💸 Pay Additional Taxes Now on FY25 Income to Avoid Extra Interest

By Author | June 30, 2025
Income Tax Recent News – 2025

🧾 Don’t Delay Tax Payment Despite Deadline Extension

The CBDT has extended the ITR filing deadline for AY 2025–26 to September 15, 2025. However, taxpayers should not delay paying any additional tax due. Waiting until the deadline increases your interest burden under Sections 234B and 234C.

💥 What Happens If You Delay Tax Payment?

  • Section 234C: Interest applies on shortfall in advance tax paid before March 31 of the financial year.
  • Section 234B: Interest is charged if advance tax is below 90% of total tax liability. It accrues from April 1 of the next financial year until the return is filed.

A tax expert explains,

“Even a two-day delay—for instance, filing on August 2—invokes full-month interest at 1%.”

🛡️ File Early to Avoid Errors and Portal Issues

Though the due date is extended, it’s wise to file before July 31. Early filing helps:

  • Avoid last-minute technical glitches
  • Verify Form 26AS and AIS easily
  • Detect and fix discrepancies
  • Minimize risk of notices or delayed refunds

📈 Key Changes in Capital Gains Reporting

🟢 Use of ITR-1 and ITR-4 Now Allowed for LTCG

Previously, any capital gains disqualified taxpayers from using ITR-1/ITR-4. Now, Individuals and HUFs can use them if:

  • LTCG is from listed shares or equity mutual funds
  • Gains don’t exceed ₹1.25 lakh
  • There are no carried forward losses

📅 Mandatory Reporting of Capital Asset Transfers

Budget 2024 introduced major changes:

  • Transfers before July 23, 2024: Old rules apply (indexation + 20% tax)
  • Transfers on/after July 23, 2024: New rules apply (12.5% tax, no indexation)

🏠 Real Estate Gains: Choose the Best Tax Option

For real estate sales post-July 23, 2024, taxpayers can:

  • Pay 12.5% LTCG tax without indexation, or
  • Choose 20% with indexation

Comparing both options ensures the lowest tax liability.

📄 TDS and Other Reporting Changes

If income (not salary) has TDS deducted, you must specify the TDS section (e.g., 194J or 194C) to claim tax credit.

📚 Detailed Disclosures for Deductions in Old Regime

Filing under the old tax regime? The new ITR utilities require:

  • Metro or non-metro status for HRA claim
  • Loan account details for home loan interest (Section 24b)
  • Policy/certificate numbers for 80C deductions like LIC, PPF, etc.

Keep documents like home loan interest certificates and investment proofs ready.

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