The income tax filing season for FY 2024–25 (AY 2025–26) is here, and with it comes the need to get your financial documents in order, understand the correct forms, claim the right deductions, and ensure compliance to avoid notices or penalties. Whether you’re a salaried employee, business owner, trader, or investor—this guide is your 360-degree handbook for income tax e-filing in 2025.
🌐 New Income Tax Slabs for FY 2024–25 (AY 2025–26)
New Tax Regime (Default):
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 3,00,000 | Nil |
| 3,00,001 – 6,00,000 | 5% |
| 6,00,001 – 9,00,000 | 10% |
| 9,00,001 – 12,00,000 | 15% |
| 12,00,001 – 15,00,000 | 20% |
| Above 15,00,000 | 30% |
Rebate under Section 87A: Full tax rebate for income up to ₹7 lakh under the new regime.
Old Tax Regime (Optional):
| Income Range (₹) | Tax Rate |
| 0 – 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Note: Deductions under sections like 80C, 80D, HRA, etc., are only available under the old regime.
📄 Income Tax Return (ITR) Forms Explained (AY 2025–26)
| Form | Applicable To |
| ITR-1 (Sahaj) | Salaried individuals with total income up to ₹50 lakh, one house property, and no capital gains |
| ITR-2 | Individuals/HUFs with capital gains, multiple house properties, or foreign income |
| ITR-3 | Individuals/HUFs with business or professional income |
| ITR-4 (Sugam) | Individuals/HUFs/firms under presumptive taxation (44AD, 44ADA, 44AE) |
| ITR-5 | Partnerships/LLPs |
| ITR-6 | Companies |
| ITR-7 | Trusts and charitable institutions |
Tip: Most salaried individuals without capital gains can use ITR-1; however, if you deal in shares or mutual funds, ITR-2 is recommended.
🪧 How to Self-Assess Your Income Before Visiting a CA
- Collect Salary Slips & Form 16 from your employer.
- Check AIS (Annual Information Statement) on the income tax portal for interest, dividend, TDS, trading, and high-value transactions.
- Summarize incomes:
- Salary
- House rent income
- Capital gains (equity, mutual funds, property)
- Business/professional income
- Other income (interest, dividends, FD, PPF, etc.)
- Claim deductions: Sections 80C, 80D, 80G, 80TTA/80TTB
- Match TDS with Form 26AS
- Use online calculators or the free utility on the Income Tax Portal to estimate liability.
⚡ Top Transactions That Can Attract Income Tax Notices
- Cash deposits above ₹500,000 in savings account
- Credit card payments over ₹1 lakh/year
- High-value mutual fund or equity investments
- Real estate purchases above ₹30 lakh
- Crypto transactions
- Unreported interest from FDs or P2P lending
- Sudden large remittances abroad (under LRS)
Tip: Always ensure high-value transactions are backed by income or known sources.
💵 Deductions for Salaried & Business Individuals
Salaried Employees:
- Section 80C (PPF, ELSS, LIC, EPF) — Max ₹1.5 lakh
- Section 80D (Health insurance): Up to ₹25,000 (or ₹50,000 for senior citizens)
- Standard Deduction: ₹50,000
- HRA: As per salary structure and rent paid
Business Owners (Presumptive Taxation – 44AD/44ADA):
- Declare 6% income on digital receipts, 8% on cash (44AD)
- 50% of gross receipts for professionals (44ADA)
- No need to maintain books of accounts
- Still eligible for 80C, 80D, 80G, etc.
📊 LTCG & STCG Calculations
1. Equity & Mutual Funds
- STCG (held < 1 yr): Taxed @ 15%
- LTCG (held > 1 yr): Taxed @ 10% after ₹1 lakh exemption
2. Real Estate
- STCG (< 2 years holding): Taxed at slab rate
- LTCG (> 2 years holding): Taxed @ 20% with indexation
Tip: Use purchase deed, sale deed, and cost inflation index to calculate.
♻ Set-Off & Carry Forward of Losses
- STCL can be set off against both STCG & LTCG
- LTCL can be set off only against LTCG
- Business loss can be carried forward for 8 years
- House property loss (₹2 lakh max) can be set off against any head of income
- File return within due date to claim carry forward benefit
💳 TDS Sections to Know for Individuals
| Section | Transaction | TDS Rate |
| 192 | Salary | As per slab |
| 194A | Bank FD interest > ₹5000 | 10% |
| 194C | Contractor payments | 1% (individual/HUF) |
| 194H | Commission > ₹15,000 | 5% |
| 194I | Rent (> ₹2.4 lakh/year) | 10% |
| 194Q | Purchase of goods > ₹50 lakh | 0.1% |
| 194S | Crypto transactions | 1% |
Check Form 26AS to confirm your TDS credits before filing.
🚨 How Not to Get Caught by the Income Tax Department
- Always match your return with AIS & Form 26AS
- Avoid rounding off large figures suspiciously
- Disclose all interest income & capital gains
- Declare foreign income and assets (if any)
- Don’t underreport income from gig work, YouTube, or freelancing
✉ Final Filing Tips
- Use e-verification immediately to avoid return invalidation
- Prefer pre-filled data from the IT portal
- File before the due date: July 31, 2025 (unless extended)
- Use CA services for complex cases (multiple capital gains, foreign assets, business audits)
Conclusion
Filing your income tax return in 2025 doesn’t have to be stressful if you understand your form type, income heads, deductions, and compliance pointers. Take time to organize, self-assess, and file on time. Doing so not only helps you avoid legal trouble but also builds your financial credibility for future loans, visas, and investments.
Have questions about your tax filing? Drop them in the comments below or consult a CA with your draft computation for peace of mind!
