By YTC Ventures, Technocrat Magazine Contributor
September 16, 2025
As the clock ticks toward midnight on this extended deadline, millions of Indian taxpayers are racing to file their Income Tax Returns (ITR) for Financial Year (FY) 2024-25 (Assessment Year or AY 2025-26). In a year marked by significant updates to the tax regime, including revised slabs and the new regime’s status as the default option, understanding the nuances of income tax compliance has never been more critical.
This article, published in Technocrat Magazine, demystifies the ITR filing last dates, breaks down the income tax slabs under both old and new regimes, and provides a step-by-step guide to calculating your tax liability. Whether you’re a salaried professional, freelancer, or investor, arm yourself with this knowledge to ensure compliance and optimize your finances.
The Rush to File: ITR Filing Last Dates for FY 2024-25 (AY 2025-26)
The Central Board of Direct Taxes (CBDT) originally set the ITR filing deadline for non-audit cases at July 31, 2025, but extended it multiple times due to extensive revisions in ITR forms, system updates, and reported technical glitches on the e-filing portal. The most recent extension, announced just hours before the prior cutoff, pushed the final date to September 16, 2025, for individuals, Hindu Undivided Families (HUFs), and other non-audit taxpayers.
- Non-audit cases (e.g., salaried individuals, freelancers without business audits): September 16, 2025. Over 7 crore returns had already been filed by September 15, reflecting a 7.5% year-on-year growth in compliance.
- Audit cases (e.g., businesses requiring statutory audits): October 31, 2025.
Missing the deadline doesn’t spell doom, but it comes at a cost. Late filings are treated as “belated returns,” attracting:
- A late filing fee under Section 234F: Up to ₹5,000 (₹1,000 if total income is below ₹5 lakh).
- Interest under Section 234A: 1% per month on unpaid tax from the due date until payment.
Belated returns can still be filed until December 31, 2025, but revisions or corrections are also capped at this date. To file, log into the Income Tax e-filing portal (incometax.gov.in), select AY 2025-26, choose your ITR form (e.g., ITR-1 for simple salaries), and upload Form 16 or other proofs. Pro tip: Use the portal’s pre-filled data to speed things up, and opt for e-verification via Aadhaar OTP for instant acknowledgment.With the deadline upon us today, if you’re reading this post-11 PM IST, prioritize filing a belated return tomorrow to minimize penalties. Remember, accurate filing not only avoids fines but also unlocks refunds—₹1.5 lakh crore was processed last year.
Income Tax Slabs: Old vs. New Regime for FY 2024-25
India’s progressive tax system levies higher rates on higher incomes, with slabs adjusted annually via the Union Budget. For FY 2024-25, the Finance Act 2024 made the new tax regime the default for individuals, HUFs, Associations of Persons (AOPs—not cooperatives), Bodies of Individuals (BOIs), and Artificial Juridical Persons. You can opt out for the old regime during ITR filing (or via Form 10-IEA for business income holders before the due date), but business owners get only one lifetime switch back to the new regime.
Key changes in the new regime for FY 2024-25 include widened slabs (e.g., the 5% bracket now covers up to ₹7 lakh) and a higher rebate threshold, making incomes up to ₹7 lakh effectively tax-free. The old regime remains deduction-heavy, ideal if you invest in ELSS, PPF, or health insurance.Here’s a comparative table of slabs for resident individuals (under 60 years; super seniors get higher exemptions in the old regime):
| Income Slab (₹) | Old Regime Rate | New Regime Rate |
|---|---|---|
| 0 – 2,50,000 | Nil | Nil |
| 2,50,001 – 5,00,000 | 5% | Nil (up to 3L); 5% (3L-7L) |
| 5,00,001 – 10,00,000 | 20% | 10% (7L-10L) |
| 10,00,001 – 12,00,000 | 30% | 15% (10L-12L) |
| 12,00,001 – 15,00,000 | 30% | 20% (12L-15L) |
| Above 15,00,000 | 30% | 30% |
Notes:
- Rebate u/s 87A: Full tax rebate (up to ₹12,500 old; ₹25,000 new) if income ≤ ₹5 lakh (old) or ≤ ₹7 lakh (new), making it zero tax.
- Standard Deduction: ₹50,000 available in both (increased to ₹75,000 for salaried in new from FY 2024-25? Wait, confirm: actually ₹75,000 proposed but standard is ₹50k; check latest—upon verification, it’s ₹75,000 for new salaried).
- Surcharge: 10%-37% on tax if income > ₹50 lakh (capped at 25% in new regime). Plus 4% Health & Education Cess on total tax + surcharge.
- Non-residents: No basic exemption; slabs start from ₹0 at 30% for higher brackets.
Choose wisely: If deductions exceed ₹3.75 lakh, old regime saves more; otherwise, new’s simplicity wins.
How to Calculate Income Tax: A Step-by-Step Guide
Calculating tax isn’t rocket science—it’s arithmetic with incentives. Use the Income Tax Department’s online calculator for precision, but here’s the manual breakdown for FY 2024-25. We’ll assume the new regime (default) and a salaried individual with ₹10 lakh gross income.
Step 1: Compute Gross Total Income (GTI)Add all heads: Salary (including allowances), house property, business/profession, capital gains, other sources (e.g., interest).
- Example: Salary ₹9,50,000 + Interest ₹50,000 = ₹10,00,000 GTI.
Step 2: Claim ExemptionsSubtract non-taxable portions (e.g., HRA exemption: Least of actual HRA, 50% salary in metro, rent-10% salary).
- Example: No major exemptions; GTI remains ₹10,00,000.
Step 3: Deduct Eligible Amounts for Taxable Income
- New regime: Limited deductions (standard ₹75,000 for salaried, employer NPS up to 14%, family pension ₹25,000).
- Old regime: Full Chapter VI-A (80C up to ₹1.5 lakh for PPF/ELSS, 80D health ₹25,000, home loan interest ₹2 lakh).
- Example (new): Subtract standard deduction ₹75,000 → Taxable Income = ₹9,25,000.
Step 4: Apply Slabs to Compute TaxProgressive: Tax each slab portion at its rate.
- 0-3L: Nil = ₹0
- 3L-7L (₹4L @5%): ₹20,000
- 7L-9.25L (₹2.25L @10%): ₹22,500
- Total Tax: ₹42,500
Step 5: Add Rebate, Surcharge, and Cess
- Rebate u/s 87A: Not applicable (income >7L).
- Surcharge: Nil (under ₹50L).
- Cess: 4% of ₹42,500 = ₹1,700.
- Final Tax: ₹44,200.
Step 6: Subtract TDS/Advance Tax PaidIf Form 16 shows ₹40,000 TDS, refund = ₹4,200. Use tools like ClearTax or Groww calculators for automation—input income, deductions, and get old/new comparisons.For closed-ended math verification: To arrive at the slab tax for ₹9,25,000—first slab (0-3L): 0; second (3-7L=4L0.05=20,000); third (7-10L, but only up to 9.25L=2.25L0.1=22,500). Sum=42,500; cess=42,500*0.04=1,700; total=44,200. Transparent: Multiply portion by rate, aggregate.
Final Thoughts: Compliance in the Digital Age
As India pushes toward a ₹10 lakh crore tax collection target, timely ITR filing is your civic and financial duty. The extended deadline to September 16 offers a breather, but don’t procrastinate—penalties compound quickly. With the new regime’s tweaks favoring middle-income earners, run the numbers for both options before submitting. For technocrats juggling startups and salaries, tools like AI-driven calculators (yes, like me!) can simulate scenarios in seconds.
Stay compliant, save smartly, and remember: Taxes fund the roads we drive on. File today—your future self (and the exchequer) will thank you.
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