ITR Filing News 2025 Live Updates: Only Three Days To Deadline — Process, Penalty, Extension News And More

1. For FY 2024-25, resident individuals with taxable income up to Rs 7 lakh are eligible for a rebate of up to Rs 25,000 under the new tax regime under Section 87 A. 

2. A standard deduction of Rs 75,000 is also available to salaried individuals under the new tax regime.

3. Taxpayers who opt for the new tax regime can choose Section 80CCD(2) to claim deduction for employer contributions to the Central Government Pension Scheme. There is a deduction limit of up to 14% of the employee’s salary.

4. Section 24(b) allows deduction on interest paid on housing loans. In the case of let-out properties, there is no maximum limit on the amount of interest that can be claimed as a deduction.

5. Contributions made toward Agnipath Scheme can also be claimed.

To file ITRs, taxpayers will need to choose between the old and new tax regimes and submit their returns on time to avoid penalties.

The old regime allows for various deductions and exemptions, such as under Sections 80C, 80D and HRA, which can significantly reduce the taxable income and overall tax liability.

1. Taxpayers can claim deductions under Section 24(b) of a maximum of Rs 2 lakh deduction on home loan interest for self-occupied property.

2. Sections 80C, 80CCC, and 80CCD(1) (meant for pension, etc) offer a combined deduction limit of Rs 1,50,000.

3. Additionally, a maximum of Rs 50,000 can be claimed under Section 80CCD(1B) for contributions to the pension schemes offered by the Central government.

4. Under Section 80D, the tax department allows taxpayers to claim a deduction for health insurance premiums and preventive health check-ups. For self, spouse and dependent children, the limit is Rs 25,000. For parents, it's Rs 25,000. Preventive check-up limit is Rs 5,000 within these overall limits.

5. Under Section 80DDB, you can claim a deduction for medical treatment of self or dependents for specified diseases. The limit of up to Rs 40,000 for regular patients and up to Rs 1,00,000 for senior citizens.

6. Taxpayers can use the Section 80EE to claim a deduction of up to Rs 50,000 on interest paid for loans taken for eligible residential house property. This deduction is allowed over and above Section 24(b).

7. Section 80EEB allows a deduction of up to Rs 1,50,000 on interest paid for loans taken to purchase an eligible electric vehicle. Only individual taxpayers are eligible for this deduction.

8. Taxpayers can also claim deductions on any donations made toward charitable institutions till Rs 2,000. Donations made toward scientific institutions and political parties are also eligible for deductions.

9. Section 80GG of the Income Tax Act, 1961, allows taxpayers to claim a deduction on rent paid if they do not receive House Rent Allowance (HRA) as part of their salary. It is also available to self-employed individuals who pay rent.

10. A total of Rs 10,000 can be claimed for interest earned from savings bank accounts.

11. Specially-abled resident individual taxpayers are also eligible for additional deductions.

12. Under the old regime, Section 87 A also offers up to Rs 12,500 rebate for income up to Rs 5 lakh.

These days, filing taxes has been made easier with the availability of a wide range of services. These include conventional chartered accountants or the online platforms offering tax filing services. A third option is also gaining popularity when it comes to handling finances: the use of artificial intelligence (AI) tools.

Many people prefer to use free chatbots such as ChatGPT to seek investment advice and simplify their ITR and other financial processes.

These AI-powered tax advisors can help in understanding deductions, investment declarations and help guide you through the ITR process quickly.

While AI is known to do its job in seconds, it is still recommended not to wait until the last day. As the deadline approaches, the tax portal is likely to see high traffic. This can lead to glitches or delays and eventually cost you in the form of penalties.

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The ITR filing deadline for AY 2025-26 has already been extended to Sept. 15, 2025, from the usual July 31. So far, the Income Tax Department has not announced any further extension. 

The government’s latest press release on ITR, issued on Sept. 7, also clarified that the deadline remains Sept. 15 as of now.

Based on this, taxpayers who are yet to submit their income tax returns are advised to do so within the stipulated time. Waiting for the last minute or further deadlines and missing the due date can result in penalties.

The deadline to file Income Tax Returns (ITR) for the financial year 2024-25 (Assessment Year 2025-26) is approaching soon. Taxpayers, who are not liable for a tax audit of their accounts, are required to file their income details for the period between April 1, 2024, and March 31, 2025, by Sept. 15.

The Central Board of Direct Taxes (CBDT), on May 27, extended the deadline from the usual July 31. This particular date extension applies to non-audit cases, which include individuals, Hindu Undivided Families (HUFs) and any other entities filing returns using ITR 1 to ITR 4.