TAXASSIST Launched by Income Tax Department to Simplify ITR Filing – All You Need to Know

Updated: 06-07-2025, 05.30 PM

In a move to make income tax filing easier and more transparent, the Income Tax Department of India has launched a new digital tool called TAXASSIST. This service is designed to help crores of taxpayers file their Income Tax Returns (ITRs) smoothly and resolve tax-related queries with ease.

ITR Filing

The department announced that TAXASSIST aims to simplify tax processes, offer clarity on complex issues, and reduce errors in return filing by offering tailored guidance.

What is TAXASSIST?

TAXASSIST is a digital assistant designed to guide taxpayers through various income tax situations. Whether it’s understanding exemptions, responding to notices, or correcting mistakes in ITR filings, TAXASSIST provides structured advice in real time.

For example, the tool can assist users dealing with claims under Section 80GGC, which provides tax deductions for donations made to political parties or electoral trusts.

Real-World Scenarios Explained by TAXASSIST

To demonstrate its practical utility, the Income Tax Department shared three case studies where TAXASSIST provides step-by-step guidance:

Case 1: Mistaken Tax Exemption Claim

If a taxpayer mistakenly claims an exemption under Section 80GGC, TAXASSIST advises filing a revised return or using the ITR-U form. The taxpayer will need to pay the due tax and interest, and return any excess refund received. Failure to comply may attract penalties or legal action.

Case 2: False Donation Declaration

Falsely claiming a donation to a political party for tax benefits is considered tax evasion. In such cases, TAXASSIST instructs the user to file ITR-U and pay the correct dues. This approach encourages voluntary correction and helps avoid harsh penalties.

Case 3: Valid Donation Claim

If the donation is genuine and meets Section 80GGC criteria, TAXASSIST will advise the taxpayer to retain proof such as bank transaction slips and donation receipts. These may be required during a future assessment or scrutiny.

Key Features of TAXASSIST

Provides real-time advice for tax return filing
Helps navigate departmental notices
Suggests corrective actions for errors
Improves transparency in tax compliance
Supports documentation readiness for assessments

The Income Tax Department also emphasized that this initiative is part of a broader push toward making tax compliance simpler and citizen-friendly.

Extended ITR Filing Deadline: September 15, 2025

In a relief for taxpayers, the deadline for filing ITR for the financial year 2024–25 has been extended to September 15, 2025, from the previous cut-off of July 31. This extension provides extra time to gather documents and complete filings accurately.

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Kuldeep Singh Chundawat: My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.