ITR filing 2025: 6 Must-know tips for before you file your tax return

India Today

12-05-2025

It's that time of year again, when we gather all our income details and prepare to file our income tax return (ITR). Whether you're a salaried employee, a freelancer, or a small business owner, filing your return properly and on time is important.Shefali Mundra, Tax Expert at ClearTax, said that staying informed, no matter the source of your income, can help you make the most of the deductions, steer clear of penalties, and even increase your refund.advertisementHence, to help you avoid last-minute stress or mistakes, here are six key things you should know before you start.KNOW WHICH ITR FORM TO USE
Choosing the correct ITR form is important. Filing the wrong one may lead to rejection of your return.The Income Tax Department has different forms for different types of taxpayers. For example, if you earn only from salary or pension, you'll likely need ITR-1. ITR-2 applies If your salary is over Rs 50 lakhs, or you have capital gains, more than one house property, or foreign income, if you have higher income, capital gains, or foreign income. On the other hand, if you have income from a business or profession, you may need ITR-3 or ITR-4.Hence, it is advisable to always double-check before filing.LINK AADHAAR WITH PANadvertisementBefore you even think about filing your tax return, make sure your Aadhaar is linked to your PAN. Shefali Mundra mentioned, 'It's mandatory to link your Aadhaar number with your PAN to file ITR. Failure to do so can lead to an inoperative PAN and complications in the filing process.'KEEP ALL DOCUMENTS READYBefore you start filing, gather all the important documents. "Be sure to have your Form 16, Form 26AS, and the Annual Information Statement (AIS)," said Shefali Mundra.Bank account statements and interest income certificates are also important. To claim deductions, keep investment-related proofs under 80C or 80D ready, she added.CHOOSE BETWEEN OLD AND NEW TAX REGIMEThere are two tax systems to pick from. 'Taxpayers can choose between the old and new tax regimes. The old regime allows various deductions and exemptions, whereas the new regime offers lower tax rates with limited exemptions and deductions. Evaluate which regime benefits you more based on your income and eligible deductions,' stated Mundra.Also, if you have business or professional income and wish to continue with the old regime, you'll need to submit Form 10-IEA before filing your return.REPORT ALL INCOME, EVEN SMALL ONESWhile most people remember to report their salary, it's equally essential to mention other types of income too. This includes bank interest, rent from properties, freelance payments, and even small investment profits. Reporting everything helps avoid notices from the tax department later.VERIFY YOUR RETURN AFTER FILINGadvertisementFiling your return online is just one half of the process. The other half is verification.After submitting the ITR, you must confirm your identity, either digitally using Aadhaar OTP, internet banking, or other options, or by sending a printed and signed ITR-V form to the Centralised Processing Centre (CPC), Income Tax in Bengaluru. If this step is missed, your return will not be processed by the tax department.Mundra stated, 'Filing your Income Tax Return doesn't have to be overwhelming—especially when you're well-prepared.' Starting early, understanding the right tax regime, selecting the appropriate ITR form, organising your documents, and double-checking details not only helps you stay compliant but also helps you make the most of your tax-saving opportunities.Trending Reel