Significant updates are coming into effect on 1 July 2025 relating to PAN-Aadhaar linkage, ITR forms, e‑filing utilities, and payment deadlines. Here’s what you need to know:
1️⃣ Aadhaar Mandatory for New PAN Applications
From 1 July 2025, applicants seeking a new PAN card must link Aadhaar—no alternative ID proofs will be accepted. This aims to curb duplicate/fake PANs and strengthen identity verification.
2️⃣ PAN–Bank Account Link API Live
From June 17, 2025, the I-T portal supports real-time PAN–bank account verification via the NPCI API. This enhances refund processing and reduces erroneous filings.
3️⃣ Extended ITR Filing Deadline—September 15, 2025
Originally due on 31 July 2025, ITR forms for AY 2025–26 can now be filed until 15 September 2025 (for non-audit taxpayers)—an additional 46 days. However:
- Any final/ self‑assessment tax must still be paid by 31 July 2025 to avoid interest and penalties.
4️⃣ ITR Forms & Utility Upgrades
Changes have been made across ITR forms (AY 2025–26):
| Form | Key Updates |
|---|---|
| ITR‑1 / ITR‑4 | Eligible now for limited LTCG (≤ ₹1.25 Lakh); Aadhaar enrolment field |
| ITR‑2 / ITR‑3 | Separate reporting of capital gains split before/after 23 July 2024; share buyback gains require disclosure of dividend income |
| ITR‑5, ITR‑6 | Updates similar to ITR-2 for trust and company filings |
| New ITR‑U Form | Enables correction of past returns (voluntary filing) as per Budget 2025; eligibility, deadlines, and penalties defined |
5️⃣ Revised Tax Slabs & Deductions (FY 2025–26)
As per the Budget 2025, the new tax regime (default from FY 2025–26) includes:
- Zero tax up to ₹12 lakh
- Slabs:
- ₹4–8 Lkh: 5%
- ₹8–12 Lkh: 10%
- ₹12–16 Lkh: 15%
- ₹16–20 Lkh: 20%
- ₹20–24 Lkh: 25%
- Above ₹24 Lkh: 30%
- Standard deduction ₹75,000
- Section 87A rebate ₹60,000 → zero tax effectively up to ₹12 lakh
6️⃣ Deadline for Tax Payments – 31 July 2025
Though the filing window extends to September, all tax dues—including final/self-assessment taxes—should be paid by 31 July 2025 to avoid interest.
✅ Action Checklist
- 👉 PAN Applicants: Link Aadhaar before applying.
- ✅ Bank Verification: Ensure PAN is linked to a bank account via portal.
- 🛂 Download ITR Forms: Excel utilities for ITR‑1/4 are ready.
- 📊 Select Correct ITR Form:
- Use ITR‑1/4 if LTCG ≤ ₹1.25L and conditions met.
- Use ITR‑2/3 for complex incomes.
- ⏳ Pay Taxes by 31 July to avoid interest.
- 📝 File Return by 15 Sept under extended deadline.
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