Income Tax changes – wef .1 July 2025

 

From 1st July 2025, several important income tax updates will come into effect—impacting PAN-Aadhaar linkage, ITR forms, e-filing deadlines, and tax payments. If you're a taxpayer, professional, or business owner, here's everything you need to stay compliant and avoid penalties.

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🆕 1. Aadhaar Mandatory for New PAN Applications

🗓 Effective from: 1 July 2025

Going forward, Aadhaar will be mandatory for anyone applying for a new PAN card. Other identity documents will no longer be accepted.

🔒 Why this matters:

• Helps eliminate duplicate or fake PANs

• Strengthens identity verification for taxpayers

✅ Action: If you're applying for a new PAN, ensure your Aadhaar is linked before submission.

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🔗 2. Real-Time PAN–Bank Account Verification Now Live

🗓 Live since: 17 June 2025

The Income Tax portal now supports real-time PAN–bank account linkage through the NPCI API.

📌 Benefits:

• Faster processing of income tax refunds

• Reduces errors in bank details during ITR filing

✅ Action: Verify your PAN is correctly linked with your primary bank account.

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📅 3. Extended ITR Filing Deadline – 15 September 2025

⏳ New Deadline: 15 September 2025
❗️ Tax Payment Deadline Remains: 31 July 2025

Good news! The ITR filing deadline for non-audit taxpayers for AY 2025–26 has been extended by 46 days—from 31 July to 15 September 2025.

However:

⚠️ You must still pay your final/self-assessment tax by 31 July 2025 to avoid interest under Sections 234A/B/C.

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📝 4. ITR Forms & Utility Upgrades – AY 2025–26

The Income Tax Department has updated several ITR forms and released Excel/Java utilities. Here's what changed:

Form	Key Updates
ITR‑1 / 4	Now allows limited LTCG (≤ ₹1.25L), new Aadhaar enrolment field
ITR‑2 / 3	Split capital gains (pre/post 23 July 2024), share buyback disclosure
ITR‑5 / 6	Similar updates for trusts and companies
New ITR‑U	Enables voluntary corrections of past returns (as per Budget 2025)

✅ Action:

• Download latest utilities from incometax.gov.in

• Use the right form based on your income type

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💸 5. Revised Income Tax Slabs – New Regime (FY 2025–26)

As per Budget 2025, the new tax regime becomes the default from FY 2025–26. Check out the revised tax slabs:

Income Range	Tax Rate
₹0–₹4 lakh	0%
₹4–₹8 lakh	5%
₹8–₹12 lakh	10%
₹12–₹16 lakh	15%
₹16–₹20 lakh	20%
₹20–₹24 lakh	25%
₹24 lakh & above	30%

Key Deductions:

• 💰 Standard Deduction: ₹75,000

• 💸 Section 87A Rebate: ₹60,000 ⇒ Effective zero tax up to ₹12 lakh

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🧾 6. Final Tax Payment Deadline – 31 July 2025

Even with the extended ITR filing date, all tax dues must be cleared on or before 31 July 2025.

This includes:

• ✅ Self-assessment tax

• ✅ Advance tax, if applicable

⚠️ Delayed payment will attract interest and penalty, even if return is filed later.

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✅ Quick Action Checklist

☑️ PAN Applicants: Link Aadhaar before applying for new PAN
☑️ Bank Account: Verify PAN linkage via I-T portal
☑️ ITR Forms: Download updated Excel/Java utilities
☑️ Form Selection:
‣ Use ITR-1/4 for simple income + LTCG ≤ ₹1.25L
‣ Use ITR-2/3 for salary + capital gains, foreign income, etc.
☑️ Pay Tax Dues: Deadline – 31 July 2025
☑️ File ITR: Final deadline – 15 September 2025

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🧠 Stay Informed. File Early. Avoid Penalties!

Bookmark this post and share with friends, clients, and fellow taxpayers. Stay ahead of compliance deadlines and ensure your taxes are filed smoothly in FY 2025–26.