ITR filing for salaried employees — complete guide
Step-by-step ITR filing guide for salaried employees. One employer, no complex income? File your return in under an hour with the right documents.
Filing your Income Tax Return feels like one of those adulting tasks that sounds complicated until someone actually walks you through it. It isn’t. If you’re salaried, have one employer, and aren’t running a side business with complex books, you can file your ITR in under an hour. Here’s what you actually need to know.
Why You Should File Even If Tax Was Deducted at Source
Your employer already deducts TDS (Tax Deducted at Source) — think of it as an advance tax payment on your behalf, done every month before your salary hits your account. So you might wonder: if the government already has their money, why bother filing?
Because TDS is an estimate. If your employer over-deducted — which happens when you didn’t submit your investment proofs on time, or switched jobs mid-year — the only way to claim that refund is by filing your ITR. A salaried person in Delhi earning ₹12 lakh per year who forgot to submit their HRA proof to HR could easily have ₹15,000–₹20,000 sitting unclaimed with the Income Tax Department.
Beyond refunds, your ITR doubles as an income proof. Banks, landlords, and visa offices ask for the last two to three years of ITR when you apply for a home loan or a long-term visa. Not filing creates a paper trail gap that will hurt you exactly when you don’t need it to.
The One Form Most Salaried People Need: ITR-1
The government has multiple ITR forms, but if you’re a salaried employee with income under ₹50 lakh, interest income from a savings account or FD, and no capital gains from stocks or mutual funds, you file ITR-1 (also called Sahaj).
If you sold mutual funds or shares during the year — even once — you need ITR-2 instead. Say you’re 29, working at an IT company in Pune earning ₹85,000/month, and you redeemed a Groww mutual fund for ₹40,000 in December. That redemption bumps you to ITR-2. It sounds scarier than it is; the process is similar, just one extra section to fill.
Old Regime vs New Regime — Make This Call First
This is the decision that actually affects how much tax you pay, so get it right before you start filing.
The Old Tax Regime lets you claim deductions — ₹1.5 lakh under Section 80C (PPF, ELSS, life insurance premiums, home loan principal), HRA, home loan interest, and more. The New Tax Regime has lower slab rates but takes almost all deductions off the table.
Here’s how it plays out in real numbers:
| Scenario | Old Regime Tax | New Regime Tax |
|---|---|---|
| Gross salary ₹8 lakh, 80C fully used (₹1.5L), standard deduction (₹75K) | ~₹23,400 | ~₹20,000 |
| Gross salary ₹12 lakh, 80C fully used (₹1.5L), HRA ₹1.2L, standard deduction (₹75K) | ~₹78,000 | ~₹83,200 |
| Gross salary ₹15 lakh, no deductions claimed | ~₹1,95,000 | ~₹1,30,000 |
The pattern: if you have a home loan, pay significant HRA, or max out your 80C, the old regime often wins at the ₹10–15 lakh income range. If you’re not claiming much, the new regime is cleaner and usually cheaper. To quickly check your own numbers, use our tax calculator.
The new regime is now the default. If you want the old regime, you have to explicitly opt in when filing.
How to Actually File — Step by Step
Go to incometax.gov.in and log in with your PAN. Everything you need is already pre-filled: your salary from Form 16 (issued by your employer), TDS details, and interest income from your bank. The department pulls this from your Form 26AS and AIS (Annual Information Statement), which are essentially your financial report cards.
Before you submit, cross-check the pre-filled numbers against your actual Form 16. Discrepancies happen, and submitting incorrect data — even if it wasn’t your mistake — creates notices down the line.
Once you’ve verified, pick your regime, enter any deductions you’re claiming, review the tax payable or refund due, and submit. You then e-verify using your Aadhaar OTP. Done. Refunds for straightforward returns typically hit your account within 2–4 weeks.
The deadline for salaried employees is 31st July of the assessment year. Filing after that means a late fee of ₹5,000 (₹1,000 if your income is below ₹5 lakh), plus you lose the ability to carry forward capital losses.
Frequently Asked Questions
Do I need to file ITR if my salary is below ₹7 lakh and no tax is due?
Technically no, but practically yes. If you have a bank account with significant interest, hold mutual funds, or want an income proof for loans or visas, filing is worth the one hour it takes. The rebate under Section 87A makes tax zero for income up to ₹7 lakh under the new regime, but zero tax payable and not filing are two different things.
What is Form 16 and will my employer give it to me?
Form 16 is a certificate your employer issues by 15th June each year, showing your salary breakdown and the TDS they deducted. Every employer who deducted TDS is legally required to give it to you. If they didn’t, ask HR — it’s not optional on their part.
I switched jobs this year. Do I file two ITRs?
No — one ITR, but you need Form 16 from both employers. Make sure you’ve given your new employer the salary details from your old job so they calculated TDS correctly. If they didn’t, you may have a tax shortfall to pay when you file.
Can I file ITR myself or do I need a CA?
For a standard salaried return — one employer, no business income, basic investments — you absolutely can file it yourself on the income tax portal. A CA makes sense if you have multiple income sources, sold property, or received foreign income.
What happens if I miss the 31st July deadline?
You can still file a belated return until 31st December of the same assessment year, with a late fee of ₹5,000. But you lose the right to carry forward losses from stocks or property, and if you owe any tax, interest under Section 234A starts adding up from August onwards.