Which ITR Form for a Salaried Person? Handy Guide to Filing Returns

As a salaried individual, filing your Income Tax Return (ITR) is a crucial part of your financial responsibilities. But the question often arises: Which ITR for salaried person is the right one? Do not worry—this guide simplifies everything you need to know, from choosing the correct form to leveraging tax benefits like home loans.

What is an ITR form?

An Income Tax Return (ITR) form is a document that you use to report your income, claim deductions, and pay your taxes. The form you choose depends on the type of income you earn. For salaried individuals, the government has specific forms that simplify the filing process.

Which ITR form for a salaried person?

For most salaried individuals, ITR-1 (Sahaj) is the appropriate form. Here is a quick overview:

• Who can file ITR-1? Salaried individuals earning up to Rs. 50 lakh annually.
• Additional income: Income from one house property or other sources (like interest).
• Who cannot file ITR-1? If you earn from business, capital gains, or foreign income, you need a different form like ITR-2 or ITR-3.

For salaried individuals earning above Rs. 50 lakh or those with multiple income sources, ITR-2 may be applicable. Always check the latest guidelines before filing.

Why filing the correct ITR matters

Filing the correct ITR form is not just about compliance—it impacts your finances in many ways:

• Avoid penalties: Filing the wrong form may lead to errors, penalties, or rejection of your return.
• Claim deductions: The right form ensures you claim all eligible deductions, including those for home loans.
• Ease of filing: Choosing the correct form simplifies the process and saves time.

Steps to file ITR for a salaried person

Filing your ITR is easier than ever with online portals. Follow these steps:

1. Collect documents: Keep Form 16, salary slips, and investment proofs handy.

2. Choose the correct form: As a salaried individual, pick ITR-1 or ITR-2 based on your income.

3. Log in to the income tax portal: Register or log in to the official portal.

4. Fill details: Enter your income, deductions, and taxes paid.

5. Verify and submit: Check for errors, e-verify your return, and submit.

How can salaried persons save taxes?

As a salaried individual, you can take advantage of several tax-saving options. Here are some common ones:

1. Section 80C deductions: You can claim up to Rs. 1.5 lakh annually for investments in:

• Public Provident Fund (PPF)
• Employee Provident Fund (EPF)
• Tax-saving fixed deposits

2. Home loan tax benefits: If you have a home loan, you can claim:

• Up to Rs. 1.5 lakh on principal repayment under Section 80C.
• Up to Rs. 2 lakh on interest paid under Section 24(b).

3. Medical insurance (Section 80D): Premiums paid for health insurance can save you up to Rs. 25,000 in taxes.

4. Standard deduction: Salaried employees get a flat deduction of Rs. 50,000, which reduces taxable income.

How does a home loan help in tax saving?

A home loan is not just a tool to own your dream house—it is also a tax-saving instrument. Here is how:

• Principal repayment: Claim deductions under Section 80C.
• Interest paid: Save up to Rs. 2 lakh annually on interest under Section 24(b).
• First-time buyers: Enjoy additional benefits under Section 80EE.

For example, if you are paying Rs. 2 lakh in interest and Rs. 1 lakh in principal annually, you could save a significant amount on taxes while building a valuable asset.

Common mistakes to avoid when filing ITR

• Choosing the wrong form: Make sure to select the correct ITR form to avoid issues.
• Ignoring tax benefits: Many salaried individuals miss claiming deductions like home loan benefits.
• Not verifying the return: Always e-verify your return to complete the process.
• Incorrect bank details: Double-check your bank details to receive refunds without delay.

Filing ITR for salaried person with multiple incomes

If you earn from multiple sources (like rental income or capital gains), you may need to file ITR-2 or ITR-3 instead of ITR-1. These forms provide additional fields to declare complex income types.

Why filing ITR early is important

Filing your ITR early has several benefits:

• Avoid last-minute rush: Early filing ensures you have time to correct errors.
• Speedy refunds: Refunds are processed faster for early filers.
• Better planning: Filing early gives you a clear picture of your finances.

Why consider a home loan while planning taxes?

Home loans are a strategic financial tool that offers dual benefits:

• Homeownership: You can own a house without financial strain.
• Tax savings: Significant deductions on both principal and interest reduce your tax liability.

If you are considering buying a home, a home loan can help you achieve this dream while optimising your taxes.

Why choose Bajaj Housing Finance Home Loan

When it comes to home loans, Bajaj Housing Finance is a smart and convenient option. With competitive interest rates, flexible repayment options, and quick processing, Bajaj Housing Finance ensures a seamless home loan experience.

Here is how Bajaj Housing Finance Home Loan stands out:

1. High loan amount: Secure funding up to Rs. 15 crore* to turn your dream home into reality.

2. Low interest rates: Enjoy interest rates starting 8.25%* p.a, and EMIs as low as Rs. 741/lakh*.

3. Quick approval: Get approved within 48 Hours* of applying – sometimes even sooner.

4. Flexible repayment tenure: Choose a repayment term of up to 32 years for comfortable EMIs.

5. Simple application: Take advantage of doorstep document collection for a smooth process.

6. Balance transfer facility: Move your existing home loan and get a top-up loan with better terms.

Take the first step today—apply now for Bajaj Housing Finance Home Loan and secure your future.