All ITR Forms Are Out, But You Still Can’t File. Here’s Why.

It’s tax season, and yet, despite all the noise around Income Tax Returns, you still can’t file your ITR for FY 2024–25.

Strange, right? Especially since the government has already notified all ITR forms (ITR-1 to ITR-7) and even the updated ITR-U form.

Let’s explore what’s really going on, and why it matters for every taxpayer.

If the Forms Are Out, Why Can’t You File Yet?

While all seven ITR forms have been released, the filing process can’t begin until the Income Tax Department activates the utility software, the tools that allow taxpayers to fill in, validate, and submit their returns either online or offline.

These utilities are crucial. They convert the paper-based forms into usable, interactive formats, guiding you through sections, performing real-time checks, and ensuring accuracy before submission.

Until these utilities go live on the income tax portal, you simply can’t file, even if you’re ready.

Why This Delay Is Different

In most years, ITR filing begins by the first week of April. But this year, the Interim Budget 2024 brought in several updates which required backend modifications to the ITR utility tools.

These backend updates aim to:

• Introduce revised reporting formats

• Add new compliance checks

• Align returns with updated deduction and capital gains rules

So while the delay may seem like a setback, it’s actually a transition period for implementing enhanced transparency and structure.

Why This Matters to You

Here’s the tricky part. The ITR filing deadline is still expected to be July 31, 2025. That means once the portal opens, you’ll have less time than usual to:

• Organize your documents

• Understand new disclosures

• Avoid errors or last-minute rush

And with this year’s forms being more detailed and complex, even seasoned taxpayers need to be cautious.

What’s New in ITR Filing for FY 2024–25?

The Central Board of Direct Taxes (CBDT) has introduced several key changes. Here are the most important ones you should be aware of:

1. Capital Gains Now Allowed in ITR-1 and ITR-4

Taxpayers can now file ITR-1 or ITR-4 even if they have long-term capital gains up to ₹1.25 lakh, provided there are no carry-forward losses.

2. Higher Threshold for Reporting Assets and Liabilities

The reporting requirement for assets and liabilities now applies only if total income exceeds ₹1 crore. There’s also enhanced disclosure under Sections 80C and 10(13A).

3. Changes in Capital Gains Taxation

Be prepared for:

• Revised holding periods

• Adjusted tax rates for long-term and short-term capital gains

• Updated indexation rules

4. Capital Gains Split Based on Date

Gains from asset sales must now be split into two parts, one for transactions before July 23, 2024, and another after, as per changes in the Finance Act.

5. Capital Loss Allowed on Buybacks

A capital loss on share buybacks is now allowed, provided the related dividend income is reported under ‘Income from Other Sources’ (effective from October 1, 2024).

What Should You Do While You Wait?

Though the portal isn’t open, now is the perfect time to get organized. Here's what we recommend:

• Collect all income and deduction documents: Form 16, capital gain statements, TDS certificates, rent receipts, etc.

• Review your capital market transactions carefully

• Identify the correct ITR form based on your income sources

• Reach out to your tax consultant early for smooth filing

By starting now, you’ll avoid last-minute stress when the utility becomes live.

This year’s ITR filing may be delayed, but it’s certainly not simplified.

With updated rules, new thresholds, and complex classifications, being proactive is your biggest advantage. Use this delay to your benefit. Prepare your documents, understand your obligations, and stay ready.

Because once the ITR utilities are live, the countdown to July 31st begins.

The smarter you prepare now, the smoother your filing will be later.