As the Income Tax Return (ITR) season for FY 2024-25 (AY 2025-26) approaches, salaried individuals need to be proactive, vigilant, and informed to avoid tax notices and ensure maximum benefit.
With changes in ITR forms, TDS credit reflections, and increased scrutiny on deductions and exemptions, here are the 7 most crucial points every salaried taxpayer should consider before filing their ITR this year.
✅ 1. Choose the Correct Tax Regime: Old vs. New
Under Section 115BAC, taxpayers now have the option to choose between two tax regimes:
- Old Regime: Offers exemptions like HRA, LTA, 80C, 80D etc.
- New Regime: Lower tax rates but no exemptions/deductions (except standard deduction and NPS employer contribution).
🧠 Pro Tip:
Use Form 10-IEA (for FY 2024-25) to opt for the new regime, especially if you have minimal deductions. Make this choice carefully as you can switch back and forth only under certain conditions.
✅ 2. Verify Form 16 and Form 26AS / AIS Before Filing
Form 16 is issued by your employer and Form 26AS / AIS is issued by the Income Tax Department. These must match to avoid discrepancies.
🔍 Key Documents:
- Form 16: Salary, TDS
- Form 26AS & AIS (Annual Information Statement): Interest, dividend, TDS from other sources, stock sales
🔔 Mismatch = Tax Notice under Section 139(9) or 143(1)
✅ 3. Report Interest Income from Savings/FDs/RDs
Interest income from bank accounts is taxable under “Income from Other Sources”. Many salaried individuals forget to include:
- Savings account interest (exempt under Section 80TTA up to ₹10,000)
- Fixed Deposit interest (fully taxable)
- Recurring Deposit interest
Underreporting = Penalty + Interest under Section 270A
✅ 4. Disclose All Exempt Income
Even if income is exempt (e.g., PPF interest, EPF maturity, gifts from relatives, agricultural income), it must be disclosed in the return.
Failure to report exempt income may lead to suspicion of tax evasion or incomplete return (Defective Return u/s 139(9)).
✅ 5. Claim All Deductions You’re Eligible For
Ensure you’re claiming deductions you are eligible for, especially:
- 80C: LIC, EPF, PPF, ELSS, tuition fees, home loan principal
- 80D: Health insurance premiums
- 80E: Interest on education loan
- 80CCD(1B): Additional ₹50,000 for NPS
🔍 Tip: Check Form 16 + actual investments. Sometimes employers miss deductions; you can still claim them.
✅ 6. Cross-check House Property Details
Own a house or pay rent? Ensure proper reporting:
- Self-Occupied Property: Claim interest under Section 24(b) (up to ₹2 lakh)
- Rented Property: Report rental income and claim actual interest
- Rent Paid (No HRA): Claim under Section 80GG
Incorrect reporting may trigger scrutiny u/s 143(2).
✅ 7. File Before Due Date to Avoid Penalty
The due date for filing ITR for salaried employees is 31st July 2025 (extended to 15th September 2025, as per recent CBDT advisory).
Late filing consequences:
- ₹5,000 penalty under Section 234F
- Ineligibility to carry forward losses
- Delayed refunds
🧑⚖️ Latest Legal Insight:
Recent verdicts have emphasized honest and complete disclosure in returns:
“Non-reporting of interest or exempt income can be considered concealment and attract penalties under Section 271(1)(c).” – ITAT Delhi, 2023
❓ FAQs for Salaried Taxpayers
Q1. Can I change my tax regime after filing the return?
🔁 Yes, but only before filing ITR. Once filed, you can’t revise the tax regime for that year.
Q2. What if I missed reporting some income?
✍️ File a Revised Return under Section 139(5) before 31st December 2025.
Q3. Do I need to file ITR if tax has already been deducted by employer?
🧾 Yes! TDS doesn’t equal filing. Filing is mandatory if income > basic exemption limit.
Q4. Can I claim 80C even if my employer didn’t consider it in Form 16?
✅ Yes. You can self-claim it in your return.
Q5. Is PAN-Aadhaar linking necessary?
📌 Yes. Returns won’t be processed unless PAN is linked with Aadhaar (Section 139AA).
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