ITR-1 Filing: Claim Tax Deductions and Avoid Penalties with September 15th, 2025, deadline

New Delhi: The ITR-1 filing deadline has been extended to 15th September 2025. With this, the taxpayers got extra time and luxury to file an income tax with more precision and care. The deductions that come under Section 80C are for investments made in PPF (Public Provident Fund) and Equity-Linked Saving Schemes (ELSS). Further, deductions come under Section 80D for education loan interest and 80TTA/TTB for savings interest to individual and HUFs below 60 years.

ITR norms signal a zero-tolerance policy for fake deduction claims. The penalty for making fake claims without sound paperwork includes penalties up to 200 percent of the payable tax along with annual interest. In cases involving the grave and including bigger misleading claims, prosecution under Section 276C could also be possible. In that regard, taxpayers are to be advised to make only eligible claims, as any discrepancy leads to possible legal action and significant penalty levying.

The following are the measures that are to be taken by taxpayers to avoid the legal and penalty actions of the income tax department.

1. Section 80C of the Income Tax Act 1961 allows the deduction of up to Rs 1.5 lakh on the premiums paid for the Life Insurance policies in the name of self, spouse, and children; Contributions made to the PPF, ELSS, NSC, and FD with a 5-year lock-in period with scheduled banks; Principal repayment on home loan is deductible; Tuition fees paid in India for full-time education (max 2 children) are allowed.

2. The deductions that are claimed under Section 80D are the health insurance premiums up to Rs 25000 paid for self, spouse, and dependent children; for senior citizens the deductions claimable stand at Rs 50000.

3. The deductions under Section 80E are on the education loan interest that is only applicable for higher education in India or abroad.

4. The deduction claims that can be made under Section 80TTA/TTB are on the interest on the savings of individuals and HUFs (Hindu Undivided Family) below 60 years.

The following are the "DON'Ts" for filing income tax. These are the discrepancies that must be avoided to prevent the penalties of income tax authorities.

1. Wrongful claims made under Section 80C include the premium paid for in-laws, siblings, or other relatives. These are the claims that do not come under the deductions; Fixed deposits made with a tenure of less than 5 years; the contributions that have been made under the non-notified pension schemes and to unregistered schemes.

2. The wrongful claim made under Section 80D includes the medical expenses without proper bills, and claims without documentation are liable to be disallowed. Health premiums for non-dependents.

3. Claiming both a separate/itemized allowance/deduction and the standard deduction on the same component is incorrect and may result in an impermissible double deduction.