“ITR Filing 2025: 7 Game-Changing Tax Rules You Can’t Ignore”

ITR Filing 2025

ITR Filing 2025: It’s critical to keep up with the most recent changes made to the capital gains tax and the revised tax regime as the income tax filing season for FY 2024–25 (Assessment Year 2025–26) draws near. There have been a number of changes that may have an immediate impact on your tax liability or savings this year. The most significant changes that all Indian taxpayers should be aware of before submitting their ITR have been laid out below.

1. ITR Filing 2025: Changes in Capital Gains Tax Rates

One of the major updates this year is the revision of capital gains tax:

Long-Term Capital Gains (LTCG) on equities and mutual funds are now taxed at 12.5%, compared to the previous 10%. However, the exemption limit for LTCG has been increased to ₹1.25 lakh per financial year.
Short-Term Capital Gains (STCG) are now taxed at 20%, which is a rise from the earlier 15%.
For real estate assets, LTCG is also taxed at a flat rate of 12.5%. However, taxpayers who purchased properties before April 1, 2001, can still choose indexation benefits instead of the flat rate if it results in a lower tax liability.

The date July 23, 2024, plays an important role—transactions before this date may still follow the older rules, while those after it must comply with the updated system.

2. ITR Filing 2025: Higher Standard Deduction and NPS Benefits in New Regime

Under the new tax regime:

The standard deduction for salaried individuals has been increased to ₹75,000.
The allowable employer contribution to NPS has been raised to 14% of basic salary, compared to 10% earlier. This is only applicable under the new regime. The old regime continues to allow a 10% deduction for private employees.

3. ITR Filing 2025: Simplified Foreign Asset Disclosure

A major relaxation has been implemented: undisclosed foreign assets under ₹20 lakh will no longer be subject to penalties under the Black Money Act, even though people are still required to disclose foreign assets like foreign bank accounts, ESOPs, pensions, and foreign real estate. In the past, failure to disclose could result in fines of up to ₹10 lakh.

4. ITR Filing 2025: Tax Rebate on Income Up to ₹7 Lakh

You are entitled for a 100% tax refund under Section 87A, meaning you pay no income tax, if your total taxable income under the new system is less than ₹7 lakh. However, bear in mind that if you choose to use the previous tax system, you will not be eligible for this refund.

Additionally, keep in mind that if your total taxable income, including LTCG and STCG, is less than ₹7 lakh, you will still be eligible for this refund.

5. ITR Filing 2025: New Regime as Default: Choose Wisely

The new tax regime is now the default system. To file under the old regime, you must make a deliberate selection while filing your return.

Those with significant deductions under sections like 80C, 80D, HRA, or LTA may still find the old regime more tax-friendly.
Others may benefit from the simplified structure and higher standard deduction offered by the new regime.

6. ITR Filing 2025: Extended ITR Filing Deadline

The FY 2024–25 ITR reporting date has been extended to September 15, 2025, to allow taxpayers additional time in light of the recent amendments. Both paid professionals and individual taxpayers are exempt from the need for audit reports.

7. ITR Filing 2025: Avoid Common ITR Filing Mistakes

Here are a few things to double-check before you submit your return:

Match all details with Form 26AS, Form 16, and AIS (Annual Information Statement) to avoid errors or scrutiny.
Choose the correct ITR form based on your income sources. For instance, if you have capital gains or foreign assets, ITR-2 or ITR-3 may apply.
Don’t overstate deductions under sections like 80C or 80G, especially since many of them don’t require documentation at the time of filing. Misinformation can trigger a tax notice.
If you’ve switched jobs during the year, ensure incomes from all employers are properly declared.

Feature	New Regime	Old Regime
Standard Deduction	₹75,000	₹50,000
Employer NPS deduction (private)	Up to 14%	10%
LTCG/STCG rates	LTCG 12.5%; STCG 20%	Asset-wise other rules
87A Rebate Threshold	₹7 lakh (incl. special incomes)	₹5 lakh
Deductions/exemptions allowed	Very limited	Broad (80C, HRA, etc.)

Conclusion: Be Ahead, File Wisely

A significant step towards simplicity, digital compliance, and more equitable taxation is reflected in the Income Tax regulations for FY 2024–2025. Taxpayers now have more options—but also more duty to make informed decisions—thanks to the default transition to the new system, higher capital gains tax rates, enhanced standard deductions, and NPS benefits.

The tax structure now necessitates more careful consideration and astute planning, regardless of whether you are a property owner, freelancer, investor, or salaried employee:

Every year, compare the two regimes to determine which is best for your income structure and deductions.

Keep a close eye on capital gains, particularly in view of the new flat tax rates and threshold adjustments.

To ensure accurate reporting and prevent discrepancies that can lead to investigation or postpone refunds, use AIS, Form 26AS, and TIS (Taxpayer Information Summary).

Even if they appear little, fully disclose any new investments, international assets, or employment changes.

Avoid waiting until the last minute. Utilize the additional time to confirm, organize, and maximize your tax return filing now that the deadline of September 15, 2025, has been set.

In the end, the best way to reduce your tax liability and increase compliance is to make well-informed judgements. For extra peace of mind, stay up to date on annual changes and think about employing a digital ITR filing platform or a reliable tax expert.

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