As we enter the midway point of the year, June 2025 is an excellent time to review your financial well-being, organize your investments, and get ahead of your income tax return (ITR) filing. Most taxpayers tend to do it at the very last moment, and in doing so, they subject themselves to unnecessary tension, mistakes, and even penalties.
Regardless of whether you are a salaried individual, self-employed, freelancer, or business owner, tax planning at the earliest makes you the master. This blog takes you through the new tax slabs revealed in the Union Budget 2025, mid-year tax planning strategies, and everything you need to know to file your ITR confidently and correctly.
Let us see how you can maximise June with good money management strategies, the optimum tax planning strategies, and useful tips that make your ITR process smooth and lower your tax outgo.
Income Tax Slabs for FY 2025–26 (AY 2026–27)
In the Union Budget 2025, the Government of India amended the income tax regime under the new regime to provide greater relief to middle-class individuals and promote voluntary compliance. Below are how the revised income tax slabs appear:
| Annual Income (₹) | Tax Rate |
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Key Updates:
- A deduction of ₹75,000 has been introduced as a standard deduction for salaried taxpayers.
- Tax rebate under Section 87A has been raised to ₹60,000, and hence no tax liability for those with up to ₹12 lakh net taxable income.
Top Tax Planning Options to consider in June 2025
Mid-year planning enables you to level out your investments, maximize tax benefits, and eliminate year-end rushes. These are some of the best tax planning strategies to try, particularly if you’re looking to balance long-term investment growth with temporary relief on taxes.
A. Maximize Deductions Under Section 80C
You can avail up to ₹1.5 lakh of deductions under:
- Public Provident Fund (PPF)
- Employees Provident Fund (EPF)
- Life Insurance Premiums
- National Savings Certificate (NSC)
- ELSS Mutual Funds (also eligible for tax benefits on capital gains)
These are the best to invest for building your wealth and cutting your taxable income.
B. Do not Miss Section 80D Benefits
Health insurance premium is eligible for deductions of:
- ₹25,000 on self and family (less than 60 years)
- ₹50,000 on parents who are 60 years and above
It’s an easy step that keeps your family safe and saves you taxes.
C. Take Advantage of NPS (Section 80CCD(1B))
Investing in the National Pension System can help you get an additional deduction of ₹50,000 over and above the ₹1.5 lakh exemption under Section 80C.
D. Claim HRA and Home Loan Deductions
If you are renting, you could be eligible to claim House Rent Allowance (HRA) exemption. If you own a house and have taken a home loan, do not miss claiming the interest payments under Section 24 (up to ₹2 lakh a year).
E. Examine Capital Gains and Investment Strategy
June is an ideal month to check on your capital market investments. If there have been gains, evaluate tax liability in advance. You should also sell loss-generating assets so you can use those to reduce gains and lower overall tax outgo.
Why June Is Significant for ITR Filing?
Although the ITR filing due date (15 September, 2025) appears distant, planning in June has numerous benefits:
A. Early Filing Avoids Mistakes
When you file in a hurry, errors occur incorrect PAN entries, missed deductions, or choosing the wrong tax regime. Early preparation enables you to file correctly.
B. Improved Document Management
Begin gathering your Form 16, interest income certificates, insurance payment receipts, and proof of investments. Having everything in hand prevents delays or mismatches in the portal is AIS and TIS.
C. Select Your Tax Regime Carefully
With time in hand, consider your choices and determine which regime provides you maximum advantage particularly if you still have investments to make for the year.
D. Quick Refunds
Early filers receive refunds more quickly. Pre-validate your bank account on the income tax portal so that it does not get delayed.
ITR 2025: Important Points You Should Be Aware Of
- 15 September, 2025 is the deadline for filing ITR for AY 2025–26 (FY 2024–25).
- Late filing will incur a penalty of maximum ₹5,000.
- You can make changes to your return until 31 December 2025, if there’s an error.
- Refunds are usually credited within a few weeks post e-verification, so check early.
Want to learn more about Income Tax Returns (ITR)? Click here for a detailed guide.
Final Thoughts
June is the ideal month to strategically plan your taxes. Knowing the new tax slabs, opting for the correct tax regime, getting your financial documents in order, investing smartly, and availing the best tax planning tools in advance can all go a long way in having a hassle-free and advantageous ITR. Good tax planning is not merely about compliance it’s about your money working smarter for you.
Don’t wait until the deadline looms near. Get your taxes under control today, and prepare yourself for a more hassle-free financial year next time.
Frequently Asked Questions (FAQs)
- Will I be able to invest in tax-saving instruments after June?
Yes, investment for FY 2025–26 will be available up to 31 March 2026. But beginning early assists you in proper planning and budgeting.
- What if I miss the ITR deadline?
You may file a belated return, but at a cost of a late filing fee and restricted benefits like no carry-forward of specific losses.
- Can I shift between the old and new tax regimes?
Salaried individuals can switch annually. Business income tax payers can switch once under the present rules.
- How do I verify if my ITR is processed?
Log in to e-filing portal and view your ITR status under View Filed Returns.
- Is it compulsory to file ITR if I have no tax liability?
If your income is above the basic exemption limit, you need to file. Filing voluntarily is also advisable so that a financial record is maintained.
- How do I obtain a quicker tax refund?
Check your ITR carefully, immediately verify it online, and authenticate your bank account details on the portal.
