It’s a hot May morning in Calcutta, Ruma Sen is sipping her tea, flipping through her daughter’s homework, when her phone buzzes with an alert. She glanced at it and let out a sigh of relief, the government has extended the Income Tax filing deadline to September 15, 2025.
“Finally, more time”, she whispers, leaning back comfortably. But as she takes a deep breath, she knows better than to waste this extended window. Because in the world of taxes, procrastination is the enemy, and preparation is your best friend. Let’s take a walk through how Ruma and her family navigate this season’s tax maze, what they do, what pitfalls to avoid, and how you too can master your tax game without breaking a sweat.
First things first: who needs to file?
Ruma’s morning is interrupted by her husband Subir, an architect running his own firm, who joins her at the breakfast table. Their income stories couldn’t be more different. Ruma, a schoolteacher, earns a stable salary, with taxes deducted at source and a year end Form 16, with the calculations. Subir, on the other hand, runs his own business, with erratic cash inflows and a mountain of receipts, online payment histories and a spreadsheet titled “Client Payments FY 24-25”.
Their niece Sneha, a college student, making some extra money freelancing online, walks in and asks, “Do I need to file this year? I didn’t make more than ₹2.5 lakh.” Ruma smiled gently. “Even if you don’t have to, it’s good to file. It helps build your financial record, and you might be eligible for a refund.”
The road less travelled: Old regime or new?
Later that evening, the family debates which tax regime suits them best. Sneha is tempted by the new regime- “No deductions, lower tax rates”. But Subir argues for the old one, where deductions under sections like 80C, 80D and exemption on interest components of his home loan can save him money. Ruma compares both options online, running simulations for her salary and her father’s pension income.
The truth? There’s no universal winner. It depends on your income structure and deductions. The key is to run both options and choose the most beneficial one.
Quick tips
- New Regime: Ideal for simplicity and low deductions
- Old Regime: Best if you maximise deductions
Gathering the Arsenal: Documents, Data, and Disclosures: Next comes the practical part. Ruma gathers her Form 16, bank statements, and proof of investments like PPF, ELSS, and insurance premiums. Subir, meanwhile, sorts through receipts, invoices, and his spreadsheet of client payments.
For NRIs like their cousin Aniket in Dubai, the process involves keeping rental income details, TDS certificates, and his Tax Residency Certificate. He may file ITR-2 to declare his Indian income and claim benefits under the India-UAE Taxation Avoidance Agreement.
The first-time filer’s journey
If you are new to this, don’t worry. Ruma’s advice is simple: register on the Income Tax e-filing portal, choose the correct ITR form- like ITR-1 for salaried individuals- and fill in your income and deductions carefully. She emphasizes the importance of double-checking details like PAN, Aadhaar, and bank account numbers before submitting, because errors can delay your refunds. Once the return is filed, verification is the final step. Using Aadhaar OTP or net banking, you confirm submission, failure to verify renders the process incomplete and invalid.
When mistakes happen: Art of rectification
A few weeks later, Ruma learns about her colleague who entered the wrong salary figure. Panic sets in, what if the mistake leads to legal hassle?
She read about Monica Capoor, whose small typo resulted in a 40 crore tax notice. Here’s where the mechanism of rectification and revised returns becomes vital. If you realise an error after filing, you can submit a revised return under Section 139(5). This replaces your original return and corrects the mistake. For simple errors like misreported income or deductions, you can also file a rectification request under Section 154.
Ruma advises. “Always review your return carefully before submitting. And if you find an error, act fast, file a revised return or ask for rectification. It’s a lot easier than dealing with penalties.”
The high stakes of non-compliance
But what if you ignore these steps altogether? The consequences can be severe. Late filing fees under Section 234F can be up to 5000. Persistent non-filers risk prosecution, which could lead to fines or even imprisonment. Beyond penalties, non-filing can lead to loss of carry-forward losses, ineligibility for refunds, and complications in legal or financial matters like loans or visa applications.
Practical tips to stay error-free
- Check your Annual Information Statement (AIS) and Form 26ASbefore filing
- Verify your return immediately; unverified returns aren’t considered valid.
- Seek professional help if your finances are complex or have international implications.
- Maintain a checklist: PAN, Aadhaar, Form 16, TDS certificate, investment documents and deduction proof
- Always save the acknowledgement for future reference.
Conclusion: Act now, avoid regrets
Filing your income tax return isn’t about avoiding penalties. It’s part of responsible financial planning, a way to claim refunds, and a record of your earnings for future needs. It’s also an act of compliance that keeps you aligned with the country’s law and ensures smooth financial dealings. In Ruma’s words: “Think of tax filing as a routine health check. Better to do it early, keep your record tidy, and stay stress-free.”
With the deadline now extended to September 15th, there’s no need for last minute chaos. Like Ruma, you should gather your documents, choose the best regime for your income, file and verify your return. So, whether you’re a salaried employee in Ballygunge, a self-employed professional in Behala, or an NRI in Berlin with Indian investments – this tax season, file early, file right, and make peace with the system. After all, the tax-man might not knock today, but surely, they keep records better than you think.
The writer is a co-founder of www.investaffairs.com
