ITR 2025: Salaried taxpayers must be aware of these 7 key points before filing their income tax return
These key points include the reasons which influence the choice of income tax regime, documents they need to procure, and tax return forms to submit. For instance, if a salaried taxpayer has accured capital gain income on account of stock market trading then s/he needs to file return via ITR-2 instead of ITR-1.
Let is understand this in more detail here.
1. Choosing tax regime: Taxpayers can choose the tax regime based on their investment history and their income level. However, they are supposed to inform their employer if they want to opt for the old tax regime. Else by default, new tax regime will be selected.
2. Form 16: One document that salaried taxpayers must procure from their employer is form 16 which shows the payment of TDS on behalf of employees paid by the employer.
3. Cross referencing information via 26AS: Taxpayer can cross verify the TDS information given on form 16 with that on form 26AS. It is a statement that provides details of any amount deducted as TDS or TCS from various sources of income of a taxpayer including salary and interest on savings & FDs.
4. Investment Vs tax saving: Just because you are not entitled to claim deduction on account of investing in certain tax saving instruments, it does not mean that you should not invest in those instruments.
There could still be a strong case for investing in financial instruments for the purpose of wealth creation with or without tax saving. These instruments could include PPF, SSY, KVP and NSC, among others.
5. HRA exemption: If you are entiled to claim significant exemption on account of HRA, you can file your tax return under the old tax regime. On the other hand, if you are not entiled to it, you – as a salaried taxpayer – may file your return under the new tax regime.
6. Investments in stocks: If salaried taxpayers are investing in stocks then they can file their income tax return (ITR) via ITR-2.
7. Income through house property: If a salaried taxpayer has income from one house property, they can file ITR-1 but if they have income from more than one house property, then they need to file ITR-2.
For all personal finance updates, visit here
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
34 minutes ago
- Time of India
Bihar CM announces cash incentives for youth up to Rs 6,000 ahead of crucial state polls; Check details
Ahead of crucial state elections, Bihar Chief Minister Nitish Kumar announced cash incentives for the youth, with Class 12th getting Rs 4000, ITI or diploma holders will be given Rs 5000, and graduates or postgraduates undertaking internships will be given a monthly amount of Rs 6000. Additionally, one lakh youth from the state will be provided internships in various institutions from 2025-26 to 2030-31. "I am pleased to inform that under the 7 Nischay-2 initiative , the Cabinet has approved and sanctioned funds for the implementation of the 'Chief Minister-Promotion of Readiness, Awareness and Technical Insights for Guiding Youth Advancement' scheme to provide Bihar's youth with advanced skills, better employability, leadership development, strong networking, and new opportunities for career enhancement. This scheme will prove useful for the youth in shaping their future. Under this scheme, trained youth who have passed the 12th Class will be given Rs 4000, ITI or diploma holders will be given Rs 5000, and graduates or postgraduates undertaking internships will be given a monthly amount of Rs 6000. One lakh youth from the state will be provided internships in various institutions from 2025-26 to 2030-31," said Nitish Kumar. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If you have a mouse, play this game for 1 minute Navy Quest Undo
Time of India
an hour ago
- Time of India
Mashreq becomes 1st UAE-based bank to get in-principle nod to set up branch in GIFT City
UAE-based lender Mashreq on Wednesday announced that it has received in-principle approval (IPA) to open a new International Financial Services Centre Banking Unit (IBU) within the Gujarat International Finance Tec-City ( GIFT City ). This makes the first UAE-based bank to have received the IPA from the International Financial Services Centres Authority (IFSCA), Mashreq said in a statement. The upcoming branch is expected to go live by the fourth quarter of 2025, subject to all regulatory clearances, it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like El precio de esto kit de alarma que arrasa en Buenos Aires te sorprenderá Verisure Alarma Ver oferta Undo "We are deeply confident in the potential of India's dynamic financial ecosystem. This milestone complements our commitment to fostering innovation, investment and facilitating trade between India and multiple key corridors in the Middle East and across the world, as we aim to leverage our extensive global network," Ahmed Abdelaal , Group CEO of Mashreq, said. Mashreq has already secured UAE Central Bank and SEZ authority approvals, it said, adding that it is now in the final stages of obtaining the IFSCA full license. Live Events The GIFT City branch will offer a suite of services, including foreign currency loans, trade finance solutions , and treasury and risk management products, it said. With its proximity to Indian clients and the benefits of operating within a single time zone, the GIFT City branch will offer enhanced convenience and faster turnaround for customers, it said. Additionally, regulatory incentives such as Tax Deducted at Source (TDS) exemptions in the initial years will support competitive structuring of financial solutions, it said.
News18
an hour ago
- News18
ITR Filing For Freelancers & Gig Workers: Which Form To Use, What To Claim, And Docs To Keep
Last Updated: ITR Filing: From ITR form to documents they need, let's us know everything about ITR filing for freelancers, creators and gig workers. ITR Filing 2025-26: Though the deadline for the income tax return (ITR) filing for FY2025-26 has been extended to September 15, 2025, taxpayers are advised to complete their tax filing responsibility as soon as possible. It helps to avoid near-deadline rush and errors, which might occur in a hurry. There's a rising workforce in the country that includes freelancers, creators, and gig workers. They don't come under a formal job structure, which means their tax filing process might be different from the formal tax filing process. Freelancers, creators, and gig workers may face a challenge while filing the ITR. Thus, we asked experts to simplify the process, allowing them to understand things they should keep in mind. From ITR form to documents they need, let's us know everything about ITR filing for freelancers, creators and gig workers. Which ITR Form To Use? According to CA (Dr.) Suresh Surana, freelancers generally need to file either ITR-3 or ITR-4, depending on their income and the tax scheme chosen. ITR-4 (Sugam) is applicable to those opting for the presumptive taxation scheme under Section 44ADA, typically with gross receipts up to Rs 3 crore (if cash transactions are under 5%). In this case, 50% of the income is presumed to be profit. Gaurav Jain, Partner at Forvis Mazars India, adds that ITR-3 should be filed by those who wish to declare actual income after deducting expenses or whose receipts exceed the presumptive limit. It is also required for professionals who maintain books of accounts. Yes. Both experts confirm freelancers can claim expenses like laptop purchases, internet bills, travel costs, and software subscriptions, provided they are used wholly and exclusively for professional work. Assets like laptops qualify for depreciation, typically at 40%. However, Surana warns that those opting for the presumptive scheme under Section 44ADA cannot claim individual deductions—50% of income is considered net taxable profit. Documents You Must Keep Freelancers must retain invoices, receipts, contracts, bank statements, and proof of asset purchases. Jain notes that even a basic income-expense spreadsheet helps, especially for those not under presumptive tax.
