Income tax filing for salaried individuals refers to the process of declaring your income, deductions, and tax liabilities to the Income Tax Department. In India, salaried individuals are required to file an Income Tax Return (ITR) if their income exceeds the basic exemption limit set by the government. This process helps individuals fulfill their legal obligations while also enabling them to claim refunds, tax benefits, and deductions.
If you’re unsure whether you need to file an income tax return this year, here’s a straightforward guide:
Income Thresholds: You must file a return if your total income before deductions is above the basic exemption limit. For most people, this limit is ₹2.5 lakh (it’s ₹3 lakh under the new regime for FY 2024-25). So, if you earned more than this, filing is mandatory.
Other Reasons You Might Need to File Even if your income is below the limit, you still need to file if:
ITR-1 Sahaj : For most salaried individuals with income up to ₹50 lakh, one house property, and simple sources like interest. Not for those with business income or foreign assets.
ITR-2: For those with capital gains, more than one house, or foreign assets/income.
ITR-3: For people earning from business or profession.
ITR-4 (Sugam): For small business owners or professionals using the presumptive income scheme, with income up to ₹50 lakh.
| Income Range (INR) | Tax Rate |
| Up to 4,00,000 | Nil |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| Above 24,00,000 | 30% |
The standard deduction and rebate have been enhanced, so salaried individuals with income up to ₹12.75 lakh may have zero tax liability after considering these benefits.
Filing your income tax return (ITR) offers several benefits for salaried individuals in India:
Higher Tax-Free Income: With recent changes, salaried individuals can now enjoy tax-free income up to ₹12.75 lakh, thanks to an increased standard deduction and a higher rebate under the new tax regime. This means many in the middle-income group may have zero tax liability if they file correctly.
Standard Deduction: All salaried employees can claim a standard deduction-₹75,000 under the new regime and ₹50,000 under the old regime-directly reducing taxable income without any paperwork.
Access to Refunds: If excess tax has been deducted from your salary, filing an ITR is the only way to claim a refund.
Carry Forward Losses: Filing on time allows you to carry forward certain losses (like capital losses) to future years and offset them against future gains.
Proof of Income: ITRs are often required for visa applications, loan approvals, and other financial transactions, making them an important proof of income.
Avoid Penalties: Timely and accurate filing helps you avoid interest, late fees, and penalties from the tax department.
Better Tax Planning: Filing returns helps you understand available deductions and exemptions, so you can plan and save more on taxes in future years.
Compliance and Peace of Mind: Filing your return keeps you compliant with the law and reduces the risk of notices or scrutiny from the tax authorities.
The due date for salaried individuals to file their Income Tax Return (ITR) for income earned in the Financial Year 2024-25 (Assessment Year 2025-26) is 31st July 2025.
If you miss this deadline, you can still file a belated return by 31st December 2025, but late fees and interest will apply. Most salaried employees can start filing after receiving Form 16 from their employer, typically by mid-June
Filing your income tax return can be straightforward, but many salaried individuals make avoidable errors that can lead to delays, notices, or loss of benefits. Here are the most common mistakes to watch out for:
Choosing the Wrong ITR Form: Using an incorrect ITR form for your income type (e.g., using ITR-1 when you have capital gains or multiple properties) can result in your return being marked as defective or even rejected.
Incorrect Personal Information: Mistakes in PAN, Aadhaar, name, or bank account details can cause refund issues or processing delays. Always double-check your personal details before submitting.
Not Reporting All Income Sources: Failing to include income from interest, rental properties, capital gains, or freelance work is a common error. All sources, including exempt income, must be disclosed to avoid penalties.
Mismatch with Form 16, Form 26AS, and AIS: Not reconciling your income and TDS details with Form 16 (from your employer), Form 26AS (tax credit statement), and AIS (Annual Information Statement) can lead to discrepancies and possible notices.
Claiming Deductions Without Proof: Claiming deductions (like under Section 80C or HRA) without proper documentation can attract scrutiny from the tax department. Keep all supporting documents handy.
Calculation Errors: Manual mistakes in calculating total income, deductions, or tax liability can result in underpayment or overpayment. Use trusted tax software or double-check your calculations.
Missing the Filing Deadline: Filing late leads to penalties, interest, and loss of the ability to carry forward certain losses. Always file well before the due date.
Not Claiming All Eligible Deductions: Many miss out on valid deductions and exemptions, especially under the old tax regime, leading to higher taxes than necessary.
Forgetting to E-Verify the ITR: Your return is not considered valid until it is e-verified. Failing to do this means your filing is incomplete.
To file your income tax return smoothly, keep the following documents ready:
Form 16: Issued by your employer, this is the key document showing your salary details and tax deducted at source (TDS). If you worked for multiple employers, collect Form 16 from each one.
PAN Card & Aadhaar Card: Both are essential for identity verification and e-filing.
Bank Account Details: Keep your account number and IFSC code handy for refunds and verification.
Salary Slips: Useful for cross-checking income, especially if Form 16 is not available.
Form 26AS: This tax credit statement summarizes all TDS, advance tax, and high-value transactions linked to your PAN. Always cross-check it with your Form 16 to ensure accuracy.
Annual Information Statement (AIS) / Tax Information Summary (TIS): These provide a broader view of your financial transactions and reported income for the year.
Interest Certificates: From banks or post offices, showing interest earned on savings, FDs, or other deposits.
Home Loan Statements: If you’re claiming deductions for home loan interest or principal repayment.
Rent Receipts: Needed if you’re claiming House Rent Allowance (HRA).
Capital Gains Documents: Sale or purchase statements for stocks, mutual funds, or property if you have capital gains.
AuditFiling offers expert assistance for filing income tax returns (ITRs) tailored specifically for salaried individuals. Our service covers everything—from analyzing Form 16 to calculating the standard deduction on salary to claiming HRA exemption and other income tax deductions, ensuring complete compliance and maximum refunds.
We help you file ITR-1 Sahaj (applicable for most salaried taxpayers) quickly and accurately. Our professionals guide you through the entire income tax filing process, including identifying the correct ITR documents required, using the latest income tax calculator (India), and submitting your income tax e-filing before the ITR filing deadline in India.
Whether you're unsure how to file ITR online, need help with deductions, or just want a hassle-free experience, AuditFiling is your trusted partner for accurate and timely tax filing for salaried individuals.
Copy of PAN Card
Copy of Aadhaar Card
Previous Year IT Return If Any
RS: 1000/-
