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ITR 2025: Which form to use, what documents you need, and how to save tax
The tax season is here, and with it comes the annual ritual of preparing to file your Income Tax Return (ITR). For millions of taxpayers across the country—whether salaried employees, freelancers, business owners, or investors—filing your return accurately and on time is both a legal obligation and an opportunity to optimize your finances.
If you want to file your income tax return smoothly, avoid errors, and potentially save on taxes, here are some essential tips by Shefali Mundra , Tax expert at Clear Tax
Choose the right tax regime
Taxpayers can choose between the old and new tax regimes. The old regime allows various deductions and exemptions, whereas the new regime offers lower tax rates with limited exemptions. Evaluate which regime benefits you more based on your income and eligible deductions. Many salaried individuals with high deductions (like 80C, HRA, and home loan interest) may benefit from the old regime, while those with simpler finances may find the new regime more attractive.
Pick the Right ITR Form
Choosing the correct ITR form is crucial. Filing the wrong one could result in your return being treated as defective.
ITR-1: Income up to ₹50L from salary, one house property, and other sources.
ITR-2: For those with capital gains, multiple properties, or foreign income.
ITR-3: Income from business or profession.
ITR-4: Presumptive income scheme for small businesses or professionals.
Gather Key Documents in Advance
Organize all relevant documents before you begin:
Form 16 from your employer
Form 26AS and Annual Information Statement (AIS)
Bank interest certificates, rent receipts, capital gains statements
Investment proofs (PPF, ELSS, insurance, etc.)
PAN and Aadhaar
Don't Miss Out on Deductions
Maximize your tax savings by claiming deductions under:
Section 80C (up to ₹1.5L): PPF, EPF, ELSS, principal on home loan
Section 80D: Health insurance premiums
Section 24(b): Interest on housing loans
HRA, LTA, and other exemptions if you qualify
Ensure that all claims are backed by valid documentation.
Check Your Tax Credit Details
Before filing, cross-verify the TDS reflected in Form 26AS and AIS against your actual income. Any mismatches must be clarified with the deductor to avoid refund delays or scrutiny.
How to decide between old and new regime?
If you claim deductions like Section 80C (PPF, ELSS), HRA, home loan interest, etc., the Old Regime may save you more.
If you have a simple income structure with minimal deductions, the New Regime may be more beneficial due to lower slab rates.
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