ITR 2025: Salaried taxpayers should remember THESE 5 points before filing their income tax returns

With the Income Tax (I-T) department having released the excel utilities for ITR-1 and ITR-4, it is the time for taxpayers to start filing their tax returns. If you are a salaried taxpayer, you can use ITR-1 to file your income tax return.

However, there are some key points to remember if you are a salaried taxpayer. Here, we answer the commonly asked questions with regards to filing of income tax returns (ITR). These include eligibility to file ITR-1, exclusion they carry, documents required and precautions to take.

Who should file ITR-1?

ITR-1 can be filed by a resident individual whose total income does not exceed ₹50 lakh during the financial year. Additionally, the income should be from salary, one house property, family pension income, agricultural income (up to ₹5,000), and other sources, which include interest from savings, interest from deposits, interest from income tax refund, interest received on enhanced compensation, any other interest income, family pension and income of spouse.

Are there scenarios where you cannot file ITR-1 despite being a salaried employee?

Yes, an individual cannot file ITR-1 if he is a resident not ordinarily resident (RNOR), and non-resident Indian (NRI), has total income exceeding ₹50 lakh, has agricultural income exceeding ₹5,000, has income from lottery, racehorses, legal gambling, has taxable capital gains (short term and long term). Additionally, he cannot file ITR-1 if he has invested in unlisted equity shares, has income from business or profession or is a director in a company.

Should a taxpayer define the nature of employment while filing a return?

It is vital to define the nature of employment while filing the return. One must specify whether the employee is a central government employee, state government employee, employee of public sector enterprise, pensioner, employee of private sector entity.

What are the documents required to file ITR-1?

One would need to download AIS, Form 16, house rent receipt, investment payment and premium receipts. Meanwhile, it is vital to note that ITR forms are annexure-less. Therefore, you do not need to attach any document (such as proof of investment and TDS certificates) along with your return even if it is filed manually.

However, one must keep these documents for situations where they need to be produced before tax authorities such as assessment and inquiry.

What precautions should one take while filing the return of income?

You should carefully select the income tax regime. You need to download AIS and Form 26AS and check the actual TDS/TCS/tax paid. If you see any discrepancy, you should reconcile it with the employer/Tax deductor/Bank.

You need to compile and carefully study the documents to be referred to when filing your ITR such as bank statement/passbook, interest certificates, receipts to claim exemptions or deductions, Form 16, Form 26AS (Annual Information Statement) and investment proofs.

You need to ensure details such as PAN, permanent address, contact details, bank account details are correct in the pre-filled data.

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