Filing your income tax return doesn’t have to be stressful. With the right approach and some simple planning, you can complete your ITR smoothly and avoid last-minute hassles. Here are seven essential tips every salaried employee should keep in mind this tax season:
1. Pick the Right Tax Regime
You can choose between the old and new tax regimes. The old regime allows for deductions and exemptions, while the new regime offers lower tax rates but fewer deductions. If you want to stick with the old regime, make sure to inform your employer early; otherwise, the new regime will be applied by default.
2. Collect Your Form 16
Form 16 is a crucial document provided by your employer. It shows your salary details and the tax deducted at source (TDS). Always collect this form before you start filing your return.
3. Verify TDS Details with Form 26AS
Form 26AS is a tax statement that lists all taxes deducted and deposited against your PAN. Cross-check the TDS mentioned in your Form 16 with what appears in Form 26AS to ensure there are no mismatches.
4. Gather All Investment Proofs
Even if some investments don’t give you tax benefits, they might still be good for your financial future. Keep receipts and proofs of investments like PPF, NSC, or insurance handy. They help you claim deductions and also build long-term wealth.
5. Understand HRA Exemption
If you receive House Rent Allowance (HRA) and pay rent, you can claim an exemption under the old tax regime. If you don’t get HRA or don’t pay rent, the new regime might be more suitable for you.
6. Choose the Correct ITR Form
Most salaried individuals use ITR-1. However, if you have capital gains from stocks or income from more than one house property, you’ll need to use ITR-2. Using the wrong form can delay your refund or even make your return invalid.
7. Income from House Property
If you earn income from just one house property, you can file using ITR-1. For income from multiple properties, switch to ITR-2 to stay compliant.
