Top 10 Tax Filing Rules for FY 2024-25

Tax Filing

Top 10 Tax Filing Rules for FY 2024-25

Tax Filing

Filing your Income Tax Return (ITR) is more than just a statutory formality — it’s a crucial step for financial transparency, refund claims, and avoiding penalties. For the Financial Year 2024–25 (Assessment Year 2025–26), the Income Tax Department has introduced key rule changes that affect salaried employees, freelancers, business owners, NRIs, and even crypto investors.

Here’s a comprehensive breakdown of the latest ITR filing rules and compliance requirements every taxpayer must be aware of:

1. New Tax Regime Becomes Default Choice

Starting FY 2024–25, the new tax regime is the default option for all taxpayers unless they actively choose to switch to the old regime. This system offers lower tax rates but disallows common deductions such as those under Section 80C (e.g., LIC, PPF), HRA, and home loan interest.

What’s New:

  • Standard deduction raised to ₹75,000 (from ₹50,000).

  • Employer NPS contribution limit increased to 14%.

  • Section 87A rebate ensures zero tax up to ₹7 lakh income.

📝 Tip: If you have significant deductions (e.g., 80C, 80D, housing loan), evaluate both regimes before choosing.

Tax Filing

2. More Detailed Disclosures for Deductions

ITR forms now require specific details for each deduction you claim. Supporting documentation is mandatory for every benefit availed.

Key Disclosure Updates:

  • Section 80C: LIC/PPF policy numbers & account details.

  • HRA: Rent amount, city category, landlord’s PAN (if rent > ₹1 lakh/year).

  • Section 80D: Health insurer name & policy number.

  • Loan Deductions: Account number, lender name, sanction date for education/home/EV loans.

✅ Ensure you collect all supporting documents before filing.

3. Capital Gains Filing Eased (Up to ₹1.25 Lakh)

Taxpayers earning long-term capital gains (LTCG) up to ₹1.25 lakh from listed equity shares or mutual funds can now file returns using ITR-1 or ITR-4 — simplifying the process for small investors.

Previously, even small gains required ITR-2, which was more complex.

4. Capital Gains Rules Split After July 23, 2024

A new set of rules applies for capital gains from July 23, 2024, particularly affecting unlisted debentures, bonds, and share buybacks.

Changes to Note:

  • Unlisted bonds sold on/after July 23 are now treated as short-term capital gains, regardless of holding period.

  • Buybacks from listed companies will be treated as dividend income, not capital gains.

5. Mandatory Crypto and Foreign Asset Reporting

All taxpayers must now disclose cryptocurrency transactions via Schedule VDA, even if no trading occurred this year.

Crypto Reporting Includes:

  • Dates of acquisition and sale

  • Cost & sale price

  • TDS deduction (1%)

  • Wallet or exchange used

If crypto is held in foreign exchanges, it must also be reported under Schedule FA (Foreign Assets).

⚠️ Non-disclosure can attract severe penalties. The Income Tax Department is actively issuing notices to past defaulters.

6. TDS Section & AIS Cross-Verification

ou must now specify the relevant TDS section (e.g., 194A for interest, 194H for commission) while claiming TDS credits.

The IT Department closely matches your ITR with your Annual Information Statement (AIS) — which includes:

  • Bank interest

  • Dividend income

  • Mutual fund activity

  • Foreign remittances

  • High-value purchases

🧾 Cross-check your ITR with your AIS to avoid mismatch notices.

7. PAN-Aadhaar Linking Now Mandatory

You can no longer file your return unless your PAN is linked with Aadhaar. Submission of Aadhaar Enrolment ID is no longer permitted.

An unlinked PAN is considered inactive, and filing can resume only after paying the penalty and restoring the PAN.

8. Expanded Limits for Presumptive Taxation

Freelancers and small business owners can now opt for presumptive taxation under relaxed limits.

New Thresholds:

  • Business turnover up to ₹3 crore (previously ₹2 crore)

  • Professional income up to ₹75 lakh (previously ₹50 lakh)

  • Cash transactions must be within 5% of total receipts

Presumptive tax allows declaring income at a fixed rate (6%/8% for businesses, 50% for professionals) without maintaining books.

9. Assets & Liabilities Reporting Limit Hiked

Schedule AL (Assets & Liabilities) is now applicable only for individuals whose annual income exceeds ₹1 crore, up from ₹50 lakh.

This move reduces the compliance burden on salaried individuals and middle-income earners.

10. New ITR Deadline: September 15, 2025

The due date for most taxpayers has been extended to September 15, 2025. However, delaying your return can still be costly.

Late Filing Consequences:

  • Penalty of ₹1,000–₹5,000 under Section 234F

  • Loss carry-forward benefits denied

  • Risk of refund delays and notices

⏳ Start early to ensure smooth filing and avoid last-minute errors.

Why Professional Help is Essential in 2025

The new ITR forms and tax rules bring more opportunities for savings — but only if handled correctly.

A professional tax consultant will:

  • Compare old vs new regimes to pick the optimal one

  • Ensure deduction claims are valid and supported

  • Accurately report capital gains, crypto transactions, and AIS items

  • Minimize chances of rejection, delay, or penalties

Read More: Income Tax Filing 2025: 6 Easy Ways to e-Verify Your ITR Online

Why Professional Help is Essential in 2025

The new ITR forms and tax rules bring more opportunities for savings — but only if handled correctly.

A professional tax consultant will:

  • Compare old vs new regimes to pick the optimal one

  • Ensure deduction claims are valid and supported

  • Accurately report capital gains, crypto transactions, and AIS items

  • Minimize chances of rejection, delay, or penalties

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Crypto Non-Filers Under IT Scanner

Crypto

Crypto Non-Filers Under IT Scanner

Crypto

As the digital asset space gains momentum in India, so does the scrutiny by tax authorities. The Income Tax Department (ITD) has intensified its efforts to ensure compliance among cryptocurrency investors and traders, particularly those who have not reported their earnings from Virtual Digital Assets (VDAs) in their Income Tax Returns (ITRs).

Massive Compliance Push: I-T Department Reaches Out to Crypto Investors

In a recent campaign, the ITD has reached out to thousands of individuals suspected of omitting cryptocurrency transactions in their ITRs. These communications are part of the government’s broader “NUDGE” initiative, aimed at encouraging voluntary compliance while avoiding intrusive action. The current phase specifically targets Assessment Years 2023–24 and 2024–25.

Backed by robust data analytics and inputs from crypto exchanges, the department is identifying mismatches between declared income and TDS returns, raising red flags around possible underreporting or evasion.

A Snapshot of India’s Crypto Tax Regime

India has implemented one of the most clear-cut taxation systems for VDAs. Key provisions include:

  • Flat 30% tax on income from the transfer of VDAs, including cryptocurrencies, NFTs, and other digital tokens—applicable regardless of whether the gains are business income or capital gains.

  • 1% Tax Deducted at Source (TDS) on transactions exceeding specified thresholds. This TDS is deducted upfront, aiding the government in tracking crypto flows and ensuring tax is collected in real time.

  • No set-off of losses from VDAs against other income—making the tax regime more stringent.

  • Gifts of VDAs valued over ₹50,000 are taxable in the hands of the recipient.

These measures were introduced to bring clarity and accountability to an otherwise unregulated digital space and ensure that tax compliance is upheld.

Trust-Based Nudges Over Enforcement: A Balanced Approach

The ITD’s outreach is not intended to penalize taxpayers immediately but to guide them toward voluntary compliance. Taxpayers who may have unintentionally failed to report VDA income are encouraged to file updated returns and make the necessary disclosures before enforcement actions or scrutiny proceedings are initiated.

This campaign mirrors earlier efforts by the department to target foreign asset non-disclosures and fraudulent deductions. The consistent message is clear: honest compliance is expected and rewarded under the “trust taxpayer first” philosophy.

Why This Matters Now

The digital asset market in India is growing rapidly. With increased retail participation and the rise of NFTs, DeFi tokens, and other digital assets, the government is focused on curbing money laundering, tax evasion, and the flow of unaccounted wealth. The current taxation model ensures that crypto investors contribute fairly to the revenue system, just like any other asset class.

Crypto

Investor Advisory: Act Before It’s Too Late

If you’ve traded, invested in, or received VDAs in the last two financial years, now is the time to:

  • Review your transaction history

  • Cross-check TDS entries reported by exchanges

  • Update or revise your Income Tax Returns, if needed

Failing to comply can lead to penalties, interest, and even scrutiny proceedings in certain cases.

Read More: Have You Reported Your Foreign Assets in Your Income Tax Return?

Conclusion

The message from the Income Tax Department is loud and clear: crypto is not beyond the reach of tax laws. As regulatory clarity increases and data-sharing mechanisms become more robust, non-compliance will become increasingly risky. Investors are advised to stay informed, stay compliant, and treat VDA transactions like any other taxable income stream.

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Income Tax Filing 2025: 6 Easy Ways to e-Verify Your ITR Online

e-Verify

Income Tax Filing 2025: 6 Easy Ways to e-Verify Your ITR Online

e-Verify

Filing your Income Tax Return (ITR) is only part of the compliance process — the job isn’t done until you verify your return. Without verification, your ITR submission will be treated as invalid under the Income Tax Act, 1961. Fortunately, the Income Tax Department provides multiple convenient options to verify your ITR electronically, known as e-Verification.

Let’s explore the six easy ways to e-Verify your ITR online and what you need to know about the process.

✅ What Is ITR e-Verification?

e-Verification is the final step in filing your Income Tax Return. It confirms the authenticity of your return and enables the processing of your refund (if any). Verification can be done either online (digitally) or offline (by post).

e-Verify

🔍 6 Convenient Ways to e-Verify Your ITR

You can choose any one of the following methods to complete e-Verification:

  1. Aadhaar OTP

    • Use the One-Time Password sent to your mobile number linked with Aadhaar.

  2. EVC via Bank Account

    • Generate an Electronic Verification Code (EVC) through your pre-validated bank account.

  3. EVC via Demat Account

    • Generate EVC using your pre-validated demat account.

  4. EVC via ATM

    • Generate EVC by visiting an ATM of certain banks and choosing the option to generate an EVC for ITR filing.

  5. Net Banking

    • Log in through your bank’s net banking portal and access the Income Tax e-filing portal for e-Verification.

  6. Digital Signature Certificate (DSC)

    • Use your registered Digital Signature Certificate to verify the return.

✅ How Do You Know Your ITR Is Verified?

Once your e-Verification is successful, you’ll receive:

  • A confirmation message on the screen with a transaction ID.

  • An email from the Income Tax Department confirming successful verification.

For Authorised Signatories or Representative Assessees, an additional email will be sent to both the signatory and the taxpayer’s registered email addresses.

⚠️ What If You Don’t e-Verify in Time?

Failure to verify your ITR within the prescribed period means your return will be treated as not filed. This can lead to:

  • Penalties and interest

  • Loss of carried-forward losses

  • Rejection of refunds

However, if you miss the deadline, you may file a condonation request with a valid reason. Upon approval, you can proceed with e-Verification, and your return will be considered valid.

🎯 Benefits of e-Verification

  • No paperwork: No need to send the signed ITR-V to CPC, Bengaluru.

  • Instant confirmation: Avoid delays associated with postal transit.

  • Flexible options: Multiple methods available to suit your convenience.

📝 Offline Verification (Optional)

If you are unable or unwilling to use the online method, you can still verify your ITR the traditional way:

  • Download and print the ITR-V form.

  • Sign it manually.

  • Send it to:
    CPC, Post Bag No.1, Electronic City Post Office, Bengaluru – 560100, Karnataka, India

Read More: Have You Reported Your Foreign Assets in Your Income Tax Return?

📅 ITR Filing Deadline Extended

Latest Update:
The Central Board of Direct Taxes (CBDT) has extended the due date for filing ITR for FY 2024-25 (AY 2025-26) from July 31, 2025, to September 15, 2025.
This extension is applicable for individual and HUF taxpayers not subject to audit.

Don’t let your efforts in filing your tax return go to waste by missing the verification step. Whether through Aadhaar OTP, net banking, or a simple EVC, choose a method that suits you and complete your e-Verification today!

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