Income Tax Return Filing Guide for Salaried Employees

Income Tax Return (ITR) filing for salaried individuals is the most common tax compliance in India. With Form-16 issued by employers and the e-filing portal, the process has been fully digitised.

Who Must File

Salaried individuals with income above the basic exemption limit.
Residents with income above ₹3 lakhs (₹5 lakhs for new tax regime).
Any person wanting to claim a refund or carry forward losses.
Self-employed individuals with any income level.

Documents Required

Form-16 (TDS certificate from employer) — Part A and Part B.
Form 26AS (consolidated TDS and tax payment statement).
Bank account statements for the financial year.
Investment proofs for Section 80C, 80D, 80G, and so on.
Home loan interest certificate (if applicable).
Aadhaar card and PAN card.
Previous year ITR copy (for reference).

Step-by-Step Filing Process

Log in to incometax.gov.in with PAN and password.
Go to “e-File”, “Income Tax Returns”, “File Income Tax Return”.
Select the Assessment Year and ITR Form 1 (Sahaj for salaried).
Pre-fill personal and income details using Pre-load.
Verify pre-filled Form 16 data against your records.
Claim deductions under Chapter VI-A (80C, 80D, and so on).
Calculate tax liability and verify TDS matches Form 26AS.
Preview return and submit with Aadhaar OTP or net banking.
E-verify within 30 days. Use one of: Aadhaar OTP, net banking, or bank account validation.

Key Deductions for Salaried

Section 80C: PPF, ELSS, EPF, life insurance, home loan principal — up to ₹1.5 lakh.
Section 80D: Health insurance premium — up to ₹25,000 (₹50,000 for senior citizens).
Section 80CCD(1B): NPS contribution — up to ₹50,000 extra.
Section 24(b): Home loan interest — up to ₹2 lakh for self-occupied.
Standard Deduction: ₹75,000 (new regime).

Due Dates

July 31 of the assessment year for individuals without audit. October 31 for those requiring tax audit.

When this guide applies

Use this guide when you need a plain-English explanation of the topic for an Indian business or taxpayer. We assume you know the basics of Indian taxation and compliance. This guide focuses on specific situations, deadlines, and pitfalls that matter in real filings.

Step-by-step process

Confirm the trigger event. This may be a turnover threshold, registration requirement, or compliance deadline that brings this topic into scope for your business.
Gather the documents you need. These include PAN, Aadhaar, GSTIN, bank statements, or the specific records called out in the linked forms.
File or register through the official portal. This includes income tax e-filing, MCA, GST, FSSAI, or the relevant regulator. Keep your acknowledgement numbers.
Pay any fee or tax due. Note the challan reference for your records.
Track the SLA. Most approvals arrive in 3–30 working days. Escalate through the regulator’s grievance portal if delayed.

Common pitfalls

Filing after the due date without paying the late fee. Penalty compounds per month under Section 234F for ITR and per return period for GST.
Using the wrong ITR form or business code. This leads to a defective return notice under Section 139(9) and a fresh round of filing.
Ignoring state-specific requirements. This includes professional tax, shop and establishment rules, and state GST registration when operating across multiple states.

When to escalate

Talk to an expert if the situation involves cross-border transactions, notice from the department, or disputed turnover. Self-filing works for routine cases but escalates quickly once a notice arrives.

Next steps

For a personalised check, use our eligibility wizards and free code search tools. To file end-to-end, see the linked service pages on FinTax24.

FAQ

Is ITR filing mandatory for a salaried person earning ₹4.5 lakhs per year in Gujarat?

If your gross total income exceeds ₹3 lakhs in a financial year, you are required to file an ITR under Section 139(1). Even though your tax liability would be zero after the rebate under Section 87A, the filing obligation still exists. For FY 2025–26, the exemption limit for a resident below 60 years is ₹3 lakhs. So a ₹4.5 lakh salary exceeds this and mandates filing. Failure to file beyond the due date attracts a penalty of up to ₹5,000 under Section 234F.

What is the difference between ITR-1 (Sahaj) and ITR-2 for a salaried employee?

ITR-1 (Sahaj) is the simpler form available to individuals with income from salary, one house property, and agricultural income up to ₹5,000. Total income must not exceed ₹50 lakhs. There must be no capital gains. ITR-2 covers individuals with multiple house properties, capital gains, foreign assets, or income from more than one employer. If your only income is salary with no foreign assets or capital gains, ITR-1 is sufficient. Using ITR-2 when ITR-1 is applicable adds unnecessary disclosure requirements.

Can I claim both Section 80C investments and standard deduction under the new tax regime?

Yes, standard deduction of ₹75,000 is available to all salaried individuals regardless of which tax regime you choose. However, most Section 80C deductions (ELSS, PPF, EPF, life insurance premiums, children’s tuition fees) are available only under the old tax regime. Under the new regime (effective FY 2023–24), you cannot claim 80C, 80D, HRA, or LTA. The standard deduction is the only deduction available. If your total 80C investments exceed ₹75,000, the old regime may still work out cheaper.

What happens if I do not e-verify my ITR within 30 days of filing?

If e-verification is not completed within 30 days, the ITR is treated as not filed. You may receive a notice under Section 142(1). The Income Tax Department accepts belated returns after the due date. A late fee of ₹5,000 (₹1,000 if total income is below ₹3 lakhs) applies under Section 234F. You can still e-verify a belated return. But it is processed only after the late fee is paid. Persistent non-filing can lead to Best Judgment Assessment under Section 144 and additional penalties.

How do I check if my employer has deposited TDS correctly using Form 26AS?

Form 26AS is your annual tax statement on the Income Tax Portal (incometax.gov.in) under “My Account”. It consolidates all TDS credited to your PAN from every employer and deductor. Log in, go to My Account, Form 26AS, and select the relevant financial year. Cross-check the TAN in Form 26AS against your Form 16 Part B. Confirm the correct employer deposited the TDS. If the Form 26AS amount is lower than your Form 16 TDS, your employer may have deposited it incorrectly. Request a correction via the TRACES portal (tdscpc.gov.in) before filing.