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Business Standard
13-05-2025
- Business
- Business Standard
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.
India Today
12-05-2025
- Business
- India Today
ITR filing 2025: 6 Must-know tips for before you file your tax return
It's that time of year again, when we gather all our income details and prepare to file our income tax return (ITR). Whether you're a salaried employee, a freelancer, or a small business owner, filing your return properly and on time is Mundra, Tax Expert at ClearTax, said that staying informed, no matter the source of your income, can help you make the most of the deductions, steer clear of penalties, and even increase your to help you avoid last-minute stress or mistakes, here are six key things you should know before you WHICH ITR FORM TO USE Choosing the correct ITR form is important. Filing the wrong one may lead to rejection of your Income Tax Department has different forms for different types of taxpayers. For example, if you earn only from salary or pension, you'll likely need ITR-1. ITR-2 applies If your salary is over Rs 50 lakhs, or you have capital gains, more than one house property, or foreign income, if you have higher income, capital gains, or foreign income. On the other hand, if you have income from a business or profession, you may need ITR-3 or it is advisable to always double-check before AADHAAR WITH PANadvertisementBefore you even think about filing your tax return, make sure your Aadhaar is linked to your PAN. Shefali Mundra mentioned, 'It's mandatory to link your Aadhaar number with your PAN to file ITR. Failure to do so can lead to an inoperative PAN and complications in the filing process.'KEEP ALL DOCUMENTS READYBefore you start filing, gather all the important documents. "Be sure to have your Form 16, Form 26AS, and the Annual Information Statement (AIS)," said Shefali account statements and interest income certificates are also important. To claim deductions, keep investment-related proofs under 80C or 80D ready, she BETWEEN OLD AND NEW TAX REGIMEThere are two tax systems to pick from. '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 and deductions. Evaluate which regime benefits you more based on your income and eligible deductions,' stated if you have business or professional income and wish to continue with the old regime, you'll need to submit Form 10-IEA before filing your ALL INCOME, EVEN SMALL ONESWhile most people remember to report their salary, it's equally essential to mention other types of income too. This includes bank interest, rent from properties, freelance payments, and even small investment profits. Reporting everything helps avoid notices from the tax department YOUR RETURN AFTER FILINGadvertisementFiling your return online is just one half of the process. The other half is submitting the ITR, you must confirm your identity, either digitally using Aadhaar OTP, internet banking, or other options, or by sending a printed and signed ITR-V form to the Centralised Processing Centre (CPC), Income Tax in Bengaluru. If this step is missed, your return will not be processed by the tax stated, 'Filing your Income Tax Return doesn't have to be overwhelming—especially when you're well-prepared.' Starting early, understanding the right tax regime, selecting the appropriate ITR form, organising your documents, and double-checking details not only helps you stay compliant but also helps you make the most of your tax-saving Reel
