No easy ITR-1 filing with only Form 16. Salaried taxpayers need to do more under old regime in 2025

Many salaried taxpayers used to file their Income Tax Return (ITR) in ITR-1, simply with Form 16, until last year. However, this time, more than just Form 16 will be required if filing returns under the old tax regime.

The old regime allows deductions against certain investments under various sections of the Income Tax Act, 1961.

Until last year, salaried employees, who had income only from salary, used to report these investments to their employers. The employers then adjusted the tax deducted on salary by reducing the deductions from the total income, and this adjustment was also reflected in Form 16. While filing the return with ITR-1, taxpayers did not have to upload any proof for investments while filing their returns online.

Is this a cause for worry?

No. It's not a cause for worry if you have made tax-saving investments and expenses, like paying rent for claiming House Rent Allowance (HRA). All you need to do is have all the proof handy before filing the ITR.

However, if you don't have any proof and yet plan to claim deductions under the old regime, then you will be in trouble in the absence of proof. In such a situation, you may end up paying extra taxes while filing ITR.

This year, taxpayers can also submit long-term capital gains up to ₹1.25 lakh from equity mutual funds and equity shares in ITR-1. However, there is no tax on this LTCG if realised after July 23, 2025.

The Income Tax Department has also extended the due date of filing ITR for taxpayers who do not need an audit till September 15, 2025.

When do you need Form 16 for filing ITR-1?

Salaried taxpayers need to upload Form 16 on various tax-filing platforms when filing ITR-1. However, you do not need to upload Form 16 when filing directly on the e-filing portal of the Income Tax Department. The e-filing portal has all the details pre-filled that taxpayers can cross-check with Form 16.