Every year, around June and July, a familiar pattern plays out. Salaried professionals who have been meaning to file their own ITR for years end up either paying a CA ₹500–₹2,000 for something they could do themselves in 30 minutes, or they miss the deadline entirely and file a belated return in December with a ₹5,000 late fee attached.
The reality is that for most salaried employees — one employer, standard deductions, no business income — filing ITR is genuinely straightforward. The Income Tax Department's e-filing portal does most of the heavy lifting today. The data is pre-filled. The calculations are automated. You are largely reviewing and confirming, not building a return from scratch.
This guide walks you through the entire process — which form to use, which documents you need, what the portal steps look like, and the mistakes that cause most returns to go wrong. No CA required for this one.
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Who This Guide Is For
This article is specifically written for salaried employees who:
- Have income only from salary (one or two employers in the year)
- Have interest income from savings accounts or fixed deposits
- Have made Section 80C, 80D, or HRA deductions
- Do not have business income, freelance income, or capital gains from shares/mutual funds exceeding ₹1 lakh
If you have sold stocks or mutual funds during the year with significant gains, or if you have rental income, your situation is slightly more complex — you may need ITR-2 instead of ITR-1. This guide focuses on the simpler and more common ITR-1 scenario.
Why You Should File Even If Tax Is Already Deducted (TDS)
This is the question many salaried employees ask: "My employer already deducts TDS. Do I still need to file?" The answer is yes, in most cases — and there are good reasons beyond just legal obligation.
- Refund claims: If excess TDS was deducted (which happens when your actual deductions were not fully communicated to HR), filing your ITR is how you get that money back. The refund does not come automatically.
- Loan applications: Banks and NBFCs routinely ask for ITR copies (typically 2–3 years) when processing home loans, business loans, or high-value personal loans. An ITR is your official income proof.
- Visa applications: Many countries' visa processes — US, UK, Canada, Schengen — ask for ITR copies as proof of financial standing.
- Legal compliance: Under Section 139 of the Income Tax Act, filing is mandatory if your gross total income exceeds the basic exemption limit (₹2.5 lakh under the old regime; ₹3 lakh under the new regime for FY 2024–25).
- Carry forward of losses: If you have capital losses that you want to carry forward to offset future gains, a timely ITR filing is mandatory.
Filing your own ITR is also, frankly, a useful annual financial health check. You review your income, your deductions, your TDS — and once a year, you have a clear picture of where you actually stand.
Which ITR Form Should a Salaried Employee Use?
Choosing the wrong form is one of the more common mistakes. Here is a clean reference:
| Form | Who Should Use It |
|---|---|
| ITR-1 (Sahaj) | Salaried individuals with income from salary, one house property, and other sources (interest, etc.) — total income up to ₹50 lakh |
| ITR-2 | Salaried individuals with capital gains (from shares, mutual funds, property), more than one house property, or foreign income |
| ITR-3 | Individuals with income from business or profession (freelancers, consultants, partners in a firm) |
| ITR-4 (Sugam) | Small business owners, freelancers using presumptive taxation under Section 44AD/44ADA |
For most salaried employees reading this, ITR-1 is your form. It is the simplest, most pre-filled, and fastest to complete.
Documents You Need Before You Start
Keep these ready before you log in. Gathering them mid-session is where people lose time and make errors.
1. Form 16
This is the most important document. Issued by your employer by June 15 every year, Form 16 has two parts:
- Part A: TDS deducted and deposited by your employer against your PAN — directly linked to Form 26AS
- Part B: Your salary breakup, allowances, perquisites, and deductions considered by the employer
If you changed jobs during the year, you will need Form 16 from both employers.
2. Form 26AS and AIS
Form 26AS is your tax credit statement — it shows all TDS deducted against your PAN from all sources (employer, bank FD interest, etc.). The Annual Information Statement (AIS) is a newer, more comprehensive version that also includes dividend income, share transactions, and high-value financial transactions. Both are available on the e-filing portal under the "e-File" section.
Always cross-check your Form 16 figures against Form 26AS before filing. If there is a mismatch, reconcile it — do not ignore it. Mismatches can trigger notices from the Income Tax Department.
3. Bank Statements / Interest Certificates
You need to declare interest income from savings accounts (taxable above ₹10,000 p.a. — Section 80TTA deduction applies) and from fixed deposits (fully taxable, regardless of amount). Your bank usually provides an annual interest certificate — download it from net banking before filing.
4. Investment Proofs (If Not Submitted to Employer)
If you made 80C investments (PPF, ELSS, LIC premium, home loan principal) or 80D health insurance premium payments that your employer did not account for in Form 16, you will declare these directly in your ITR. Keep the payment receipts handy.
5. PAN, Aadhaar, and Bank Account Details
Your PAN and Aadhaar must be linked (mandatory since July 2023). Your bank account details are needed to receive any refund — ensure the pre-validated bank account on the portal is correct and active.
Old Tax Regime vs New Tax Regime — Decide This First
This is a decision point that confuses many filers, and it has to be made before you start the actual return.
From FY 2023–24, the New Tax Regime is the default. If you want to file under the Old Regime (to claim deductions like 80C, HRA, 80D), you have to explicitly choose it at the time of filing.
| Aspect | Old Tax Regime | New Tax Regime (Default) |
|---|---|---|
| Basic exemption limit | ₹2.5 lakh | ₹3 lakh |
| Standard deduction | ₹50,000 | ₹75,000 (from FY 2024–25) |
| Section 80C deduction | Available (up to ₹1.5 lakh) | Not available |
| HRA exemption | Available | Not available |
| Section 80D (health insurance) | Available | Not available |
| Tax rebate under Section 87A | Up to ₹12,500 (income up to ₹5 lakh) | Up to ₹25,000 (income up to ₹7 lakh) |
The new regime works better for people who do not have significant 80C investments or HRA claims. If you are investing ₹1.5 lakh in 80C instruments and paying rent in a metro city, the old regime often saves more tax. The portal's tax calculator lets you compare both — use it before you commit.
Step-by-Step: How to File ITR-1 for Free on the Portal
The official Income Tax e-filing portal is incometax.gov.in. Filing here is completely free. There is no charge from the government for filing your own return.
Step 1: Log In to the E-Filing Portal
Go to incometax.gov.in and log in using your PAN as the user ID. If you have not registered, create an account — PAN, mobile number, and Aadhaar are needed. Use the "Login" button on the top right.
Step 2: Navigate to "File Income Tax Return"
From the dashboard, go to: e-File → Income Tax Returns → File Income Tax Return. Select Assessment Year 2025–26 (for FY 2024–25 income) and choose "Online" mode.
Step 3: Select ITR-1
The portal will ask for your filing status — select "Individual." Then select ITR-1 (Sahaj). The portal may also prompt you with a suggestion based on your profile — if it recommends ITR-1, proceed with that.
Step 4: Review Pre-Filled Data
This is where the portal has improved significantly. Your salary details, TDS data, bank account information, and in many cases your investment data are pre-filled from Form 26AS, AIS, and employer data. Do not blindly accept pre-filled data. Review each section:
- Personal Information — verify PAN, Aadhaar, address, email, mobile
- Gross Total Income — verify salary figures match your Form 16 Part B
- TDS details — cross-check with Form 26AS
- Deductions — if your employer accounted for 80C, it should appear; add anything missing
Step 5: Select Tax Regime
You will be explicitly asked whether you want to opt for the old or new regime. If you have significant 80C deductions and HRA, run the comparison first. For most people with income below ₹7 lakh, the new regime with the ₹25,000 rebate under Section 87A effectively makes the tax liability zero — check this before choosing.
Step 6: Enter Income Details
The salary section is largely auto-filled from Form 16. Add any additional income not captured:
- Savings account interest (from bank statement/interest certificate)
- FD interest earned during the year
- Dividend income (if any mutual funds or stocks paid dividends — this is often pre-filled from AIS)
Step 7: Enter Deductions
Under "Deductions and Taxable Total Income," enter all deductions applicable to you:
- 80C: PPF contributions, ELSS investments, LIC premium, EPF (employer contribution is auto-included), home loan principal repayment, children's tuition fees
- 80D: Health insurance premiums paid for self, spouse, children, and parents
- 80TTA / 80TTB: Interest on savings accounts (80TTA for below 60 years, up to ₹10,000; 80TTB for senior citizens up to ₹50,000)
- HRA (if under old regime): If your employer did not fully account for HRA, compute the exemption manually using the standard HRA calculation formula and enter it
Step 8: Verify Tax Computation
The portal auto-calculates your tax payable or refund due based on the data entered. Review this carefully. If there is additional tax payable that was not deducted as TDS, you need to pay it as Self-Assessment Tax (via Challan 280 on the portal) before submitting. If there is a refund due, it will be credited to your pre-validated bank account after processing.
Step 9: Preview and Submit
Preview the full return. Download the pre-submission PDF and check it against your Form 16 once more. Once satisfied, click "Submit."
Step 10: E-Verify Your Return
This is the step many people forget — and without it, your return is not considered filed. E-verification must be done within 30 days of submission. Options:
- Aadhaar OTP (fastest — takes 30 seconds)
- Net banking (through your bank's portal, redirected to IT portal)
- Demat account (if you have one)
- Physical ITR-V (download, sign, and send to CPC Bengaluru by speed post — old method, not recommended)
After e-verification, you will receive an acknowledgment (ITR-V/EVC acknowledgment number) via email. Save this. The return is now officially filed.
Important Deadlines — Do Not Miss These
| Type of Return | Deadline (FY 2024–25) | Late Filing Penalty |
|---|---|---|
| Original return (salaried, non-audit) | 31st July 2025 | — |
| Belated return | 31st December 2025 | ₹5,000 (₹1,000 if income below ₹5 lakh) |
| Updated return (ITR-U) | Up to 2 years from end of assessment year | Additional tax of 25%–50% on outstanding tax |
Filing a belated return also means you cannot carry forward capital losses — a detail that matters more once you start investing in stocks or mutual funds.
Common Mistakes That Create Problems Later
1. Not Checking AIS Before Filing
The Annual Information Statement now captures a lot — dividend income, high-value savings account credits, property transactions, mutual fund redemptions. If you do not declare something that appears in AIS, the system may flag a mismatch and issue a notice. Download and review AIS first, every time.
2. Forgetting FD Interest Income
This is extremely common. Many people do not declare FD interest, either because TDS was not deducted (banks deduct TDS only if annual FD interest exceeds ₹40,000 — ₹50,000 for senior citizens) or because they assume the bank handled it. FD interest is fully taxable. Declare it.
3. Not Reconciling Form 16 with Form 26AS
If the TDS figure in your Form 16 does not match what appears in Form 26AS, do not just file and hope for the best. The system will detect the mismatch. Contact your employer's payroll/finance team to rectify it before the filing deadline.
4. Selecting the Wrong Assessment Year
For income earned in FY 2024–25 (April 2024 to March 2025), the Assessment Year is 2025–26. Filing under the wrong AY is a common and fixable mistake, but it requires a revised return — avoidable effort.
5. Forgetting to E-Verify
A submitted but unverified ITR is treated as not filed. The 30-day window for e-verification is strict. Use Aadhaar OTP — it takes less than a minute and eliminates the risk of forgetting.
6. Entering Gross Salary Instead of Net Taxable Salary
Standard deduction of ₹75,000 (new regime) or ₹50,000 (old regime) is automatically applied. But if you manually enter figures rather than using pre-fill, ensure you are entering the right salary figure as per Form 16 Part B — not your CTC, not your gross salary before professional tax and PF deductions.
What Happens After You File
Processing time varies. Typically, ITRs filed between June–August are processed within 15–45 days. If a refund is due, it is credited directly to your pre-validated bank account — usually within 7–30 days of processing. You will receive an intimation under Section 143(1) by email confirming acceptance or raising any discrepancy.
If the department has a query or finds a mismatch, they issue a notice — typically via email and visible on the e-filing portal. Respond within the specified period. Most basic queries are resolved online through the portal's compliance response module.
One thing I have noticed over the years: people who review their AIS and Form 26AS carefully before filing almost never receive post-filing notices. The notices almost always trace back to undeclared income that was visible in the government's data. File accurately and the process is genuinely straightforward.
Frequently Asked Questions
Is filing ITR on the income tax portal really free?
Yes, completely. The government's e-filing portal at incometax.gov.in charges nothing for filing your return. Third-party platforms like ClearTax, Tax2Win, and myITreturn offer free plans for basic ITR-1 filing as well, though their paid plans add features like CA review. For standard salaried returns, the government portal is sufficient and free.
What if I have two Form 16s from two employers?
You will need to manually add the income from both employers in the salary section. Ensure that you are not double-claiming deductions — if both employers computed standard deduction, the total deduction in your ITR must be capped at ₹75,000 (new regime) regardless of how many Form 16s you have.
My income is below ₹7 lakh. Do I still need to file?
Under the new tax regime, if your income is below ₹7 lakh, the Section 87A rebate effectively makes your tax liability zero. However, filing is still mandatory if your gross income exceeds the basic exemption limit (₹3 lakh under new regime). Filing also protects your loan eligibility, visa applications, and refund claims — so there is no good reason not to file.
What if I miss the July 31 deadline?
You can still file a belated return by December 31, 2025, with a late fee of ₹5,000 (or ₹1,000 if your income is below ₹5 lakh). After December 31, you can file an Updated Return (ITR-U) within 2 years, but with additional tax penalties of 25%–50% on the outstanding liability. File on time — it costs nothing extra and saves potential penalty exposure.
Can I revise my ITR after filing?
Yes. A revised return can be filed any time before the end of the Assessment Year (March 31, 2026 for AY 2025–26) or before assessment is completed, whichever is earlier. If you discover an error after filing — a missed investment declaration, an incorrect figure — file a revised return promptly.
Do I need to show proof of investments when filing online?
No documents need to be uploaded when filing ITR online. You self-declare your deductions. However, you must retain all supporting documents — investment receipts, insurance premium receipts, rent receipts for HRA — for at least 6 years, as the department can call for them during scrutiny assessment.
Is it safe to file ITR on the government portal?
Yes. The Income Tax e-filing portal is operated by the Income Tax Department, Government of India, and is secured with standard encryption. Use only the official URL — incometax.gov.in. Be cautious of phishing sites that mimic the portal's appearance.
Final Word
Filing your own ITR as a salaried employee is not complicated — it just feels that way because most people never try it themselves. The portal is significantly more user-friendly than it was even three years ago. Pre-filled data, an integrated tax calculator, and Aadhaar-based e-verification have made the process accessible to anyone who can log in and read carefully.
The two things that trip people up most consistently are not reviewing AIS before filing and not e-verifying after submission. Do both. Cross-check your figures. Declare all income — including that FD interest you might have overlooked. File before July 31 and avoid the belated return fee entirely.
Paying a CA for a straightforward ITR-1 is a legitimate choice if you genuinely do not have 30–45 minutes. But it is not a necessary one. For a standard salaried return, this is something you can do yourself — correctly, for free, every year.
About the Author: Ashutosh Jha is the founder of FinGTaj and a finance professional with experience in equity markets, derivatives, compliance, and investor behaviour analysis. Currently working as a Quality Analyst in the finance domain, he writes to simplify complex financial decisions for everyday Indian investors. Read more about the author.
Disclaimer: This article is for informational and educational purposes only. Tax laws and portal features are subject to change. Always refer to the official Income Tax Department website or consult a qualified tax professional for advice specific to your situation.
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