Mr. Shahid, an individual who is a resident and ordinarily resident in India, has earned a salary income of 8,25,000 during the Financial Year…

(i) Mr. Shahid approaches on 30th July 2025, which is before the due date for filing the return under section 139 (1) . Mr. Shahid has an option to pay tax under default tax regime or to opt out of the default tax regime and pay tax under normal provisions of the Act. However, under the default tax regime, he will not be able to claim deductions under section 80C, 80D and 80G. Under default tax regime, Mr. Shahid's total income would be - 7,50,000 after providing standard deduction of 75,000 and tax liability will be - 26,000. Under optional tax regime, Mr. Shahid's total income would be - 5,00,000 after providing standard deduction of 50,000 and deduction under Chapter VI-A of 2,75,000. Since Mr. Shahid is resident in India, he is eligible of rebate under section 87A and his tax liability would be Nil. Accordingly, Mr. Shahid should file his return of income on or before 31st July, 2025 and opt out of the default tax regime. In case Mr. Shahid approaches on 1st August, 2025, he has to file his return of income and pay tax under default tax regime. In which case his tax liability will be - 26,000 and he has to pay fee of 5,000 under section 234F for late filing of return of income.