Here’s a fresh blog breakdown of what’s new and interesting about ITR for Assessment Year 2025‑26 (Financial Year 2024‑25), along with the latest on refund timelines:
Key Updates for ITR in AY 2025–26
1. ITR‑3 Now Enabled Online
* ITR‑3 (for individuals/HUFs earning business or professional income—traders, directors, proprietorships, F\&O traders etc.) is now live on the e‑filing portal in both online and offline modes, available since late July 2025
* Forms ITR‑2, ITR‑3, ITR‑4 utilities have also been updated for AY 2025–26
2. New Profession‑Specific Codes
* ITR‑3 and ITR‑4 now include profession codes:
* 16021 for influencers,
* 21010 for F\&O traders,
* 21009 for betting income businesses
* Misclassification can invite scrutiny—check your income source, AIS, Form 26AS, and retain documentation.
3. ITR‑1 Makes LTCG Reporting Easier
* If you have long-term capital gains (LTCG) up to ₹1.25 lakh along with salary income, you can now use the simplified **ITR‑1 (Sahaj)** form – earlier you'd need ITR‑2 or ITR‑3
4. Updated Return via ITR‑U
* A new update window, ITR‑U, lets you amend returns up to 4 years after filing the original, belated, or revised return.
* Penalties apply but are lower than in undisclosed income proceedings: 25–70% of additional tax depending on delay period.
5. New Bill in the Works
* The Income Tax Bill 2025, expected to replace the 1961 Act from 1 April 2026 onward, was reviewed by a Parliamentary select committee in July 2025.
* They proposed:
* No penalty for small taxpayers filing just to claim refunds even after due date,
* Simplifying TDS/TCS refund process and relaxing claims beyond deadlines.
ITR Filing Deadline & Timeline
* The due date for filing ITR for non‑audit individuals/HUFs is 15 September 2025 (due date was extended from 31 July) .
* Audit cases, TP‑cases, belated/revised returns have later deadlines (October–December).
Refund Processing: What to Expect
Average Refund Time Has Plummeted
* Latest CBDT data shows the average refund processing time is now just 17 days (down from 93 days in FY 2013‑14), with refunds up from ₹83,000 crore to a staggering ₹4.76 lakh crore in FY 2024‑25.
Even Same-Day ITR Refunds for Some
* Reports show that in AY 2025–26, some taxpayers received refunds in as little as 4 hours—if the ITR was error-free, e‑verified, bank‑validated and complete.
* On average, refunds are credited within 7–21 working days, or typically 4–5 weeks after e‑verification.
Why Some ITR Refunds Still Get Delayed
* Increased scrutiny triggers delays, especially for returns flagged for mismatches or suspected irregular claims. Department is also checking older returns alongside current ones.
* Always verify your Form 26AS/AIS, ensure PAN–Aadhaar link, pre‑validate bank, and resolve portal notices promptly to avoid delays.
What You Can Do
1. After you file and e‑verify your return, monitor your refund status via the Income Tax e‑filing portal’s “Refund/Demand Status” section.
2. If delayed beyond ~3–4 weeks, lodge a grievance via the e‑Nivaran system or contact CPC/Assessing Officer.
3. Under Section 244A, you may be entitled to interest if the refund is issued late.
Pro Tips to Get Refund Faster
* File your ITR early and double-check all details.
* E‑verify your return on the same day using OTP or net-banking.
* Pre‑validate your bank account and confirm PAN–Aadhaar linkage.
* Ensure Form 26AS/AIS matches your entries.
* Attach relevant documents if using ITR‑3/ITR‑4 or profession codes.
* If any portal notices pop up, respond quickly.
* Use e‑Nivaran to escalate delays if required.
With these updates, digital-first reforms, and tighter error-checks, the ITR process for this year promises to be smoother—and potentially much faster if you stay accurate and proactive.
