ITR Filing Tips: 9 Essential Points To Maximise Your Tax Savings This Year

The income tax filing season for financial year 2024–25 is underway, with some notable changes that taxpayers need to be aware of. This year, the Income Tax Department has extended the deadline for filing returns by 45 days, giving taxpayers until 15 September 2025 to submit their ITRs. With revised validation rules and enhanced disclosure requirements, especially in ITR-1 and ITR-4, salaried individuals and professionals need to prepare with greater care. According to tax experts, early planning and accurate documentation can help avoid errors and reduce tax liability.

Choosing the Correct ITR Form Is Crucial

The first and most vital step in the filing process is selecting the appropriate ITR form. Salaried individuals with income up to ₹50 lakh, along with basic earnings from savings interest or one residential property, should use ITR-1. However, if your total income exceeds ₹50 lakh, or if you have income from business, profession, unlisted shares, or agricultural income exceeding ₹5,000, you are required to file using ITR-4.

Tax consultants advise that selecting the wrong form can lead to processing delays or even rejection of returns, so it is essential to assess all sources of income before filing.

Categorising Employment Type Accurately

It’s also necessary to specify your employment category correctly. Taxpayers must declare whether they are employed in the government or private sector. Government employees should further specify if they are with the central or state government. This categorisation helps streamline record verification and ensures the appropriate tax treatment of various allowances and benefits.

Collecting and Verifying Key Financial Documents

Before starting the filing process, gather all required documents to ensure accurate reporting. According to financial planners, taxpayers should prepare the following:

• Form 16 from the employer
  
  
  
• Annual Information Statement (AIS) and Form 26AS
  
  
  
• Bank interest certificates or savings account statements
  
  
  
• Proofs of investment under Sections 80C, 80D, etc.

House rent receipts, insurance premium payments, or donation receipts

Missing or incorrect data can lead to notices from the tax department or delay in refunds.

PAN–Aadhaar Linkage and Personal Details Must Be Verified

Ensure your PAN and Aadhaar details are correctly linked and that your name, date of birth, and gender are consistent across all records. Experts point out that mismatched records can result in failed e-verification or refunds being held up. Cross-check these details well in advance to avoid unnecessary hassles.

Know Your Deductions and Exemptions

A significant way to reduce your tax burden is by claiming all eligible deductions and exemptions. Under the old tax regime, deductions can be claimed under various sections, such as:

• 80C – Investments in PPF, life insurance, ELSS

80D – Medical insurance premiums

80TTA – Interest earned from savings accounts

HRA and LTA – If applicable to your salary structure

Even under the new tax regime, where deductions are minimal, knowing what still applies (like employer’s contribution to NPS) is helpful.

Selecting the Most Suitable Tax Regime

Taxpayers now have the option to choose between the old and new tax regimes. The decision depends largely on one’s investment behaviour and available exemptions. If you actively invest in tax-saving instruments or pay house rent, the old regime may work better for you. On the other hand, those who don’t utilise deductions may benefit from the lower slab rates under the new regime.

As per chartered accountants, using online comparison tools or consulting a professional helps make a more tax-efficient decision.

File Early to Avoid Errors and Penalties

Waiting until the last minute to file your return can backfire. Filing early gives you ample time to identify mistakes, arrange for missing documents, and avoid late filing penalties. According to tax consultants, early filing also speeds up the refund process and allows for timely correction if discrepancies arise.

Complete E-Verification Within 30 Days

Once your ITR is filed, don’t forget to e-verify it. You can verify using Aadhaar OTP, internet banking, bank account-based EVC, or by sending a signed physical copy to the Centralised Processing Centre (CPC) in Bengaluru. This step must be completed within 30 days of filing, or your return will be treated as invalid.

Expert Advice: Double-Check Everything

Tax professionals strongly recommend a thorough final review before submission. This includes verifying TDS details, interest income, deductions claimed, and personal information. A simple error in reporting can lead to long processing times, refund delays, or even notices from the tax department.

Disclaimer: This article is meant for informational purposes only. It does not constitute financial or legal advice. Taxpayers are advised to consult a qualified chartered accountant or tax expert before filing their income tax returns.