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ITR Filing Deadline Extended as New Regime Slashes Tax to Zero for Incomes Up to Rs 12 Lakh

Taxpayers now have extra time to weigh simplified slabs against traditional deductions before finalizing their ITR filings.

Overview

  • The government pushed the AY 2025-26 return deadline to September 15, 2025, allowing filers a longer window to decide between regimes.
  • Under the new tax framework, individuals with annual income up to Rs 12 lakh qualify for a full rebate and face virtually no tax liability.
  • Salaried employees and pensioners can switch between the old and new regimes each year, while those with business or professional income must file Form 10-IEA and face a one-time lock-in.
  • The old regime continues to offer allowances such as HRA, LTA, home-loan interest under Section 24(b) and broad deductions under Sections 80C to 80U.
  • Losses from house property, capital gains or business income cannot be carried forward under the new regime, a factor that may influence long-term tax planning.