(By Grover S & Company – Best CA Firm in Delhi-NCR)
Income Tax Return (ITR) filing for a salaried individual in India isn’t an end-of-the-year formality anymore; it’ the reflection of your financial planning, creditworthiness and long term wealth creation. Tax laws change often and with the option of opting for old/new tax regimens, most salary earners find themselves thoroughly confused and resulting in them filing incorrect or missing out deductions. Grover S & Company is a well known CA firm in North Delhi, It’s highly reputed for being one of the Best CA firm in Delhi -NCR which brings you this 2025 guides to make it easy for salaried employee’s ITR filing.
Why Salaried Persons Should File ITR Even If Income Is Less Than Burable Limit
Those on salary often forget to file ITR if income is less than exemption limit. But there are several reasons you should file. It is an official document that provides income proof comes in handy with loans, visa processing, and financial planning. (ET Online) It also assists you in claiming refunds for the excess TDS that has been deducted by your employer, a case mostly found when there are wrong projections or no declaration of deductions.
Filing ITR on a regular interval with correct information also results in creating a clean compliance record for the Income Tax Department. In the long-term, this minimizes the chance of notices, discrepancies or convolutions as your income rises (or when you venture into property, mutual funds and business).
New and Old Tax Regimes for Salaried Class in 2025 – Decoding It!
New tax system effective from 2023–24 financial year The new tax regime has been taken as default for tax payers from the financial year 2023–24 however salary earners are retaining the choice to select either old or new regimens. The old regime allows for several exemptions and deductions such as HRA, LTA, Section 80C, 80D, home loan interest, among others. The new regime provides lower slab rates but curbs many deductions and exemptions.
For the filing year 2025, salaried people will have to examine their salary structure, investments and home loan or insurance installments to see which regime suits them better. If your deductions are higher because of interest expenses related to investments and loans, the old regime might be better. If your salary structure is basic and you don’t have a lot of investments, the new system may save some tax for you. At Grover S & Company we compare both regimes on client to client basis by our team of expert tax consultants so that the most tax effective structure is selected prior to filing of returns.
Key documents required for ITR filing by salaried individuals
Before you even begin the filing process, you should have all relevant documents on hand. The most significant document is your Form 16 from employer which summarises your salary, allowances, deductions and TDS. Internal guides — You would also require the bank statements for interest income, Form 26AS and AIS/TIS to cross-verify tax credits and income details and proofs of deduction such as PF, LIC, ELSS, tuition fees along with home loan interest certificate health insurance premium.
If you have income other than your salary — such as freelance income, rental incomes or capital gains; then documents related to that like rent agreement details, contract notes and capital gain statements from brokers would also be needed. Gathering all these papers a well in advance ensures your ITR is filed correctly and there are no mismatches; avoiding tax notices later.
Which ITR form to use for salaried individual in 2025
The most relevant forms for majority of salaried individuals in India are ITR-1 (Sahaj) and ITR-2. Resident individuals having income from salaries, one house property and other sources like bank interest comes under this form, where total income does not exceed Rs 50 lakh and no capital gains / business income between the age of 31 years to above are eligible. In case, you have more than one house property, capital gains, foreign income or your income exceeds a threshold (details below), then you may need to file ITR-2.
Choosing the right ITR form is crucial as using incorrect form could make the return defective. This can lead to additional compliance checks and anxiety. One of the experienced CA firms in North Delhi, Grover S & Company assists salaried person to select a right return form as per their sources of income and profile for full adherence with the updated rules for Assessment Year 2025–26.
Today in this post we’ll discuss How to File Income Tax Return for Salaried Employees Step-by-Step.
Login or register on the Income Tax e-filing portal with your PAN, this is the first step to file ITR. After logging in, edit your information and correct any personal details, bank account details for receiving refunds or contact information. The question now is to choose the appropriate ITR form and assessment year.
Thereafter, you may also import prefilled data from the portal that gets auto-populated including details of salary income, tax deducted at source (TDS) and certain other financial information. But the data that comes pre-filled is hardly ever complete or accurate, so you will need to be meticulous when filling out and correctly updating each field. Then you need to put in details of deductions under Section 80C, 80D, 80G and any other income like interest from savings or fixed deposits.
You must now Calculate Tax liability/Refund, verify the tax regime selected and validate your return. Once you submit, the final step is to e-verify your ITR using Aadhaar OTP, net banking or by posting a signed physical copy to the CPC, as per the timeline. There is no such thing as a ”valid” return without verification.
Common Exemptions and Deductions for Salaried Employees
Among the biggest benefits for salaried employees under the old tax structure are the numerous deductions and exemptions they get to claim. Under Section 80C, you can claim a deduction of up to ₹1.5 lakh through investments in schemes such as EPF, PPF, ELSS mutual funds and payment of life insurance premiums and principal amount on a home loan. A Section 80D deduction is available for premiums paid on health insurance policies for self and family, with extra deductions being available for parents.
In case you have an HRA component on your salary and also stay in rented premises, you can claim the HRA exemption, resulting in a reduction of taxable component of your salary. Likewise, the interest on home loan is deductible under Section 24 for a self-occupied or rented property up to certain limits. Deductions eligible under Section 80G Donations to certain charitable institutions can be claimed while filing the return of the income provided they should not exceed 10% of Gross Total Income and such deductions are computed after excluding other eligible items. Grover S & Company, Chartered Accountants would be glad to undertake these calculation for our salaried clients where all TDS interests, loss brought forward claim, future planning and permissible deduction is taken into consideration.
Errors Salaried Persons Should Avoid While Filing ITR
A large number of salaried people feel that as long they have Form 16, it is sufficient and file returns without going through all the essential details. Some common errors may be: failure to report interest income from savings or fixed deposits (the threshold for TDS is higher than the amount on which you should pay tax); not considering losses of previous year/gains from individual stocks; selecting the ‘wrong’ tax regime and entering incorrect deposit information. Second major blunder is that, verification of Form 26AS/AIS with the income and TDS reflected in ITR is ignored.
These errors will result in a mismatch, demand for additional tax or, in some situations, penalties. Rushing through ITR at the last moment is one of the contributing factors for that. When you work with an expert firm like Grover S & Company, you will know that your filing is accurate and on time, in addition have the necessary paperwork at your disposal to avoid any additional audit issues and expense.
Due dates, Late Fee and Penalty for Non Filing ITR
For the salaried class, ITR filing deadline is generally 31st July of the assessment year (unless extended by government). Late filing will attract late fees under Section 234F and interest on any unpaid tax. You may also not be able to carry forward certain losses for future tax years if you file late.
Failing to do so will invite penalties, interest and even prosecution (in extreme cases), besides loss of interest on the refund amount. Also, unfiled ITRs can ensure that you are unable to avail of home loans or business loans since banks usually consider ITRs as a prime proof of income. Being one of the best CA firm in Delhi-NCR, Grover S & Company closely bodhi-bo-treeWe keep an eagle eyed over all deadlines and do timely filing of returns with requisite compliance.
Why Grover S & Company to File ITR in 2025
Grover S & Co, a reliable CA firm in North Delhi has years of experience serving ITR needs for salaried individuals ranging across various income brackets and job characteristics. Whether you are a salaried employee filing returns for the first time, a mid level professional with multiple sources of income, or a senior executive managing your household’s tax planning and India Filing provides customised solutions.
The company says its experts work at optimizing taxability in a legal manner, choosing the correct tax regime, maximizing deductibles and making sure to comply with all the new Income Tax rules toward 2025. Grover S & Company has emerged as the Best CA firm in Delhi-ncr for salaried taxpayers who are looking for professional advice and dealing with ITR filing.
Conclusion: Keep Your 2025 ITR Filing Smooth And Stress-Free
Filing Income Tax Return as salaried employee in India does not have to be complicated! With the right direction, good documentations and planning in time, you can not only remain fully compliant but also save a big amount of taxes legally.
If you are searching for professional help to file your ITR correctly and take all the advantages available, Grover S & Company in North Delhi can provide end-to-end support with regard to Assessment Year 2025–26 and so on.