakh → 25%
- ₹24 lakh & above → 30%
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Extended Time for Filing Updated Returns
Taxpayers now have more time to revise or correct their tax filings. The time limit for filing an updated return (ITR-U) has been extended from 2 years to 4 years, giving more flexibility to rectify errors.
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What is Income Tax Return (ITR)?
An Income Tax Return (ITR) is a document submitted to the Income Tax Department containing details of income earned, tax-saving investments, deductions, and taxes paid during a financial year. Filing can be done online (e-filing) or offline, but e-filing is the most convenient method.
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Benefits of Filing an ITR
Filing an ITR is not just a legal requirement but also comes with several benefits:
- Accidental Claims: Used as income proof in accident compensation cases.
- Proof of Income & Net Worth: Serves as an official record of earnings.
- Refund of Excess Tax: Claim refunds for excess TDS paid.
- Loan & Credit Card Applications: Required by banks and financial institutions.
- Carry Forward Losses: Helps offset future capital gains and business profits.
- Visa Applications: Many foreign consulates require ITRs for visa approval.
- Insurance & Funding: Useful for high life cover and startup funding.
- Government Tenders: Mandatory in many government contract applications.
- Avoid Penalties: Prevents fines, notices, and legal actions.
- Nation Building: Filing ITR ensures contribution to economic growth.
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ITR Filing Due Date for FY 2024-25 (AY 2025-26)
- General Deadline: 31st July 2025
- For Tax Audit Cases: 31st October 2025
- For Transfer Pricing Cases: 30th November 2025
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Who Should File an ITR?
ITR filing is mandatory if your total income exceeds the basic exemption limit. Additionally, you must file ITR if:
- Business turnover exceeds ₹60 lakh
- Professional receipts exceed ₹10 lakh
- Total TDS/TCS exceeds ₹25,000
- Savings account deposits exceed ₹50 lakh
- Current account deposits exceed ₹1 crore
- Foreign travel expenses exceed ₹2 lakh
- Annual electricity bill exceeds ₹1 lakh
- You have foreign income or assets
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Documents Required for ITR Filing
To file ITR smoothly, keep these documents ready:
- Basic: PAN card, Aadhaar card, bank statements, Form 16
- Income Related: Salary slips, Form 26AS, Form 16A/16B/16C
- Investments: Proof of 80C/80D investments, capital gains proofs, home loan statements
- Others: Insurance premium receipts, loan repayment receipts, donation receipts, rent agreements, foreign income details
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Steps to File ITR Online
- Log in to the Income Tax e-filing portal.
- Select AY 2025-26 and mode of filing.
- Choose the correct ITR form.
- Enter details of income, deductions, and tax paid.
- Preview tax computation.
- Pay pending tax (if any) through e-Pay Tax service.
- Preview and submit your ITR.
- Verify your return online or via physical ITR-V submission (mandatory within 30 days).
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Filing ITR with Tax2win
You can also file ITR easily through Tax2win by following these steps:
- Visit Tax2win website → Click File ITR Now
- Select income source (salary, business, etc.)
- Upload Form 16 (if salaried) or enter details manually
- Enter PAN, Aadhaar, employment details, and bank information
- Review computation and click File My ITR
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What Happens After Filing ITR?
- You will receive an acknowledgment (ITR-V) by email.
- Verify your return online or by sending ITR-V to CPC, Bangalore.
- Refunds, if any, will be credited to your bank within a few days.
- Track refund status online through the IT portal.
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Consequences of Not Filing ITR
Not filing ITR despite having taxable income can lead to:
- Late Fees: Up to ₹5,000 under Section 234F.
- Penalties: 50% to 200% of unpaid tax for underreporting/misreporting.
- Interest: 1% per month under Sections 234A, 234B, 234C.
- Loss of Benefits: Business and capital losses cannot be carried forward.
- Legal Action: Risk of prosecution, notices, and even imprisonment.
