ITR Filing 2025: The process of filing income tax returns (ITR) for assessment year 2025-26 has started. Taxparens are engaged in raising the necessary documents, so that there is no disturbance in filing returns. If you are employed, you need to take extra precautions. With this, you will be able to save tax and avoid the notice of Income Tax Department.
1. Choose the correct tax form
If you are a salary taxpayer and you have earned a capital gain from trading in the stock market, then you have to fill the ITR-2 form instead of ITR-1. Only salary, a house property and interest on saving/FD, ITR-1 is correct. But ITR-2 is necessary if more than one property or stock market earns.
2. Choose Tax Regim
Before filing income tax returns, you have to decide whether you want to choose the old tax regimen or new. If you want to take the old tax rest, then it has to be informed to your employer in advance. If not given, the new tax regimen will be considered a default. Your investment pattern and income level can help decide which regimen will be beneficial for you.
3. Form 16 Essential Documents
Salarid taxpayers must take Form 16 from their employees. This document suggests how much TDS cut and tax deposited by the employer. It is one of the most DUC and compulsory documents to file ITR.
4. Cross verify from Form 26AS
Apart from Form 16, your TDS and tax deposits are also in Form 26AS. This is a statement that contains tax information deducted from all sources- such as salary, bank interest or FD interest. Before filling the return, it is necessary to verify the details of Form 16 from 26AS so that there is no mistake or missing.
5. Pay attention to HRA discount
If you stay on rent and get HRA, the old tax regimen can be more beneficial for you, because it gives HRA exemption. If there is no option to claim HRA or you are the owner of the house, then the new tax can prove to be better. While choosing the regim, it is important to understand which factors your taxable income is being affected.
6. Importance of investment is more than tax
If you are going into the new tax regimen, it does not mean that you stop investing like PPF, SSY, KVP, NSC. They may not get tax exemption on them, but they are still important in terms of wealth creation and long term financial safety. That is, it is necessary to maintain financial discipline beyond tax saving.
7. Impact of investment in stocks
If you are employed but you have invested in shares and earned a short term or long-term capital gains from it, ITR-1 will not be suitable for you. In such a situation, you have to file ITR-2 so that proper reporting of income and taxation can be done. Especially, if your return is more than the tax exemption limit.
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