Income Tax Return Filing 2025: What Taxpayers Need To Know About Key Changes And Deadlines

Income Tax Return Filing 2025

Income Tax Return Filing 2025 As the new financial year unfolds, taxpayers across India are gearing up for the Income Tax Return (ITR) filing season for Assessment Year 2025–26, corresponding to Financial Year 2024–25. Income Tax Return Filing 2025 The Income Tax Department has officially notified ITR-1 and ITR-4 forms, with several key changes aimed at simplifying filing for individuals, especially those earning long-term capital gains (LTCG) from listed equities.

Here’s a comprehensive guide on what’s new, who is eligible to file which form, deadlines to remember, and why early preparation is essential.

✅ Latest Updates: ITR Filing for AY 2025–26

• Income Tax Return Filing 2025 ITR-1 and ITR-4 forms notified on April 29, 2025
• Filing expected to begin in the second week of May 2025
• Last date to file ITR (without audit): July 31, 2025
• Form 16 to be issued by June 15, 2025, for salaried employees

Income Tax Return Filing 2025 Although ITR filing typically starts in April, delays due to policy changes caused the forms to be notified later than usual this year. Income Tax Return Filing 2025 Tax experts recommend not waiting until the last minute and starting early to avoid filing errors or deadline extension pressure.

🆕 Key Changes in ITR Forms for FY 2024–25

1. LTCG Reporting Simplified in ITR-1 and ITR-4

A major relief for small investors — both ITR-1 and ITR-4 now allow the reporting of long-term capital gains (LTCG) up to ₹1.25 lakh under Section 112A from listed shares, mutual funds, and business trusts.

Note:

• The exemption does not apply to:
  • Short-term capital gains
  • LTCG exceeding ₹1.25 lakh
  • LTCG on immovable property or unlisted shares

This change reduces compliance hurdles for small investors who previously had to file more complex ITR forms.

🧾 Who Can File ITR-1?

ITR-1 (also called Sahaj) is for resident individuals only with total income up to ₹50 lakh, and who have:

• Income from salary or pension
• Income from one house property
• Family pension
• Agricultural income up to ₹5,000
• LTCG under Section 112A up to ₹1.25 lakh
• Other sources, such as interest from savings accounts or fixed deposits

Not eligible for ITR-1:

• Individuals with capital gains beyond the ₹1.25 lakh limit
• Non-residents or RNORs
• Those with income from more than one house property

🧾 Who Can File ITR-4?

ITR-4 (also called Sugam) is designed for resident individuals, HUFs, and firms (excluding LLPs) having:

• Total income up to ₹50 lakh
• Business income under presumptive taxation schemes:
  • Section 44AD (small business)
  • Section 44ADA (professionals)
  • Section 44AE (transporters)
• Income from one house property
• Salary or pension
• Agricultural income up to ₹5,000
• LTCG under Section 112A up to ₹1.25 lakh

The new version of ITR-4 now includes a dedicated section for reporting LTCG under Section 112A, similar to ITR-1.

💼 Important Documents Needed Before Filing ITR

Before filing your return, keep these essential documents handy:

💡 LTCG Under Section 112A – How Tax Is Calculated

Income Tax Return Filing 2025 Under Section 112A, long-term capital gains from the sale of listed equity shares, equity mutual funds, or units of business trusts are exempt up to ₹1.25 lakh.

Beyond ₹1.25 lakh, the LTCG is taxed at 12.5% (previously 10%) without indexation benefit.

Example:
If you made ₹1.6 lakh LTCG from selling listed shares:

• ₹1.25 lakh is exempt
• ₹35,000 will be taxed @12.5% = ₹4,375

📅 ITR Filing Due Dates for FY 2024–25 (AY 2025–26)

Tip: Avoid last-minute rush. Filing early gives time to correct errors or respond to notices if needed.

🚨 Consequences of Missing the ITR Deadline

Failing to file ITR on time can lead to:

• Late fees under Section 234F: ₹1,000 to ₹5,000
• Loss of carry forward benefit for losses (especially capital losses)
• Interest on tax dues under Section 234A
• Difficulty in availing loans or visas

📝 Final Tips for Taxpayers

• Start gathering documents early
• Ensure accurate reporting of all income, including capital gains
• Double-check eligibility for ITR-1 or ITR-4
• Cross-verify AIS and Form 26AS with your TDS and investments
• E-verify your return within 30 days of filing

📌 Conclusion

The Income Tax Return Filing 2025 season is set to begin shortly. With the introduction of new simplified ITR-1 and ITR-4 forms, especially for taxpayers earning LTCG from listed equities, the process is now smoother for many individuals and small businesses. Income Tax Return Filing 2025 However, understanding your eligibility, gathering documents early, and filing before July 31, 2025, are crucial steps to ensure compliance and avoid penalties.

Stay informed, stay compliant — and make tax filing stress-free!

📚 Related Posts:

• How to Calculate LTCG Tax in 2025
• Form 16 Explained: What Salaried Individuals Must Know
• New Tax Regime vs Old Tax Regime: What Should You Choose in 2025

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