- By Shreyansh Mangla
- Tue, 29 Jul 2025 06:17 PM (IST)
- Source:JND
ITR Filing 2025 Last Date: Taxpayers are now rushing to the Income Tax portal as the deadline for ITR filing draws closer. This year has introduced several major changes in the ITR process, particularly related to capital gains, due to the Union Budget 2024. Moreover, before you start filing your taxes, it is crucial to review the rules outlined in Budget 2024, such as deadlines, tax rates, and the procedure to file. It has been noted in the past that ignoring them could cost you money or lead to severe penalties.
Revised ITR Filing Deadlines for FY 2024-25 (AY 2025-26)
As you must have heard, there have been changes made to the ITR filing deadlines:
- For salaried individuals and Hindu Undivided Families (HUFs) who do not require an audit, the deadline has been extended to September 15, 2025. This extension has been made to adapt to the recent tax changes and provide more time to taxpayers.
- Businesses and professionals subject to audit will have to file their returns by October 31, 2025.
- For taxpayers with international transactions, the deadline is November 30, 2025.
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Belated and Revised Returns
Taxpayers can file their belated and revised returns until December 31, 2025. However, it has been warned that late filings will be penalised with interest under Section 234A and a late fee of up to Rs 5,000 (Rs 1,000 for income under Rs 5 lakh).
New Capital Gains Framework (Effective July 23, 2024)
A significant change has been mandated regarding capital gains, effective July 23, 2024. This includes:
- For assets sold BEFORE July 23, 2024: The old tax regime rules will apply.
- For assets sold ON or AFTER July 23, 2024: Taxes will be levied according to the new tax regime.
Now that the new tax regime has been introduced, there have been tweaks as to how a taxpayer has to fill their ITR forms: There needs to be a bifurcation made by the taxpayer to report their investment profits (gains) separately in the tax form, showing what exactly the taxpayer sold before July 23, 2024, and what they sold after that date.
New Rules for Long-Term Capital Gains (LTCG)
The rules for Long-Term Capital Gains (LTCG) have also been tweaked, primarily with the introduction of a more
uniform tax rate.
Flat Tax Rate: There will now be a flat tax rate imposed across most asset classes. For most assets, including debt mutual funds, real estate, and gold, LTCG is now subjected to a flat tax rate of 12.5 per cent without indexation benefits for sales on or after July 23, 2024. This marks an increase from the earlier rate of 10 per cent or 20 per cent with indexation in some cases.
Stock Profits Exemption (Equity/Equity-Oriented Mutual Funds): For listed equity shares and equity-oriented mutual funds, LTCG on gains exceeding Rs 1.25 lakhs will be taxed at 12.5 per cent without indexation for sales on or after July 23, 2024. The term "long term" for listed equities and equity mutual funds generally stands for any property that has been held for more than 12 months.
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Property Tax Cut: While previously taxed at 20 per cent with indexation, long-term profits from selling properties on or after July 23, 2024, are now generally lowered to 12.5 per cent without indexation. For property bought before July 23, 2024, but sold after, taxpayers can choose between the old and new rates (whichever is more beneficial).
No Adjustments for New Properties Bought During Inflation (Indexation): For most assets, the indexation benefit (adjusting the cost of acquisition for inflation) has been removed for sales on or after July 23, 2024.
Choice for Older Purchases: For assets bought before July 23, 2024, and sold on or after this date, one can generally pick either the old or new tax regimes for capital gains, whichever saves them money. This is particularly relevant for assets like property where indexation might have provided a better outcome under the old regime.
Simpler Tax Rules: The government aims to make taxing profits from different investments simpler and more consistent.
STCG (Short-Term Capital Gains)
There will now be higher taxes imposed on quick gains.
- For listed stocks and equity-oriented mutual funds, the Short-Term Capital Gains (STCG) tax rate has increased from 15 per cent to 20 per cent for sales on or after July 23, 2024.
- For other assets, STCG continues to be taxed at the taxpayer's applicable income tax slab rates. The holding period for STCG classification for most unlisted assets is now generally up to 24 months.
Other Key Tax Changes
NPS Deduction for Employees (New Tax Regime): Under the new tax regime, while an employee's own contributions to NPS are generally not eligible for deduction, an employer's contribution of up to 14 per cent of an employee's salary (Basic + Dearness Allowance) to their NPS account is fully exempt from tax under Section 80CCD(2) for both government and private sector employees. This limit has been enhanced to 14 per cent for private sector employees as well, effective April 1, 2025.
NPS at Old Tax System: If one opts for the old tax system, the employer's contribution limit remains at 10 per cent of salary (Basic + Dearness Allowance) for private sector employees, and 14 per cent for government employees.
Relief for Foreign Assets: If the taxpayer owns assets outside of India, there is some good news in this new tax regime. There is no big penalty now for not reporting foreign assets up to Rs 20 lakh. Earlier, the penalty could be significantly higher. However, it is still mandatory to report all foreign assets in Schedule FA of the ITR.
New Tax Slabs (New Tax Regime): A big sigh of relief for salaried individuals as the new tax regime has updated tax brackets, potentially lowering taxes for many. Some slabs may even result in no tax liability at all, depending on the income level.
Bigger Standard Deduction for Salaried Individuals (New Tax Regime): Under the new regime, salaried individuals automatically get a higher standard deduction of Rs 75,000 from their income. This means salaried individuals can have an effective tax-free income of up to Rs 7.75 lakhs (Rs 7 lakhs basic exemption + Rs 75,000 standard deduction) under the new tax regime.
Exemption for Equity Investors: Stock traders can now earn a larger amount, up to Rs 1.25 lakh from selling listed stocks or equity mutual funds (long-term capital gains), before they pay any tax on it. Anything above this amount will be taxed at 12.5 per cent. The 2025 Tax Regime is indeed tricky for many taxpayers, as each taxable commodity, be it capital gains, pensions, or equities, has rules to be read, understood, and followed strictly. So, taxpayers must be extremely careful while going through the rules of each of these tax regimes, especially given the complexities for smart investors and those who even own foreign assets.