Filing your Income Tax Return (ITR) is more than just a legal requirement. It is a financial habit that reflects transparency and responsibility. For salaried individuals, it may seem straightforward at first, but the process involves key decisions that impact your refund, deductions, and overall tax liability.
Understanding how to file your ITR correctly helps you avoid penalties, claim rightful deductions, and maintain a clean financial record. Even if your employer deducts TDS, filing your return is still necessary if your annual income exceeds the threshold limit or if you want to claim refunds.
Our Income Tax Services simplify this process by helping you file accurately and on time, while also maximizing your savings.
Who Needs to File an Income Tax Return
You must file your ITR if:
- Your total income exceeds the basic exemption limit (currently ₹2.5 lakh for individuals below 60)
- You want to claim a refund on excess TDS deducted
- You have income from more than one employer during the year
- You receive income from house property, capital gains, or other sources
- You want to carry forward losses under capital gains or business income
- You need it as proof for visa, loan, or subsidy applications
Filing your ITR even when it is not mandatory is a good practice. It builds a financial track record that helps in various financial transactions.
Documents Required for ITR Filing
Keep the following documents ready before you begin:
- Form 16 from your employer
- PAN card and Aadhaar card
- Salary slips, if applicable
- Bank account details
- Details of interest earned from savings and fixed deposits
- Investment proof for deductions (ELSS, LIC, PPF, etc.)
- Rent receipts or home loan details for HRA or interest deductions
- Form 26AS and AIS (Annual Information Statement)
Verifying your Form 26AS and AIS helps ensure that all your income and tax credits are correctly reported by deductors.
Choose the Right ITR Form
For most salaried individuals, ITR-1 (also called Sahaj) is the right form. You can use ITR-1 if:
- Your income is from salary or pension
- You have income from one house property
- You have income from other sources (like interest)
- Total income does not exceed ₹50 lakh
If you have capital gains, foreign assets, or income from business or profession, you may need to use ITR-2 or ITR-3.
Steps to File Income Tax Return
Step 1: Collect and Verify Form 16 and Form 26AS
Compare the tax deducted and reported by your employer in Form 16 with Form 26AS and AIS to ensure consistency.
Step 2: Log in to the Income Tax Portal
Visit the official e-filing portal and log in using your PAN and password. First-time users need to register.
Step 3: Select the ITR Form
Choose the applicable ITR form (usually ITR-1) for the financial year.
Step 4: Pre-fill and Review Your Data
The portal now provides pre-filled data from Form 26AS and AIS. Verify the details carefully and correct any discrepancies.
Step 5: Claim Deductions
Add deductions under sections like:
- 80C: LIC, PPF, ELSS, tuition fees
- 80D: Health insurance premium
- 80TTA: Interest on savings account
- 24(b): Home loan interest on self-occupied property
Step 6: Compute Tax Liability and Pay Dues
If you have tax payable, generate a challan and pay online using net banking or UPI. If you are due a refund, confirm your bank details.
Step 7: Submit and E-Verify the Return
Submit the return and complete e-verification using Aadhaar OTP, net banking, or EVC. E-verification is mandatory for processing your return.
Common Mistakes to Avoid
- Choosing the wrong ITR form
- Not reporting interest income from savings or fixed deposits
- Missing out on eligible deductions and exemptions
- Forgetting to verify Form 26AS and AIS
- Failing to e-verify the return
- Filing after the deadline, leading to penalties
Even simple errors can lead to notices or delays in processing refunds. Our Income Tax Services ensure your return is filed correctly the first time.
What Happens After Filing
After filing and e-verifying your ITR:
- You will receive an acknowledgment (ITR-V)
- The Income Tax Department will process your return
- If everything matches, you will receive an intimation under Section 143(1)
- Refunds, if any, will be credited to your bank account
If there is a mismatch, you may receive a notice seeking clarification or rectification.
Benefits of Filing ITR on Time
- Avoid penalties and interest under Section 234F
- Get faster refunds
- Claim carry-forward of losses
- Build creditworthiness for loans or credit cards
- Use ITR as valid income proof for immigration or finance applications
Salaried individuals with income below the taxable limit should also consider filing, as it creates a legal record of income and tax compliance.
Filing ITR with a Professional vs. Doing it Yourself
While self-filing is possible, consulting a tax expert ensures:
- All deductions are claimed
- Data is verified and optimized for refunds
- Notices and queries are avoided
- Complex income sources are correctly reported
Our Income Tax Services offer end-to-end assistance, from documentation to filing and post-filing support, so you can relax while your taxes are handled professionally.
Conclusion
Filing income tax returns as a salaried individual does not need to be a stressful experience. With the right documents, knowledge of deductions, and professional guidance, you can file accurately, on time, and with confidence.
Do not wait for the deadline to approach. Take action today and ensure your income tax filing is complete and correct.
Explore our Income Tax Services for personalized assistance in filing your return and maximizing your tax savings.
