Income Tax Return Filing Tips for FY 2024-25 (AY 2025-26)

Are you planning to file your Income Tax Return (ITR) for FY 2024-25? With the recent extension of the ITR deadline to 15th September 2025, this is the right time to understand the process, avoid penalties, and ensure accurate reporting of your income. Whether you're a salaried employee, freelancer, or running a small business, proper ITR filing can save you from future tax troubles.

What Is an Income Tax Return (ITR)?

An Income Tax Return (ITR) is a legal document filed with the Income Tax Department of India that contains information about your income, deductions, tax liability, and taxes paid during the financial year. Filing your ITR is mandatory if your total income exceeds the basic exemption limit.

Filing ITR is not just a compliance formality—it’s proof of your income and financial credibility, especially useful when applying for loans, visas, or government tenders.

But before you hit that submit button, here are a few things to keep in mind while filing your ITR for FY 2024–25.

1. Updated ITR Filing Deadline for FY 2024-25

Note: If both the return and self-assessment tax are completed by 15th Sept 2025, no interest under Section 234A will be charged.

However, interest under Section 234B may still apply if advance tax was not paid correctly.

2. Choose the Correct ITR Form

There are 7 types of ITR forms prescribed by the Income Tax Department, each suited for different categories of taxpayers based on their income sources and structure, as of now, only ITR-1 and ITR-4 have been made available for filing on the Income Tax portal.

Select the appropriate ITR form based on your income source:

1. ITR-1 (Sahaj): For salaried individuals or pensioners having total income up to ₹50 lakhs, income from only one house property, and income from other sources (like interest).
2. ITR-4 : For individuals, HUFs, and firms (other than LLPs) opting for presumptive taxation under Section 44AD, 44ADA, or 44AE, with total income up to ₹50 lakhs.

3. Crucially Match Form 26AS and AIS Before Filing ITR

Form 26AS (26 Annual Tax Statement) and AIS (Annual Information Statement) are two critical documents that reflect your income and tax-related transactions.

1. Form 26AS: shows TDS, TCS, advance tax paid, and refunds.
2. AIS: gives a broader picture, including interest, dividends, share trades, property transactions, and more.

Importance: Comparing both ensures that all your income is declared and tax credits are correctly claimed.

4. Report All Income Sources

You must declare:

1. Salary and pension
2. Interest from savings, FDs, RDs
3. Dividend income
4. Capital gains, freelance income, rental income

Even if you earn ₹1,000 from savings account interest or a side freelance project—report it!

5. Report Capital Gains Properly

Gains from mutual funds, stocks, crypto, or property must be disclosed.

Use Schedule CG and apply correct tax rates:

1. Short-term (STCG)- taxed at 15%
2. Long-term (LTCG)- taxed at 10% or 20% depending on the asset

6. Disclose Foreign Assets & Crypto Holdings

If you're a resident Indian, disclosing your:

1. Foreign bank accounts
2. Foreign stocks and property
3. Cryptocurrency assets is mandatory under Indian tax laws.

7. Pay Advance Tax or Self-Assessment Tax

If your tax liability exceeds ₹10,000, you must pay advance tax.

8. Don’t Rely Blindly on Prefilled Data

Cross-check all prefilled entries, especially:

1. Salary income
2. Interest from banks
3. Deductions

Errors in prefilled ITRs can lead to incorrect tax payments or delays in refund.

9. E-Verify Your ITR on Time

After submission, e-verify your return within 30 days using:

1. Aadhaar OTP
2. Net banking
3. Demat account EVC