Taxpayers will soon be able to file their income tax returns for the recently concluded financial year. The online portal is expected to open within a few days — with the Central Board of Direct Taxes notifying various ITR forms.
Taxpayers can only start filing their returns once the Income Tax Department notifies the relevant ITR forms. An official announcement has not been made but notices from previous years suggests that the online ITR forms are typically notified during the first half of April. It is likely that the department is taking some additional time this year in order to effect some changes in the forms and utilities.
Taxpayers are encouraged to gather and keep all relevant documents ready ahead of time in order to ensure a speedy refund process. This includes PAN and Aadhaar card as well as Form 16 from your employers. Other documents such as salary slips, interest certificates, capital gains statements, rental income details, and any other proof of income might be necessary while filing out the online form.
The last date to file ITR for FY24 without late fees was July 31 last year. Taxpayers were also allowed to file a belated return (with penalties) till December 31. Assessment year 2025-26 is expected to follow a similar pattern with an initial deadline at the end of July 2025. The Income Tax Department may also announce an extension in light of the ongoing delay.
There is no right answer when it comes to choosing your tax regime — with various factors including income, investments and eligible deductions influencing the decision. Salaried individuals opting for the new tax regime will be exempted from paying taxes on income up to Rs 7 lakh for the recently concluded financial year. It offers simplified tax slabs with limited deductions. From FY25 the standard deduction under the new tax regime was raised to Rs 75,000. Meanwhile the old tax regime allows taxpayers to claim a greater number of deductions and exemptions such as Section 80C, Section 80D, housing rent allowance and more. The standard deduction under this system remains unchanged at Rs 50,000.
The Income Tax Department will soon notify seven ITR forms for eligible taxpayers — with details instructions regarding eligibility. It is advisable to consult the official Income Tax website to confirm which form should be used while filling out returns.
ITR-1 can be used by resident individuals with an income less than Rs 50 lakh through salary, pension, one housing property and other similar sources.
ITR-2 can be used by those with income higher than Rs 50 lakh as well as people who earn income from capital gains, multiple house properties, foreign assets or income and cryptocurrencies (if it is reported as capital gains). Those holding directorial roles in a company or holding unlisted equity shares will also have to use this form.
ITR-3 can be used by individuals who earn from a proprietary business or by practicing their profession.
Individuals, HUFs and firms (excluding Limited Liability Partnerships or LLPs) can file ITR-4 if they earn below Rs 50 lakh during the financial year. It is also applicable if their income is computed presumptive basis under Sections 44AD, 44ADA or 44AE of the Income Tax Act.
ITR-5 is applicable for firms, LLPs, AOPs and BOIs. ITR-6 can be used by companies that do not claim exemption under Section 11. The final form (ITR-7) can be used by people or companies under Sections 139(4A), 139(4B), 139(4C) and 139(4D.
The I-T Department has streamlined the refund process extensively in recent years with most people now receiving the surplus amount within 7 to 20 days. This is however subject to there being no discrepancies or mismatched details in the filed returns. Taxpayers must also ensure that they ensure prompt verification of return via Aadhaar OTP or other alternatives. Their bank accounts should also be pre-validated and linked to their PAN card details.