how to file itr

How to File Your ITR for AY 2025–26 ( FY 2024–25) and Maximise Your Tax Savings with Deductions

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Filing your Income Tax Return (ITR) for the first time? Individuals earning above ₹2.5 lakh annually are eligible to file their ITR. The Income Tax Department has extended the ITR filing deadline to September 15, 2025, this year, offering more time than the usual July 31 deadline. This extension aims to make the filing process smoother and more accurate. Taxpayers can conveniently file their ITR online from home. All you need is your PAN, Aadhaar, Form 16, investment declarations, and bank account details. In addition to filing your Income Tax Return, you can reduce your tax liabilities by claiming various deductions under the Income Tax Act. Here’s a breakdown of the key deductions available for taxpayers under both the New and Old Tax Regimes

If you haven’t filed your return yet, follow these simple steps to submit your ITR.

How to file ITR for FY 2024–25 (AY 2025–26)

Step 1: Visit the e-filing portal at https://www.incometax.gov.in.

Step 2: Log in using your PAN-linked user ID and password. Make sure your PAN is active and linked with Aadhaar.

Step 3: Navigate to e-File > Income Tax Returns > File Income Tax Return.

Step 4: Choose the Assessment Year: 2025-26 and select the Online Mode.

Step 5: Select your filing status (Individual/HUF/Others) and proceed.

Step 6: Choose the appropriate ITR form, then fill in the necessary details such as income, deductions, and tax information. Review all sections carefully before continuing.

Step 7: If you owe tax, use the e-pay Tax service. Once payment is complete, return to finish filing your return.

Step 8: Preview your return, and submit it. If no tax is due, or you are due for a refund, you can directly preview and submit.

Step 9: Review the summary of your return. Validate all the details you’ve provided, and input your bank account details.

Step 10: Complete the verification process within 30 days. You can use Aadhaar OTP, electronic verification code (EVC), or Net Banking. This step is crucial, as failure to verify may result in the cancellation of your ITR filing.

Once your ITR has been e-filed, you can download a copy for your records.

Tax Benefits: Deductions Available for Taxpayers (AY 2025–26)

Taxpayers can avail various deductions under the Income Tax Act to reduce their taxable income. These deductions can be claimed under both the New and Old Tax Regimes. Below are the key sections where taxpayers can benefit from tax deductions:

Under the New Tax Regime (Section 115BAC)

  1. Section 24(b): Deduction from Income from House Property
    • Interest on housing loan for let-out property: No maximum limit for deductions.
    • Details required:
      • Loan taken from the bank or another institution.
      • Loan account number, institution name, and loan sanction date.
      • Loan amount, outstanding balance, and interest paid.
  2. Section 80CCD(2): Employer Contribution to Pension Scheme
    • Applicable to all employers.
    • Deduction limit: 14% of the salary.
  3. Section 80CCH: Contribution to the Agnipath Scheme
    • For individuals enrolled in the Agnipath Scheme: Deductions allowed for the total amount paid or deposited in the Agniveer Corpus Fund.

Under the Old Tax Regime

  1. Section 24(b): Deduction on Housing Loan
    • Self-occupied property: Deduction up to ₹2 lakh on interest paid for construction or purchase.
    • Let-out property: No limit on the deduction for interest, but a maximum loss of ₹2 lakh can be set off against other heads of income, with the balance carried forward for up to 8 years.
  2. Section 80C, 80CCC, 80CCD (1): Deductions on payments made to:
    • Life Insurance Premium, Provident Fund, Housing Loan Principal, National Savings Certificates, and more.
    • Combined deduction limit: ₹1,50,000.
  3. Section 80D: Health Insurance Premium
    • For self/spouse/children: ₹25,000 (₹50,000 if senior citizen).
    • For parents: ₹25,000 (₹50,000 if senior citizen).
    • Additional: ₹5,000 for a preventive health check-up.
  4. Section 80DD: Maintenance or Medical Treatment of Disabled Dependents
    • Flat deduction of ₹75,000 for individuals with disability.
    • Higher deduction of ₹1,25,000 for severe disability (80% or more).
  5. Section 80DDB: Medical Treatment of Specified Diseases
    • Deduction limit: ₹40,000 (₹1,00,000 for senior citizens).
  6. Section 80E: Higher Education Loan Interest
    • Deduction for interest on loans taken for higher education.
    • Details required: Loan taken from a bank/institution, loan account number, sanction date, and outstanding balance.
  7. Section 80EE: Interest on Housing Loan for Property Acquisition
    • Deduction limit: ₹50,000 for loans sanctioned between April 1, 2016, and March 31, 2017.
  8. Section 80EEA: Interest on First-Time Home Loan
    • Deduction limit: ₹1,50,000 on the interest paid on home loans for first-time home buyers (loans sanctioned between April 1, 2019, and March 31, 2022).
  9. Section 80EEB: Interest on Loan for Electric Vehicle Purchase
    • Deduction limit: ₹1,50,000 on interest paid for loans taken to purchase an electric vehicle (loans sanctioned between April 1, 2019, and March 31, 2023).
  10. Section 80G: Donations to Charitable Institutions
    • Donations to approved funds and institutions can be deducted, with different percentages depending on the charity type (100% or 50% deduction).
  11. Section 80GG: Rent Paid
    • For self-employed or those not receiving HRA: Deduction based on the lowest of the following:
      • Rent paid minus 10% of total income
      • ₹5,000 per month
      • 25% of total income (excluding certain income types)
  12. Section 80GGA: Donations for Scientific Research or Rural Development
    • Deductions available for donations made to approved scientific research or rural development funds.
  13. Section 80GGC: Contributions to Political Parties
    • Deduction available for contributions made to political parties or electoral trusts, with no deduction for cash contributions.
  14. Section 80TTA: Interest on Savings Accounts for Non-Senior Citizens
    • Deduction limit: ₹10,000 for interest earned on savings accounts.
  15. Section 80TTB: Interest on Deposits for Senior Citizens
    • Deduction limit: ₹50,000 for interest on deposits for senior citizens.
  16. Section 80U: Disability-Related Deduction
    • For individuals with disability: ₹75,000 flat deduction.
    • For severe disability: ₹1,25,000 flat deduction.

Important Notes for Taxpayers

  • Taxpayers should provide specific details while claiming deductions, such as loan account numbers, insurer details, and the amount paid towards eligible schemes.
  • Ensure that documentation like policy numbers, loan details, and receipts for donations are kept ready to submit with your ITR filing.

This summary gives you an overview of the deductions available across various sections of the Income Tax Act. Let me know if you need further details or explanations on any section!

FAQ

1: Why is the option to select ITR 1 or ITR 4 greyed out when filing the return for AY 2024-25?

If the taxpayer has income subject to a special tax rate, such as earnings under Section 115BB (e.g., lottery or gambling winnings), and TDS has been deducted on that income, ITR 1 or ITR 4 cannot be used. In such cases, the taxpayer must file ITR 2 or ITR 3, depending on their specific situation.

2: Why is Schedule VIA unavailable for claiming deductions when filing the ITR for AY 2024-25?

For AY 2024-25, the new tax regime has become the default, meaning deductions under Schedule VIA are not available unless they fall under certain sections like 80CCD(2), 80CCH, or 80JJAA, as per Section 115BAC. To claim other deductions, the taxpayer must opt for the old tax regime by selecting “Yes” in ITR 1 or ITR 2, or “Yes, within due date” in ITR 3, ITR 4, or ITR 5.

3: How can I resolve the issue of bank account validation errors while filing my ITR?

To fix this issue, the taxpayer should check that a valid bank account is listed under the “My Bank Account” section in the “My Profile” tab on the income tax portal before submitting the ITR. If the issue persists, they may use the offline utility for filing, but a pre-validated bank account is essential for processing any refund.

4 Can I file ITR 1 or ITR 4 if I have special income, such as lottery or horse race winnings?

If TDS has been deducted on special income, such as lottery or horse race winnings, then ITR 1 or 4 cannot be used. The taxpayer should first check Form 26AS and AIS to ensure the accuracy of the information before filing the return.

5: If Form 10IEA is filed for AY 2024-25, do I have to stick to the old tax regime?

Yes, once Form 10IEA has been filed for AY 2024-25, the taxpayer must continue with the old tax regime for that year. They can switch to the new tax regime in the next assessment year, based on their income details and the applicable tax return form.

6: When is filing Form 10IEA mandatory for opting for the old tax regime in AY 2024-25?

If the taxpayer intends to file the ITR under the old tax regime for AY 2024-25 and has income from business or profession (ITR 3 or ITR 4), filing Form 10IEA is a compulsory step.

7: Why can’t I claim interest on a loan for a self-occupied property, as the option is greyed out?

The new tax regime, which has been implemented as the default for AY 2024-25, does not allow deductions for interest on loans for self-occupied properties. If the taxpayer wishes to claim this deduction, they must opt for the old tax regime by selecting “Yes” in ITR 1 or ITR 2, or the “Yes, within due date” option in ITR 3, ITR 4, or ITR 5.

8: I cannot claim any deductions other than 80CCD(2) while filing my ITR for AY 2024-25. Why is this happening?

With the new tax regime being the default for AY 2024-25, claiming deductions under Chapter VIA, except for Section 80CCD(2), is not allowed. To claim other deductions, the taxpayer must opt for the old tax regime by selecting “Yes” in ITR 1 or ITR 2, or “Yes, within due date” in ITR 3 or ITR 4.

9: What should I do if I get an error saying my name does not match the PAN database when filing my ITR?

Ensure that the name on your ITR matches the one in your profile under the “My Profile” section of the income tax portal. If necessary, update your details and download the latest prefilled JSON for offline filing, or start a new filing in online mode to resolve the error.

10: Can I revoke or withdraw Form 10IEA for AY 2024-25 if I filed it by mistake?

  Once Form 10IEA has been filed for AY 2024-25, it cannot be revoked or withdrawn for that year. The taxpayer is obligated to continue with the old tax regime for that year. However, the option to withdraw or amend Form 10IEA will be available in subsequent years, but only once for cases involving business or professional income (ITR 3 or ITR 4).

Conclusion

Filing your ITR doesn’t need to be complicated. With the right preparation and understanding of available deductions, you can make the process easier and even reduce your tax burden. Follow the steps outlined in this guide, and don’t forget to claim all eligible deductions to save on taxes.