Filing your Income Tax Return (ITR) is not just a legal obligation but also an important step in maintaining your financial records and availing future benefits like loans and visas. For salaried employees in Mumbai, the process is relatively straightforward, provided you understand the requirements and deadlines. This guide will walk you through everything you need to know about ITR filing as a salaried individual in Mumbai.
As per the Income Tax Act, 1961, every individual earning more than the basic exemption limit is required to file an ITR. For FY 2024-25 (AY 2025-26), the basic exemption limit is:
Rs. 2,50,000 for individuals under old regime
Rs. 3,00,000 for individuals under new regime
Even if your income is below the exemption limit, you may still need to file ITR if:
You have foreign assets or foreign bank accounts
You want to claim a refund of TDS deducted by your employer
Your income exceeds Rs. 2.5 lakh before claiming deductions
Avoid penalties for late filing (Rs. 1,000 to Rs. 5,000 under Section 234F)
Claim refunds of excess TDS paid
Build financial credibility for loans and visa applications
Carry forward losses to set off against future income
Maintain legal compliance
For salaried employees in Mumbai, keep these documents ready:
Form 16 – Provided by your employer, containing salary and TDS details
Form 26AS – Tax credit statement available on the income tax portal
Salary Slips – Monthly breakdown of earnings and deductions
Bank Statements – For interest income and verification
Investment Proofs – LIC, PPF, ELSS, NPS, and other tax-saving investments under Section 80C
Rent Receipts – To claim HRA exemption
Home Loan Statements – For interest deduction under Section 24(b)
Aadhaar and PAN – Mandatory for filing
For salaried employees in Mumbai, the most common forms are:
ITR-1 (Sahaj) – For income up to Rs. 50 lakh from salary, pension, and one house property
ITR-2 – If you have income from multiple house properties, capital gains, or foreign assets
Step 1: Collect Your Documents
Ensure you have Form 16, bank statements, investment proofs, and other relevant documents ready.
Step 2: Log In to the Income Tax e-Filing Portal
Visit https://www.incometax.gov.in and log in with your PAN (User ID) and password.
Step 3: Select the ITR Form
Choose ITR-1 or ITR-2 based on your income sources.
Step 4: Pre-Fill Your Data
The portal will pre-fill details from Form 16, Form 26AS, and AIS/TIS. Verify all entries carefully.
Step 5: Declare Additional Income
Include interest income from savings accounts, FDs, or any freelance earnings.
Step 6: Claim Deductions
Declare investments under Section 80C, health insurance premiums under 80D, and other eligible deductions.
Step 7: Verify Tax Liability
Check if you need to pay any self-assessment tax or if you are eligible for a refund.
Step 8: Submit and Verify
Submit your return and verify it online through Aadhaar OTP, net banking, or EVC.
Ignoring interest income from banks
Not verifying Form 26AS before filing
Entering incorrect bank account details
Missing out on eligible deductions
Filing after the due date (July 31 for most individuals)
Utilize your HRA exemption if you are living in a rented house in Mumbai
Invest in tax-saving schemes like PPF, ELSS, and NPS
Claim deductions for education loans under Section 80E
Use Section 80D for health insurance premiums
Consider home loan benefits if you own a house
For FY 2024-25 (AY 2025-26), the due date for most salaried employees to file their ITR is July 31, 2025, which has been extended to September 15, 2025.
Conclusion
For salaried employees in Mumbai, filing ITR is not just about compliance—it’s about securing financial benefits, building credibility, and avoiding unnecessary penalties. By keeping your documents ready, choosing the correct form, and filing on time, you can make the process smooth and hassle-free.
If you’re unsure about filing, consider consulting a professional tax consultant in Mumbai to avoid mistakes and optimize your tax savings.