Income Tax Return Filing FY 2024-25: Last Date, Steps & Penalty

The ITR filing deadline for FY 2024-25 is fast approaching. Learn how to file your Income Tax Return correctly, avoid penalties, and ensure compliance.

Introduction to ITR Filing for Financial Year 2024-25

Income Tax Return filing serves as a fundamental obligation for Indian taxpayers. It represents the process through which individuals and entities report their annual income to the Income Tax Department. For Financial Year 2024-25, the filing process has undergone significant changes.

The Central Board of Direct Taxes extended the original filing deadline of July 31, 2025, to September 15, 2025. This deadline was further extended by one day to September 16, 2025. The extensions apply to individuals, Hindu Undivided Families, and non-audit taxpayers.

This guide provides comprehensive information on filing requirements, deadlines, deductions, and compliance procedures. It covers both the new and old tax regimes available for FY 2024-25.

Understanding the Extended Filing Deadline for FY 2024-25

Official Deadline Announcements

The CBDT announced extensions to provide additional time for taxpayers. The original deadline of July 31, 2025, was extended twice. Non-audit cases received 47 additional days beyond the standard deadline.

The final deadline of September 16, 2025, applies to most individual taxpayers. Businesses requiring audits maintain their October 31, 2025, deadline. Companies with international transactions have until November 30, 2025.

Implications of the Extended Timeline

The additional filing period allows taxpayers to review their financial positions thoroughly. They can analyze deduction eligibility under different tax regimes. The extension also accommodates the complexity of choosing between new and old tax structures.

Taxpayers can use this time to gather complete documentation. They may consult tax professionals for complex situations. The extension reduces the risk of errors caused by rushed filing.

Revised Return Deadline

Taxpayers can file revised returns until December 31, 2025. This provision allows correction of errors discovered after initial submission. Revised returns can be used to claim overlooked deductions or optimize tax regime selection.

Overview of Tax Regime Changes Under Finance Act 2024

New Tax Regime as Default Option

The Finance Act 2024 amended Section 115BAC effective from Assessment Year 2024-25. The new tax regime became the default option for individuals, HUFs, Association of Persons, Body of Individuals, and Artificial Juridical Persons.

Eligible taxpayers retain the right to opt out. They can choose the old tax regime based on their financial circumstances. This choice must be made during the filing process.

Key Features of the New Tax Regime

The new regime offers lower tax rates across income brackets. Section 87A provides a rebate for income up to Rs. 7 lakh. This results in zero tax liability for taxpayers earning below this threshold.

The new regime does not allow most traditional deductions. Taxpayers cannot claim benefits under sections 80C, 80D, and others. However, the standard deduction of Rs. 50,000 remains available.

Old Tax Regime Retention Option

The old regime continues to offer extensive deduction opportunities. Taxpayers with significant eligible expenses may benefit more from this structure. Home loan interest, investment deductions, and insurance premiums remain claimable.

Definition and Purpose of Income Tax Returns

What Constitutes an Income Tax Return

An Income Tax Return represents a formal document submitted to the Income Tax Department. It contains detailed information about annual income from all sources. The return includes salary, business income, capital gains, and other earnings.

The document also lists deductions claimed under various sections. It shows tax already paid through TDS or advance tax. The return calculates final tax liability or refund due.

Legal Framework for ITR Filing

The Income Tax Act, 1961, mandates return filing for specified categories. Section 139 outlines filing requirements and deadlines. Non-compliance attracts penalties under Section 234F and interest under Section 234A.

The Income Tax Department processes returns to verify income declarations. It issues refunds for excess tax payments. The department may also select returns for scrutiny based on risk assessment.

Benefits Beyond Compliance

Filing returns creates official income documentation. Banks require ITR copies for loan applications and credit assessments. Foreign embassies often request tax returns for visa processing.

Returns enable taxpayers to claim refunds for excess TDS. They establish financial credibility for business transactions. Regular filing demonstrates tax compliance history.

Mandatory Filing Requirements and Income Thresholds

Age-Based Income Limits

Individuals below 60 years must file returns if gross total income exceeds Rs. 2.5 lakh. Senior citizens between 60 and 80 years have a threshold of Rs. 3 lakh. Super senior citizens above 80 years must file if income exceeds Rs. 5 lakh.

These limits apply to total income before deductions. Income includes salary, interest, rent, and capital gains. Even income below these thresholds may require filing in specific situations.

Special Circumstances Requiring Filing

Taxpayers must file returns regardless of income if they hold foreign assets. Those earning foreign income must report it through ITR filing. High-value cash deposits exceeding Rs. 1 crore annually trigger filing requirements.

Electricity bills above Rs. 1 lakh per annum require return submission. Income from multiple employers necessitates consolidated reporting. Business income mandates filing even at lower levels.

Voluntary Filing Benefits

Taxpayers below income thresholds should consider voluntary filing. Those with TDS deducted can recover full amounts through returns. Filing creates a systematic income documentation history.

Business losses and capital losses require timely filing for carry-forward. Voluntary returns demonstrate proactive tax compliance. They facilitate future financial transactions requiring income proof.

Detailed Analysis of New Tax Regime for FY 2024-25

Tax Slab Structure

The new regime implements revised tax slabs for FY 2024-25. Income up to Rs. 3 lakh attracts nil tax. The Rs. 3-6 lakh bracket faces 5% taxation.

Income between Rs. 6-9 lakh is taxed at 10%. The Rs. 9-12 lakh range attracts 15% tax. Income from Rs. 12-15 lakh faces 20% taxation. Amounts exceeding Rs. 15 lakh are taxed at 30%.

Section 87A Rebate Provisions

Section 87A provides a significant tax rebate for lower-income taxpayers. Those earning up to Rs. 7 lakh receive full rebate on calculated tax. This effectively results in zero tax liability for this income bracket.

The rebate applies only under the new tax regime. It does not extend to taxpayers choosing the old regime. This provision offers substantial savings for middle-income groups.

Deductions Not Available

The new regime eliminates most traditional deductions. Section 80C investments like PPF and ELSS do not reduce taxable income. Section 80D health insurance premiums cannot be claimed.

Home loan interest under Section 24(b) does not apply. House Rent Allowance exemption is unavailable. Leave Travel Allowance and other salary exemptions do not reduce tax liability.

Standard Deduction Availability

The standard deduction of Rs. 50,000 remains available under the new regime. This deduction applies to salary or pension income. It reduces taxable income automatically without requiring documentation.

The deduction represents whichever is lower between Rs. 50,000 and actual salary. It provides basic tax relief across all salary brackets.

Comprehensive Guide to Old Tax Regime Benefits

Traditional Tax Slab Structure

The old regime maintains its established tax structure. It offers deduction benefits that can significantly reduce taxable income. Higher-income taxpayers with substantial investments often benefit more.

The regime calculates tax on income after deducting eligible amounts. This can result in lower effective tax rates compared to the new regime.

Section 80C Investment Deductions

Section 80C allows deductions up to Rs. 1.5 lakh annually. Eligible investments include Public Provident Fund contributions. Equity Linked Saving Schemes qualify for this deduction.

Life insurance premium payments are covered. National Savings Certificates fall under this section. Employee Provident Fund contributions count toward the limit. Tax-saving fixed deposits with five-year lock-in qualify.

Principal repayment of home loans is eligible. Children’s tuition fees can be claimed. Sukanya Samriddhi Yojana deposits are included.

Section 80D Health Insurance Benefits

Section 80D covers health insurance premium payments. Taxpayers can claim up to Rs. 25,000 for self and family. An additional Rs. 25,000 applies for parents below 60 years.

Senior citizen parents allow deductions up to Rs. 50,000. Preventive health checkups provide an additional Rs. 5,000 deduction. This amount is included within the overall limit.

Section 24(b) Home Loan Interest

Home loan interest for self-occupied property qualifies for deduction. The limit stands at Rs. 2 lakh per financial year. Interest on loans for under-construction property can be claimed.

Let-out property interest has no upper limit. The full interest amount reduces rental income. Section 80EE provides additional benefits for first-time homebuyers.

Other Significant Deductions

Section 80E covers education loan interest without limit. Section 80G allows charitable donation deductions. Section 80TTA provides interest income deduction on savings accounts.

Section 80U offers deductions for persons with disabilities. Section 80GG benefits those paying rent without HRA. Section 80DD covers medical treatment expenses for dependents with disabilities.

Step-by-Step ITR Filing Process

Pre-Filing Preparation

Taxpayers should gather all income documents before starting. Form 16 from employers shows salary and TDS details. Bank statements reveal interest earnings and tax deductions.

Investment certificates prove Section 80C claims. Health insurance premium receipts support Section 80D deductions. Home loan certificates provide interest details for Section 24(b).

Capital gains statements from brokers are essential for stock transactions. Rental agreements and property tax receipts apply to rental income. Documentation should be organized systematically.

Accessing the E-Filing Portal

The Income Tax Department operates the official portal at incometax.gov.in. Taxpayers must register using their PAN. Aadhaar linking with PAN is mandatory for processing.

The portal requires authentication through registered credentials. Mobile numbers and email addresses must be current. The system sends OTPs for security verification.

Selecting the Correct ITR Form

ITR-1 (Sahaj) applies to resident individuals with salary income. Interest income must not exceed Rs. 5 lakh. Total income should be below Rs. 50 lakh. This form does not accommodate capital gains.

ITR-2 suits individuals with capital gains or multiple properties. Foreign income holders must use this form. Those ineligible for ITR-1 typically file ITR-2.

ITR-3 applies to individuals with business or professional income. Partnership firm partners use this form. It accommodates all income types.

ITR-4 (Sugam) covers presumptive income under specific sections. Sections 44AD, 44ADA, and 44AE define eligible businesses. Small businesses and professionals often qualify.

Data Entry and Verification

The portal pre-fills certain information from Form 26AS. Taxpayers must verify and complete all required fields. Income from each source needs separate reporting.

Deductions claimed require supporting details. Bank account information must be accurate for refunds. IFSC codes and account numbers need verification.

The system calculates tax liability automatically. It compares payments made against liability. Refunds or additional payments are determined.

Submission and E-Verification

After reviewing all entries, taxpayers submit the return. The portal generates an acknowledgment with a unique number. This acknowledges receipt but not processing completion.

E-verification must occur within 120 days of submission. Aadhaar OTP provides instant verification. Net banking through specified banks offers another option. Digital Signature Certificates work for eligible users.

Physical verification through ITR-V form is available. The signed form must reach CPC Bangalore within 120 days.

Common Filing Errors and Prevention Strategies

Incorrect ITR Form Selection

Using the wrong form causes processing delays. The system may reject returns with form mismatches. Taxpayers should carefully review eligibility criteria before selection.

Capital gains income requires ITR-2 or ITR-3. Multiple house properties necessitate forms beyond ITR-1. Professional consultation helps in complex situations.

Incomplete Income Reporting

All income sources must be declared. Bank interest, dividend income, and rental receipts need inclusion. Form 26AS shows TDS deductions that indicate unreported income.

The department cross-verifies reported income with third-party data. Discrepancies trigger scrutiny notices. Complete reporting prevents complications.

Bank Account Details Mistakes

Incorrect account numbers prevent refund credits. IFSC code errors cause processing failures. Account holder name must match PAN records.

Taxpayers should verify bank details before submission. Pre-validation of bank accounts on the portal helps. Updated banking information ensures smooth refund processing.

Aadhaar-PAN Linking Issues

Unlinked Aadhaar invalidates return processing. The Supreme Court mandates this linkage. Taxpayers must complete linking before filing.

The portal checks linkage status during filing. Delays in linking cause return rejection. The Income Tax website provides linkage verification tools.

Mathematical Calculation Errors

Manual calculation mistakes affect tax liability computation. Software-based filing reduces such errors. The portal’s automatic calculation feature helps accuracy.

Taxpayers should cross-verify computed values. Professional software provides error checks. Double-checking entries before submission prevents mistakes.

Penalty Structure for Non-Compliance

Late Filing Fees Under Section 234F

Section 234F mandates penalties for delayed filing. Taxpayers with income below Rs. 5 lakh pay Rs. 1,000. Those exceeding Rs. 5 lakh face Rs. 5,000 penalty.

The fee applies to returns filed after the due date. It charges regardless of tax liability. Even nil tax returns attract late fees.

Interest Charges Under Section 234A

Section 234A levies interest on delayed tax payments. The rate stands at 1% per month or part thereof. Interest calculates from the day after the due date.

It applies to tax due after considering TDS and advance tax. The interest is separate from late filing fees. Both charges apply simultaneously for late filing.

Loss of Carry-Forward Benefits

Capital losses can be carried forward for eight years. Business losses have specific carry-forward provisions. These benefits require timely return filing.

Returns filed after the due date lose carry-forward eligibility. This can significantly impact future tax planning. Timely filing preserves these valuable benefits.

Refund Processing and Tracking Mechanisms

Eligibility for Tax Refunds

Refunds arise when tax paid exceeds actual liability. Excess TDS deductions create refund situations. Advance tax payments may exceed final calculations.

The return filing process claims these refunds. The department processes refunds after verification. Direct bank transfer is the standard refund method.

Refund Processing Timeline

The Income Tax Department aims to process refunds within specified periods. E-verified returns receive faster processing. Complete documentation accelerates the process.

Returns selected for scrutiny face processing delays. Pending tax demands from previous years may delay refunds. The department adjusts outstanding dues against refunds.

Online Refund Status Tracking

The Income Tax portal provides refund status tracking. Taxpayers can check processing stages online. The system shows payment dates and amounts.

Email notifications inform about refund status changes. SMS alerts provide updates on mobile numbers. The portal displays reasons for processing delays.

Refund Re-Issue for Failed Credits

Bank account issues sometimes prevent successful credits. The portal allows refund re-issue requests. Taxpayers can update bank details for re-crediting.

The process requires verification of new account details. Re-issue takes additional processing time. Ensuring correct banking information initially prevents delays.

Strategic Tax Planning for Different Income Levels

Low-Income Taxpayers (Up to Rs. 7 Lakh)

The new tax regime offers zero tax liability for this bracket. Section 87A rebate eliminates tax completely. This makes the new regime highly beneficial.

Taxpayers should consider investment goals beyond tax saving. Retirement planning may still justify some Section 80C investments. Health insurance remains important regardless of tax benefits.

Middle-Income Taxpayers (Rs. 7-15 Lakh)

This category requires careful regime comparison. Those with home loans often benefit from the old regime. Section 24(b) interest deduction can exceed new regime savings.

Taxpayers with significant 80C investments may prefer the old regime. Those without substantial deductions benefit from the new structure. Annual calculation under both regimes reveals the better option.

High-Income Taxpayers (Above Rs. 15 Lakh)

Both regimes tax income above Rs. 15 lakh at 30%. The effective tax rate depends on total deductions available. High deduction eligibility favors the old regime.

Investment planning should consider long-term wealth creation. Tax saving represents one factor among many. Professional consultation helps optimize tax strategies.

Technological Tools and Digital Resources

Income Tax Department Portal Features

The official portal offers comprehensive filing capabilities. Pre-filled data from Form 26AS simplifies entry. Aadhaar-based authentication enhances security.

The portal provides tax calculators for both regimes. Download facilities for forms and documents exist. Video tutorials guide users through processes.

Third-Party Tax Filing Software

Authorized e-return intermediaries offer filing services. Commercial software provides additional features beyond basic filing. Automated error checking improves accuracy.

These platforms often include tax optimization suggestions. They may identify overlooked deductions. Professional support enhances the filing experience.

Mobile Application Accessibility

The Income Tax Department provides mobile apps. These allow filing from smartphones and tablets. Push notifications alert users about important deadlines.

Mobile platforms support document uploads and status tracking. They offer convenience for tech-savvy taxpayers. The functionality mirrors web-based services.

International Income and Asset Reporting

Foreign Income Disclosure Requirements

Indian residents must report worldwide income. Foreign salary, business income, and investments require disclosure. Schedule FSI in ITR forms accommodates this information.

Foreign tax credits may be available for taxes paid abroad. Double Taxation Avoidance Agreements prevent duplicate taxation. Proper documentation supports these claims.

Schedule FA for Foreign Assets

Schedule FA captures details of foreign assets. Bank accounts, securities, and immovable property need reporting. The disclosure applies regardless of income generation.

Value thresholds do not exempt reporting requirements. Non-disclosure attracts significant penalties. Compliance requires detailed documentation maintenance.

Transfer Pricing Provisions

Transactions with associated enterprises require specific reporting. Form 3CEB accompanies tax returns for such cases. International transactions above specified limits trigger this requirement.

Transfer pricing documentation maintains compliance. The Income Tax Department scrutinizes these transactions carefully. Professional assistance is advisable for complex cases.

Updates on Tax Regulations and Compliance

Finance Act 2024 Key Changes

The Finance Act introduced several modifications for FY 2024-25. The new tax regime became the default option. Section 87A rebate enhanced to Rs. 7 lakh threshold.

Standard deduction became available under the new regime. These changes impact tax planning significantly. Taxpayers must understand implications for their situations.

CBDT Circulars and Notifications

The CBDT issues circulars clarifying tax provisions. These provide interpretational guidance on complex matters. Staying updated with notifications prevents compliance issues.

The Income Tax Department website publishes all official communications. Tax professionals monitor these regularly. Taxpayers should review relevant notifications affecting them.

Upcoming Compliance Requirements

The government continuously reviews tax administration procedures. Digital initiatives expand filing capabilities. Future changes may further simplify processes.

Taxpayers should anticipate evolving requirements. Regular review of official sources maintains awareness. Professional consultation helps navigate changes.

Documentation Requirements and Record Maintenance

Essential Documents for Filing

Form 16 from employers provides salary details. Form 16A covers TDS on non-salary payments. Bank statements show interest income and deductions.

Investment proof includes NSC certificates, PPF passbooks, and insurance premium receipts. Home loan statements detail principal and interest components. Rent receipts support HRA claims.

Capital gains require broker statements and purchase-sale documents. Mutual fund statements show transactions and gains. Property documents verify ownership and transaction values.

Record Retention Guidelines

Tax records should be preserved for specified periods. The Income Tax Act allows assessment up to six years. Records supporting returns must be available during this time.

Digital storage provides convenient record-keeping. Physical documents require secure storage. Systematic organization facilitates easy retrieval when needed.

Document Verification Process

The Income Tax Department may request supporting documents. Scrutiny notices specify required documentation. Timely response with proper documents resolves queries.

Digital submission through the portal is increasingly common. Scanned copies must be clear and legible. Authentication may require original documents in some cases.

Frequently Asked Questions About ITR Filing FY 2024-25

What is the final deadline to file Income Tax Returns for FY 2024-25?

The Central Board of Direct Taxes extended the ITR filing deadline to September 16, 2025, for individuals and non-audit cases. The original deadline was July 31, 2025, which was first extended to September 15, 2025. Businesses requiring audits must file by October 31, 2025. Companies with international transactions have until November 30, 2025. Revised returns can be submitted until December 31, 2025.

How do I decide between the new and old tax regime for FY 2024-25?

The new tax regime became the default option under Finance Act 2024 but taxpayers can opt for the old regime. Choose the new regime if you have minimal deductible expenses and want to benefit from the Section 87A rebate for income up to Rs. 7 lakh. Select the old regime if you have substantial Section 80C investments, home loan interest payments, health insurance premiums, or other significant deductions. Calculate tax liability under both regimes to determine the better option for your financial situation.

What penalties apply if I miss the September 16, 2025 deadline?

Late filing attracts fees under Section 234F. Taxpayers with income below Rs. 5 lakh pay Rs. 1,000 penalty while those above Rs. 5 lakh face Rs. 5,000 penalty. Section 234A levies interest at 1% per month on unpaid taxes from the day after the due date. Late filing also results in loss of carry-forward benefits for business losses and capital losses. These penalties apply regardless of whether you owe tax or expect a refund.

Can salaried employees with only Form 16 income skip ITR filing?

Salaried employees must file ITR if their gross total income exceeds specified age-based thresholds. Those below 60 years with income above Rs. 2.5 lakh must file. Even if income falls below thresholds, filing is advisable if TDS was deducted to claim refunds. Filing creates income documentation useful for loan applications and visa processing. Multiple employers, house property income, or capital gains mandate filing regardless of Form 16 availability.

What deductions remain available under the new tax regime?

The new tax regime eliminates most traditional deductions including Section 80C investments, Section 80D health insurance premiums, and Section 24(b) home loan interest. However, the standard deduction of Rs. 50,000 is available under the new regime for salary or pension income. Employer contributions to NPS under Section 80CCD(2) remain deductible. The rebate under Section 87A for income up to Rs. 7 lakh provides significant tax relief under the new regime.

How can I track my income tax refund status?

Log in to the Income Tax e-filing portal at incometax.gov.in using your PAN and credentials. Navigate to the ‘View Returns/Forms’ section to check refund status. The portal displays processing stages and expected credit dates. You can also track refunds using the ‘Refund/Demand Status’ option without logging in by entering PAN and assessment year. Email and SMS notifications provide updates when refunds are processed. Refunds are directly credited to the bank account mentioned in the return.

Which ITR form should I use for filing my return?

ITR-1 (Sahaj) applies to resident individuals with salary, pension, and interest income up to Rs. 5 lakh, with total income below Rs. 50 lakh. ITR-2 is for individuals with capital gains, multiple house properties, or foreign income. ITR-3 covers individuals and HUFs with business or professional income. ITR-4 (Sugam) applies to presumptive income under Sections 44AD, 44ADA, or 44AE. Using the incorrect form causes processing delays and potential rejection.

What are the most common errors to avoid during ITR filing?

Common mistakes include selecting the wrong ITR form, incomplete reporting of all income sources, incorrect bank account details preventing refunds, and Aadhaar-PAN linkage issues. Taxpayers often forget to include interest income from savings accounts or fixed deposits. Mathematical errors in calculations and failure to claim eligible deductions result in higher tax liability. Not e-verifying returns within 120 days makes filing invalid. Verify all details thoroughly before submission and ensure Aadhaar is linked with PAN.

Author Information

Nueplanet
Tax and Financial Compliance Specialist

Nueplanet is a certified financial content writer specializing in Indian taxation and regulatory compliance. With the years of experience in analyzing Income Tax Act provisions and CBDT notifications, Nueplanet provides accurate, verified information to help taxpayers navigate complex filing requirements. All content is based on official government sources, Income Tax Department circulars, and Finance Act provisions.

About This Publication
Nueplanet is committed to providing accurate, up-to-date tax information verified through official sources including the Income Tax Department, CBDT notifications, and Finance Act 2024 provisions. Content is reviewed regularly to reflect the latest regulatory changes and compliance requirements.

Published: August 05, 2025
Last Updated: August 05, 2025

Disclaimer: This article provides general information about Income Tax Return filing requirements for FY 2024-25 based on current laws and regulations. Tax situations vary by individual circumstances. Readers should consult qualified tax professionals for advice specific to their financial situations. The author and publisher are not responsible for any financial decisions made based on this information.

Latest

Table of Contents