Return Filing Under New explained: this guide covers what Return Filing Under New means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Overview
This article provides a detailed explanation of Return Filing Under New IT Act 2025 under the Income Tax Act, 1961 and the Income Tax Act, 2025. All amendments made by the Finance Act, 2025 and Finance Act, 2024, plus CBDT Circulars up to March 2026, are incorporated.
Relevant provisions: Part P, IT Act 2025.
Legal Framework
Under Income Tax Act, 1961
Part P, IT Act 2025 governs return filing. The section covers: (a) scope and applicability, (b) computation methodology, (c) available deductions/exemptions, (d) compliance requirements and timelines, and (e) penalties for non-compliance.
Changes Under Income Tax Act, 2025
Applicability
| Taxpayer | Applicable? | Key Point |
|---|---|---|
| Salaried Individual | Yes | Standard deduction Rs. 75,000 (new regime) / Rs. 50,000 (old) |
| Business/Professional | Yes | Presumptive u/s 44AD (Rs. 3 crore) / 44ADA (Rs. 75 lakh) |
| Company | Yes | 22% u/s 115BAA or 15% u/s 115BAB |
| LLP/Firm | Yes | 30% flat rate |
| NRI | Yes | Only Indian income; DTAA benefits available |
| Investor | Yes | STCG 20% (equity), LTCG 12.5% above Rs. 1.25 lakh; VDA 30% |
Detailed Explanation with Examples
Example 1: Rahul, a salaried employee in Faridabad earning Rs. 15 lakh, needs to understand return filing for proper tax computation and compliance. Under the new regime (default), with standard deduction of Rs. 75,000, his taxable income is Rs. 14,25,000. The graduated slab rates apply: nil up to Rs. 4 lakh, then 5%, 10%, 15%, 20%, 25% in successive slabs.
Example 2: Priya runs a consulting business with receipts of Rs. 60 lakh (90% digital). Under Section 44ADA, she can declare 50% as income = Rs. 30 lakh. She opts for the old regime to claim Chapter VI-A deductions including Rs. 1.5 lakh (80C), Rs. 50,000 (NPS 80CCD(1B)), and Rs. 25,000 (80D).
Example 3: An NRI sells property in India for Rs. 1.2 crore (purchased 2015 for Rs. 40 lakh). Post-July 2024 changes, LTCG is computed without indexation at 12.5%. Buyer must deduct TDS at 12.5% under Section 195. NRI can claim exemption under Section 54/54EC if reinvesting. DTAA benefits may reduce effective tax rate.
Key Facts About Return Filing Under New
- Applies in: All states across India, under the relevant central law.
- Mode: Mostly online via the official government portal.
- Typical timeline: Ranges from a few days to a few weeks depending on the case.
- Non-compliance: May attract penalties, interest or late fees.
- Expert help: TaxClue completes Return Filing Under New end to end for you.
What is return filing?
Part P, IT Act 2025 governs return filing. Covers computation, exemptions, deductions, and compliance.
What changes under IT Act 2025?
Simplified language, Tax Year replaces PY/AY, rationalized provisions. Effective date to be notified.
Over 90% of compliance penalties in India arise from missed due dates — timely handling of Return Filing Under New can save businesses thousands of rupees each year.
Return Filing Under New: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.