Income Tax Return Filing Guide – AY 2025–26
By CA Piyush Jain, Senior Partner, Piyush P Jain and Associates
1️⃣ Introduction
As the financial year 2024–25 concludes, it’s time for taxpayers to file their Income Tax Returns (ITR) for the Assessment Year (AY) 2025–26. Filing returns is a legal mandate under the Income-tax Act, 1961, and plays a pivotal role in ensuring financial transparency, claiming refunds, securing loans, and fulfilling compliance.
With technological tools like AIS (Annual Information Statement), TIS (Taxpayer Information Summary), and Form 26AS streamlining tax data, accuracy and timeliness in filing have never been more essential.
2️⃣ Due Dates for ITR Filing (AY 2025–26)
As per the CBDT press release dated 27 May 2025, the extended due dates are:
| Category | Due Date |
|---|---|
| Non-audit taxpayers | 15th September 2025 |
| Audit cases | 31st October 2025 |
| Transfer pricing cases | 30th November 2025 |
⚠ Note: Interest under Section 234A applies only if self-assessment tax is unpaid by the due date.
3️⃣ Essential Documents Checklist
Keep the following documents handy before filing:
- PAN and Aadhaar cards
- Bank account details (with IFSC codes)
- Form 16 / Form 16A / Form 26AS / AIS / TIS
- Investment proofs (80C, 80D, 80G, etc.)
- Loan certificates (home/education)
- Capital gain statements (stocks, MFs, real estate)
- Rent receipts for HRA
- Books of accounts & GST returns (for business/profession)
- Interest certificates from banks/Post Office
4️⃣ Common Mistakes & How to Avoid Them
- Wrong ITR Form: Avoid defective returns under Section 139(9) by selecting the appropriate form.
- Mismatch of TDS with 26AS/AIS: Always reconcile Form 16 with 26AS and AIS.
- Unpaid Self-Assessment Tax: Pay dues before filing to avoid penalties.
- Failure to E-verify: Returns not e-verified within 30 days are considered invalid.
- Inactive Bank Accounts: Only declare active accounts for refund purposes.
5️⃣ Capital Gains Taxation – Complete Overview
✅ Short-Term Capital Gains (STCG)
| Asset Type | Holding Period | Tax Rate |
|---|---|---|
| Equity Shares / Equity MFs | < 12 months | 15% (Sec 111A) |
| Property, Gold, Bonds | < 24–36 months | Slab Rate |
✅ Long-Term Capital Gains (LTCG)
A. Equity-Oriented Assets
- Holding > 12 months
- ₹1 lakh/year exempt
- Excess taxed @ 10% (Section 112A)
- Grandfathering allowed (FMV as on 31.01.2018)
- No indexation
B. Other Capital Assets
| Asset Type | Holding Period | Tax Options |
|---|---|---|
| Property | > 2 years | 20% with indexation (Section 112) |
| Gold/Bonds | > 3 years | 20% with indexation / 10%-12.5% (select cases) |
📝 Budget 2023 Update: Debt MFs with <35% equity now taxed at slab rates without indexation.
✅ Available Exemptions
- Section 54: Sale of house → reinvest in residential property
- Section 54F: Sale of other assets → invest in residential house
- Section 54EC: Invest in NHAI/REC bonds within 6 months (limit ₹50L)
6️⃣ Income Type-wise Taxation
Salary Income
- Standard Deduction: ₹50,000
- Deductions: 80C, 80CCD (NPS), 80D
- Primary Document: Form 16
Business/Profession (Presumptive Taxation)
| Section | Applicability | Computation Basis |
|---|---|---|
| 44AD | Small Businesses (≤ ₹2 Cr) | 8%/6% of turnover |
| 44ADA | Professionals (≤ ₹75L) | 50% of gross receipts |
| 44AE | Transporters (≤ 10 vehicles) | ₹7,500/month per vehicle |
Freelancers & Consultants
- Report under PGBP
- Choose 44ADA or maintain books of accounts
7️⃣ New vs Old Tax Regime
| Criteria | Old Regime | New Regime (115BAC) |
|---|---|---|
| Deductions | Available (80C, 80D, HRA, LTA) | Mostly disallowed |
| Tax Rates | Higher | Lower |
| Default Regime (from AY 2025–26) | Must opt in if preferred | Applicable by default |
📌 Always compare both regimes before filing.
8️⃣ Fake Claims & Scrutiny Triggers
🚫 Avoid:
- Fake HRA / LIC / 80C claims
- Artificial capital loss declarations
- Inflated refund claims without proper TDS backup
- Mismatch between AIS & ITR
🗃️ Maintain documentation for 6 years to respond to scrutiny, if needed.
9️⃣ Post-Filing Checklist
- ✅ E-Verify your return within 30 days
- ✅ Monitor ITR status (“Processed”, “Defective”, etc.)
- ✅ File a Revised Return under Section 139(5) if errors found
- ✅ Track refund status via e-Filing portal or TIN-NSDL
🔟 Tips for Senior Citizens & Homemakers
👵 Senior Citizens
- ₹50,000 interest deduction under 80TTB
- No advance tax (if no business income)
- Prefer SCSS, POMIS, Annuity Plans
👩🦰 Homemakers
- Report even small interest income from FDs/SB accounts
- Be cautious with gifts/income from spouse/children (clubbing provisions apply)
- Maintain clear records of joint investments
✍ Conclusion
Income tax filing is more than a compliance activity—it’s a testament to your financial discipline. With increasing digitization, pre-filled data, and AI-driven scrutiny, precision is paramount.
✅ File on time
✅ Use the correct ITR form
✅ Reconcile AIS, 26AS, Form 16
✅ Avoid fake claims
✅ Keep all records well-organized