Income Tax Update: Important Deadlines and Regime Change Options for Taxpayers

31 July Deadline for Income Tax Return Filing: Key Details You Must Know

The Income Tax Department has issued important updates for taxpayers as the new financial year begins from April 1. With the return filing season approaching, individuals whose income exceeds the basic exemption limit must prepare to file their Income Tax Returns (ITR) well before the 31 July 2025 deadline.

Here’s everything you need to know to ensure a smooth and penalty-free filing experience.

Changing Tax Regime While Filing Return

Taxpayers have the flexibility to choose between the old and new tax regimes at the time of filing their return. Even if you previously informed your employer about your preferred regime, you can switch while filing your ITR.

Key Points:

• You can change the tax regime once per financial year.

• Choosing the regime that offers the most tax savings is advisable.

• Plan carefully by calculating tax liability under both regimes before deciding.

Filing Requirements: Form 16 Essential for Salaried Employees

The Income Tax Department is expected to release ITR forms and utility software by the end of April. However, salaried individuals can only file their returns once they receive Form 16 from their employers.

Important Points:

• Employers must issue Form 16 by 15 June.

• Form 16 contains crucial details like total income, TDS deductions, and salary structure.

It’s recommended to verify the information on Form 16 before proceeding with filing.

Last Date to File Income Tax Returns: 31 July 2025

The standard deadline to file your income tax return for FY 2024-25 is 31 July 2025. Although the government occasionally extends the deadline, as seen during the Covid-19 pandemic, experts advise filing early to:

• Avoid last-minute errors.

• Reduce chances of penalties.

• Ensure faster refund processing.

Belated Returns: Opportunity to File Till 31 December

If taxpayers miss the 31 July deadline, they can still file a belated return until 31 December 2025. However, penalties and interest will apply.

Penalty Details:

• Annual Income < ₹5 lakh: Penalty of ₹1,000.

• Annual Income > ₹5 lakh: Penalty of ₹5,000.

Additionally, interest under Section 234A will apply on the unpaid tax amount.