Income Tax Returns (ITR) for Salaried Person in India : Ultimate Guide

Income Tax Returns (ITR) for Salaried Person in India : Ultimate Guide
Income Tax Returns (ITR) for Salaried Person in India : Ultimate Guide
13 September 2025
For salaried individuals in India, filing an Income Tax Return (ITR) for the Financial Year 2024-25 (Assessment Year 2025-26) is a mandatory process of declaring income, claiming deductions, and paying the correct tax to the government. The most common form is ITR-1 (Sahaj), which can be filed online through the official e-filing portal using documents like Form 16, salary slips, and bank statements. The deadline for filing is typically July 31, 2025.

Table of Contents
Why is ITR Filing Crucial for Salaried Employees?
Essential Documents for Filing Your Income Tax Return
Decoding Your Salary: What Parts Are Taxable?
Old vs. New Tax Regime: Which One Should You Choose in 2025?
Maximizing Your Savings: Popular Deductions for Salaried Individuals
How to File Your ITR Online: A Step-by-Step Guide (AY 2025-26)
Common Mistakes to Avoid While Filing ITR
ToraTax Services Across India
Frequently Asked Questions (FAQs)
Why is ITR Filing Crucial for Salaried Employees?
For millions of salaried professionals across India, from the bustling tech parks of Bangalore to the corporate hubs of Delhi NCR, filing an Income Tax Return (ITR) is more than just a yearly obligation. It’s a hallmark of financial discipline and a critical step towards building a transparent financial record.

While your employer deducts Tax at Source (TDS) from your salary every month, filing an ITR is your official declaration to the Income Tax Department. Here’s why it’s non-negotiable:

Claim TDS Refunds: If your employer has deducted more TDS than your actual tax liability, filing an ITR is the only way to claim a refund.
Proof of Income: Your ITR acknowledgement serves as a legal and official proof of your income, which is essential for loan applications (home, auto, personal) and visa processing.
Carry Forward Losses: If you have incurred losses from sources like house property or capital gains, you can only carry them forward to set off against future income if you file your ITR by the due date.
Avoid Penalties: As per Section 234F of the Income Tax Act, failing to file your ITR on time can attract a penalty of up to ₹5,000.
Financial Credibility: A consistent ITR filing history enhances your financial credibility and is often a prerequisite for high-value transactions.
Essential Documents for Filing Your Income Tax Return
Before you begin the income tax filing process, gathering the right documents will make the experience smooth and error-free.

Form 16: This is the cornerstone of your ITR filing. Issued by your employer, it has two parts:
Part A: Details of TDS deducted and deposited by your employer.
Part B: A detailed breakup of your salary, allowances, and deductions claimed.
Salary Slips: Keep your monthly payslips handy to cross-verify the details mentioned in Form 16.
PAN Card: Your Permanent Account Number is mandatory for filing.
Aadhaar Card: Linking PAN with Aadhaar is mandatory. Your Aadhaar is also used for e-verification of your return.
Bank Account Statements: Needed to report interest income (from savings accounts, fixed deposits) and to check all major transactions.
Proof of Investments (for Old Regime): If you are opting for the old tax regime, you’ll need proofs for deductions under sections like 80C (ELSS, PPF, Life Insurance), 80D (Health Insurance), 80G (Donations), etc.
Home Loan Interest Certificate: If you have a home loan, the bank provides a certificate detailing the principal and interest paid during the year.
Form 26AS: This is your annual tax statement, available on the e-filing portal. It consolidates all taxes paid against your PAN, including TDS by employer, TDS by banks, and advance tax paid. Always match the TDS in Form 16 with Form 26AS.
Decoding Your Salary: What Parts Are Taxable?
Understanding the components of your salary is key to accurate tax filing. Your Cost to Company (CTC) is not your taxable income.

Salary Component Description Taxability
Basic Salary The core fixed part of your salary. Fully Taxable
House Rent Allowance (HRA) Allowance for rental accommodation. Tax-exempt up to a certain limit under Section 10(13A).
Leave Travel Allowance (LTA) For travel expenses within India. Tax-exempt for two journeys in a block of four years, subject to conditions.
Special Allowance A performance-based or other fixed allowance. Fully Taxable
Provident Fund (PF) Employer’s contribution is exempt up to 12% of basic salary. Employee’s contribution is eligible for 80C deduction.
Professional Tax A state-level tax on employment. Can be claimed as a deduction from your gross salary.
At ToraTax, our experts help salaried individuals across Mumbai, Chennai, Pune, and other major cities understand their salary structure to ensure no taxable component is missed and every eligible exemption is claimed.

Old vs. New Tax Regime: Which One Should You Choose in 2025?
For the Financial Year 2024-25, the New Tax Regime is the default option. However, you still have the choice to opt for the Old Tax Regime. This decision significantly impacts your tax outgo.

Quick Comparison:

Feature Old Tax Regime New Tax Regime (Default)
Tax Rates Higher slab rates (up to 30% above ₹10 lakh). Lower slab rates (30% slab starts above ₹15 lakh).
Exemptions & Deductions Allows over 70 deductions like 80C, 80D, HRA, LTA, standard deduction, etc. Most deductions are disallowed. Only Standard Deduction (₹50,000) and employer’s NPS contribution are available.
Basic Exemption ₹2.5 lakh (for individuals < 60 years) ₹3 lakh
Best For Individuals with significant investments and expenses (high rent, home loan, insurance, etc.). Individuals with fewer investments who prefer a simpler filing process with lower tax rates.
Expert Tip from ToraTax: Before making a choice, use an online tax calculator. Input your salary, rent, and investments to see which regime results in a lower tax liability. Salaried individuals can switch between regimes every year, so you can re-evaluate your choice annually.

Maximizing Your Savings: Popular Deductions for Salaried Individuals (Old Regime)
If you choose the Old Tax Regime, you can significantly reduce your taxable income by claiming these deductions under Chapter VI-A of the Income Tax Act.

Section 80C (Up to ₹1.5 Lakh):
Employee’s Provident Fund (EPF)
Public Provident Fund (PPF)
Equity Linked Saving Schemes (ELSS) Mutual Funds
Life Insurance Premiums
Home Loan Principal Repayment
Tuition fees for up to two children
Section 80D (Health Insurance):
Up to ₹25,000 for self, spouse, and children.
Additional ₹25,000 for parents (or ₹50,000 if they are senior citizens).
Section 80TTA (Savings Account Interest):
Deduction up to ₹10,000 on interest earned from savings bank accounts.
Section 80CCD(1B) (National Pension System):
Additional deduction of up to ₹50,000 for contributions to NPS, over and above the 80C limit.
House Rent Allowance (HRA) Exemption:
If you live in a rented house, you can claim HRA exemption. The exemption is the minimum of:
Actual HRA received.
50% of (Basic + DA) for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metros.
Actual rent paid minus 10% of (Basic + DA).
How to File Your ITR Online: A Step-by-Step Guide (AY 2025-26)
Filing your ITR on the official government portal is straightforward. Here’s how to do it for ITR-1 (Sahaj).

Step 1: Log in to the e-Filing Portal

Go to the official Income Tax e-filing website: https://www.incometax.gov.in/iec/foportal/.
Log in using your PAN as the User ID and your password.
Step 2: Navigate to e-File

On your dashboard, click on ‘e-File’ > ‘Income Tax Returns’ > ‘File Income Tax Return’.
Step 3: Select Assessment Year (AY)

Choose the Assessment Year as 2025-26 (for income earned in FY 2024-25).
Select the Mode of Filing as ‘Online’.
Step 4: Select Your Status

Choose your status as ‘Individual’.
Select the ITR Form as ITR-1. This form is for resident individuals with total income up to ₹50 lakh.
Step 5: Validate Your Pre-filled Data

The portal will auto-populate a lot of your data from your Form 16, Form 26AS, and previous ITRs.
You will be taken through five sections: Personal Information, Gross Total Income, Total Deductions, Tax Paid, and Total Tax Liability.
Carefully verify each field. Check your personal details, bank details (select one for refund), and income details. Manually add any income not auto-populated (e.g., interest from savings accounts).
Step 6: Confirm Your Deductions

In the ‘Total Deductions’ section, verify the deductions that have been pre-filled. Add any other deductions you are eligible for.
Step 7: Check Tax Paid and Liability

The ‘Tax Paid’ section will show details of TDS, TCS, and any Advance Tax you’ve paid.
The final section will show your tax computation. If there is tax due, you must pay it using the ‘Pay Now’ option. If a refund is due, it will be displayed.
Step 8: Preview and Submit Your Return

Once all sections are confirmed, click ‘Preview Return’.
Review the entire ITR draft carefully. If everything is correct, proceed to submit.
Step 9: e-Verify Your Return

Your filing is incomplete without verification. You must e-verify your return within 30 days of submission.
The easiest way is through Aadhaar OTP. Other options include using a pre-validated bank account or a Demat account.
ToraTax Services Across India
ToraTax provides comprehensive tax and financial services across all major Indian metropolitan areas. Our team of CAs and tax experts are available to assist you in:

Delhi NCR (including Gurgaon and Noida)
Mumbai
Bangalore
Chennai
Pune
Hyderabad
Kolkata
Ahmedabad
Jaipur
And over 100+ cities across the nation.
Contact us for personalized tax planning, ITR filing, GST services, and business registration.

Frequently Asked Questions (FAQs)
Q1: Is it mandatory for a salaried person to file ITR if all taxes are deducted by the employer?

Yes, it is mandatory if your gross total income before deductions exceeds the basic exemption limit (₹2.5 lakh in the old regime / ₹3 lakh in the new regime).

Q2: What is the last date to file ITR for FY 2024-25 (AY 2025-26)?

For salaried & Individuals not requiring an audit, the due date for filing ITR is Sep 15, 2025.

Q3: Can I file my ITR without Form 16?

Yes, you can. You can file your ITR using your monthly salary slips. However, it’s always advisable to get Form 16 from your employer.

Q4: Which tax regime is better for a salaried person in Bangalore with a high HRA component?

For a salaried person in a metro city like Bangalore with a high rent and thus a significant HRA component, the Old Tax Regime is often more beneficial.

Q5: I switched jobs during the financial year. How do I file my ITR?

You need to get Form 16 from both your previous and current employers. You must club the income from both employers while filing your return.

Q6: How can I check my ITR refund status?

You can check your refund status on the Income Tax e-filing portal or the TIN NSDL website. You will need your PAN and the Assessment Year to track it.

Q7: Do I need to report interest from my Provident Fund (PF) account?

Interest earned on employee contributions to PF exceeding ₹2.5 lakh in a financial year is taxable. This needs to be reported under ‘Income from Other Sources’.

Q8: What if I miss the ITR filing deadline of July 31, 2025?

You can file a belated return until December 31, 2025. However, you will have to pay a late filing fee (penalty under section 234F) and you won’t be able to carry forward certain losses.

About the Author
This guide is prepared by the expert team at ToraTax, a leading tax and financial services firm in India. With years of experience helping thousands of salaried professionals with their tax compliance, our chartered accountants and tax experts are dedicated to simplifying finance and maximizing your savings.

Disclaimer: The information provided in this article is for general guidance purposes only and is based on the tax laws applicable for the financial year 2024-25. It is not a substitute for professional tax advice. Please consult with a qualified tax professional before making any financial decisions.