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Here are brief and essential points a salaried individual should take care of while preparing and filing income tax returns (ITR):
Written by Gagandeep Arora - Printed on - Date - 18th Jun 2025
🔍 Before Filing
1. Choose the Right ITR Form – It is very important to know the applicable tax return form to be used for your tax filing. Based on your Income Source and Resident Type choose the right form.
o Most salaried individuals use ITR-1 (Sahaj) or ITR-2 (if capital gains, multiple properties, or foreign assets exist).
2. Reconcile Form 16, Form 26AS & AIS – Form 26AS and AIS forms the basis for cross verification for Department of Income Tax to validate and process your tax return. It is very important to consider all details in Form 16, 26AS and AIS to be cross verified and disclosed in your ITR.
3. Select the Tax Regime – Department of Income Tax allows Tax Payers to choose tax regime – Old or New Regime based on which tax return can be filed. It allows tax payers to claim the eligible tax exemptions and deductions as per the tax regime chosen
4.Report All Income Sources - Include interest from savings, FD, dividends, capital gains, rental income, etc.
5.Claim All Deductions– In case if you have missed any deductions Chapter VI-A (e.g., 80C, 80D, 80TTA, 80G, etc.) – based on the chosen regime. Get maximum tax benefit and increase your tax refund.
🧾 While Filing
6. Verify Pre-filled Data – Department of Income Tax allows pre filled data feature in your ITR preparation. This reduces the chances of omission of any disclosures. Ensure pre-filled ITR data (from AIS & employer) is accurate and up to date.
7. Declare Exempt Allowances – Ensure to provide with accurate information while claiming tax benefits under the exemption heads such as HRA, LTA, standard deduction, and reimbursements (if applicable).
8. Check Bank Account Details – Your bank account should be pre validated and details entered in ITR are correct for seamless refund claim.
9. Pay and Report Any Tax Dues – While finalising the tax computation if there is any tax liability ensure that is paid and provide with correct challan details in tax return for the tax claims.
10. Verify ITR After Filing – It is very important to complete the ITR e verification within 30 days of tax filing. If not done tax return filed will become invalid
⚠️ Avoid These Mistakes
• Not reporting interest income or multiple Form 16s.
• Claiming deductions under wrong sections or when ineligible (especially under new regime).
• Missing to include foreign income or ESOPs from foreign companies (if applicable).
• Ignoring capital gains on mutual fund redemptions or shares.
