Learn how to file your income tax return online as a salaried employee in India. Step-by-step guide with deadlines, tips, FAQs, and tools to avoid mistakes and file easily in 2025.
Filing your Income Tax Return (ITR) online is no longer a complicated task—especially for salaried employees. With improved digital infrastructure and pre-filled forms made available by the Income Tax Department, the process has become significantly faster, safer, and more transparent.
For Assessment Year 2025-26, salaried taxpayers can choose between multiple forms (like ITR-1 and ITR-2), tax regimes (old or new), and verification methods—all from the comfort of home.
This guide simplifies the entire process of how to file income tax return online for salaried employee, helping you avoid common errors, save more with deductions, and stay fully compliant with tax laws in India.
Why Salaried Employees Must File Income Tax Return
Filing ITR isn’t just a legal formality. It serves multiple purposes—from establishing your financial credibility to enabling smoother access to loans, visas, and refunds. Even if your annual income is below the taxable limit, filing an ITR can be useful for future documentation and benefits.
Key Benefits of Filing ITR for Salaried Employees:
- Claim tax refunds on excess TDS deducted.
- Serve as a legal proof of income for visa or loan applications.
- Carry forward capital losses for future adjustments.
- Establish a clean tax record for employment or financial scrutiny.
Income Tax Slab Comparison (FY 2024-25 / AY 2025-26)
| Income Slab (₹) | Old Regime (with deductions) | New Regime (no deductions) |
|---|---|---|
| 0 – 2,50,000 | Nil | Nil |
| 2,50,001 – 5,00,000 | 5% | 5% |
| 5,00,001 – 7,50,000 | 20% | 10% |
| 7,50,001 – 10,00,000 | 20% | 15% |
| 10,00,001 – 12,50,000 | 30% | 20% |
| 12,50,001 – 15,00,000 | 30% | 25% |
| Above 15,00,000 | 30% | 30% |
Note: A standard deduction of ₹50,000 is available in both regimes. However, the new tax regime, now the default regime, does not allow popular exemptions like HRA, LTA, or 80C deductions unless you opt for the old one while filing.
Which ITR Form Should Salaried Employees Use in AY 2025-26?
Choosing the correct ITR form is the foundation of successful filing. Filing with the wrong form may lead to notices, rejections, or delayed refunds.
Quick Guide to ITR Forms for Salaried Individuals:
| Form | Suitable For |
|---|---|
| ITR-1 (Sahaj) | Income up to ₹50 Lakh, salary/pension, one house property, other income |
| ITR-2 | Income above ₹50 Lakh, multiple house properties, capital gains |
| ITR-3 | Business/professional income along with salary |
| ITR-4 (Sugam) | Presumptive income scheme under Sections 44AD, 44ADA, or 44AE |
For most salaried employees with no business income and total annual income below ₹50 lakh, ITR-1 remains the best choice. However, if you earned capital gains, had foreign assets, or earned more than ₹50 lakh, switch to ITR-2.
You can download the latest Excel and JSON utilities for AY 2025-26 directly from the official e-Filing portal. These utilities help you fill data offline and upload it securely via the portal.
The CBDT notification dated May 5, 2025, also introduced changes in ITR-2 to accommodate new disclosure requirements, particularly for high-net-worth individuals and those with overseas assets.
What You’ll Need Before You Start Filing
Filing your ITR becomes a breeze when you’re well-prepared. Here’s a quick checklist to keep handy:
Documents Checklist:
- PAN and Aadhaar (linked and active)
- Form 16 from employer(s)
- Form 26AS (tax credit statement)
- Annual Information Statement (AIS) from portal
- Bank account details (with IFSC)
- Investment proofs (80C, 80D, etc.)
- Rent receipts, HRA declaration
- Loan interest certificates (home, education)
Make sure all entries in your Form 16 match the AIS and 26AS data to avoid mismatches. The Income Tax portal now automatically pre-fills a majority of this data once you log in and select the assessment year, reducing manual errors.
Step-by-Step Guide: How to File Income Tax Return Online for Salaried Employee
Now that you’ve gathered the required documents, let’s move to the actual process of filing your ITR online for the Assessment Year 2025–26. The Indian Income Tax Department has significantly improved its e-Filing portal to ensure a smooth, user-friendly experience for salaried individuals.
Here’s a simplified, step-by-step breakdown:
1. Login to the e-Filing Portal
Visit the official Income Tax e-Filing portal. Click on ‘Login’ at the top right corner. Enter your PAN (User ID), then input your password and captcha to sign in securely.
If you are a first-time user, you’ll need to register your PAN and validate it with your Aadhaar and mobile OTP.
2. Choose the Appropriate ITR Form
After logging in:
- Navigate to e-File > Income Tax Return > File Income Tax Return
- Select:
- Assessment Year: 2025–26
- Mode: Online
- Status: Individual
- ITR Form: ITR-1 or ITR-2, based on your eligibility
- Proceed by clicking ‘Continue’
The system will automatically guide you to the correct form if you choose “Help me decide which form to file”.
3. Prefill Personal and Income Details
The portal pulls pre-filled data from various government sources including your employer's TDS return, AIS, and bank interest disclosures.
Verify the following sections:
- Personal Details: PAN, Aadhaar, mobile, address, email.
- Salary Details: Auto-filled from Form 16
- Other Income: Savings account interest, fixed deposit interest, etc.
- Deductions: You can manually enter deductions under sections like 80C, 80D, 80TTA.
Always cross-verify this with your downloaded Form 26AS and AIS, available via the TRACES portal or directly through the income tax website.
4. Choose Your Tax Regime
You will now be asked to choose between the old and new tax regimes. Make your selection based on the regime that minimizes your tax liability.
| Criteria | Old Regime | New Regime |
|---|---|---|
| Deduction Friendly | Yes (80C, 80D, HRA, LTA, etc.) | No major deductions allowed |
| Standard Deduction | ₹50,000 | ₹50,000 |
| Lower Slabs but No Deductions | No | Yes |
| Ideal For | Those with major investments/loans | Those with fewer exemptions |
Once selected, you’ll see a summary of your tax liability under the chosen regime.
5. Validate Bank Account Details
Ensure you’ve added at least one active bank account, with correct account number and IFSC code. This is crucial for receiving income tax refunds, if applicable.
The portal mandates that at least one account must be pre-validated and linked to your PAN. This can be done via net banking or by logging into your bank’s income tax e-filing section.
6. Preview and Submit
Carefully review the Tax Summary, which includes:
- Gross Total Income
- Total Deductions
- Taxable Income
- Tax Payable
- TDS/TCS Credits
- Refund/Due Summary
If all details are accurate, click on ‘Proceed to Preview’ > ‘Submit Return’.
Note: If your tax payable exceeds ₹1,00,000, make the payment before submission to avoid interest under Sections 234A/B/C.
7. e-Verify Your ITR
Filing isn’t complete until you e-verify your return. Here are your options:
| Method | Verification Time |
|---|---|
| Aadhaar OTP | Instant |
| Net Banking | Instant |
| Bank Account EVC | Within Minutes |
| Demat Account EVC | Within Minutes |
| Send Signed ITR-V to CPC | Takes 10–15 Days |
E-verification through Aadhaar OTP or Net Banking is highly recommended. Without verification, your return is considered incomplete and won’t be processed.
Common Mistakes to Avoid
Even though the process of filing ITR online for salaried employees is user-friendly, small errors can lead to notices or delays in refunds.
Avoid these pitfalls:
- Selecting the wrong ITR form
- Mismatch in PAN or Aadhaar
- Ignoring interest income from bank accounts
- Not reconciling Form 26AS and AIS with Form 16
- Forgetting to e-verify return after submission
Staying diligent during these steps ensures a seamless filing experience with timely processing and faster refunds.
Maximize Deductions While Filing Income Tax Return Online
One of the most important aspects of learning how to file income tax return online for salaried employee is knowing how to legitimately reduce your tax liability using the deductions available under the Income Tax Act. These deductions can drastically reduce your taxable income and help you save more.
Here’s a consolidated look at common deductions salaried employees can claim—especially if opting for the old tax regime:
Commonly Claimed Deductions Under Old Regime
| Section | Description | Maximum Limit |
|---|---|---|
| 80C | LIC, PPF, EPF, ELSS, Home Loan Principal | ₹1,50,000 |
| 80D | Medical insurance for self/family/parents | ₹25,000 – ₹1,00,000 |
| 24(b) | Home loan interest (self-occupied house) | ₹2,00,000 |
| 80TTA | Savings bank account interest | ₹10,000 |
| 80E | Education loan interest | No upper limit |
| 80G | Donations to eligible trusts/charities | Up to 100% |
| HRA | House Rent Allowance (as per conditions) | Varies |
You can also explore deductions under newer sections like 80EEA (for affordable housing) and 80CCD(1B) for NPS investments, depending on your financial portfolio.
To make the most of these deductions:
- Cross-check your Form 16 with your actual investment proofs.
- Declare them accurately while filing the return.
- Use the Income Tax Department’s deduction calculator to forecast your benefits.
How to Track Your ITR Refund Status
Once you’ve filed and verified your ITR, the next logical step is tracking your income tax refund. Refunds are issued if your total TDS exceeds the final tax liability computed during filing.
Steps to Track ITR Refund:
- Visit TIN NSDL Refund Tracking Portal
- Enter your PAN and Assessment Year (2025-26)
- View the status—Processed, Refund Issued, or No Refund
Alternatively, you can check the refund status by logging into your e-Filing account:
- Go to ‘View Returns/Forms’
- Select Income Tax Returns and the relevant year
- Click on ‘Acknowledgement Number’
- You’ll see refund status and mode (e.g., NEFT, ECS)
Ensure your bank account is validated and linked with PAN and Aadhaar. Delays usually occur due to mismatch in details or failure to e-verify the return.
What to Do If You Receive an Income Tax Notice
Receiving a notice from the Income Tax Department can be stressful, but it doesn’t always mean something serious. Many notices are system-generated for verification or clarification.
Common Reasons You May Receive a Notice:
| Type of Notice | Section | Reason |
|---|---|---|
| Intimation | 143(1) | System-generated confirmation or minor mismatch |
| Scrutiny Assessment | 143(2) | Detailed verification of filed return |
| Defective Return Notice | 139(9) | Missing or inconsistent information |
| Income Escapement Notice | 148 | Undisclosed income discovered by the department |
If you receive any of these, don’t panic. Log in to your e-Filing portal and go to Pending Actions > e-Proceedings. Most notices allow online responses with document upload.
The compliance portal is also frequently used by the department for deeper income validations.
Pro Tip: Always file your return with accurate data, ensure that it matches Form 26AS and AIS, and retain your documents for at least 6 years to avoid future issues.
Key Deadlines for Filing Income Tax Return for Salaried Employees
Understanding the due dates is essential when learning how to file income tax return online for salaried employee. Missing deadlines can attract penalties and interest charges, even if your taxes are already paid.
Here are the important timelines for AY 2025–26:
| Particulars | Due Date |
|---|---|
| Filing ITR (without audit) | 31st July 2025 |
| Filing Belated/Revised Return | 31st December 2025 |
| ITR with Tax Audit | 31st October 2025 |
| ITR Verification (e-verification) | Within 30 days of filing |
If the due date is extended by the Income Tax Department, the updated deadline is notified on the CBDT official page. Salaried employees must ideally aim to file before July 31 to avoid penalties.
Late Filing Penalty and Interest – What If You Miss the Deadline?
Filing your ITR after the deadline can lead to financial repercussions under Sections 234F and 234A of the Income Tax Act.
Late Filing Fee Under Section 234F:
| Total Income | Penalty Amount |
|---|---|
| Up to ₹2.5 lakh | Nil |
| Between ₹2.5 lakh – ₹5 lakh | ₹1,000 |
| Above ₹5 lakh | ₹5,000 |
Additionally, interest under Section 234A is levied at 1% per month on unpaid taxes from the original due date till the date of filing.
You also lose the option to carry forward certain losses (like capital losses) if the return is not filed on time.
To avoid such penalties:
- Plan your tax-saving investments before March 31.
- Reconcile TDS, interest income, and salary in advance.
- Aim to file your return well before the July deadline.
Difference Between Belated and Revised ITR
Understanding the distinction between a belated return and a revised return is essential for anyone filing their ITR online.
| Feature | Belated Return | Revised Return |
|---|---|---|
| Purpose | Filed after due date | Filed to correct an earlier return |
| Last Date | 31st December 2025 | 31st December 2025 |
| Eligibility | Anyone who missed filing before due date | Only if original return was filed |
| Penalties | Applicable under Section 234F | No additional penalty unless late |
| Carry Forward Loss | Not Allowed | Allowed (if original was on time) |
To file either, log in to the income tax portal, select the applicable form, and choose the relevant return type (original, belated, or revised).
Benefits of Filing ITR Even If Not Mandatory
Even if your gross total income is below the taxable limit, filing your ITR can be highly beneficial:
- Visa applications: Many embassies request ITR proofs.
- Loan processing: Banks often demand ITRs for creditworthiness.
- Claiming TDS refund: You can only get back excess TDS by filing a return.
- Establishing income history: Useful for self-employed or freelancers transitioning to salaried roles.
The process of how to file income tax return online for salaried employee is straightforward, and the long-term benefits outweigh the minimal effort involved.
Smart Tips for Filing Income Tax Return Smoothly
Now that you understand the process of how to file income tax return online for salaried employee, here are some practical tips to help you file quickly, accurately, and without errors:
- Match TDS with Form 26AS & AIS: Before filing, ensure the TDS details on your Form 16 match with entries in your Form 26AS and Annual Information Statement.
- Reconcile bank interest income: Many salaried taxpayers miss declaring FD or savings interest, leading to mismatches and potential notices.
- Use the right ITR form: For most salaried employees with no capital gains, ITR-1 (Sahaj) is appropriate. If you have income from capital gains or foreign assets, use ITR-2.
- Validate bank account: Ensure your primary account is pre-validated for quick refund credit. You can do this directly in the e-Filing portal under ‘Profile > My Bank Account’.
- Avoid rounding errors: Always round off total income and tax payable to the nearest ₹10 as per IT rules.
- Double-check all personal details: PAN, Aadhaar, email ID, and bank details must be accurate to avoid processing delays.
Final Takeaways
Filing your income tax return is more than a legal obligation—it's a financial hygiene practice that ensures transparency, savings, and peace of mind. For salaried individuals in India, the process is fairly streamlined thanks to simplified forms, auto-filled data, and guided utilities.
To summarise:
- Use Form 16, Form 26AS, and AIS to prepare accurate returns.
- File early to avoid last-minute rush and penalties.
- Verify your ITR within 30 days.
- Keep acknowledgment and supporting documents safe for future reference.
Whether you earn a modest salary or fall into a higher tax bracket, knowing how to file income tax return online for salaried employee empowers you to control your finances better and stay compliant.
FAQ
Is it mandatory for salaried employees to file ITR?
Yes, if your gross total income exceeds ₹2.5 lakh in a financial year, filing ITR is mandatory under Indian tax laws.
Which ITR form is suitable for salaried employees?
Most salaried individuals can file using ITR-1 (Sahaj), unless they have capital gains or foreign income, in which case ITR-2 is applicable.
Can I file ITR without Form 16?
Yes, you can file ITR without Form 16 using your salary slips, bank statements, and Form 26AS to compute income and TDS.
What are the ITR filing deadlines for salaried employees?
The due date is generally July 31st of the assessment year. For AY 2025–26, the deadline is 31st July 2025.
What happens if I miss the ITR deadline?
You may have to pay a penalty under Section 234F and lose the option to carry forward losses. Interest may also be charged.
How can I e-verify my ITR?
You can e-verify your return via Aadhaar OTP, net banking, bank account EVC, or by sending a signed ITR-V to CPC Bangalore.
Can I revise my ITR after filing?
Yes, you can revise your return any number of times before 31st December of the assessment year if the original was filed on time.
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