Over 4.56 crore persons have filed their income tax returns (ITRs) as the deadline of September 15 draws closer, and the number of returns being submitted is increasing.
According to senior income tax department officials, people “should not wait till the last-minute” to file their forms because doing so causes inconvenience.
Tax return filing has been made simple, and the following is the straightforward procedure for individuals to file their own returns:
- Enter your PAN or Aadhaar and password to access incometax.gov.in.
- Select Income Tax Return > File Income Tax Return under → e-File.
- Choose AY 2025–2026.
- Select the appropriate form.
- Examine the pre-filled information (bank interest, TDS, and salary).
- Choose the tax regime (Old/New) and add any missing income or deductions.
- Send in your return
Every year, the Income Tax Department releases a variety of ITR forms to accommodate different taxpayer groups. Making the right form choice is crucial since submitting the wrong form could result in a flawed return. The following forms apply to individuals and small companies who are not audit taxpayers for FY 2024–25 (AY 2025–26):
For Salaried People, ITR-1 (Sahaj)
According to the Income Tax Department, a taxpayer who receives income from their employer in the form of a salary, wages, allowances, perquisites, or pension is considered a salaried individual and is subject to the “Income from Salary” charge.
For individuals or HUFs (those without business or professional income), ITR-2
Individuals are natural individuals who are subject to personal taxes on their income from capital gains, business or profession, pensions, salaries, and other sources.
According to income tax legislation, HUFs (Hindu Undivided Families) are distinct legal entities made up of all individuals who are directly derived from a common ancestor, including their spouses and unmarried daughters. Under the Income Tax Act, a HUF is taxed as a separate “person” and may receive income from real estate, businesses, or other sources.
If the return is submitted after the deadline, there is a late filing fee. For returns submitted after the deadline, a charge of Rs 5,000 is required. However, the late fee is limited to Rs 1,000 in situations when the total revenue is less than Rs 5 lakh.
In addition to the late filing cost, there is a monthly interest rate of 1% on the outstanding tax amount for late filing. In the meantime, ITR submissions increased by more than 25% between AY 2022–2023 and AY 2024–2025.
According to data made public by the Central Board of Direct Taxes (CBDT), ITR files have steadily increased over time, indicating an expansion of the tax base and more compliance. As of July 31, 2024, a record 7.28 crore ITRs have been filed for AY 2024–25, up 7.5% from 6.77 crore in AY 2023–2024 over the previous year.