ITR Filing 2025: Key Updates You as a Taxpayer/Professional Absolutely Can't Miss!

As the tax season for Financial Year 2024-2025 - Assessment Year 2025-26 gets underway, there are important updates that taxpayers and professionals need to know as of date.

Planning smarter for FY 2025–26? Don’t miss this trusted guide used by thousands of tax professionals & CA students! Click here

Good News for Early Filers: ITR-1 and ITR-4 Available Now

The Income Tax Department has already made ITR-1 (Sahaj) and ITR-4 (Sugam) forms available online and via the offline utility from June 11, 2025. This means salaried employees with income under ₹50 lakh and small businesses or professionals opting for presumptive income under sections 44AD, 44ADA, and 44AE can file early to avoid last-minute rushes.

Delays in Other ITR Forms

However, taxpayers using forms ITR-2, ITR-3, ITR-5, ITR-6, and ITR-7 are facing delays. Utilities for these forms have not yet been released. Sources indicate that the department is finalizing validation rules and schema, with a phased release anticipated in the coming weeks.

Filing Numbers Strong, But Processing Lags

The filing portal has seen significant activity already, with over 31.48 lakh returns filed and approximately 28.96 lakh returns verified as of today. Surprisingly, actual processing has been slow, with only 4 returns processed till now. Officials attribute this delay to new validation checks and gradual system ramp-up. Processing speeds are expected to significantly improve over the coming weeks.

Extended Deadline for Non-Audit Cases

Recognizing these delays, the Central Board of Direct Taxes (CBDT) has announced an extended deadline for non-audit cases, moving it from the usual July 31 to September 15, 2025. This extension provides taxpayers additional time, helping reduce stress during the busy filing season.

AIS Still Missing Crucial GST Data for Q4

The Annual Information Statement (AIS), crucial for verifying tax information, currently reflects GST turnover data only until December 2024. This means fourth-quarter data for FY 2024-25 is still pending. Taxpayers with GST data discrepancies should carefully reconcile their GST filings manually (GSTR-1 and GSTR-3B) until AIS updates catch up.

Importance of Timely Processing

The Department introduced faster processing last year, often within 24 hours for simpler cases. Taxpayers filing ITR-1 and ITR-4 are encouraged to file early for quicker processing and refund issuance once the system ramps up fully.

Quick Tips for Smooth Filing:

• ●Start gathering all necessary documents (salary slips, Form 16, interest certificates).
• ●Regularly check and verify AIS/TIS data, especially GST-related figures.
• ●If filing complex returns (ITR-2, 3, 5, 6, or 7), prepare for a tighter timeline once utilities are available.
• ●Note the new deadline clearly: September 15, 2025.

Staying informed and proactive with these updates can save taxpayers from unnecessary penalties, delays, and last-minute stress this tax season.