How to File ITR for Salary Income: Complete Guide
Understanding Income Tax Return (ITR) Filing for Salaried Individuals
An Income Tax Return (ITR) is a document submitted by taxpayers in India to the Income Tax Department to report income, deductions and taxes paid. For salaried individuals, ITR filing is particularly important as it ensures compliance with tax laws and enables individuals to claim refunds on excess tax deducted at source (TDS).
Since employers deduct TDS from monthly salaries, ITR filing reconciles taxes paid with actual liability and prevents overpayment. Additionally, filing establishes an official financial record, supporting applications for loans, visas and other transactions.
Key reasons why ITR filing is beneficial for salaried individuals:
- Legal compliance with the Income Tax Act, if income exceeds the exemption limit
- Eligibility to claim tax refunds on excess TDS
- Establishing financial credibility for loans and visas
- Supporting future access to investments and credit facilities
Also Read: How to File Income Tax Return 2025: Complete Step-by-Step Guide
Eligibility Criteria: Who Needs to File ITR for Salary Income?
Not every salaried individual is obliged to file an Income Tax Return. The requirement depends on income levels, multiple income sources and financial conditions.
The following categories are required to file ITR:
- Individuals with gross total income exceeding ₹2.5 lakh under the old tax regime, which varies according to age or ₹3 lakh under the new regime
- Individuals earning from multiple sources such as salary and rental income
- Individuals holding foreign assets or income abroad
- Individuals claiming a refund of excess taxes paid
- Those whose taxable income remains above the exemption limit after deductions
Failure to file when required may lead to penalties, loss of refund eligibility and complications in financial documentation.
Essential Documents for Filing ITR for Salaried Employees
To ensure a smooth ITR filing process, salaried employees should collect the following documents beforehand:
- Form 16 provided by the employer
- Form 26AS (tax credit statement)
- Salary slips and bank statements
- Investment proofs for deductions under sections such as 80C and 80D
- Aadhaar card and PAN card
Gathering these records ensures accuracy, prevents mismatches between employer and employee data and reduces delays in submission.
Also Read: ITR Form 16 Filing: How to File ITR Using Form 16
Choosing the Correct ITR Form for Salaried Individuals
The Income Tax Department provides different ITR forms based on income type and level.
The most relevant forms for salaried individuals include:
| ITR Form | Eligibility | Key Notes |
| ITR-1 (Sahaj) | Residents with salary income up to ₹50 lakh and one house property | Most used by salaried employees |
| ITR-2 | Individuals with salary above ₹50 lakh, multiple properties or foreign assets | Used when capital gains or rental income are included |
| ITR-3 | Individuals with business or professional income in addition to salary | Applicable for mixed income earners |
Step-by-Step Process to File ITR Online for Salary Income
The stepwise procedure to file ITR online is as follows:
- Visit the official Income Tax Department e-filing portal.
- Log in or register using PAN and password.
- Select the relevant assessment year and the appropriate ITR form.
- Verify pre-filled information including salary, TDS, and other income.
- Enter deductions and exemptions under sections such as 80C, 80D and HRA.
- Tax liability is calculated automatically by the portal; manual calculation is optional but often done for verification.
- Submit the ITR and complete e-verification using Aadhaar OTP, net banking or a digital signature certificate.
- Download the acknowledgment receipt (ITR-V) for records.
Tax Deductions and Exemptions for Salaried Employees
Salaried individuals can reduce taxable income through the following deductions and exemptions:
- Standard deduction of ₹50,000
- Section 80C deductions up to ₹1.5 lakh (PPF, ELSS, insurance premiums, etc.)
- Section 80D deductions for health insurance premiums
- Section 24(b) deduction on Home Loan interest up to ₹2 lakh
- House Rent Allowance (HRA) exemption
However, the choice of regime affects these benefits.
Common Mistakes to Avoid While Filing ITR for Salary Income
Some frequent errors while filing ITR include:
- Mismatch between Form 16 and Form 26AS
- Non-disclosure of additional income such as interest or freelance work
- Missing eligible deductions and exemptions
- Filing under the wrong form or tax regime
- Ignoring e-verification after submission
How to Check ITR Filing Status and Claim Tax Refunds
After submission, salaried employees can track ITR and refund status using the Income Tax portal:
- Log in to the e-filing portal.
- Select ‘View Filed Returns’.
- Check the return status such as submitted, processed, or pending.
- For refunds, monitor the refund status in the same section.
- Refunds are credited directly to the bank account linked with PAN and can take few weeks to process
Benefits of Filing ITR for Salaried Employees
Filing ITR offers several benefits for salaried individuals:
- Compliance with the law and avoidance of penalties
- Quick tax refund processing
- Simplifies loan and credit card approvals
- Essential for visa applications
- Maintains a financial record for future reference
FAQs
Q.1. What is the deadline for filing ITR for salaried employees in India?
A. The standard deadline is 31 July of the assessment year unless extended by the government. However, this year, the deadline has been extended until 15 September.
Q.2. Can I file my ITR manually instead of online?
A. Most salaried individuals must file online, but manual filing is permitted for super senior citizens, who are exempt from digital filing.
Q.3. What should I do if there is a mismatch between Form 16 and Form 26AS?
A. You must reconcile the difference with your employer or file a revised return.
Q.4. Is it mandatory to e-verify the ITR? What happens if I do not?
A. Yes, e-verification is mandatory. Without it, the ITR is treated as invalid.
Q.5. How can I claim tax deductions for House Rent Allowance (HRA)?
A. You must provide rent receipts and landlord details while filing.
Q.6. Can I revise my salary income tax return after submission?
A. Yes, you may revise your return before 31 December of the relevant assessment year under Section 139(5).
Disclaimer:
The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements. Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit www.godrejcapital.com.
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