A Step-by-Step Guide to Filing Income Tax Returns (ITR) for Employees in India
Introduction
Filing your Income Tax Return (ITR) might sound complicated, but it doesn’t have to be. If you’re a salaried employee, filing your ITR is not only a legal obligation but also a smart financial move—it helps you claim refunds, carry forward losses, and act as proof of income when applying for loans or visas.
In this easy-to-follow guide, the team at Makwana Sweta & Associates, a reputed CA firm in Mumbai offering PAN India CA services, walks you through everything you need to know to file your ITR confidently for FY 2024-25 (AY 2025-26).
Who Should File ITR?
Every salaried individual must file an ITR if:
- Your total annual income exceeds ₹2.5 lakh (below 60 years), ₹3 lakh (60–80 years), or ₹5 lakh (80+ years)
- You want to claim a refund on excess TDS
- You have foreign assets or income
- You want to carry forward capital losses
- You want to apply for a loan or visa
Documents Required for ITR Filing
Before you get started, keep these ready:
- Form 16 from your employer (TDS summary)
- PAN and Aadhaar card
- Salary slips (if no Form 16)
- Bank statements (interest earned, income received)
- Form 26AS (download from TRACES Portal)
- Annual Information Statement (AIS)
- Investment proofs (Section 80C, 80D, etc.)
- Rent receipts, if claiming HRA
- Capital gains reports (mutual funds, shares)
- Other income details (FDs, side income, freelance, etc.)
Choosing the Correct ITR Form (2025)
Most salaried employees fall under ITR-1 (Sahaj). Use this if:
- Total income ≤ ₹50 lakh
- Income from salary, one house property, and other sources (FDs, savings interest)
- No foreign income or capital gains
Use ITR-2 if you have:
- Capital gains
- Foreign assets or income
- Income > ₹50 lakh
New Tax Regime vs Old: What to Choose in 2025
As of Budget 2025, the new tax regime (default) has reduced slab rates but no deductions. Compare it with the old regime to pick the better one.
| Income Slab (New Regime) | Tax Rate |
|---|---|
| ₹0 – ₹3 lakh | 0% |
| ₹3 – ₹6 lakh | 5% |
| ₹6 – ₹9 lakh | 10% |
| ₹9 – ₹12 lakh | 15% |
| ₹12 – ₹15 lakh | 20% |
| ₹15 lakh+ | 30% |
Tip: If you have 80C, 80D, HRA, and home loan interest, the old regime may save you more. Use the Income Tax Calculator on the Income Tax Portal to compare.
How to File ITR: Step-by-Step (2025)
1. Register/Login to Income Tax Portal
Go to www.incometax.gov.in → Click on “Login” → Use PAN and OTP to log in.
2. Choose ‘e-File’ → Income Tax Return
Select the assessment year as 2025-26, mode of filing: Online, ITR form type: ITR-1 or ITR-2
3. Pre-fill & Verify Your Data
The portal auto-fills data from your Form 16, 26AS, AIS, and PAN. Check every detail:
- Salary income
- Interest income
- Deductions (80C, 80D, 80G, etc.)
- Bank account details for refund
4. Add Deductions Manually
If not pre-filled, enter eligible deductions:
- 80C: ₹1.5 lakh (LIC, PF, ELSS, tuition)
- 80D: Medical insurance
- 80TTA: Savings interest
- 24(b): Home loan interest (₹2 lakh limit)
5. Choose Tax Regime (Old/New)
Make a conscious selection. Once submitted, it can’t be changed for the year.
6. Validate & Submit
Double-check everything. Click Submit.
7. e-Verify Your Return
Use Aadhaar OTP, Net banking, or EVC to complete verification. This is mandatory for processing.
What Happens After Filing?
- You’ll get an ITR-V acknowledgement on your email
- Track return status on the portal
- Refund (if any) is generally processed within 7–45 days
- If selected for scrutiny, respond promptly (we’ve written this guide to help)
Common Mistakes to Avoid
- Incorrect PAN/Aadhaar linking
- Selecting wrong ITR form
- Mismatch in Form 16 vs 26AS
- Ignoring side income
- Forgetting to e-verify
- Claiming ineligible deductions under the new regime
Deadline for FY 2024-25 ITR Filing
- Due Date: July 31, 2025
- Late Filing Penalty: Up to ₹5,000 (if filed after deadline)
- Last Date to File with Penalty: December 31, 2025
Should You Take Help from a CA?
If you have:
- Income from multiple sources
- Capital gains
- Doubts about deductions or new regime
- Foreign assets
- High-value transactions
… then consulting a professional Chartered Accountant in Mumbai like Makwana Sweta & Associates can help you file accurately, claim maximum refunds, and avoid notices.
Final Thoughts
Filing ITR is easy if done right. It shows you are financially responsible and can actually help you save money.
Need help with ITR filing for employees? Our expert team of Tax Consultants in Mumbai and PAN India is here to assist you end-to-end—from choosing the best tax regime to getting your refund processed quickly.
Quick Summary:
- Form to use: ITR-1 (or ITR-2 for capital gains/foreign income)
- Documents: Form 16, 26AS, AIS, proofs
- Tax regime: Compare both using a calculator
- Deadline: July 31, 2025
- e-Verification: Mandatory to complete the process
Useful Links
For Tax and Accounting Services in Mumbai, reach out to us at CA Makwana Sweta & Associates