ITR Filing for AY 2025-26: 11 Must-Know Tips Before You File!

It’s that time of the year again when salaried professionals, freelancers, and business owners alike start prepping for income tax return (ITR) filing. The assessment year (AY) 2025-26 corresponds to the financial year (FY) 2024-25, and with every new tax season, there are changes, deadlines, and best practices to keep in mind.

Whether you’re filing your return for the first time or are a seasoned taxpayer, here’s a quick and handy guide covering key points to remember while filing your ITR for AY 2025-26.

1. Know the Deadline

The usual deadline for individuals (non-audit cases) to file their ITR is July 31st, 2025. However, deadlines can be extended, so stay updated through official announcements. Filing late can lead to penalties and loss of certain benefits like carry forward of losses.

2. Choose the Right ITR Form

Using the wrong ITR form can lead to your return being treated as defective. Here’s a quick overview:

ITR-1 (Sahaj): For salaried individuals with income up to ₹50 lakh.
ITR-2: For individuals with capital gains, multiple house properties, or foreign income.
ITR-3: For professionals and business income (proprietorship).
ITR-4 (Sugam): For presumptive income scheme filers (under sections 44AD, 44ADA, or 44AE).

3. New Tax Regime vs Old Tax Regime

From FY 2023-24 onwards, the new tax regime is the default. If you wish to continue with the old tax regime, you must opt for it specifically while filing your return.

Salaried individuals can choose between the new and old regime every year.
Business owners and professionals, however, can opt for the old regime only once and revert to the new regime just once during their lifetime.

👉 Important Note: If you had filed Form 10-IEA to opt for the old regime in FY 2023-24, make sure to check whether you want to continue in the old regime or file Form 10-IEA again to revert back to the new regime for FY 2024-25. This choice will directly affect your tax liability, so evaluate it carefully based on your income and eligible deductions.

4. Reconcile Form 26AS and AIS

Before filing, make sure to match your income details with:

Form 26AS – TDS, advance tax, and high-value transactions.
Annual Information Statement (AIS) – Comprehensive statement including savings account interest, dividends, stock transactions, etc.

Discrepancies between your records and these documents can lead to notices.

5. Report All Income Sources

Don’t forget to include:

Interest income (savings, FDs, RDs)
Dividend income
Capital gains (stocks, mutual funds, property)
Freelance/side hustle income
Foreign income/assets (if applicable)

Even exempt income like agricultural income or PPF interest should be reported for transparency.

6. Verify Deductions and Exemptions

If you’re filing under the old regime, make sure to correctly claim deductions:

Section 80C – LIC, PPF, ELSS, etc.
Section 80D – Health insurance premiums
Section 24(b) – Home loan interest
Section 80G – Donations

If you’re under the new regime, most deductions are not allowed.

7. Disclose Foreign Assets (if applicable)

If you are a resident and ordinarily resident (ROR), you are required to disclose foreign bank accounts, assets, and investments. Non-disclosure can attract penalties under the Black Money Act.

8. Pay Outstanding Taxes Before Filing

Ensure that all taxes due (self-assessment tax or balance tax) are paid before submitting the return. Use Challan 280 for payment and quote the challan number in the ITR.

9. E-Verify Your Return

Your return is not considered complete until you e-verify it within 30 days of filing. You can do this via:

Aadhaar OTP
Net banking
Demat account
Bank ATM (limited banks)
Physical verification (by posting ITR-V to CPC Bangalore – only if online methods fail)

10. Keep Documents Ready

Though ITR filing is paperless, always keep documentation for:

Salary slips and Form 16
Investment proofs
TDS certificates
Bank and demat statements
Property documents (if sold)
Donation receipts

These can be handy in case of scrutiny later.

11. Respond to Incorrect Entries in AIS

The Annual Information Statement (AIS) is a detailed summary of your financial transactions as reported to the Income Tax Department. Sometimes, you might find incorrect or duplicated entries, such as wrong amounts, mismatched TDS details, or transactions that don’t belong to you.

In such cases, you should:

Log in to the AIS portal via https://www.incometax.gov.in
View the AIS and TIS (Taxpayer Information Summary)
Use the “Provide Feedback” option next to the incorrect transaction
Choose the appropriate reason (e.g., “Transaction not belonging to me”, “Incorrect amount”, etc.)
Submit the response to update the records

Providing timely feedback helps avoid potential mismatches or tax notices during processing. Always reconcile your AIS with your personal records before filing your ITR.

Final Thoughts

ITR filing isn’t just a compliance task — it’s an opportunity to evaluate your finances, investments, and future tax planning. With a little attention to detail and timely preparation, you can file your return smoothly and avoid last-minute stress.

Happy filing!

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