Filing your income tax return (ITR) can feel overwhelming, especially for employees who aren't well-versed in tax laws. However, it is an important aspect of financial responsibility and compliance. Encouragingly, more than nine crore (90 million) taxpayers have already filed their tax returns for the financial year 2025, which is almost 65% of the 13.96 crore registered taxpayers in India. 

For employees, understanding the process and the deductions available can make ITR filing a smooth and straightforward experience. This comprehensive guide on how to file income tax return for salaried employees will walk you through the essentials and help you file your tax return accurately, efficiently, and securely.

Understanding the Importance of Filing ITR

Filing an income tax return is not merely a legal obligation; it serves several purposes:

1. Legal Compliance: Filing your ITR is mandatory if your income exceeds the basic exemption limit, ensuring you follow the tax laws.
2. Claiming Refunds: If you have paid excess tax during the financial year, filing your ITR allows you to claim a refund.
3. Loan Applications: Many financial institutions require your ITR as proof of income when you apply for a loan.
4. Visa Applications: Some countries require your ITR receipts for visa applications to check your financial stability.
5. Carrying Forward Losses: Filing your ITR enables you to carry forward losses from capital gains or business income for future tax calculations.

Understanding these aspects underscores the significance of timely and accurate ITR filing for salaried employees. Next, let’s define who is considered a salaried employee for ITR purposes.

Who Qualifies as a Salaried Employee for ITR Filing?

A salaried employee is an individual who receives a fixed income from an employer for services rendered. This income can include salary, bonuses, allowances, and other perks. Salaried employees must report their total earnings, deductions, and taxes paid in their ITR for tax purposes.

Essential Tax Information of Salaried Employees

• Fixed Income: Regular salary payments from an employer.
• Taxable Income: Tax is levied on the salary if the income exceeds the basic exemption limit set by the government.
• Eligibility for Deductions: Salaried individuals can claim deductions under various sections of the Income Tax Act to reduce their taxable income.

Let’s explore the basic exemption limits for FY 2025-26 and how they affect ITR filing.

Basic Exemption Limits for FY 2025-26

For the financial year 2025-26, the basic exemption limits dictate who must file an ITR. The limits vary based on age and the tax regime chosen:

With the exemption limits in mind, here are the filing requirements for ITR.

Filing Requirements

Before starting the ITR filing process, it’s important to understand whether you’re legally required to file. It’s important to outline key scenarios that typically mandate filing an income tax return, ensuring you stay compliant and avoid penalties:

• Your income exceeds the exemption limit.
• You have income from multiple sources, including investments and rental properties.
• You have foreign assets or income.
• Your bank deposits exceed ₹1 crore in a financial year.

Need help determining your filing eligibility or navigating complex scenarios like multiple incomes or foreign assets? Get tailored guidance from verified tax professionals on Topmate. They’ll help you:

• Understand your tax obligations
• Choose the right ITR form
• Maximize deductions legally
• Avoid penalties due to incorrect filing

Connect today and file your return with confidence.

Now that you’re equipped with expert support let’s take a look at the essential documents you should gather before starting your ITR filing process.

Essential Documents for ITR Filing

Before you start the ITR filing process, gather the necessary documents to ensure accuracy. Here’s a checklist of essential documents:

• PAN Card: Required for tax identification.
• Aadhaar Card: For identity verification.
• Form 16: Issued by your employer detailing salary and TDS deductions.
• Bank Statements: To validate income and deductions.
• Investment Proofs: Documents for deductions under sections like 80C and 80D.
• House Rent Receipts: If claiming HRA exemptions.
• Form 26AS: A summary of tax deducted at source (TDS) and other tax-related details.

Having these documents ready will streamline the filing process and reduce the chances of errors.

Once your documents are prepared, the next step is selecting the right ITR form.

Choosing the Right ITR Form

Filing your income tax return starts with selecting the correct ITR form. The right form depends on the nature and sources of your income; choosing the wrong one can lead to processing delays or notices from the IT department. Here's a quick breakdown to help salaried employees make the right choice:

• ITR-1 (SAHAJ): For individuals with income up to ₹50 lakh from salary, one house property, and other sources like interest or dividends.
• ITR-2: For salaried individuals with income above ₹50 lakh from multiple house properties, capital gains, or foreign income.
• ITR-3: For salaried individuals with business income in addition to salary.
• ITR-4 (SUGAM): For salaried individuals with income up to ₹50 lakh from presumptive business or profession along with salary.

Ensure you select the appropriate form to avoid complications during the filing process.

Next, let’s walk through the online ITR filing process.

Step-by-Step Process to File ITR Online

Filing your Income Tax Return (ITR) online is not only convenient but also faster and more secure than traditional methods. First-time filers and experienced taxpayers can benefit from understanding the process, as it helps avoid common mistakes and ensures timely compliance. Here are the steps to help you navigate the e-filing process with ease:

Step 1: Register or Log in to the e-Filing Portal

1. Visit the Income Tax e-Filing Portal.
2. If you are a new user, register using your PAN, Aadhaar, and other details.
3. Registered users can log in using their PAN and password.

Step 2: Select the “File Income Tax Return” Option

After logging in, go to the e-File section on the dashboard and click on “File Income Tax Return.”
You’ll be prompted to choose the relevant options step-by-step.

Step 3: Choose the Assessment Year

Select the correct Assessment Year (AY). You will also need to choose the mode of filing (online is recommended for most salaried individuals).

Step 4: Fill in Personal Details

Verify and enter your personal information, such as name, address, PAN, Aadhaar, and contact details. Make sure that all of the information matches official records to prevent submission errors.

Step 5: Select the Applicable ITR Form

Choose the correct ITR form based on your income type and structure:

• ITR-1 for most salaried individuals.
• ITR-2/3/4 if you have capital gains, business income, or foreign assets.

Selecting the wrong form may lead to rejection or delays in processing.

Step 6: Provide Income Details

• Fill in your salary income using Form 16 issued by your employer.
• Include other income such as interest from savings accounts, fixed deposits, rental income, or capital gains.
• Use Form 26AS or the Annual Information Statement (AIS) to cross-check TDS credits and reported income.

Step 7: Claim Deductions

Enter details for deductions under sections like 80C, 80D, and others. Ensure you have proof for all deductions claimed.

Step 8: Calculate Tax Liability

The portal auto-calculates your tax liability or refund based on the inputs. Review the summary to check:

• Total tax payable or refundable
• Any advance tax or self-assessment tax paid
• Ensure TDS details match those in Form 26AS.

Step 9: Submit Your ITR

Once you have verified all details, submit your ITR electronically.

Step 10: e-Verification

Post submission, you must verify your ITR. This can be done via:

• Aadhaar OTP
• Net Banking
• Electronic Verification Code (EVC)

Alternatively, you can send a signed copy of the ITR-V to the CPC in Bengaluru.

You’ve just seen the 10-step process—but if you’re overwhelmed or afraid of missing something important, don’t take chances. Topmate offers access to vetted finance professionals who can:

• Review your draft return
• Explain TDS mismatches and tax summaries
• Suggest tax-saving deductions you may have missed
• Help e-verify and submit everything correctly

Avoid errors, rejections, and unnecessary stress. Book your consultation on Topmate now.

After understanding the process of filing the ITR, it becomes important to know about the common deductions and exemptions available to salaried employees.

Common Deductions and Exemptions for Salaried Employees

Salaried individuals can benefit from various deductions that reduce their taxable income. Here are some common deductions:

Section 80C

You can claim deductions up to ₹1.5 lakh for investments in:

• Public Provident Fund (PPF)
• Equity Linked Savings Schemes (ELSS)
• Life Insurance Premiums
• Home Loan Principal Repayment

Section 80D

This section allows deductions for health insurance premiums, with limits of:

• Self & Family (below 60 years): ₹25,000
• Self & Family + Parents (all below 60 years): ₹50,000 
• Self & Family (below 60 years) + Parents (above 60 years): ₹75,000 
• Self & Family + Parents (all above 60 years): ₹1,00,000 

If health insurance is not taken for senior citizens, medical expenses can also be claimed as a deduction under Section 80D.

Section 24(b)

For those with home loans, you can claim a deduction of up to ₹2 lakh on interest paid annually.

Section 80E

Interest paid on education loans (whether in India or abroad) is fully deductible under this section.

To ensure compliance, let’s go over the key deadlines for filing your ITR.

Key Deadlines for ITR Filing

To avoid penalties, it's vital to be aware of the deadlines for filing your ITR. Missing these deadlines can lead to fines and interest on unpaid taxes. Here’s a quick overview of the important dates for the current year:

• Financial Year 2024-25 (Assessment Year 2025-26):
  
  • The last date to file ITR: 31st July 2025.
• Belated Return:
  
  • If you miss the initial deadline, you can still file a belated return by 31st December 2025.
  • However, penalties and interest will apply.

If you miss the deadline, here are the potential consequences of not filing your ITR.

Consequences of Not Filing ITR

Failing to file your ITR can have several repercussions, including:

• Penalties: A late fee of up to ₹5,000 may apply. If your income is below ₹5 lakh, the penalty may be reduced to ₹1,000.
• Interest: Interest at 1% per month on unpaid taxes under Section 234A.
• Legal Action: Continuous non-compliance can lead to legal consequences.

It's essential to file your ITR on time to avoid these issues. 

Conclusion

Filing your income tax return as a salaried employee is simple when you follow these clear steps. No longer wondering how to file income tax return as a salaried employee; you can relax knowing your income is safe and you’re responsibly contributing to the nation’s success as well. By understanding the requirements, gathering your documents, and meeting deadlines, you can ensure a smooth and stress-free filing process!

Timely filing not only keeps you compliant with tax laws but also opens up future financial opportunities, like quicker loan approvals and visa processing. Still, tax laws can be tricky, and mistakes can lead to unnecessary hassles or even penalties.

If you're feeling stuck or unsure at any step, don't leave it to guesswork. Topmate connects you with verified finance experts who offer personalized advice and step-by-step assistance right when you need it.

Book your session with a tax professional today. Happy filing!