ITR 2025: Which form to use, what documents you need, and how to save tax

If you want to file smoothly, avoid errors, and potentially save on taxes, here are some essential tips you should know before you get started

 

The tax season is here, and with it comes the annual ritual of preparing to file your Income Tax Return (ITR). For millions of taxpayers across the country—whether salaried employees, freelancers, business owners, or investors—filing your return accurately and on time is both a legal obligation and an opportunity to optimize your finances.

 

If you want to file your income tax return smoothly, avoid errors, and potentially save on taxes, here are some essential tips by Shefali Mundra , Tax expert at Clear Tax 

 

Choose the right tax regime

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. Evaluate which regime benefits you more based on your income and eligible deductions. Many salaried individuals with high deductions (like 80C, HRA, and home loan interest) may benefit from the old regime, while those with simpler finances may find the new regime more attractive.

 

 

Pick the Right ITR Form

Choosing the correct ITR form is crucial. Filing the wrong one could result in your return being treated as defective.

ITR-1: Income up to ₹50L from salary, one house property, and other sources.

ITR-2: For those with capital gains, multiple properties, or foreign income.

ITR-3: Income from business or profession.

ITR-4: Presumptive income scheme for small businesses or professionals.

 

Gather Key Documents in Advance

• Organize all relevant documents before you begin:
• Form 16 from your employer
• Form 26AS and Annual Information Statement (AIS)
• Bank interest certificates, rent receipts, capital gains statements
• Investment proofs (PPF, ELSS, insurance, etc.)
• PAN and Aadhaar

 

Don’t Miss Out on Deductions

• Maximize your tax savings by claiming deductions under:
• Section 80C (up to ₹1.5L): PPF, EPF, ELSS, principal on home loan
• Section 80D: Health insurance premiums
• Section 24(b): Interest on housing loans
• HRA, LTA, and other exemptions if you qualify
• Ensure that all claims are backed by valid documentation.

 

Check Your Tax Credit Details

Before filing, cross-verify the TDS reflected in Form 26AS and AIS against your actual income. Any mismatches must be clarified with the deductor to avoid refund delays or scrutiny. 

How to decide between old and new regime? 

 

If you claim deductions like Section 80C (PPF, ELSS), HRA, home loan interest, etc., the Old Regime may save you more.

 

If you have a simple income structure with minimal deductions, the New Regime may be more beneficial due to lower slab rates.

 

Pro Tip: Use an online tax regime comparison calculator or consult a tax advisor to determine which option suits your profile. 

Bonus Tip: File Early and Use E-Verification

Filing early reduces the risk of last-minute stress and gives you time to correct any errors.

 

After submitting your ITR, complete the e-verification through Aadhaar OTP, net banking, or other options to ensure your return is processed.