Yes, even if TDS has been deducted by your employer, you must file your ITR if your total income exceeds the basic exemption limit:

• ₹2.5 lakh (Under Old Regime)
• ₹3 lakh (Under New Regime, FY 2023–24 onwards)

You can choose between Old Regime and New Regime:

New Regime (Default):

Old Regime:

No. Under the new regime, most exemptions and deductions (like 80C, HRA, LTA, 80D) are not allowed.
But under the old regime, you can claim:

• 80C: Up to ₹1.5 lakh
• 80D: Health insurance
• HRA, LTA, home loan interest, etc.

Form 16 is a TDS certificate issued by your employer. It shows:

• Salary earned
• Tax deducted (TDS)
• Deductions claimed

It is crucial for filing your income tax return.

Yes, you must include all sources of income, including:

• Salary
• Interest income
• Rental income
• Capital gains (if any)

You can claim a deduction of ₹10,000 on savings interest under Section 80TTA.

• Form 16 (from employer)
• Form 26AS (tax credit statement)
• Salary slips
• Bank statements
• Investment proofs (if under old regime)
• Rent receipts (for HRA)
• Home loan certificate (if applicable)
• PAN & Aadhaar

• ITR-1 (Sahaj): If income is from salary, one house property, and other sources (like interest), and total income < ₹50 lakh.
• ITR-2: If income is above ₹50 lakh or includes capital gains, more than one house property, etc.

• Salaried employees can switch every year.
• Need to select the regime while filing ITR (or inform employer at the start of the year for TDS purposes).

• You can file a belated return by 31st December of the assessment year.
• Late filing fee of ₹1,000 to ₹5,000 may apply.
• You may lose interest on refund or face other penalties.

• File your ITR with correct details.
• The Income Tax Department will process your return.
• Refund (if any) is usually credited directly to your bank account.

Allowed Deductions under New Tax Regime (FY 2024–25)

Common Deductions Not Allowed in New Regime

Summary: Should You Opt for the New Regime?

If your total income (after deductions) exceeds the basic exemption limit:

• ₹3 lakh (under new regime, default)
• ₹2.5 lakh (under old regime)

You must file ITR, even if your business income is exempt under presumptive taxation.

• ITR-3:For individuals/HUFs having income from business/profession (non-presumptive).
• ITR-4 (Sugam): If you opt for presumptive taxation under Section 44AD, 44ADA, or 44AE.

Under presumptive schemes, you declare a fixed percentage of turnover as income, reducing compliance burden.

Conditions apply: Cash transactions should not exceed 5% of total receipts for higher turnover limits.

Yes, but with restrictions:

• Business persons must opt in or out only once (unless they have no business income later).
• Once opted out, cannot opt back in unless business income ceases.

Very limited. Most exemptions/deductions (like 80C, 80D, depreciation, etc.) are not allowed, but:

• Standard deduction (for salary income)
• Employer contribution to NPS (80CCD(2))
• Depreciation on assets used in business (allowed for income computation)
• Deduction for additional employee cost under 80JJAA (if eligible)

Under Section 44AA:

• Standard deduction (for salary income)
• Employer contribution to NPS (80CCD(2))
• Specified professions (doctor, lawyer, CA, etc.) must maintain books if income > ₹2.5 lakh or turnover > ₹25 lakh.
• For other businesses, if income > ₹2.5 lakh or turnover > ₹25 lakh, maintain books unless under presumptive scheme.

Yes, in the following cases:

Allowed under Section 37 if incurred wholly and exclusively for business, such as:

• Rent
• Electricity
• Salary & wages
• Internet/Phone bills
• Travel expenses
• Depreciation on business assets
• Business loan interest (Sec 36)

• Opt for presumptive taxation if eligible
• Use depreciation wisely
• Plan salary to self/family (reasonable limits)
• Claim legitimate business expenses
• Invest via NPS (for deductions under old regime)
• Maintain proper records to avoid penalties

• ₹1,000 (if income < ₹5 lakh)
• ₹5,000 (if income > ₹5 lakh)
• Interest under Section 234A/B/C
• Disallowance of losses (can't carry forward)