From Salary to Stocks All You Need for Filing Income Tax Return with New Rules & Rates (2025)

Introduction: –

ITR Filing FY 2024-25 has started, and like every year, many of us begin collecting documents without fully understanding the process. Whether you’re salaried, self-employed, retired, or investing in stocks, it’s important to know how your income is taxed. This blog will walk you through everything—income types, capital gains, TDS, exemptions, and how to file step-by-step for FY 2024-25 (AY 2025-26), under both the old and new tax regimes.

What Is an Income Tax Return?

An Income Tax Return, or ITR, is basically a summary of what you earned during the year, the taxes you paid, and any deductions you claimed. Once you file it, the Income Tax Department checks it against your Form 26AS, AIS (Annual Information Statement), and other records. Filing your ITR on time not only helps you claim refunds but also keeps you away from penalties and shows that you’re financially responsible.

Types of Income

The Income Tax Act classifies income under 5 heads. Here’s a breakdown of all income sources.

1. Income from Salary

Includes:

• Monthly salary
• Bonus, commission
• Leave encashment
• Gratuity, pension (for retirees)
• Perquisites like car, rent-free accommodation
• Taxable allowances (HRA, LTA if not claimed)

💡 Document to collect: Form 16 from employer, salary slips, Form 10E (for arrears)

2. Income from House Property

• Rental income from residential or commercial property
• Deemed rent on more than one owned property
• Self-occupied property (loss allowed on interest up to ₹2 lakh if loan taken

💡 Document to collect: Rent agreement, municipal tax receipts, loan interest certificate

3. Income from Business or Profession

• Freelancers (writers, designers, developers)
• Professionals (doctors, CAs, lawyers)
• Sole proprietors or consultants
• Traders

May include:

• Project fees or consultation charges
• Commission income
• Online business earnings (Amazon, YouTube, etc.)

💡 Document to collect: Invoices, expense records, bank statements, GST returns

4. Income from Other Sources

This is a catch-all category that includes:

• Savings account interest
• Fixed Deposit interest
• Recurring Deposit interest
• Dividend income from shares or mutual funds
• Gifts exceeding ₹50,000 (if not from a relative)
• Winnings from lotteries, betting, or game shows
• Family pension (partially taxable)

💡 Document to collect: Interest certificates, dividend statements, gift deeds, 26AS/AIS

5.Capital Gains – Long-Term vs Short-Term

Capital gains are profits from selling assets like property, shares, mutual funds, gold, crypto, etc. The July 23, 2024 Budget brought major changes effective mid‑fiscal year.

📊 Holding Periods

• Listed securities: 12 months (ST/LTC distinction)
• Other assets: 24 months (e.g., property, gold, bonds)

🔄 Rate Changes – Pre & Post July 23, 2024

✅ LTCG exemption on equity & equity-funds remains ₹1.25 lakh annually.

🛡️ Flexibility for Property Sellers

For houses purchased before July 23, 2024 and sold after, you can opt for either:

• 20% LTCG with indexation, or
• 12.5% LTCG plain

Choose whichever yields lower tax

🌱 Green Bonds Benefit

Investors can now claim 54EC exemption on gains invested in IREDA bonds (renewable energy) under Section 54EC

📊 Tax Slabs for FY 2024–25 (AY 2025–26)

🔴 New Tax Regime (No Major Deductions)

✅ ₹75,000 standard deduction for salaried/pensioners
🚫 No 80C, 80D, 24(b), HRA, etc.

🟢 Old Tax Regime (With Deductions)

✅ Deductions under 80C, 80D, 80G, 24(b), etc.

💡 Which Tax Regime Should You Choose?

📌 Tip: Compare both regimes before filing using an online tax calculator.

💰 What Is TDS?

TDS (Tax Deducted at Source) is the portion of tax withheld by payers on income before you receive it.

✅ Verify your TDS in Form 26AS & AIS before filing. Mismatches may delay refunds or trigger notices.

📄 Documents Checklist for ITR Filing

• PAN and Aadhaar
• Salary slips + Form 16
• Interest income certificates
• Rent receipts + Property tax
• Loan repayment certificate (principal + interest)
• Donation receipts (80G)
• Capital gains statement
• Form 26AS & AIS report
• Previous year’s ITR
• Foreign income + DTAA if applicable

 Common Deductions under Old Regime

🚫 These are not allowed in New Regime (except Standard Deduction and Employer NPS).

How to File Your ITR – Step by Step

1. Login at https://www.incometax.gov.in
2. Go to “File Income Tax Return”
3. Select AY 2025–26, mode as Online, and pick ITR form (ITR-1, 2, 3, 4)
4. Confirm personal and income details (auto-filled from AIS/26AS)
5. Choose tax regime – old or new
6. Claim deductions (if old regime)
7. Pay any tax due
8. Submit and E-Verify via Aadhaar OTP or net banking

Consequences of Late or Wrong Filing

• Late Fee: ₹1,000 – ₹5,000 under Section 234F
• Interest on Tax Due: 1% monthly under 234A/B/C
• Notices/Scrutiny: If income mismatches with 26AS/AIS
• Loss of Refunds or Deductions
• Prosecution: For willful concealment (u/s 276C)

Conclusion : –

Filing your ITR isn’t just a formality-it’s a smart financial habit. By understanding the different income sources, tax regimes, TDS, capital gains, and allowable deductions, you can make the most of what the law offers and avoid what it penalizes.

Start early, file correctly, and review your Form 26AS and AIS. If you’re unsure, always consult a CA.

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This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.

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