Complete Guide to Income Tax e-Filing in 2025: Everything You Need to Know

The tax season is upon us, and with it comes the annual responsibility of filing your income tax return. For many, this can seem like a daunting task, filled with complex forms and confusing jargon. However, with the advent of income tax e-filing, the process has become significantly more streamlined and user-friendly. This comprehensive guide will walk you through everything you need to know about income tax e-filing in 2025, from the latest updates for the financial year 2024-25 to a step-by-step process that will make your e-filing experience a breeze.

The Dawn of a New Tax Era: What's New in FY 2024-25?

The financial year 2024-25 has brought some notable changes to the Indian income tax landscape. One of the most significant updates is the positioning of the New Tax Regime as the default option for taxpayers. This means that unless you specifically opt for the Old Tax Regime, your tax liability will be calculated based on the slab rates of the New Tax Regime.

The New Tax Regime offers lower tax rates but forgoes many of the popular deductions and exemptions available under the Old Tax Regime, such as those under Section 80C and 80D. However, to make it more appealing, the government has introduced a standard deduction of ₹75,000 for salaried individuals and pensioners under the new regime.

Choosing between the old and new tax regimes depends on your individual financial situation and investment habits.] It's advisable to compare your potential tax liability under both regimes before making a decision.

Why e-Filing is the Way to Go

Electronic filing, or e fill, is the process of submitting your income tax returns online. This method offers numerous advantages over the traditional paper-based filing system. The e filing of income tax is not only more convenient, allowing you to file your return from the comfort of your home, but it's also faster and more secure.] The online system helps in reducing errors and ensures quicker processing of your return of income, leading to faster refunds.

Comparison of Income tax slabs under the old and new tax regime for FY 2024-2025 (AY 2025-2026)

Your Step-by-Step Guide to Income Tax e-Filing in 2025

Navigating the income tax portal can be straightforward if you follow a structured approach. Here’s a detailed, step-by-step guide to help you with your incometax efiling:

Also Read Our Blog : “Income Tax Return 2025: Why Filing Early is the Ultimate Life Hack”

Step 1: Gather All Your Essential Documents

Before you begin the income tax filing process, ensure you have all the necessary documents handy. This will make the entire process smoother and prevent last-minute hassles. Key documents include:

• PAN Card: Your Permanent Account Number is a primary requirement.
• Aadhaar Card: It is mandatory to link your PAN with your Aadhaar.
• Form 16: This is a TDS (Tax Deducted at Source) certificate issued by your employer, detailing your salary and the tax deducted.
• Bank Account Statements: To ascertain interest income and for details of your bank account.
• Investment Proofs: For claiming deductions under sections like 80C, 80D, etc. (if you opt for the Old Tax Regime).
• Capital Gains Statements: If you have sold any assets like stocks, mutual funds, or property.
• Form 26AS and Annual Information Statement (AIS): These are crucial for verifying the tax deducted on your behalf.

Step 2: Log in to the Income Tax e-Filing Portal

Visit the official income tax e-filing portal at https://www.incometax.gov.in If you are a new user, you will need to register using your PAN. Existing users can log in with their PAN or Aadhaar and password.

Step 3: Navigate to the e-File Section

Once logged in, go to the ‘e-File’ menu, select ‘Income Tax Returns’, and then click on ‘File Income Tax Return’.

Step 4: Select the Assessment Year and ITR Form

Choose the Assessment Year as 2025-26 (for the Financial Year 2024-25). The portal will help you select the appropriate IT return form based on your income sources and status. For instance, ITR-1 (Sahaj) is for salaried individuals with income up to ₹50 lakh from salary, one house property, and other sources.

Step 5: Fill in Your Details

The ITR form will be pre-filled with your personal information and details of your income and taxes deducted, sourced from your Form 26AS and AIS. It is crucial to verify these pre-filled details and make any necessary corrections or additions.

Step 6: Claim Your Deductions

If you have chosen the Old Tax Regime, this is where you will claim your deductions under various sections of the Income Tax Act. Ensure you have the necessary proofs for all the deductions you claim.

Step 7: Calculate Your Tax Liability

After filling in all your income details and claiming deductions, the portal will automatically calculate your tax liability or refund. If you have any tax dues, you will need to pay them online.

Step 8: Submit and e-Verify Your Return

Once you have reviewed all the information and are satisfied with its accuracy, submit your income tax return. The final and most crucial step is to e-verify your return. You can do this through various methods like Aadhaar OTP, net banking, or by sending a signed copy of the ITR-V to the CPC in Bengaluru. Your income tax e filing process is not complete without verification.

The Significance of Form 26AS

The Form 26AS is an annual consolidated tax statement that acts as your tax passbook. It contains details of the tax deducted and collected at source on your behalf by various entities. Before you start your e filing of income tax, it is highly recommended to download and review your Form 26AS.

Here's why checking your Form 26AS is so important:

• Verification of TDS: It allows you to verify if the tax deducted by your employer, bank, or other entities has been deposited with the government against your PAN.
• Avoid Mismatches: It helps in avoiding any discrepancies between the tax credits you claim and the information available with the Income Tax Department, which could lead to a notice.
• Accurate Return Filing: It ensures that you report all your income sources on which tax has been deducted, leading to accurate return of income filing.

You can view and download your Form 26AS from the income tax e-filing portal itself.

The Cost of Delay: Penalties for Late Filing

The due date for filing the IT return for most individuals for the Assessment Year 2025-26 is September 16, 2025. Filing your income tax return after the due date can attract penalties.

Under Section 234F of the Income Tax Act, a late filing fee is applicable:

• A penalty of ₹5,000 if the return is filed after the due date.
• If your total income is less than ₹5 lakh, the penalty is capped at ₹1,000.

Apart from the penalty, late filing can also lead to other consequences like interest on the tax due and the inability to carry forward certain losses.

Common Mistakes to Steer Clear Of

Even with a simplified incometax efiling process, there are some common mistakes that taxpayers often make. Being aware of these can save you from a lot of trouble later.

• Choosing the Wrong ITR Form: Selecting an incorrect ITR form can lead to your return being treated as defective.
• Not Reporting All Sources of Income: It's mandatory to report all your income, including interest from savings accounts, fixed deposits, and any other sources, even if it's exempt from tax.
• Incorrect Personal and Bank Account Details: Providing incorrect personal or bank account details can lead to delays in processing your return and receiving refunds.
• Forgetting to Verify the ITR: Your income tax e filing is incomplete if you do not verify your return within the stipulated time.
• Ignoring Form 26AS and AIS: Not reconciling the information in your ITR with your Form 26AS and AIS can lead to scrutiny from the tax department.

Take Control of Your Finances

Filing your income tax return is a crucial financial responsibility. By staying informed about the latest updates and following a systematic approach to income tax e-filing, you can ensure a smooth and hassle-free experience.

Feeling overwhelmed by tax planning and financial management? Our team of experts is here to help you navigate the complexities of taxation and create a robust financial plan for your future. Contact us today for personalized financial advice and tax-related services.

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