ITR Filing for Salaried Employees — Step-by-Step Guide (2026)
ITR filing for salaried employees — ITR-1 / ITR-2, Form 16, AIS, deduction optimization, refund. From ₹999. CA-led.
ITR filing for salaried employees is straightforward but often done wrong (missing deductions, mismatched TDS, wrong ITR form). In this guide, we cover the entire process for FY 2024-25 (AY 2025-26).
Which ITR Form for Salaried?
| ITR Form | Eligible Salaried |
|---|---|
| ITR-1 (SAHAJ) | Income < ₹50L, only salary + 1 house property + other sources (savings interest, FD interest, etc.) |
| ITR-2 | Income > ₹50L OR capital gains OR 2+ house properties OR foreign assets / income |
Documents Required
- PAN + Aadhaar (linked to PAN)
- Form 16 (TDS certificate from employer)
- Form 26AS / AIS (Tax Credit Statement)
- Bank statements (savings, FDs, current account)
- Investment proofs (80C, 80D, 80E, 80G)
- Home loan statement (if any)
- Capital gains statements (if any)
- Rental income proofs (if any)
- Salary slips (optional, Form 16 is sufficient)
Form 16 — What is it?
Form 16 is a TDS certificate issued by the employer. It has 2 parts:
- Part A: TAN of employer, PAN of employee, TDS deducted + deposited, summary of salary
- Part B: Detailed salary break-up (basic, HRA, special allowance, deductions)
- Issued by: 15 June of the next FY (for FY ending 31 March)
Form 26AS / AIS — What is it?
Form 26AS: Annual tax credit statement. Shows: TDS by employer, TDS by banks, TDS by tenant, advance tax paid, self-assessment tax paid. Downloadable from the IT portal.
AIS (Annual Information Statement): Detailed statement of all financial transactions. Includes: salary, interest, dividends, property transactions, foreign remittances, GST turnover. Downloadable from the IT portal.
Old vs New Tax Regime
| Income Slab | Old Regime | New Regime |
|---|---|---|
| 0-₹2.5L (or 0-₹3L for new) | Nil | Nil |
| ₹2.5L-₹3L (or ₹3L-₹7L for new) | 5% | 5% (₹3-7L) |
| ₹3L-₹5L (or ₹7L-₹10L for new) | 5% | 10% (₹7-10L) |
| ₹5L-₹10L | 20% | 15% (₹10-12L) / 20% (₹12-15L) |
| ₹10L+ | 30% | 30% (>₹15L) |
Tip: Use our Income Tax Calculator to compare old vs new regime and choose the one that minimises your tax.
Deductions (Old Regime Only)
| Section | Deduction | Limit |
|---|---|---|
| 80C | PPF, ELSS, LIC, EPF, home loan principal, tuition fees | ₹1.5L |
| 80CCD(1B) | NPS contribution | ₹50K (over 80C) |
| 80D | Health insurance premium | ₹25K-₹1L |
| 80DD | Disability of dependent | ₹75K-₹1.25L |
| 80DDB | Medical treatment for specified diseases | ₹40K-₹1L |
| 80E | Education loan interest | No limit (8 years) |
| 80EEA | Home loan interest (first-time buyers) | ₹1.5L |
| 80EEB | Electric vehicle loan interest | ₹1.5L |
| 80G | Donations to specified funds | 50%-100% of donation |
| 80GG | Rent paid (no HRA) | ₹60K |
| 80TTA | Savings account interest | ₹10K |
| 80TTB | Senior citizens interest income | ₹50K |
| 24(b) | Home loan interest | ₹2L (self-occupied) / full (let-out) |
HRA Exemption
HRA is exempt to the minimum of:
- HRA received from employer
- Rent paid - 10% of basic salary
- 50% of basic (metro) / 40% of basic (non-metro)
ITR Filing Process
- Step 1: Download Form 16 from employer (usually by 15 June)
- Step 2: Login to IT portal, download Form 26AS + AIS
- Step 3: Reconcile Form 16 with AIS (any mismatch = TDS discrepancy)
- Step 4: Choose tax regime (old vs new) based on deductions
- Step 5: Compute total income + tax
- Step 6: Pay any balance tax (self-assessment tax) before filing
- Step 7: File ITR on the IT portal
- Step 8: E-verify (Aadhaar OTP / DSC / netbanking)
- Step 9: Refund (if any) credited to bank in 3-7 days
Common Mistakes to Avoid
- Not reconciling Form 16 with AIS (missing TDS claims)
- Not declaring 2nd house property (use ITR-2)
- Not declaring capital gains from sale of shares / MF (use ITR-2)
- Not declaring foreign assets / income (Schedule FA + Schedule FSI)
- Not linking PAN with Aadhaar (mandatory)
- Wrong bank account (refund fails)
- Late filing (₹5,000 penalty under 234F)
Cost
| Service | Cost |
|---|---|
| ITR-1 (basic, salaried) | From ₹999 |
| ITR-2 (with capital gains, foreign assets) | From ₹1,999 |
| ITR-1 with regime comparison + tax planning | From ₹1,499 |
| ITR-1 + Form 16 + 26AS reconciliation | From ₹1,499 |
Frequently Asked Questions
Q: What is the ITR deadline for FY 2024-25?
A: 31 July 2025 for salaried (no audit required). 31 October 2025 for audit cases. 30 September 2025 for transfer pricing cases.
Q: What if my employer did not issue Form 16?
A: You can still file ITR using Form 26AS / AIS. Form 16 is just a TDS certificate. The actual TDS data is in Form 26AS / AIS.
Q: Should I choose old or new regime?
A: Depends on your deductions. Use our Income Tax Calculator to compare. Typically: new regime for income < ₹7L (lower tax), old regime for higher income with significant 80C/80D/HRA deductions.