How to File Income Tax Return (ITR) for FY 2024-25 (AY 2025-26) in India – A Comprehensive Guide

By Vaibhav Agrawal | Updated on April 28, 2025 | 12 min read

Introduction to Income Tax Return (ITR)

At Filingpedia, we understand that filing your Income Tax Return (ITR) can seem daunting. An Income Tax Return (ITR) is a form where you report your annual income, deductions, and taxes paid to the Income Tax Department. In simple terms, it’s a way to declare your earnings and taxes for a financial year (April to March). Every earning individual in India is legally required to file an ITR if their income exceeds the basic exemption limit (even if tax is already deducted by employers). Filing an ITR is not just a legal obligation; it also helps you claim refunds on excess tax paid, carry forward losses, and serves as proof of income for loans or visa applications.

In this guide, Filingpedia will walk you through everything about filing your ITR for the Financial Year 2024-25 (Assessment Year 2025-26) in a simple, step-by-step manner. We’ll cover which ITR form to use, the latest tax slabs (Old vs New Regime), what documents you need, how to file on your own, important dates, penalties for late filing, and some handy tips for a smooth experience. Let’s get started!

Which ITR Form is Applicable for You?

The Income Tax Department has different ITR forms depending on your income sources and situation. Choosing the correct form is the first step to a smooth filing. For most individual taxpayers (salaried employees, freelancers, small business owners, etc.), the applicable forms are ITR-1, ITR-2, ITR-3, or ITR-4. Below is a simple table to help you identify which form you should use:

Note: If you earn from a regular salary and also run a small side business or freelance, you may need ITR-3 (or ITR-4 if under presumptive scheme). Also, if you are a Director in a company or have foreign assets/income, you cannot use ITR-1 and should opt for ITR-2 or ITR-3 as applicable.

Income Tax Slabs for FY 2024-25 – Old vs New Tax Regime

India currently has two tax regimes for individuals – the Old Tax Regime (with deductions and exemptions) and the New Tax Regime (with lower rates but few deductions). You can choose either regime when filing your return. It’s important to know the tax slab rates under each, as they determine how much tax you owe on your income. Below we present the tax slabs for Financial Year 2024-25 (Assessment Year 2025-26) under both regimes.

Old Tax Regime Slabs (FY 2024-25)

Under the old regime, tax rates increase as income rises, and you can claim various deductions (like 80C, 80D, HRA, etc.) to reduce taxable income. The basic exemption limit depends on your age (₹2.5 lakh for individuals below 60, ₹3 lakh for senior citizens 60-80, and ₹5 lakh for super-senior above 80). For individuals below 60, the FY 2024-25 slabs are:

For example, if your taxable income is ₹7 lakh under the old regime, your tax would be 5% of ₹2.5L (₹12,500) plus 20% of the next ₹2 lakh (₹40,000) totaling ₹52,500 (before cess). However, the old regime also allows a tax rebate (under Section 87A) that makes net tax zero for incomes up to ₹5 lakh. This means if your total taxable income (after deductions) is ₹5,00,000 or less, you pay no tax in the old regime (you get a rebate of up to ₹12,500).

Senior Citizens: If you are 60 or above, the old regime gives a higher basic exemption (₹3 lakh for 60-79 years, ₹5 lakh for 80+). Otherwise the slab rates are the same, just starting after the higher exemption. For instance, a 65-year-old would pay 0% up to ₹3L, then 5% on ₹3-5L, and so on.

New Tax Regime Slabs (FY 2024-25)

Under the new regime, tax rates are lower and spread across more slabs, but most deductions/exemptions are not allowed (no 80C, 80D, HRA, etc.). The new regime has been made the default tax system for FY 2024-25 onwards, but you can choose to opt out and use the old regime when filing. The slabs under the new regime for FY 2024-25 are as follows:

As an example, if your taxable income in the new regime is ₹7 lakh, the tax would be 5% of ₹4 lakh (amount above ₹3L) = ₹20,000. Notably, the new regime offers a rebate that ensures no tax is payable on income up to ₹7 lakh (Section 87A provides a rebate up to ₹25,000). This means even though ₹20,000 tax is computed, it gets rebated – so effectively zero tax for income ≤ ₹7,00,000. However, once your income exceeds ₹7 lakh, you lose the full rebate and pay tax as per slabs on the entire amount (with some marginal relief if just over ₹7L).

Key differences: The new regime has a higher initial exemption (₹3L vs ₹2.5L) and lower rates in certain bands, but no additional exemptions/deductions can be claimed (except standard deduction and employer NPS contribution in some cases). Also, the new regime slabs do not vary by age – there’s no extra benefit for senior citizens in the new system. It’s a flat structure for all individuals.

Below is a quick comparison of how the tax calculation differs between the two regimes for a given income:

• Old Regime:Higher rates (20%/30%) kick in at lower income thresholds, but you can reduce income by investing in tax-saving avenues (like PF, insurance, home loan interest, etc.).
• New Regime:Lower rates for mid-income ranges and full tax rebate up to ₹7L, but no tax breaks for investments or expenses (apart from a standard deduction of ₹50,000 for salary and some employer contributions).

Old Tax Regime vs New Tax Regime – Which One to Choose?

Now that you know the slab rates, the big question is Old vs New regime: which is better for you? The answer depends on your income composition and how much you can claim in deductions. Here’s a simple explanation with examples to illustrate the difference:

• Old Regime Benefits:You can lower your taxable income by claiming deductions/exemptions like:
  • ₹1.5 lakh under Section 80C(investments in EPF, PPF, NSC, ELSS mutual funds, life insurance premiums, principal on home loan, etc.).
  • Medical insurance premiums under Section 80D(up to ₹25,000 for self/family, additional ₹25,000 for parents)
  • House Rent Allowance (HRA)if you are salaried and living in rented accommodation.
  • Home loan interest(up to ₹2 lakh deduction for self-occupied house property).
  • and many others like 80E (education loan interest), 80TTA (savings account interest), etc.

If you have significant deductions, the old regime could reduce your tax substantially. For example, suppose you earn ₹10 lakh salary and you invest ₹1.5 lakh in PF/insurance (80C) and ₹20,000 in health insurance (80D). Under the old regime, your taxable income would drop to ₹8.3 lakh. Roughly, your tax would be calculated on ₹8.3L (after deductions) at higher slab rates. Under the new regime, you’d have to pay tax on the full ₹10 lakh (since no 80C/80D deductions), but at lower slab rates. We need to compare the final tax in both cases:

• Old Regime Example:Taxable income ₹8.3L. Tax = 5% of ₹2.5L (₹12,500) + 20% of the remaining ₹3.3L (₹66,000) = ₹78,500 (plus cess).
• New Regime Example:Taxable income ₹10L (no deductions). Tax = 5% of ₹3L (₹15,000) + 10% of next ₹3L (₹30,000) + 15% of next ₹1L (₹15,000) = ₹60,000 (plus cess).

In this scenario, even though the individual claimed the full ₹1.5L deduction, the new regime’s lower rates still resulted in less tax (₹60k vs ₹78.5k). This suggests that for this person, the new regime is more beneficial despite investments.

• New Regime Benefits:It offers simplicity and lower tax for many. If you don’t have many tax-saving investments or loans, the new regime usually gives a better outcome due to its lower rates. It is especially attractive for:
  • Young earners who have not started big investments or don’t pay rent/home loan.
  • Freelancers or consultants who prefer a straightforward calculation rather than keeping track of numerous bills and receipts.
  • Anyone with income up to ₹7 lakh – since they’ll pay zero tax in the new regime due to the rebate, whereas in old regime they would owe some tax if their taxable income exceeds ₹5L.
• Example – Salaried with No Deductions:Let’s say  Priya earns ₹7.5 lakh with no major investments. Under new regime, her tax (before rebate) would be 5% of ₹4.5L = ₹22,500. Since ₹7.5L exceeds the ₹7L rebate limit, she will pay some tax (~₹22.5k). Under old regime, without deductions her taxable income is ₹7.5L: tax = ₹12,500 (5% on 2.5–5L) + ₹50,000 (20% on 5–7.5L) = ₹62,500. Clearly, new regime saves a lot here. If Priya could use deductions of ₹2.5L (bringing taxable to ₹5L), old regime tax would become nil due to rebate – but achieving ₹2.5L of deductions might require significant investments/expenses.
• Example – Higher Income with Investments:Consider  Arjun with income ₹15 lakh. He pays ₹2 lakh housing loan interest, ₹1.5 lakh in 80C investments, and ₹50k in NPS (80CCD(1B)). Under old regime, he can deduct these (total ₹4 lakh), taxable income ~₹11L. Tax on ₹11L (old) ≈ ₹1,32,500. Under new regime, no deductions, taxable ₹15L: tax ≈ ₹1,50,000. Here, Arjun’s extensive tax-saving investments make the old regime slightly better.

In summary, choose the regime that results in lower tax for you. You can calculate tax under both regimes (the income tax e-filing portal and various calculators allow you to compare). As a rule of thumb:

• If your total deductions and exemptions are large (for example, more than ₹2–3 lakh), the old regimemay save you more tax.
• If your deductions are minimal, or your income isn’t very high, the new regimewith its lower rates and higher rebate often yields lower tax.

Remember, at Filingpedia we suggest evaluating both options each year. For FY 2024-25, the government has made the new regime the default, but you are free to stick to the old regime by actively choosing it when filing. The flexibility is there to pick what benefits you the most.

Documents Required for Filing ITR

Before you start filing, gather all the necessary documents. Having these on hand will make the process smooth and ensure you don’t miss any income or deduction. Here’s a checklist of documents and details typically required for an individual’s ITR filing:

• Personal Information:Your PAN card and Aadhaar card details are mandatory. (PAN and Aadhaar must be linked as per Section 139AA of the Income Tax Act). Also keep your bank account details (account number, IFSC) handy – a pre-validated bank account is needed for any tax refund.
• Form 16(TDS Certificate from Employer): If you are salaried, this is the primary document. Form-16 contains your salary income, allowances, deductions, and the tax deducted by your employer. It essentially summarizes your salary and TDS for the year.
• Salary Slips:It’s good to have the last few months’ payslips. They help you cross-verify figures like HRA, leave travel allowance (LTA) etc., especially if you want to compute exemptions under the old regime.
• Form 16A/16B/16C:These are TDS certificates for other incomes. For example, Form 16A for TDS deducted on bank interest or freelancing payments, Form 16B for TDS on sale of property, Form 16C for TDS on rent. Collect these if applicable.
• Interest and Income Statements:Gather interest certificates from banks or post office for interest earned on savings accounts, fixed deposits etc. Also include any dividend statements, or rental income details (rent receipts, if you have let-out property).
• Investment Proofs for Deductions:If you plan to use the old regime, keep receipts or proofs of investments and expenditures you will claim as deductions:
  • Section 80C investments: e.g. PF passbook, PPF statement, life insurance premium receipts, ELSS mutual fund statements, tuition fee receipts, etc.
  • Section 80D: health insurance premium receipts
  • Section 80E: education loan interest statement.
  • Section 80GG: rent receipts (if claiming rent deduction and not receiving HRA).
  • Any other applicable deduction receipts.
• Home Loan Documents:If you have a housing loan, get the interest certificate from the lender (showing interest and principal repaid during the year). This helps claim interest deduction (old regime) and principal under 80C.
• Capital Gains Documents:If you sold property, stocks, or mutual funds, gather capital gains statements. This could include stock trading summary from your broker, mutual fund capital gains statement, or sale deed details for property. You’ll need purchase and sale dates and prices to calculate gains.
• Form 26AS and AIS:Form 26AS is a consolidated annual tax statement available on the tax portal that shows all tax paid/credited against your PAN (TDS, advance tax, etc.). AIS (Annual Information Statement) is a newer comprehensive statement of your income and financial transactions. Download and cross-check these to ensure you report all incomes and match TDS amounts. This helps avoid discrepancies.
• Others (if any):If you have foreign income/assets, you’ll need details of those (like foreign bank statements). If you received any advance salary or arrears, keep relevant documents (you might use Form 10E for relief on arrears). Also, if you had crypto or other taxable transactions, have those summaries ready.

Collecting these documents beforehand will make the actual e-filing process quicker. You won’t have to pause filing to hunt for information. At Filingpedia, we emphasize being organized – it reduces errors and omissions in your tax return.

Step-by-Step Guide: How to File ITR Online (Self-Filing)

Filing your ITR online on the Income Tax Department’s portal is a straightforward process. You don’t necessarily need to pay someone else if your finances are simple. Here’s a step-by-step guide to file your ITR on your own:

1. Visit the e-Filing Portal and Log In:Go to the official income tax e-filing website (incometax.gov.in). Log in with your User ID (PAN) and password (if you’re a first-time filer, you’ll need to register using your PAN, which is simple). Once logged in, you’ll see your dashboard.
2. Start Filing a New Return:On the dashboard menu, navigate to “e-File” > “Income Tax Returns” > “File Income Tax Return”. The portal will ask you to select:
   • Assessment Year: Choose 2025-26(which corresponds to FY 2024-25).
   • Filing mode: Choose Online(the portal also has an offline utility option, but online is easier for most users).
3. Select Your Status and ITR Form:It will then ask for your filing status – select “Individual”. Next, choose the correct ITR form applicable to you (ITR-1, 2, 3, or 4 as discussed earlier). If you’re unsure, the portal has a quick wizard (“Help me decide”) that can assist based on simple questions. For example, if you only have salary income and interest, it will direct you to ITR-1. Confirm the ITR form and proceed.
4. Choose Tax Regime (New or Old):For AY 2025-26, the system will show that New Tax Regime is the default. If you want to opt out of the new regime and use the old regime, there will be an option to select “Yes” (to opt for old regime) in the personal information section. Make sure to choose the regime you want to be taxed under. If you do nothing, it will assume new regime by default (you can change it before final submission).
5. Fill in Personal and Income Details:The ITR form is divided into sections. You will need to go through each section/tab and fill or verify the information:
   • Personal Information:This includes your name, address, Aadhaar number, etc. Much of this is pre-filled from your profile. Ensure they are correct (especially bank account for refund). You will also see a question about whether you’re opting for old regime – double-check this selection here.
   • Gross Total Income:Enter your income details. If you have Form 16, use it to fill salary (the portal often pre-fills salary from the TDS records – verify it matches your Form 16). For interest income, you might see some pre-filled values from Form 26AS/AIS – cross-check with your own documents. Enter any rental income or other taxable income here. For business income (ITR-3/4), you may need to enter profit figures or balance sheet details as applicable.
   • Deductions:If you are in old regime, this section is where you claim deductions like 80C, 80D etc. The portal might pre-fill some data (e.g., employer’s contribution to NPS, if any). Fill in the amounts you invested or spent on eligible avenues. If you’re using new regime, this section will mostly be greyed out (since deductions aren’t applicable except certain ones like 80CCD(2) which are automatically accounted).
   • Tax Paid (TDS and advance tax):The form will show TDS amounts from salary (Form16) and other TDS entries (Form16A, etc.) which are auto-imported from the tax database. Verify these against your Form 26AS. If you paid any advance tax or self-assessment tax, ensure those amounts (Challan details) are entered here so that credit is given.
   • Total Tax Liability:Once income and deductions are filled, the system will compute your tax. You can click a button to calculate tax and see a summary. It will factor in the applicable slab rates for the regime you chose, add 4% cess, and subtract any TDS/advance tax paid to show if tax is payable or refund due.
6. Pay Additional Tax if Required:After computing, if the form shows that you have a tax due (tax payable), you need to pay it before submitting. The portal will guide you to pay it online via e-Pay Tax You can pay using net banking, debit card, UPI, etc. This tax is called self-assessment tax. Once paid, note the challan number and date – you’ll need to enter these in the return form (the portal may even fetch the challan details automatically after payment). Ensure your tax payable becomes zero after this step. If you are due a refund, you don’t need to pay anything (the excess TDS will be refunded to your bank).
7. Verify All Sections and Submit:Go through each section of the form to make sure everything is correctly filled and there are no validation errors (the portal will flag if something mandatory is missing). Common things to check:
   • Personal info and contact details are up to date.
   • All incomes are included (salary, interest, dividends, capital gains, etc.).
   • Deductions are correctly claimed (and you have proofs).
   • TDS amounts match your certificates/26AS exactly.
   • Chosen the correct tax regime and calculated tax under it. Once satisfied, click on “Preview and Submit”. You can download a preview PDF to review. Then proceed to Submitthe return.
8. E-Verify Your ITR:Filing is NOT complete until you verify the submitted return. The final step is to e-verify the ITR, which must be done within 30 days of filing (immediate verification is recommended). The portal will prompt you to e-Verify. There are several easy ways:
   • Aadhaar OTP:If your mobile number is linked to Aadhaar, choose this option. You’ll get a 6-digit OTP on your Aadhaar-registered phone. Enter it to verify.
   • Electronic Verification Code (EVC):If you have pre-validated your bank account or demat account, you can get an EVC via SMS/Email from your bank to verify.
   • Net Banking:You can log in to your bank’s net banking and use the e-filing login through your bank, which automatically verifies your return.
   • Digital Signature Certificate (DSC):Mostly for professionals or businesses who have one; not common for individual filers.
   • Offline methods:If for some reason you cannot e-verify, you have the option to physically sign a printed verification (ITR-V) form and send it to CPC Bangalore via post. But this is slower and only a fallback. Online e-verification is instant and preferred.

Choose one of the e-verification methods and complete the verification. You will get a confirmation message that your ITR is successfully filed and verified.

After e-verification, your part is done! The Income Tax Department will process your return. You can later check the status (whether ITR is processed, refund issued, etc., on the portal). Keep an eye on your email/SMS for any communication from the tax department.

Filing your ITR online for the first time might take a little time, but the portal is quite user-friendly. Just follow the prompts, and refer to this guide or help sections if you get stuck. At Filingpedia, we encourage taxpayers to try self-filing – it increases your tax awareness and saves you money that you might otherwise pay to a preparer.

Important Dates and Penalties for Late Filing

Mark your calendar with these critical dates for FY 2024-25 (AY 2025-26) ITR filing to avoid last-minute rush and penalties:

• July 31, 2025– Due Date for Filing: This is the last date to file your income tax return for most individual taxpayers (whose accounts are not required to be audited). Usually, the deadline is July 31 following the end of the financial year. For AY 2025-26, filing by 31st July 2025 keeps you timely and penalty-free. (Sometimes, this deadline gets extended by the government, but you should not count on an extension; plan for July 31.)
• October 31, 2025– Due date if tax audit is required. This later deadline applies primarily to taxpayers with business/professional income above certain thresholds or companies who need to get their accounts audited. If you’re a typical salaried individual or small freelancer, this likely doesn’t apply to you.
• December 31, 2025– Belated/Revised Return Deadline: If you miss the initial due date (July 31), you can still file a belated return by 31st Dec 2025. Also, if you filed by July but found an error, you have until Dec 31 to file a revised return to correct mistakes. Do note, filing late (after July 31) attracts penalties (see below) and certain benefits (like carrying forward losses) are forfeited. After December 31, 2025, you normally cannot file for that year unless the government specifically extends the date or you resort to an 'updated return' (which comes with additional tax costs).
• Late Filing Fees (Penalty): The Income Tax Act levies a penalty under Section 234Fif you file after the due date:
  • If your income is up to ₹5,00,000, the late filing fee is ₹1,000.
  • If your income is above ₹5,00,000, the late fee is ₹5,000(as long as you file by 31 Dec 2025). These penalties are payable while filing the belated return. For example, if you file in November 2025 and your taxable income is ₹7 lakhs, the system will include a ₹5,000 fee in your tax calculation.
• Interest on Late Payment: If you have any tax due that was not paid by the regular due date, you will incur interestfor late payment. Under Section 234A, interest at 1% per month (or part thereof) is charged on any outstanding tax from the date after the due date till the date of filing. Additionally, interest under Section 234B/C may apply if you didn’t pay enough advance tax during the year (this usually matters for taxpayers with large non-salary income). In short, delaying filing (and payment) can cost you extra in interest.
• Loss of Carry Forward Benefit: If you file after the due date (late), you cannot carry forward certain lossesto the next years. For instance, capital losses or business losses cannot be carried forward if the return is belated. So timely filing is important if you have losses to report, even if you don’t owe any tax.
• Failure to File: What if you don’t file at all? The Department can issue notices and even levy a minimum penalty of ₹5,000 which can go up to ₹25,000 for failure to file, or in extreme cases, prosecution. However, you generally have the option to file a belated return before they initiate action. Always better to file, even late, than not file at all.
• Updated Return: A relatively new provision allows filing an updated returnup to 24 months after the end of the FY, if you missed even the belated deadline. For FY 2024-25, that means you could file until March 2027 by paying an additional penalty on tax (25% extra tax if filed in the first year after AY, 50% in the second year). This is a last resort to rectify non-filing but comes at a high cost. It’s best to file by July 31, or at worst by Dec 31, 2025 with the late fee.

Tip: Don’t wait for the last day to file. The portal can get busy, and in case of any errors in your forms, you’d want time to correct them. Filing a few weeks or months early also gives you breathing room if any additional tax payment is needed.

Tips for Accurate and Smooth Filing

Filing your ITR can be hassle-free if you prepare and pay attention to details. Here are some handy tips from Filingpedia for a smooth filing experience:

• File Early, Don’t Procrastinate:Start the process early – as soon as you have all your Form 16s and other documents, you can file (the portal usually opens for the new year’s ITR by April or May). Early filing means less stress, and if you’re due a refund, you’ll get it sooner. It also leaves time to address any errors or compliance issues calmly.
• Ensure PAN-Aadhaar Linkage:Make sure your PAN is linked with Aadhaar (this is mandatory). An unlinked PAN is treated as inoperative, and you won’t be able to e-verify or even file properly. If not linked, do so before filing (there might be a late fee for linking after the due date, as per government rules).
• Use Form 26AS and AIS to Cross-Check:Always compare the incomes and TDS you are reporting with the data in Form 26AS and the Annual Information Statement (AIS). The tax department already has a record of your major incomes and tax deductions – ensure you haven’t missed reporting any item like interest income or a side gig payment that has TDS. Matching these prevents future notices for mismatch.
• Report All Sources of Income:Remember, it’s not just your primary salary or business – you must report all taxable incomes. Commonly forgotten incomes include: savings account interest (though only taxable over ₹10,000 in old regime), fixed deposit interest, interest from bonds or NSC, rental income from a house, capital gains from mutual fund redemptions or stocks, freelance income, honorariums, etc. Even if TDS is deducted, you need to include the income and then claim the TDS. Transparency is key.
• Choose the Correct ITR Form:As discussed earlier, pick the right form. Using the wrong form (e.g. using ITR-1 when you had capital gains or business income) can lead to a defective filing. The portal’s “help me decide” is useful if unsure. Generally, ITR-1 is the simplest but has limited scope – don’t try to squeeze all income in ITR-1 if not eligible.
• Double-Check Deductions and Exemptions:If filing under the old regime, be careful and truthful in claiming deductions:
  • Ensure you have evidence for each deduction (though you don’t upload it, keep it in records in case of scrutiny).
  • Don’t claim anything you’re not eligible for (e.g., claiming 80G donation without a valid receipt, or claiming dependent-related deductions wrongly).
  • For salary exemptions like HRA or LTA, only claim what your employer has provided in Form 16 or what you can substantiate with receipts.
  • If switching regimes, note that deductions like 80C, 80D, etc., will be ignored in the new regime– so don’t panic if the form doesn’t ask for them under new regime.
• Use the Pre-Fill and Validate Figures:The tax portal pre-fills a lot of info (salary, TDS, interest, etc.). Use this feature but always validate each pre-filled figure against your documents. Sometimes there might be discrepancies or timing issues in AIS data. Adjust if needed, and if something is significantly off, investigate why (for instance, if AIS shows interest that you never received – could it be accrual on an FD?).
• Compute Tax Under Both Regimes (if applicable):If you’re unsure which regime to choose, use the “Tax Regime Comparison” that the filing portal offers. It can show your tax liability under old vs new based on the data you entered (or you can use an external calculator). This helps confirm you’re making the beneficial choice. Remember to indicate your final choice correctly in the form (especially to opt out of new regime if you want old).
• Don’t Skip Verification:After submitting the return, complete the verification Unverified returns are considered invalid. The easiest is Aadhaar OTP or via net banking, which completes in minutes. You’ll know it’s done when you get the message that your ITR is verified. Only verified returns are taken up for processing by the Tax Department.
• Keep Acknowledgment and Proof:After successful filing and e-verification, download the ITR-V (acknowledgment) Also save the final submitted return copy. These are proof of filing. You might need them for various financial dealings or just for your records. The acknowledgment has a number which is useful if you need to reference your return in any communication.
• Respond to Any Notices Promptly:Sometimes, after processing, the IT Department may raise a query or discrepancy (for example, they might ask for clarification if the TDS doesn’t match or if something looks inconsistent). Don’t panic. Such communications (under Section 143(1) or others) are common. Read the notice, understand the point of difference, and respond within the given time frame. Often it’s a small issue that can be resolved by providing an explanation or filing a revised return.
• Seek Help if Needed:While filing on your own is quite doable, if you find your situation complex (say multiple capital gains calculations, foreign income, etc.), don’t hesitate to consult a tax professional or reach out to resources like Filingpedia for guidance. It’s better to get it right than to guess and err.

By following these tips, you can avoid common pitfalls like rushing on the last day, entering wrong data, or missing out on tax benefits. A correctly filed return means peace of mind and quicker refunds.

Conclusion: Why Proper Filing is Important

Filing your income tax return properly and on time is crucial for several reasons. At Filingpedia, we believe that an informed taxpayer is an empowered taxpayer. Here’s why you should always file your ITR diligently:

• Legal Compliance:First and foremost, it’s the law. If your income is above the basic exemption (₹2.5 lakh, or ₹3L/₹5L for seniors), you must file an ITR. Non-compliance can lead to penalties and notices. It’s always better to stay on the right side of the law by filing the return, even if you owe no additional tax.
• Avoiding Penalties and Interest:Timely filing saves you from penalties (which can be up to ₹5,000 for late filing) and extra interest on taxes due. Why pay extra money for delay or mistakes when you can keep that money in your pocket by just meeting the deadlines?
• Claiming Tax Refunds:If you’ve paid excess tax (through TDS or advance tax), the only way to get a refund is by filing a return. Many individuals have significant TDS on fixed deposits or TDS deducted by clients on freelance payments – filing ITR is how you claim that back. A proper return will ensure the refund process is smooth and you get your money back faster.
• Carrying Forward Losses:A filed return is necessary to carry forward losses (like a capital loss from stocks, or business loss) to future years to offset future gains. If you skip filing, those losses lapse and you can’t use them later, which could mean higher tax in future years when you have profits.
• Financial Record and Proof of Income:Your ITR is a valuable document for various financial transactions. Need a home loan or car loan? Banks often ask for copies of ITR or acknowledgment for the past 2-3 years to judge your financial credibility. Visa applications for travel abroad also sometimes require ITR copies as proof of income. Filing your return regularly builds your financial history and credibility. It shows responsible behavior.
• Peace of Mind:When you file accurately, you can sleep better knowing you’ve declared everything and complied with norms. There’s less likelihood of getting a tax notice, and even if you do, you have all documents in place to clarify. It essentially closes the year’s tax matters cleanly.
• Nation Building:It might sound idealistic, but paying and reporting taxes is a contribution to the nation. The money collected helps fund public services. By filing and paying correct taxes, you’re participating in the country’s development. It also brings more of your income into the formal economy, which has long-term benefits for everyone.

In conclusion, filing an ITR is not just a formality – it’s an important annual financial task. With the knowledge you’ve gained from this guide, we at Filingpedia hope you feel confident to file your Income Tax Return for FY 2024-25 on your own. Remember to choose the right form and regime, use the available exemptions wisely if under old regime, and meet the deadlines. Proper filing will save you money, ensure compliance, and keep your financial life in good order. Happy filing!

References

1. Income Tax Department, Govt. of India
2. The Economic Times
3. Income Tax Department – ITR-1 Online Filing User Manual(steps for e-filing) gov.in incometax.gov.in
4. Filingpedia– Official Website (Your Trusted Guide for Tax Filing)