Understanding income tax is essential for every salaried employee, freelancer, investor, or business owner in India. Whether you’re filing for the first time or reviewing changes for ITR filing 2025, here’s a simple guide to help you through the system.
1. Who Should File Income Tax in India?
If your annual income exceeds ₹2.5 lakh, you’re required to file an Income Tax Return (ITR), even if no tax is payable after deductions. This threshold applies to individuals below 60 years of age. Senior citizens and super senior citizens have higher limits of ₹3 lakh and ₹5 lakh, respectively.
Also, you must file ITR if:
- You have foreign income or assets
- You want to claim a refund
- You’re applying for a visa or loan
- You have carried forward losses like capital losses or business losses
Filing ITR isn’t just about paying tax, it’s about maintaining a clean financial record.
2. Types of Income You Must Report
The Indian Income Tax Act categorizes income under 5 heads:
| Income Head | Examples |
|---|---|
| Income from Salary | Basic pay, allowances, bonuses |
| Income from House Property | Rental income, deemed rent on second property |
| Profits & Gains of Business or Profession | Freelancing, consultancy, business revenue |
| Capital Gains | Sale of shares, mutual funds, property, gold |
| Income from Other Sources | Bank interest, lottery winnings, dividends |
You’re required to declare income from all five heads, even if some are tax-exempt.
3. Understand Tax Slabs (FY 2024–25)
You can choose between the Old Regime (with exemptions) and the New Regime (lower tax rates but no major exemptions).
Basic Slabs for Individuals (<60 years):
| Annual Income | Old Regime Tax | New Regime Tax |
|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil |
| ₹2.5L – ₹5 lakh | 5% | 5% |
| ₹5L – ₹7.5 lakh | 20% | 10% |
| ₹7.5L – ₹10 lakh | 20% | 15% |
| ₹10L – ₹12.5 lakh | 30% | 20% |
| ₹12.5L – ₹15 lakh | 30% | 25% |
| Above ₹15 lakh | 30% | 30% |
Under new regime, taxpayers earning up to ₹12lakh (net taxable income) may get a rebate under Section 87A.
4. ITR Filing 2025: Due Dates You Must Know
For FY 2024–25 (AY 2025–26), the expected ITR filing last date 2025 for salaried individuals and those not requiring an audit is:
- 31st July 2025 (Subject to official notification by the Income Tax Department)
Missing this deadline could result in a late filing fee of ₹1,000 to ₹5,000, plus interest under Sections 234A and 234B.
Keep track of ITR filing announcements through incometax.gov.in or the official Income Tax Twitter handle.
5. Common Deductions to Save Tax
Use these popular deductions to lower your taxable income:
| Section | Purpose | Max Limit |
|---|---|---|
| 80C | ELSS, PPF, LIC, EPF, tuition fees | ₹1.5 lakh |
| 80D | Health insurance premium | ₹25,000 – ₹1 lakh |
| 24(b) | Home loan interest on self-occupied home | ₹2 lakh |
| 80E | Interest on education loans | No upper limit |
| 80G | Donations to eligible trusts | Varies (50–100%) |
Remember: These deductions are available only under the Old Tax Regime.
6. Important Documents for ITR Filing
Before you start ITR filing 2025, keep these ready:
- PAN card and Aadhaar card
- Form 16 (from employer)
- Interest certificates (from banks)
- Capital gains statements (from brokers)
- Proof of deductions (insurance, PPF, tuition, etc.)
- AIS & TIS (Annual Information Statement) from the IT portal
Always cross-check Form 26AS and AIS for accuracy before submitting your return.
Final Tips for Easy ITR Filing
- Always choose the correct ITR form (e.g., ITR-1 for salary, ITR-2 for capital gains, ITR-3 for business income)
- Review all pre-filled data carefully, especially for capital gains or multiple bank accounts
- File well before the ITR filing last date 2025 to avoid late fees
- If unsure, consult a tax expert or use platforms like ClearTax, TaxBuddy, or the official IT e-filing portal
Conclusion
What are the basic rules of income tax? It starts with understanding who needs to file, what incomes are taxable, which regime to choose, and how to claim deductions. With tools like pre-filled forms and AIS, ITR filing 2025 is easier, but not error-proof. Be informed, stay updated on the ITR filing last date 2025, and always file with care.
