Income Tax Filing Season FY2025: Everything You Need to Know Before You File

Every year, millions of taxpayers scramble in the last two weeks of July to file their income tax returns. Every year, the Income Tax Department's portal crashes. Every year, some taxpayers miss the deadline, pay penalties, and lose interest on their refunds.

This year, don't be one of them. Here is everything you need to know about filing your ITR for FY2024-25 (AY2025-26).

Key Due Dates for AY2025-26

New vs Old Tax Regime: Which to Choose?

The single biggest decision for most taxpayers in FY2024-25 is the tax regime. Here's a quick breakdown:

New Regime (Default from FY2023-24)

Lower tax slabs but no deductions (80C, 80D, HRA, LTA are gone). The new regime benefits those with fewer investments and lower home loan interest payments. Income up to ₹7 lakhs is effectively tax-free with the rebate under Section 87A.

Old Regime (Opt-in required)

Higher slabs but allows all deductions — 80C (₹1.5L), 80D (up to ₹1L), HRA, LTA, home loan interest (Section 24), NPS (80CCD), and more. If your deductions exceed ₹3.75 lakhs, the old regime typically saves you more tax.

Pro tip: Always ask your tax advisor to compute under both regimes. The difference can be ₹50,000 or more for mid-income earners.

The AIS / TIS — Your New Best Friend (and Biggest Risk)

The Annual Information Statement (AIS) now aggregates all financial transactions linked to your PAN — salary, interest, dividends, mutual fund transactions, property sale, cryptocurrency gains, and more. The Income Tax Department has this data whether you report it or not.

Every taxpayer should review their AIS/TIS before filing their ITR. Discrepancies between AIS and your ITR are a primary trigger for Section 143(1) notices. If the AIS has incorrect data, submit feedback on the portal to get it corrected.

Documents to Gather Before You File

• Form 16 — from your employer (for salary income)
• Form 26AS — TDS and advance tax credit statement
• AIS/TIS — Annual Information Statement from the IT portal
• Bank Statements — for interest income and savings
• Capital Gains Statements — from broker/mutual fund
• Investment Proof — for 80C, 80D, NPS deductions
• Rental Income — rent receipts and property tax paid
• Home Loan Statement — interest certificate from bank

Important Changes for FY2024-25

Long-Term Capital Gains Tax Revised

Effective 23 July 2024 (Union Budget 2024): LTCG on equity and equity mutual funds is now taxed at 12.5% (up from 10%), with the exemption limit increased to ₹1.25 lakhs per year (up from ₹1 lakh). STCG on equity is now 20% (up from 15%).

NPS Contribution Deduction Enhanced

Employer NPS contribution deduction increased from 10% to 14% of salary under the new regime (Section 80CCD(2)).

Buy-Back Dividend Tax Change

Share buy-back proceeds are now taxed as dividend in the hands of shareholders, not at the company level — effective from 1 October 2024.

What Happens If You Miss the Deadline?

If you miss the 31 July deadline, you can still file a belated return up to 31 December 2025. However:

• Penalty of ₹5,000 (₹1,000 if income is below ₹5 lakhs) under Section 234F
• Interest at 1% per month on unpaid tax under Section 234A
• Cannot carry forward losses from capital gains or business income
• Refund processed later, meaning you lose interest on that money

File Early. File Right. File with BYF.

At Beyond Your Finance, we handle ITR filing for salaried employees, freelancers, business owners, capital gains earners, and NRIs. We ensure every eligible deduction is claimed, every income is correctly reported, and your return is filed well before the due date.

Our process is completely remote — share your documents digitally, we compute your tax, share a summary for your review, and file with your approval. The ITR-V arrives in your inbox the same day.