Filing your ITR as a salaried employee? Don’t miss these 5 crucial details

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Filing an Income Tax Return (ITR) is simple for salaried employees, but minute errors will lead to delays, notices, or miss deductions. As the deadline looms near FY 2024–25, salaried taxpayers have to be careful and aware. Given below are five important points that every salaried employee needs to remember before submitting their return.

1. Check your Form 16—but don't end there

Form 16 is your primary document for ITR filing, but it may not reflect all your income. Make sure to report additional income such as interest from fixed deposits, capital gains from mutual funds, or freelance earnings. The Income Tax Department has access to your financial data through Annual Information Statement (AIS), and any mismatch between your filing and their records could trigger scrutiny.

2. Verify and pre-fill from AIS and Form 26AS

Download your AIS and Form 26AS from the income tax website prior to filing. These statements capture TDS, high-value transaction, and interest income information. Compare these with your Form 16 and your financial documents to ensure all are as per books. Pre-filled data can make filing less complicated, but it must also be verified for accuracy.

3. Choose the proper tax regime—old or new

Salary earners now have to opt between the old and new tax regimes. The old regime permits deductions such as HRA, standard deduction, and 80C benefits, whereas the new regime provides lower tax slabs but without most of the exemptions. Compare using an online tax calculator or a tax consultant to see which regime will lead to lower liability for you, as once opted for while filing, it cannot be changed for the year.

4. Don't overlook deductions other than 80C

Most of us restrict ourselves to claiming Section 80C deductions such as PPF or ELSS investment. But there are deductions available under other sections too—such as 80D for health insurance premium, 80E for interest on education loan, and 24(b) for interest on home loan. These can reduce your taxable income heavily, so don't forget to include these before final submission.

5. File on or before the deadline—no matter whether you have to pay tax or not

Even if your tax is fully withheld by your employer and you have no other tax liability, you are required to file your return if your income is over the basic exemption limit. Delayed filing can incur a penalty of as much as ₹5,000 and may also deny you the advantage of set-off of capital losses. In addition, timely filing is necessary for smooth loan processing and visa application as it's widely accepted as evidence of income.

Being well-informed and well-organised can make your filing a breeze and help you claim all the rupees you're owed. With the July 31 deadline just around the corner, it's advisable to get started well in advance to avoid last-minute scrambles.