How to file ITR for FY 2024-25: Step-by-step guide for salaried individuals

India Today

5 days ago

The Income Tax Department has launched an offline utility for filing ITR-1 (Sahaj) and ITR-4 (Sugam) in an Excel format for AY 2025-26 (FY 2024-25). The utility allows employees, pensioners, freelancers, and small business owners to prepare their returns offline or without internet access. It allows them to validate their returns and create a JSON file to upload to the e-filing portal.advertisementThe CBDT has allowed several exceptions for the filing of ITRs for non-audit cases (read ITR-1 or ITR-4), which means that the normal filing deadline of July 31, 2025, has been extended to September 15, 2025, due to the change in the structure and the delays in the launch of the utility. It should be noted that even though the time to file the returns has been extended, the self-assessment tax must still be paid by July 31, 2025, as any tax not paid would incur interest.Here's a simple guide to help salaried individuals file their ITR correctly and on time, with key points to remember for a hassle-free experience.
1. SELECT THE RIGHT ITR FORMIt is vital to ensure you select the right ITR form. Most salaried individuals would be able to file their return using ITR-1 (Sahaj) only if their income is from salary, one house property, and other sources (like interest), and their total income is not more than Rs 50 lakh.advertisement If you have income from capital gains or foreign income or more than one household property, you will have to use ITR-2. If you file the return using the wrong form, it will invalidate your return, and you will have to file again.2. CHOOSE BETWEEN OLD AND NEW TAX REGIMESYou have to decide if you want to file your return using the old tax regime with exemptions and deductions or the new tax regime with reduced slab rates with fewer deductions. The old regime may be more tax-efficient if you are receiving a House Rent Allowance (HRA). Moreover, if you make investments in schemes like the PPF or NSC for the tax benefit, they will only be considered under the old regime. Inform your employer if you have chosen to opt for the old regime, as the new regime is selected by default.3. COLLECT AND CHECK YOUR DOCUMENTSYou need to collect documents such as Form 16, which is given by your employer and indicates your Salary and TDS (Tax Deducted at Source). Print your Form 26AS (which shows the details of all your tax credits) and see if the tax credits include TDS on your salary, interest income, and so on, and check and ensure they are reflected on your Form 16 from your employer, which shows your salary and TDS (Tax Deducted at Source). Also, check Form 26AS to verify all tax credits, including TDS on salary, interest income, and other sources. Ensuring these details match avoids discrepancies that can delay processing.advertisement4. USE OF AN OFFLINE UTILITY OR USE OF ONLINE PORTALSThe Income Tax Department provides you with an offline utility (Excel-based) for filing ITR-1 and ITR-4 for FY 2024-25 to help you prepare your return offline and upload the JSON file at a later time. Alternatively, Tax2win and other online portals provide simple online one-step filing options for ITR-1 and ITR-4. For example, it also pre-fills data like Form 16 information and investment information, so you have a friendly user experience.5. MIND THE DEADLINE AND IMPLICATIONS OF LATE FILINGFor the present assessment year, the long-cherished deadline that has been established for "non-audit" cases (for example, a salaried person), is now mentioned as September 15, 2025, as far as the Income Tax Department is concerned. That said, if you make a self-assessment tax payment after 31 July 2025, you may incur interest penalties and fees based on the number of days delayed.advertisementLate returns are allowed to be filed with fees paid, and late refunds issued. If you have neglected to file for the preceding year(s), you have the option to file belated returns within the past two years using ITR-U (for individuals who have not filed their returns collected in use only).Filing your Income Tax Return correctly and on time is essential for financial discipline and legal compliance. By choosing the right form, selecting the appropriate tax regime, verifying your documents, using available tools, and respecting deadlines, salaried individuals can make the process smooth and hassle-free. Stay informed, plan your taxes wisely, and file with confidence this year.- Ends