Income Tax — regimes, deductions & filing

The new regime under Section 115BAC is the default from AY 2024-25. It offers concessional slab rates (0% up to ₹3L, 5% ₹3-7L, 10% ₹7-10L, 15% ₹10-12L, 20% ₹12-15L, 30% above ₹15L) but disallows almost every popular deduction — no 80C, no 80D, no HRA, no LTA, no home-loan interest on self-occupied property. The old regime keeps every deduction but starts taxing at ₹2.5 lakh with slabs 5% / 20% / 30%.

Rule of thumb — if your total 80C + 80D + HRA + home-loan interest + NPS deductions cross ₹3.75 lakh, the old regime usually wins. Below that, the new regime with its higher standard deduction and 87A rebate up to ₹7 lakh is the more efficient choice. Salaried employees can switch every year via Form 10-IEA; business/profession income can switch only once (and re-opt only when there's no business income).

ITR-1 (Sahaj) is for resident individuals with total income up to ₹50 lakh from salary, one house property and other sources, with no capital gains, foreign assets or business income. ITR-2 covers capital gains, multiple house properties, foreign income and directorships. ITR-3 is for individuals with business or professional income. ITR-4 (Sugam) is for presumptive taxation under 44AD / 44ADA / 44AE. ITR-5, 6 and 7 cover firms/LLPs, companies and trusts respectively.

Filing the wrong form triggers a Section 139(9) defective-return notice — you get 15 days to file a corrected return, failing which the original is treated as invalid and losses cannot be carried forward. Capital gains from equity, crypto (VDA @ 30%) and foreign RSUs are the most common reasons for wrong-form filings.

If your total tax liability after TDS is more than ₹10,000 in a financial year, advance tax must be paid in four instalments — 15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March. Miss an instalment and interest under Section 234C kicks in at 1% per month for 3 months on the shortfall. Miss the March deadline and 234B interest of 1% per month runs from 1 April until the tax is paid.

Refunds are processed after e-verification and Section 143(1) intimation, typically within 20–45 days for e-filed returns. Refund status is tracked at incometax.gov.in → Services → 'Know Your Refund Status'. Refunds are credited only to a pre-validated bank account with the PAN linked and IFSC verified.