Navigate Tax Season Smoothly: Your Ultimate ITR Filing Guide for Salaried Individuals (FY 2024-25)

The filing of Income Tax Returns (ITR) can often seem daunting, but with the right preparation and understanding, it can be a straightforward process. For salaried individuals in India, understanding which ITR form to file and what documents are required, along with some key tips to avoid scrutiny, is crucial for a hassle-free tax season for Financial Year 2024-25 (Assessment Year 2025-26).

Understanding ITR-1 (Sahaj) and ITR-2: Which Form is For You?

Choosing the correct ITR form is the first and most critical step. Filing the wrong form can lead to your return being deemed defective, potentially inviting scrutiny.

ITR-1 (Sahaj) is generally for Resident Individuals whose:

• Total income does not exceed ₹50 Lakh.
• Income is from Salary/Pension.
• Income is from one House Property.
• Income is from Other Sources (excluding winnings from lottery, horse races, etc.).
• Agricultural income is up to ₹5,000.

ITR-2 is for Individuals and Hindu Undivided Families (HUFs) who are NOT eligible to file ITR-1 and do NOT have income from “Profits and Gains of Business or Profession”. This typically includes salaried individuals who:

• Have income from salary/pension.
• Have income from more than one House Property.
• Have income from Capital Gains (from sale of shares, property, etc.).
• Have foreign income or foreign assets.
• Are a Director in a company or have invested in unlisted equity shares.
• Have agricultural income exceeding ₹5,000.
• Have a total income exceeding ₹50 Lakh.
• Are NRIs or RNORs.

In essence, if your financial affairs are simple (salary, one house, basic interest income), ITR-1 is likely your form. If you have capital gains, multiple properties, foreign income, or your income exceeds ₹50 lakh, ITR-2 is the appropriate choice.

Essential Documents for Filing ITR (FY 2024-25)

Gathering all necessary documents before you begin filing will ensure a smooth process and minimize errors.

General Documents for All Salaried Individuals:

1. PAN Card: Your Permanent Account Number is fundamental. Ensure it’s linked with your Aadhaar.
2. Aadhaar Card: Mandatory for filing ITR.
3. Form 16: Issued by your employer, this crucial document contains details of your salary, perquisites, allowances, and TDS.
4. Form 26AS: A consolidated annual tax statement from the e-filing portal showing all TDS, TCS, advance tax, and self-assessment tax against your PAN. Crucially, reconcile your Form 16 with Form 26AS.
5. Annual Information Statement (AIS) and Taxpayer Information Summary (TIS): Comprehensive views of your financial transactions. Reconcile this data with your own records.
6. Bank Statements/Passbooks: For accounting for interest earned on savings accounts, FDs, etc.
7. Investment Proofs: For deductions under Section 80C (PPF, ELSS, life insurance, home loan principal), Section 80D (health insurance), Section 80E (education loan interest), Section 24(b) (home loan interest), and Section 80G (donations).
8. Rent Receipts: If claiming HRA exemption. Landlord’s PAN mandatory if annual rent exceeds ₹1 lakh.

Additional Documents (primarily for ITR-2 filers):

• Capital Gains Statement: For sale of shares, mutual funds, property, etc. (brokerage statements, sale deeds).
• Property Details: For income from multiple house properties (rent, municipal taxes, home loan interest).
• Foreign Income/Asset Details: Relevant statements for Schedule FSI (Foreign Source Income) and Schedule FA (Foreign Assets).

Step-by-Step Guide to File ITR-1 & ITR-2 Online (FY 2024-25)

The Income Tax Department’s e-filing portal (incometax.gov.in) is the primary platform. The online process is user-friendly with pre-filled data.

General Steps for both ITR-1 and ITR-2 (Online Mode):

1. Step 1: Gather All Necessary Documents
   Ensure all documents listed above are ready.
2. Step 2: Log in to the Income Tax e-Filing Portal
   Visit www.incometax.gov.in. Login with your PAN and password. Register if you are a new user.
3. Step 3: Navigate to “File Income Tax Return”
   Go to e-File > Income Tax Returns > File Income Tax Return.
4. Step 4: Select Assessment Year and Mode of Filing
   Choose “2025-26” (for FY 2024-25) and “Online” mode. Click “Continue.”
5. Step 5: Start New Filing / Resume Filing
   Select “Start New Filing” or “Resume Filing” if you have a saved draft.
6. Step 6: Select Your Status
   Choose “Individual.” Click “Continue.”
7. Step 7: Choose ITR Form
   Select either “ITR-1” or “ITR-2” based on your eligibility. Click “Proceed.”
8. Step 8: Select Reason for Filing
   Choose the relevant reason(s) (e.g., “Taxable income is more than the basic exemption limit”).
9. Step 9: Choose Your Tax Regime (Old vs. New)
   • The **New Tax Regime is the default**.
   • To use the OLD Tax Regime: Select “Yes” to opt out of Section 115BAC. This enables deduction fields.
   • To use the NEW Tax Regime: Select “No.” Most deduction fields will be disabled.

   Tip: If unsure, calculate your tax liability under both regimes to choose the more beneficial option.

10. Step 10: Pre-filled Data Verification and Entry of Details

    The form is divided into sections. Carefully review and verify all pre-filled data against your documents.

    • Personal Information: Verify name, PAN, Aadhaar, address, email, and mobile. Select “Nature of Employment.”
    • Review Pre-filled Data: Cross-check income and TDS details from Form 26AS and AIS with your Form 16 and bank statements.
    • Salary/Pension (Schedule S): Verify from Form 16.
    • Income from House Property (Schedule HP): Enter details for one (ITR-1) or multiple (ITR-2) properties.
    • Income from Other Sources (Schedule OS): Enter interest, dividends, etc.
    • Capital Gains (Schedule CG – for ITR-2): Enter details of all capital gains/losses from shares, property, etc. based on statements.
    • Deductions (Schedule VI-A): Fill in details for 80C, 80D, etc., if you opted for the Old Tax Regime.
    • Tax Paid: Verify TDS, Advance Tax, and Self-Assessment Tax.
    • Bank Details: Ensure your pre-validated bank account is correct for refunds.
11. Step 11: Compute Tax and Review Summary
    The system calculates your tax. Pay any outstanding tax or note your refund.
12. Step 12: Preview and Validate Your Return
    Click “Preview Return” to review. Click “Validate” to check for errors. Correct any issues.
13. Step 13: Submit Your ITR
    Once satisfied, click “Proceed to Verification.”
14. Step 14: E-Verify Your Return (Crucial Last Step)
    

    Filing is incomplete without verification. Choose one of the following methods:

    • Aadhaar OTP: Sent to your Aadhaar-linked mobile.
    • Net Banking: Log in via your bank’s portal.
    • Demate Account / Bank Account: OTP to linked mobile.
    • Digital Signature Certificate (DSC): If you have one.

    Upon successful e-verification, download and save your Acknowledgement Number (ITR-V). No need to send a physical copy.

Note on Offline Utility: For those preferring offline filling, download the JSON-based utility from the e-filing portal, fill details, generate the JSON file, and then upload it for verification.

Important Tips to Avoid Tax Scrutiny

While tax scrutiny can happen randomly, certain practices significantly increase your chances of being selected for a closer look. Adhering to these tips can help you file an accurate return and minimize the risk of scrutiny:

1. Reconcile Form 16, Form 26AS, and AIS/TIS: Any mismatch is a primary trigger for scrutiny. Ensure figures align perfectly.
2. Declare ALL Sources of Income: Don’t miss even small incomes like savings interest. The IT Department has vast financial data.
3. Choose the Correct ITR Form: Using the wrong form can lead to a defective return notice.
4. Maintain Proper Documentation: Keep physical or digital copies of all proofs for at least 7-8 years.
5. Avoid Excessive or Unjustified Deductions: Claim only what you’re eligible for, with proper supporting documents.
6. File on Time: File your ITR by the due date (Note: For AY 2025-26, the due date for non-audit taxpayers is September 15, 2025. Always confirm official announcements.). This avoids fees and penalties.
7. Verify Your Return (E-Verify): Filing is incomplete without verification.
8. Be Consistent with Previous Years’ Filings: Unexplained large fluctuations in income or deductions can attract attention.
9. Report High-Value Transactions: Ensure large cash transactions, property dealings, significant credit card payments, etc., are accurately reflected if they impact your income.
10. Seek Professional Help if Needed: For complex returns, consult a tax professional like a Chartered Accountant (CA) for accuracy and compliance.

By proactively collecting your documents, carefully understanding the applicable ITR form, diligently following these tips, and accurately completing the step-by-step online filing process, salaried individuals can navigate the ITR filing for FY 2024-25 with confidence and significantly reduce the chances of unwanted tax scrutiny. Happy filing!

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Disclaimer: This article provides general information and guidance. Tax laws are subject to change. It is advisable to consult a qualified tax professional for personalized advice based on your specific financial situation.