Why Are Taxpayers Urged to File ITRs as the September 15 Deadline Approaches?

New Delhi, Sept 7 (NationPress) As the September 15 deadline for submitting Income Tax Returns (ITRs) for individuals draws closer, more than 4.56 crore individuals have already filed their returns, with submissions accelerating as the cutoff date approaches.

Senior officials from the Income Tax Department have emphasized that taxpayers should not procrastinate until the last moment to file their returns, as this can result in unnecessary hassle.

The process for individuals to file their tax returns has been simplified, and it involves the following steps:

-- Log in at incometax.gov.in using your PAN/Aadhaar and password

-- Navigate to → e-File > Income Tax Return > File Income Tax Return

-- Choose AY 2025–26

-- Select the appropriate form

-- Review the pre-filled information (salary, TDS, bank interest)

-- Add any missing income/deductions & choose the tax regime (Old/New)

-- Submit your return

Each year, the Income Tax Department issues different ITR forms tailored to various categories of taxpayers. It is crucial to select the correct form, as filing an inappropriate one may lead to a defective return. For FY 2024–25 (AY 2025–26), the following forms are applicable for non-audit taxpayers, including individuals and small entities:

ITR-1 (Sahaj) – For salaried individuals

A salaried individual, according to the Income Tax Department, is defined as a taxpayer who earns income from an employer in the form of salary, wages, allowances, perquisites, or pension, and is taxable under the category of "Income from Salary".

ITR-2 – For Individuals/HUFs (No Business/Profession Income)

Individuals are natural persons earning income from salary, pension, house property, capital gains, business/profession, or other sources, taxed in their personal capacity.

HUFs (Hindu Undivided Families) are distinct entities under income tax law, encompassing all individuals lineally descended from a common ancestor, including their wives and unmarried daughters. An HUF can generate income from property, business, or other sources, and is taxed as a separate "person" under the Income Tax Act.

A late filing fee applies if the return is submitted after the designated due date. A fee of Rs 5,000 is applicable for returns filed post-deadline. However, if the total income is less than Rs 5 lakh, the late fee is limited to Rs 1,000.

Additionally, delays in filing incur a 1 percent interest per month on the outstanding tax amount, alongside the late filing fee.

Thus far, there has been a notable growth of over 25 percent in ITR filings from AY 2022–23 to AY 2024–25.

According to data from the Central Board of Direct Taxes (CBDT), ITR submissions have consistently increased over the years, indicating rising compliance and an expanding tax base. For AY 2024–25, an unprecedented 7.28 crore ITRs were filed by July 31, 2024, compared to 6.77 crore in AY 2023–24, marking a 7.5 percent year-on-year growth.