Today marks the final day for filing Income Tax Returns (ITR) for Assessment Year (AY) 2025–26, and lakhs of taxpayers are racing to meet the deadline before it expires at midnight. The Income Tax Department’s e-filing portal is witnessing heavy traffic, with close to 10 million returns expected to be filed today alone. For those still gathering documents or struggling with last-minute calculations, here is a comprehensive guide to help you file smoothly and avoid penalties.
Surge in Last-Minute Filings
The government had earlier extended the due date, which was originally July 31, giving individuals and businesses additional time to file. Despite the extension, many taxpayers have waited until the last day, leading to a rush on the e-filing portal.
Last year, the department processed a record 7 million returns in a single day, and this year’s numbers are expected to surpass that figure, reflecting an improving compliance rate among taxpayers.
Advance Tax Deadline Adds to Pressure
This year’s ITR deadline coincides with the due date for paying the second instalment of advance tax, which has put additional pressure on businesses and salaried individuals.
For many taxpayers, today is a two-fold task — filing their ITR and ensuring their advance tax payments are made on time. Failing to pay advance tax may attract interest under Sections 234B and 234C of the Income Tax Act.
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Choosing the Right ITR Form
Selecting the correct return form is one of the first and most important steps:
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ITR-1 (Sahaj): For salaried individuals with income up to ₹50 lakh and income from one house property, salary, and other sources (excluding lottery winnings and racehorses).
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ITR-2: For individuals and HUFs not having income from business or profession but earning from multiple house properties, capital gains, etc.
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ITR-3: For individuals/HUFs having income from a proprietary business or profession.
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ITR-4 (Sugam): For presumptive taxation scheme users under Sections 44AD, 44ADA, or 44AE, with income up to ₹50 lakh.
Taxpayers can file online via incometax.gov.in or download the free utilities provided by the department for offline preparation.
Documents to Keep Handy
While no physical documents need to be attached with the ITR, you must have the following information ready:
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Form 16 (for salaried employees)
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TDS certificates
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Bank account details
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Investment proofs (for deductions under 80C, 80D, etc.)
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Capital gains statements (if applicable)
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Advance tax payment challans
Keeping these records handy will help avoid errors and delays while filing.
What Happens If You Miss the Deadline?
Filing your return after the deadline results in a belated return under Section 139(4), which carries a late fee:
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₹5,000 penalty for those with total income above ₹5 lakh
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₹1,000 penalty for those with income below ₹5 lakh
Additionally, belated filers lose the option to carry forward certain losses (like business loss or capital loss) to future years.
Non-filing can also result in:
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Loss of deductions under various sections
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Scrutiny and notices from the Income Tax Department
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Prosecution in serious cases of willful tax evasion
Refunds and Deductions
Taxpayers who have paid more than their actual liability will receive refunds directly to their bank account through ECS transfer. To ensure smooth credit, it is important that bank account details are pre-validated on the e-filing portal.
Tax deductions can be claimed under several sections, including:
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80C: Investments in PPF, ELSS, life insurance premium, etc.
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80D: Medical insurance premium
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80G: Donations to approved funds and charitable institutions
However, deductions cannot exceed the total income, and documentation should be maintained for verification in case of scrutiny.
Tax Rebate for Low and Middle-Income Earners
Relief is available for individuals in the lower tax brackets:
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Under the old regime, those with income up to ₹5 lakh can claim a rebate under Section 87A up to ₹12,500, reducing tax liability to zero.
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Under the new regime, the rebate limit is higher, offering full tax relief for income up to ₹7 lakh.
This ensures that small taxpayers can file without additional tax burden, provided they meet the criteria.
Benefits of Timely Filing
Filing your ITR on or before the deadline has several advantages:
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Avoids Penalty: Saves you from paying late filing fees and interest.
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Enables Loss Carry Forward: Allows carrying forward business and capital losses.
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Ensures Quick Refund: Early filers generally get refunds faster.
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Improves Creditworthiness: ITR receipts can be used as proof of income for loans, visas, and financial planning.
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Keeps Records Clean: Timely compliance helps avoid future disputes and tax notices.
Tips for Last-Minute Filers
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Double-check details: Ensure PAN, Aadhaar, and bank account details are correct.
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Verify Form 26AS: Cross-check your TDS with Form 26AS on the portal.
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Choose the right regime: Select between the old and new tax regimes carefully, as it impacts total tax liability.
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E-verify promptly: Filing is only complete after e-verification, which can be done using Aadhaar OTP, net banking, or bank account EVC.
With the deadline ending tonight, taxpayers are advised to avoid last-hour rush and file well before midnight to prevent portal slowdowns. Timely compliance not only saves penalties but also contributes to a smoother financial year ahead.
