Complete Guide to ITR Filing for Salaried Employees (FY 2025-26 / AY 2026-27)
Filing your Income Tax Return (ITR) is not just a legal obligation — it is a financial advantage. For salaried individuals in India, ITR filing is mandatory when gross total income exceeds the basic exemption limit. But beyond compliance, filing on time enables you to claim TDS refunds, obtain home loans and credit cards effortlessly, apply for visas, and establish a verifiable income history.
Even if your employer has already deducted TDS and deposited it with the government, you are still required to file a return if your income surpasses the threshold. TDS deducted is often based on approximate employer calculations. Filing your ITR allows the Department to reconcile exact tax liability — and if excess tax was deducted, you receive a refund directly to your pre-validated bank account.
The most critical decision for salaried employees is choosing between the Old Tax Regime (which allows claiming 80C, 80D, HRA, home loan interest deductions) and the New Tax Regime (default since FY 2023-24, with lower slab rates but no deductions). The right choice can save thousands of rupees — and Taxvio evaluates both for every client.
Taxvio, based in Khatauli (Muzaffarnagar, UP), provides professional ITR filing services for salaried employees across Uttar Pradesh and pan-India via our secure online platform. Our CA-assisted process ensures accurate preparation, regime optimisation, and e-filing within the due date — starting ₹499.
When Is ITR Filing Mandatory for Salaried Individuals?
Income Exceeds Exemption Limit
Gross total income exceeds ₹2.5 lakh (old regime) or ₹3 lakh (new regime) before deductions — filing is mandatory.
TDS Deducted — Want Refund
If TDS has been deducted by your employer or bank and you want to claim the excess back as a refund.
Capital Gains Income
Sold shares, mutual funds, or property during the year — capital gains must be reported even with salary income.
Rental or Other Income
Earning rent from a property, freelance income, interest income from FDs, or any other source alongside salary.
Foreign Assets or Income
Holding foreign bank accounts, investments, or earning income from abroad — mandatory disclosure in ITR.
Loan / Visa Requirements
Home loan, personal loan, or visa application requires ITR acknowledgement as proof of income for the last 2–3 years.
ITR-1 vs ITR-2 vs ITR-3 — Which Form Should You File?
ITR-1 (Sahaj)
Salaried individuals with income up to ₹50 lakh
Covers:
- ✓Salary and pension income
- ✓One house property income
- ✓Other sources (FD interest, savings interest)
- ✓Agricultural income up to ₹5,000
Not for: Capital gains, more than one property, or foreign income
ITR-2
Salaried individuals with capital gains or complex income
Covers:
- ✓All ITR-1 income sources
- ✓Capital gains from shares, MF, property
- ✓Multiple house properties
- ✓Foreign assets or income
- ✓Director in a company
Not for: Business or professional income (use ITR-3)
ITR-3
Salaried + freelance or business income combined
Covers:
- ✓Salary income alongside business income
- ✓Freelance / consulting income
- ✓All capital gains types
- ✓Partner in a firm (not LLP)
- ✓Any professional income
Not for: Simple salaried cases — overly complex for those with no business income
Old vs New Tax Regime — Which Is Better for You in FY 2025-26?
Since FY 2023-24, the New Tax Regime is the default. Salaried individuals can opt for the Old Regime at ITR filing time if it saves more tax.
| Particular | Old Regime | New Regime (Default) |
|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 (from FY 2024-25) |
| Section 80C (LIC, PPF, ELSS) | Up to ₹1.5 lakh | Not available |
| Section 80D (Health Insurance) | Up to ₹25,000 – ₹1 lakh | Not available |
| HRA Exemption | Available (based on salary + rent) | Not available |
| Home Loan Interest 24(b) | Up to ₹2 lakh (self-occupied) | Not available (let-out only) |
| LTA Exemption | Available (twice in 4-year block) | Not available |
| Section 87A Rebate | Up to ₹12,500 (income ≤ ₹5L) | Up to ₹25,000 (income ≤ ₹7L) |
| Tax Slab Rates | Higher slabs (5%–30%) | Lower slabs (5%–30% with more brackets) |
| Best For | High deductions & investments (>₹3.75L total deductions) | Fewer deductions — want simplicity & lower rates |
💡 Taxvio computes both regimes for every client using actual income and deduction data before filing — ensuring you always pay the lowest legally possible tax. A wrong regime choice can cost thousands every year.
Key Deductions Available to Salaried Employees (Old Regime)
Section 80C — Up to ₹1.5 Lakh
LIC premiums, EPF, PPF, ELSS mutual funds, NSC, home loan principal, tuition fees for children.
Section 80D — Up to ₹1 Lakh
Health insurance for self, spouse, children (₹25,000) and parents (₹25,000 / ₹50,000 for senior citizen parents).
HRA Exemption
House Rent Allowance partially or fully exempt based on actual rent paid, salary, and city (50% or 40% of basic).
Standard Deduction — ₹50,000
Available without proof to all salaried employees under the old regime — directly reduces gross salary.
Section 24(b) — Home Loan Interest
Up to ₹2 lakh deduction on interest paid on home loan for self-occupied property each financial year.
Section 80E — Education Loan
Interest on education loan for higher studies is fully deductible for up to 8 years — no upper limit.
LTA — Leave Travel Allowance
Tax exemption on domestic travel with family twice in a block of 4 years — claim with journey proof.
Section 80G — Donations
50% or 100% deduction on donations to 80G-approved NGOs and charitable institutions, subject to AGTI limit.
Section 80EEA — Home Loan (First-Time)
Additional ₹1.5 lakh interest deduction for first-time home buyers on affordable housing loans (conditions apply).
Documents Required for Salaried ITR Filing
Keep these ready before initiating the ITR process — having them upfront ensures same-day filing.
📋 Income & Tax Documents
- ✓Form 16 (Part A & Part B) issued by your employer
- ✓Form 26AS, AIS, and TIS from Income Tax e-filing portal
- ✓Bank account statements for full financial year
- ✓Capital gains statement from broker (if shares/MF/property sold)
- ✓Rental income details and tenant PAN (if any)
- ✓PAN card and Aadhaar linked to PAN
- ✓Pre-validated bank account details (account number + IFSC) for refund
💝 Deduction & Investment Proofs
- ✓LIC premium receipts, PPF passbook, ELSS statement for Section 80C
- ✓Health insurance premium receipt for Section 80D
- ✓Home loan interest & principal certificate from bank (24(b) & 80C)
- ✓Rent receipts and landlord PAN (for HRA exemption claim)
- ✓Education loan interest certificate for Section 80E
- ✓80G donation receipts for charitable contributions
- ✓LTA claim documents — travel tickets and bills
Taxvio's 6-Step ITR Filing Process for Salaried Employees
Our structured, CA-supervised workflow ensures every deduction is applied, the correct regime is selected, and your return is filed before the deadline.
Document Collection & AIS Verification
We collect Form 16, Form 26AS/AIS, investment proofs, bank statements, and all other income details. We cross-verify all income and TDS credits in AIS against your documents to ensure no mismatch triggers a notice.
Old vs New Tax Regime Evaluation
We compute your exact tax liability under both regimes using your actual income, deductions, and investments — then recommend the regime that results in the lowest tax outgo. This single step saves most clients thousands of rupees.
Accurate Tax Computation with All Deductions
Taxable income is calculated after applying every eligible deduction — Section 80C, 80D, HRA, standard deduction, home loan interest, and all other applicable provisions. We ensure no eligible deduction is missed.
ITR Form Selection & Return Preparation
We select the correct ITR form (ITR-1, ITR-2, or ITR-3 based on your income profile) and prepare the complete return with all schedules accurately filled — preventing defective return notices from the Department.
e-Filing & e-Verification
The return is filed on the official Income Tax e-filing portal and verified immediately via Aadhaar OTP, net banking, or DSC. ITR-V acknowledgement is delivered to you within minutes of successful filing.
Refund Tracking & Post-Filing Support
After filing, we track your refund status and provide full support for any 143(1) intimations, defective return notices, revised return requests, or refund reissuance — ensuring your refund reaches your bank account without delays.
Consequences of Not Filing ITR on Time
Many salaried employees underestimate the consequences of missing the July 31 deadline. These are automatic — no exemption unless specifically approved.
⚠️ Section 234F Penalty
₹5,000 (₹1,000 if income < ₹5L)
Flat late filing fee applied automatically for ITR filed after the due date.
⚠️ Section 234A Interest
1% per month on outstanding tax
Interest charged on any outstanding tax from the due date until actual payment.
⚠️ Loss of Carry-Forward Benefits
Capital / business losses forfeited
Losses under capital gains or business income cannot be carried forward if ITR is filed late — permanently.
⚠️ Delayed TDS Refund
Months of wait + reduced interest
Late filing delays refund processing. Section 244A interest on refund may be reduced or nil for late filers.
⚠️ Income Tax Notice
Section 142(1) or 148 notice
Non-filers with significant income in AIS data are selected for notices asking them to explain non-filing.
⚠️ Loan & Visa Impact
Application rejected / delayed
Banks and embassies require last 3 years' ITR. Missing returns directly impacts approval of home loans and visa applications.
ITR Filing Fee Calculator
Our fees are transparent and based on your annual income. Enter your gross income to get an instant estimate.
Trusted by Salaried Professionals Across India
"Taxvio filed my ITR within 24 hours of sharing my Form 16. Smooth, professional, and completely hassle-free. My refund was credited in 3 weeks."
Rahul Sharma
Khatauli
"TDS was deducted in excess by my employer. Taxvio identified the exact refund amount and optimised my regime selection. Outstanding service."
Priya Verma
Muzaffarnagar
"Transparent fees, quick turnaround, and great follow-up. Switched from another CA and the experience is far better. Would highly recommend."
Amit Gupta
Meerut
Salaried ITR Filing Services Across India
Taxvio is based in Khatauli, Muzaffarnagar, UP and provides ITR-1 and ITR-2 filing for salaried employees across Noida, Delhi NCR, Meerut, Ghaziabad, and Mumbai — as well as pan-India online. Our 100% digital process means you share documents securely from anywhere in India and we handle the rest — no office visit required.
Frequently Asked Questions — ITR Filing for Salaried Individuals
Is ITR filing mandatory for salaried employees in India?+
Which ITR form should a salaried employee use?+
What is the last date for ITR filing for FY 2025-26?+
Which tax regime is better — old or new for FY 2025-26?+
How long does it take to get an ITR refund?+
What documents are needed for ITR filing?+
File Before 31st July 2026
File Your ITR for FY 2025-26
— Maximise Your Refund
Avoid penalties, claim your full TDS refund, and stay 100% compliant. Taxvio's CA-assisted salaried ITR filing starts at ₹499. Serving Khatauli, Muzaffarnagar, Meerut and all of India online.