Salaried Person ITR Filing in India

Who Needs to File ITR in India?

Income Tax Return Filing for Salaried Employees is mandatory when the individual meets the income threshold or any other specified filing condition. Eligibility depends on total income, age, tax regime, residential status and certain financial transactions. Even if the final tax payable is zero, the taxpayer may still have to file a return. For FY 2025–26, the basic exemption limit under the new tax regime is Rs.4 lakh. Under the old tax regime, the basic exemption limit is generally Rs.2.5 lakh for individuals below 60, Rs.3 lakh for resident senior citizens aged 60 to below 80, and Rs.5 lakh for resident super senior citizens aged 80 or above.

Salaried individuals who may need to file ITR

• Individuals whose income exceeds the applicable basic exemption limit, subject to the statutory income-computation rules.

• Employees who have additional income from rent, interest, investments or capital gains.

• Individuals with specified foreign assets, foreign financial interests or foreign account signing authority.

• Persons whose deposits, expenses or prescribed financial transactions trigger mandatory filing conditions.

• Taxpayers who need to report eligible losses for carry-forward purposes.

Is ITR filing mandatory for salary below Rs.12 lakh?

The Rs.12 lakh threshold under the new tax regime relates to the Section 87A tax rebate, not a general exemption from filing an income tax return. Eligible resident individuals with normal taxable income up to Rs.12 lakh may receive a rebate that reduces their tax liability to zero. However, the rebate does not automatically remove the ITR filing requirement.

For example, a salaried employee earning Rs.10 lakh annually may have no final income tax payable after applicable deductions and rebate. Nevertheless, the individual may still need to file an ITR because their income exceeds the basic exemption limit.

Which ITR Form is Applicable for Salaried Employees? 

Choosing the correct ITR form is an important part of salaried person income tax return filing. Different forms apply to different types of income and financial activities. Using an incorrect form may result in a defective return, processing problems or additional compliance requirements.

ITR-1 (Sahaj)

ITR-1 is generally suitable for eligible resident and ordinarily resident individuals whose total income does not exceed Rs.50 lakh. For AY 2026–27, it can cover salary or pension, income from up to two house properties, specified income from other sources, agricultural income up to Rs.5,000 and eligible long-term capital gains under Section 112A up to Rs.1.25 lakh.

However, ITR-1 is not available in several situations, such as certain foreign assets or income, short-term capital gains, company directorship, holding unlisted equity shares or having business income.

ITR-2

ITR-2 is generally applicable to individuals and Hindu Undivided Families who do not have income from business or profession but are not eligible to file ITR-1. It may be required for salaried persons with higher income, certain capital gains, foreign assets, foreign income or other financial circumstances.

ITR-3

ITR-3 generally applies when an individual has income from business or profession in addition to salary or other income. For example, a salaried employee who also carries on a consultancy business may need ITR-3, depending on the nature of the income and applicable filing requirements.

Comparison of ITR forms

The correct return form should be selected only after reviewing Form 16, AIS, Form 26AS, capital gains and other income details.

Documents Required for Salaried Person ITR Filing

Proper documentation makes income tax return filing easier and reduces the possibility of incorrect reporting. Salaried employees should collect their salary records, tax statements, bank details and investment documents before filing their returns. The documents help verify income, TDS, deductions and any tax refund that may be due. Most salaried individuals do not need to upload their supporting documents while submitting the ITR. However, they should retain the records because the Income Tax Department may request supporting evidence later.

Important documents for ITR filing

• PAN Card: Used for income tax identification and filing.

• Aadhaar Card: Required for applicable identity verification, PAN linking and e-verification.

• Form 16: Contains salary income, exemptions, deductions and TDS details provided by the employer.

• Form 26AS: Helps verify specified tax credit and tax payment information.

• Annual Information Statement (AIS): Contains information about reported financial transactions and income.

• Taxpayer Information Summary (TIS): Provides a summary of relevant information available to the Income Tax Department.

• Bank Account Details: Required for reporting bank accounts and receiving eligible refunds.

• Interest Certificates: Used to report interest received from banks and deposits.

• Investment Proofs: Relevant for deductions under sections such as 80C and 80D, where applicable.

• Capital Gains Statements: Required when reporting profits or losses from shares, mutual funds or other assets.

Is Form 16 mandatory for ITR filing?

Form 16 is useful but is not always essential for filing an income tax return. If the employer has not provided Form 16, an employee may prepare income details using salary slips, bank statements, AIS, Form 26AS and other supporting records. The income and TDS figures should be checked carefully before submitting the return.

Old vs New Tax Regime for FY 2025–26

Salaried employees can generally choose between the old tax regime and the new tax regime, subject to applicable rules. The new tax regime is the default, while the old tax regime continues to offer various deductions and exemptions to eligible taxpayers. Selecting the appropriate regime can make a significant difference to the final tax liability.

Under the new tax regime for FY 2025–26, the tax slabs were revised and the Section 87A rebate was increased. The standard deduction for eligible salaried employees is Rs.75,000 under the new tax regime, compared with Rs.50,000 under the old regime.

New Tax Regime Slabs – AY 2026–27

These are slab rates before applicable rebate, surcharge and cess.

Tax Rebate Under Section 87A

For AY 2026–27, eligible resident individuals under the new tax regime can claim a Section 87A rebate of up to Rs.60,000 where total income does not exceed Rs.12 lakh. The rebate is subject to statutory conditions and does not generally offset tax on income chargeable at special rates, such as certain capital gains.

An eligible salaried person with gross salary of Rs.12.75 lakh and a Rs.75,000 standard deduction may have taxable salary income of Rs.12 lakh. If there is no other income affecting eligibility, the Section 87A rebate can reduce the regular income tax liability to zero.

Old Tax Regime vs New Tax Regime

Which regime is better for salaried employees?

The better regime depends on salary structure, eligible investments, home loan interest, medical insurance, HRA and other deductions. An employee who has substantial eligible deductions may benefit from the old regime, while another employee with limited deductions may prefer the new regime. A proper comparison should be made before filing, particularly where the employer has already calculated TDS using a particular regime.

Step-by-Step ITR Filing for Salaried Employees

Salaried employees can file their income tax returns online through the Income Tax Department's official e-filing portal. The filing process involves identifying the correct assessment year, selecting the ITR form, verifying pre-filled income details, calculating taxes and completing e-verification. Although the portal provides pre-filled information, employees should not assume that all income and deductions have been reported correctly. Information from multiple employers, bank accounts and investments should be checked before final submission.

Online ITR filing process

Step 1: Visit the Income Tax Portal

Visit the official Income Tax Department website at www.incometax.gov.in and log in using your PAN and password. Ensure your account details are correct before proceeding.

Step 2: Select the Assessment Year

Go to the e-File section and select Income Tax Return Filing. Choose AY 2026–27 for income earned during FY 2025–26.

Step 3: Select the Applicable ITR Form

Choose ITR-1, ITR-2 or another applicable form based on your income sources and eligibility. Selecting the correct form helps avoid filing errors.

Step 4: Verify Personal and Income Details

Review your personal information, salary income, bank details and TDS records. Match the information with Form 16, AIS and Form 26AS.

Step 5: Review Deductions and Tax Regime

Compare the old and new tax regimes to identify the suitable option. Claim eligible deductions and exemptions according to the selected regime.

Step 6: Calculate Tax Liability

Check your total taxable income, applicable tax rates, rebates and TDS credits. Pay any remaining tax liability before submitting the return.

Step 7: Submit the Income Tax Return

Review all the details carefully and validate the information entered. Submit your ITR online after correcting any errors.

Step 8: Complete E-Verification

Verify your ITR through Aadhaar OTP, net banking or another permitted method. Complete verification within the prescribed 30-day period.

E-Verification Deadline

An income tax return generally must be e-verified, or the signed ITR-V submitted as prescribed, within 30 days of filing. If verification is not completed within the permitted period, the return may be treated as invalid or subject to late-filing consequences. At Compliance Calendar LLP, our professionals assist clients in reviewing their information and completing the applicable online filing process.

Income Tax Refund – Eligibility, Status and Delays

An income tax refund arises when the total tax paid by a taxpayer exceeds the final tax liability calculated under the applicable law. Salaried employees commonly claim refunds when their employer deducts excess TDS or when eligible deductions, exemptions or tax credits reduce their final tax liability.

A refund is not automatically available to every employee who files an ITR. The Income Tax Department processes the return and verifies the information before determining the amount refundable, if any.

Common reasons for income tax refunds

• Excess TDS deducted by the employer.
• Additional eligible deductions not considered in salary TDS calculations.
• Excess advance tax or self-assessment tax paid.
• Differences between estimated salary tax and final tax liability.
• Eligible tax credits reported in the income tax return.

How to Check ITR Refund Status

Step 1: Log in to the Income Tax Department's e-filing portal.

Step 2: Open the filed returns section.

Step 3: Select the applicable assessment year and filed return.

Step 4: Review the return processing and refund status shown on the portal.

Step 5: If required, check your bank account validation and any communication issued by the Income Tax Department.

Why is an ITR refund delayed?

A refund may be delayed because of incorrect bank details, incomplete verification, differences in reported income, TDS mismatches, outstanding tax demands or pending return processing. Taxpayers should review AIS, Form 26AS and the return acknowledgement to identify possible discrepancies.

Due Dates, Late Fees and Revised ITR Filing

Filing the income tax return within the prescribed deadline helps salaried employees avoid late fees, interest and restrictions on certain tax benefits. The due date depends on the taxpayer's category and whether the case involves audit requirements. The usual filing deadline for non-audit salaried individuals differs from the deadlines for certain business and audit cases.

For AY 2026–27, the normal due date for salaried individuals filing ITR-1 or ITR-2 was 31 July 2026, unless an applicable extension was specifically notified.

Important ITR Filing Dates for AY 2026–27

The deadlines above are subject to applicable government notifications, assessment completion and other statutory requirements. An extension announced for audit cases should not be assumed to extend the deadline for ordinary salaried taxpayers.

Late Filing Fees Under Section 234F

Where applicable, a person filing an income tax return after the due date may have to pay a late filing fee:

• Rs.1,000 where total income does not exceed Rs.5 lakh.
• Rs.5,000 where total income exceeds Rs.5 lakh.

Interest may also apply when tax remains unpaid. Certain deductions and loss carry-forward benefits may be restricted when a return is filed late.

Belated Return and Revised Return

A belated return is filed after the original due date by an eligible person who has not filed their return on time. A revised return is filed to correct an eligible original or belated return containing errors, omissions or missing income.

For AY 2026–27, the revised-return deadline has been extended to 31 March 2027, or completion of assessment, whichever is earlier. Revised returns filed after 31 December 2026 may attract an additional statutory fee under Section 234I, where applicable.

Why Choose Compliance Calendar LLP for Salaried Person ITR Filing?

Income tax return filing may appear simple when an employee receives only salary income. However, the process can become complicated when the person has worked for more than one employer, earned investment income, received bonuses, claimed deductions or purchased and sold financial assets. Selecting the wrong ITR form or reporting incorrect information may create unnecessary difficulties during tax return processing.

At Compliance Calendar LLP, we provide professional assistance to salaried individuals who need support with income tax calculations, return preparation and online filing. Our team helps clients understand the applicable requirements, review supporting documents and identify the appropriate filing approach based on their financial information.

Our Salaried Person ITR Filing Services

• Income Review: Examination of salary income, Form 16, TDS and other relevant income records.

• ITR Form Selection: Assistance in identifying the appropriate income tax return form.

• Tax Regime Comparison: Review of available old and new tax regime options.

• Tax Computation: Calculation of taxable income, deductions, rebates and tax liability.

• Online ITR Filing: Preparation and submission of the applicable return.

• Refund Assistance: Guidance on eligible income tax refunds and related discrepancies.

• Return Verification: Assistance with completing the required e-verification process.

• Notice-Related Support: Professional assistance where return-related queries or tax notices require further attention.

Whether you are filing an ITR for the first time or dealing with salary income from multiple sources, Compliance Calendar LLP can assist you in meeting the applicable income tax requirements.