Filing Income Tax Return (ITR) is an important financial responsibility for salaried employees in India. Even if your employer deducts TDS from your salary, filing ITR helps you stay compliant with tax laws, claim refunds, and maintain a strong financial record.
This complete guide explains who should file ITR, documents required, applicable ITR forms, tax regimes, deductions, and step-by-step filing process for salaried individuals.
Who Is a Salaried Employee for ITR Purposes?
A salaried employee is a person who earns income in the form of salary from an employer, including:
- Private sector employees
- PSU employees
- Government employees
- Contractual salaried staff
If you receive Form 16 from your employer, you are considered a salaried employee for income tax filing.
Who Should File ITR?
A salaried employee must file ITR if:
- Total annual income exceeds the basic exemption limit
- TDS has been deducted and you want a refund
- You have income from multiple sources
- You want to carry forward losses
- You plan to apply for a loan or visa
- You earn income from foreign assets or investments
Documents Required for ITR Filing (Salaried Employees)
Keep these documents ready before filing::
- PAN Card
- Aadhaar Card
- Form 16 (issued by employer)
- Salary slips
- Bank statements
- Investment proofs (LIC, ELSS, PPF, EPF, etc.)
- Rent receipts (for HRA claim)
- Home loan interest certificate (if applicable)
Applicable ITR Forms for Salaried Employees
🔹 ITR-1
- Income up to ₹50 lakh
- Income from salary, one house property & other sources
- Most salaried employees use this formMost salaried employees use this form
🔹 ITR-2
- Income above ₹50 lakh
- Capital gains or multiple house properties
Old Tax Regime vs New Tax Regime
Old Tax Regime
- Allows deductions & exemptions
- Suitable if you invest in tax-saving instruments
Common deductions:
- Section 80C (₹1.5 lakh)
- Section 80D (health insurance)
- HRA
New Tax Regime
- Lower tax rates
- No major deductions
- Suitable if you don’t invest much
Step-by-Step Process to File ITR Online
- Login to the Income Tax e-Filing portal
- Select the Assessment Year
- Choose the correct ITR form
- Enter salary & income details
- Add deductions and exemptions
- Verify tax calculation
- Submit ITR
Common Mistakes Salaried Employees Make
- Not matching Form 16 with Form 26AS & AIS
- Missing additional income (interest, rent, etc.)
- Choosing the wrong tax regime
- Forgetting to e-verify ITR
- Claiming deductions without proof
Benefits of Filing ITR for Salaried Employees
- Easy loan & credit card approvals
- Faster visa processing
- Claim income tax refunds
- Legal compliance
- Proof of income
Conclusion
ITR filing is not just a legal obligation but also a smart financial habit for salaried employees. With proper documentation, correct ITR form selection, and accurate reporting, you can file your return smoothly and maximize tax benefits.
If you are unsure about deductions, tax regime selection, or calculations, professional guidance can help you file error-free and stress-free ITR.
