With the right support, filing your income tax return (ITR) doesn’t have to be difficult. It can, in fact, be effortless and rewarding. For the financial year 2023-24 (assessment year 2024-25), there are some notable updates, especially for freelancers and salaried employees. In this article, we will illustrate the effective techniques for filing, drawing your attention to the common mistakes made and guiding you through selecting between old and new tax regimes.
What’s New in Income Tax Filing for 2024–25?
Like every other year, the Income Tax Department has altered several policies that impact the manner in which taxpayers file for tax returns. For the financial year 2023-24, notable updates include the following:
- The new tax regime has been made the default option unless the old regime is selected.
- A standard deduction of ₹50,000 is offered under the new regime as well.
- Updated ITR forms to include better reporting for crypto income, foreign investments, and more.
- E-verification via Aadhaar OTP, Net Banking, or DSC is now mandatory within 30 days of filing.
Who Needs to File Income Tax Returns?
If you’re a citizen of India, possessing an income above ₹2.5 lakh (under the old regime) or ₹3 lakh (under the new regime), then ITR filing is a necessity. Here is a simplified illustration:
- Employees earning above the exemption limit.
- Freelancers and self-employed professionals such as consultants, tutors, and designers.
- NRIs earning income in India.
- People with capital gains from stocks, mutual funds, or property sales.
Old vs New Tax Regime—What Should You Choose?
Choosing the right tax regime can impact how much tax you save. Here’s a snapshot:
Income Range Old Regime (with deductions) New Regime (lower rates, no deductions) ₹5–7.5L better if using 80C, 80D, and HRABetter without deductions. ₹10L+ Depends on tax planning. May be better due to lower slabs.
Tip: Use an online income tax calculator to compare both.
Documents You’ll Need Before Filing
- Form 16 (for salaried employees)
- Form 26AS—Tax credit statement
- Annual Information Statement (AIS)
- Bank statements
- Investment proofs (for old regime)
- PAN & Aadhaar card
How to File Income Tax Returns Online (Step-by-Step
Common Deductions (Only in Old Regime)
If you’re sticking with the old regime, don’t forget to claim these:
- Section 80C—Investments up to ₹1.5L (LIC, PPF, ELSS, etc.)
- Section 80D—Health insurance premiums
- HRA—House Rent Allowance (for those in rented homes)
- Section 24(b) – Home loan interest deduction (₹2L max)
Mistakes to Avoid While Filing ITR
- Choosing the wrong ITR form
- Not reporting interest income from savings account
- Mismatch in PAN or Aadhaar details
- Forgetting to verify your ITR
- Not reporting foreign income/assets
Penalties for Late Filing
If you miss the July 31, 2024 deadline (for most taxpayers), the following may apply:
- ₹1,000 penalty if income < ₹5L
- ₹5,000 penalty if income > ₹5L
- Interest under Section 234A & 234F
- Ineligibility to carry forward certain losses
Tools & Resources to Help You
- Income Tax Calculator—Govt.
- Tax filing portals like ClearTax, TaxBuddy, and Quicko
- YouTube explainers by finance influencers
- Chartered Accountant (CA) for complex cases
Frequently Asked Questions
Q1. Can I file ITR without Form 16?
Yes. You can use Form 26AS and salary slips instead.
Q2. Is tax filing required if my income is below ₹2.5L?
Not mandatory, but beneficial if you want a refund or visa processing.
Q3. Can I revise my return after submitting?
Yes, revised returns are allowed before December 31, 2025.
Final Thoughts
Filing your income tax return for 2024–25 doesn’t have to be complicated. The key is preparation: know your income, pick the right regime, use available tools, and file on time. Whether you do it yourself or through a CA, being tax-compliant helps you stay worry-free and unlocks financial benefits like faster refunds, smooth loans, and travel documentation.
