Which ITR form should a salaried employee file for FY 2025-26?

ITR-1 (Sahaj) is for salaried employees with total income up to ₹50 lakh from salary, one house property, and interest income only — and no capital gains or foreign income. ITR-2 is required if income exceeds ₹50 lakh, or you have capital gains (equity, mutual funds, property), more than one house property, foreign income or assets, or investments in unlisted equity shares. If you are a director or partner in a firm in addition to salary, ITR-2 is mandatory.

What is the last date to file ITR for salaried employees for FY 2025-26?

The due date for salaried individuals for FY 2025-26 (AY 2026-27) is 31st July 2026. A belated return can be filed up to 31st December 2026 with a penalty of ₹5,000 (₹1,000 if total income is below ₹5 lakh). Filing after 31st December and up to 31st March 2027 is only permitted in specific circumstances with assessment officer approval. Always file before 31st July to avoid interest under Section 234A.

What is the difference between old and new tax regime for salaried employees?

The New Regime (default from FY 2023-24 onwards) has lower slab rates: 0% up to ₹3 lakh, 5% for ₹3–7 lakh, 10% for ₹7–10 lakh, 15% for ₹10–12 lakh, 20% for ₹12–15 lakh, and 30% above ₹15 lakh. However, most deductions — HRA, 80C (₹1.5L), 80D (health insurance), home loan interest under Sec 24 — are NOT available. The Old Regime has higher rates but allows all deductions. The New Regime is generally better for employees with small deductions (below ₹3.5–4 lakh), while the Old Regime benefits those with large HRA, 80C, home loan interest, and NPS deductions.

How to claim HRA exemption when filing ITR?

HRA exemption is the minimum of: (1) Actual HRA received from employer, (2) Rent paid minus 10% of Basic salary + DA, (3) 50% of Basic+DA for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metros. If your employer did not consider rent receipts while deducting TDS, you can still claim HRA while filing ITR. You will need rent receipts, rent agreement, and the landlord's PAN if annual rent exceeds ₹1 lakh. TAXAJ CAs calculate the correct exempt HRA and reconcile it with your Form 16.

Is income below ₹7 lakh taxable under the new regime?

Under the New Tax Regime, income up to ₹7 lakh is effectively tax-free due to the Section 87A rebate of ₹25,000. This means if your net taxable income (after ₹75,000 standard deduction) is up to ₹7 lakh, your tax payable is zero. However, it is still advisable to file your ITR even if no tax is due — it is legally required if income exceeds the basic exemption limit (₹3 lakh under new regime), and is needed for visa applications, bank loans, and as income proof.

What documents are required to file ITR for a salaried employee?

Documents required for salaried ITR filing include: Form 16 Part A & B from all employers for the year, Form 26AS and AIS from the Income Tax portal, PAN card and Aadhaar, bank account number and IFSC, and a salary slip. If applicable: bank statements (if FD interest exceeds ₹10,000), 80C investment proofs (ELSS, LIC, PPF, NPS), rent receipts and landlord PAN for HRA, home loan interest certificate for Section 24, health insurance premium receipts for 80D, and capital gains statements from broker or mutual fund.

What is Form 16 and what does it contain?

Form 16 is the TDS certificate issued by your employer under Section 192 of the Income Tax Act. It has two parts: Part A contains details of employer name, address, PAN, TAN, and quarterly TDS deducted and deposited. Part B contains salary breakup (basic, HRA, allowances), total gross salary, exemptions claimed (HRA, LTA), deductions under 80C/80D/other, net taxable salary, and total tax deducted. Form 16 is the primary document for salary ITR filing and must be issued by the employer by 15th June every year.

What is Form 26AS and why is it important for ITR filing?

Form 26AS is the consolidated annual tax credit statement available on the Income Tax portal (www.incometax.gov.in). It shows all TDS deducted across all sources (salary, bank interest, rent received), advance tax paid, and self-assessment tax. Always cross-check your Form 16 with Form 26AS before filing — any mismatch can lead to demand notices. TAXAJ CAs perform this reconciliation as part of every filing.

How to claim 80C deduction in ITR for salary income?

Section 80C allows a maximum deduction of ₹1,50,000 per year for eligible investments and expenses: EPF contribution, PPF deposits, ELSS mutual funds, LIC premium, 5-year tax saving FD, NSC, NPS (additional ₹50,000 under 80CCD(1B)), principal repayment on home loan, and tuition fees for children. If your employer has already included these in Form 16 Part B, they will be automatically reflected. If you made additional investments not declared to your employer, TAXAJ CAs will include them in your ITR to reduce your tax liability. Note: 80C deductions are only available under the Old Tax Regime.

Can I file ITR with two Form 16s from two employers?

Yes. If you switched jobs during the financial year, you will receive Form 16 from both employers. The total income from both must be combined, and both employers may have calculated tax separately without accounting for the combined income — leading to under-deduction. You must combine both salaries, recalculate the correct tax, and pay any balance tax due before filing. TAXAJ CAs specialise in multi-Form-16 returns and ensure the correct tax is paid to avoid demand notices.

What is the standard deduction for salaried employees in FY 2025-26?

The standard deduction for salaried employees for FY 2025-26 (AY 2026-27) is ₹75,000 — available under both the Old and New Tax Regimes. This was increased from ₹50,000 to ₹75,000 in the Union Budget 2024. The standard deduction is automatically applied and does not require any documentary proof or declaration. It reduces your gross salary income before calculating tax.

Can I revise my income tax return after filing?

Yes. Under Section 139(5), a revised return can be filed within one year from the end of the assessment year or before completion of assessment, whichever is earlier. For FY 2025-26 (AY 2026-27), the revised return can be filed up to 31st December 2027. Common reasons to revise include: missed deductions, wrong bank account number, incorrect income reporting, or forgetting to claim a refund. Revised return filing due to errors made by the assessee is not included in TAXAJ's standard plan and may attract additional charges.

How to claim HRA exemption in ITR?

HRA exemption is the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of Basic+DA, (3) 50% of Basic+DA for metros or 40% for non-metros. If your employer has not considered rent receipts, you can still claim HRA while filing your ITR by mentioning the correct exempt amount.

Income Tax Return Filing for Salaried Employees | ITR-1 ITR-2 | Form 16 | TAXAJ

📋 AY 2026-27 — FY 2025-26

Salaried ITR Filing — Save More, File Right

CA-assisted ITR-1 & ITR-2 filing for salaried employees. Maximise HRA exemption, claim all 80C/80D deductions, and get your refund processed in 3–5 working days.

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31 Jul

Due date FY 25-26

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ITR-1 · ITR-2 · Expert review · Refund tracking

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₹1,100

Single Form 16, all deductions included

CA review of salary + deductions
HRA exemption optimisation
All 80C / 80D / 80TTA claims
Computation sheet before filing
e-Filing + ITR-V acknowledgement

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Which Form Do You Need?

ITR Form Selector — Find Your Right Form

Answer 3 quick questions and we'll instantly tell you which ITR form applies to you.

What is your approximate annual gross salary (before deductions)?

Include all Form 16 amounts if you have multiple employers.

Below ₹5 Lakh₹5 – ₹50 LakhAbove ₹50 Lakh

Do you have any of the following? (Select all that apply)

These determine whether you need ITR-1 or ITR-2.

Capital gains (shares, MFs, property, crypto) Two or more house properties Foreign assets or foreign income Investment in unlisted equity shares None of the above

Free Tool

Income Tax Calculator — FY 2025-26

Compare old vs new tax regime instantly. Slide to your income, enter deductions, and see your tax liability in real-time.

Calculate Your Tax

FY 2025-26 (AY 2026-27) · Instant · No signup needed

Gross Salary / CTC ₹12,00,000

₹1 Lakh₹50 Lakh

Results are indicative estimates. Consult a TAXAJ CA for accurate computation.

📊 Your Tax Summary

Gross Income₹12,00,000

Standard Deduction₹75,000

Taxable Income₹11,25,000

Income Tax₹91,500

4% Health & Education Cess₹3,660

Total Tax Payable₹95,160

Regime Comparison

New Regime₹95,160

Old Regime₹1,04,000

Wider bar = higher tax

Effective Tax Rate

7.9%of gross income · New Regime

💡 Most salaried employees in the ₹7–15L range pay lower tax under the New Regime. Our CA compares both and picks the better one.

Form Guide

ITR-1 vs ITR-2 vs ITR-3 — Which Is Yours?

Parameter	ITR-1 (Sahaj)	ITR-2	ITR-3	ITR-4 (Sugam)
Who files it	Salaried individuals	Salaried with cap gains	Business/profession	Freelancers/presumptive
Income limit	Up to ₹50 lakh	No limit	No limit	Up to ₹50 lakh
Salary income	✓	✓	✓	✓
Capital gains	✗	✓	✓	✗
Foreign income / assets	✗	✓	✓	✗
2+ house properties	✗	✓	✓	✗
Business income	✗	✗	✓	Presumptive only
Complexity	Simple	Moderate	Complex	Simple
TAXAJ price	From ₹1,100	From ₹2,500	From ₹3,500	From ₹1,500

Maximise Your Refund

All Deductions & Exemptions for Salaried Employees

Don't leave money on the table. TAXAJ CAs ensure every eligible deduction is claimed correctly.

Section 80C / 80CCC / 80CCD(1)

Investments & Insurance

Up to ₹1,50,000

PPF, ELSS, LIC premium, EPF, 5-yr FD, NSC, home loan principal, tuition fees for children, NPS, ULIP.

Section 80D

Health Insurance Premium

Up to ₹1,00,000

₹25,000 for self + family. ₹50,000 if parents are senior citizens. Preventive health check-up up to ₹5,000 included.

Section 10(13A)

HRA Exemption

Least of 3 formulas

Minimum of: (1) Actual HRA received, (2) Rent − 10% of Basic+DA, (3) 50% of salary (metros) / 40% (non-metros).

Section 24(b)

Home Loan Interest

Up to ₹2,00,000

Interest on housing loan for self-occupied property. For let-out property, entire interest is deductible (with ₹2L set-off cap).

Section 80CCD(1B)

NPS Additional Deduction

Up to ₹50,000

Over and above the ₹1.5L limit under 80C. National Pension Scheme — available in old regime only. Excellent for high earners.

Section 16(ia)

Standard Deduction

₹75,000 (FY 2025-26)

Enhanced from ₹50,000 to ₹75,000 in Budget 2024 — available under both regimes. No proof required. Auto-applied.

Section 80E

Education Loan Interest

No upper limit

Entire interest on education loan (from bank/financial institution) for self, spouse, or children. Available for 8 assessment years.

Section 80G

Charitable Donations

50% or 100% of donation

Donations to approved charities, PM Relief Fund, National Defence Fund, educational institutions. Keep receipts with 80G registration number.

Section 80TTA / 80TTB

Savings Account Interest

₹10,000 / ₹50,000 (seniors)

₹10,000 deduction on interest from savings bank accounts (80TTA). Senior citizens can claim up to ₹50,000 on all interest income (80TTB).

Our Process

How TAXAJ Files Your ITR

Fully managed, fully transparent. You review and approve the computation sheet before we file — no surprises.

Upload documents

Share Form 16, 26AS, investment proofs via the secure vault above. Or send via WhatsApp — we'll organise them for you.

CA review & computation

Your assigned CA reviews all documents, computes income under each head, applies all eligible deductions, and selects the better regime.

You review computation sheet

We share a detailed computation sheet showing income, deductions, tax payable, and refund amount. You approve before we file.

ITR e-filed & verified

We e-file on the Income Tax portal. The return is verified using Aadhaar OTP or net banking. You receive the ITR-V acknowledgement by email.

Refund processing tracked

If a refund is due, we track it on your behalf and follow up with the department if there are any delays beyond 60 days.

Who Should File with TAXAJ

This Plan is For You If…

✅

Single/Multiple Form 16
Switching jobs? We handle multiple Form 16s and ensure correct tax credit matching.

✅

Income above ₹50 Lakh
Income above ₹50L requires ITR-2. We handle surcharge calculation and complex deductions.

✅

Director or Shareholder
If you are a director in a company or hold unlisted equity shares, mandatory ITR-2 with directorship disclosure.

✅

House Property Income
Rental income, home loan deduction under Sec 24, and calculation of loss from house property.

✅

Freshers & New Joiners
First time filing? We walk you through the process and ensure all eligible deductions are claimed from day one.

FAQ

Frequently Asked Questions

Which ITR form should a salaried employee file? ▾

ITR-1 (Sahaj) is for salaried employees with income up to ₹50 lakh from salary, one house property, and interest income only. ITR-2 is required if income exceeds ₹50 lakh, or you have capital gains, more than one house property, foreign income, or unlisted equity shares. Residents with income below ₹50L and no capital gains use ITR-1. Use our ITR selector above →

What is the last date to file ITR for salaried employees? ▾

The due date for salaried individuals is 31st July of the assessment year (31st July 2026 for FY 2025-26). A belated return can be filed up to 31st December of the assessment year with a penalty of ₹5,000 (₹1,000 if total income is below ₹5 lakh). Filing before 31st July is strongly recommended to avoid interest under Section 234A on any tax dues.

What is the difference between old and new tax regime? ▾

The New Regime (default from FY 2023-24) offers lower slab rates — 0% up to ₹3L, 5% for ₹3-7L, 10% for ₹7-10L, 15% for ₹10-12L, 20% for ₹12-15L, and 30% above ₹15L — but most deductions (80C, 80D, HRA, home loan interest) are not available. The Old Regime has higher rates but allows all deductions. The new regime is better for most salaried employees who don't have large deductions. TAXAJ compares both and files the one that results in lower tax.

How to claim HRA exemption if employer didn't consider rent receipts? ▾

If your employer didn't consider your rent receipts, they would have included HRA as taxable salary in Form 16. You can still claim the HRA exemption while filing your ITR by reporting the correct exempt HRA amount. You'll need: rent receipts, rent agreement, and landlord's PAN (if annual rent exceeds ₹1 lakh). TAXAJ CAs ensure the correct HRA is claimed and reconciled with Form 26AS.

Is income below ₹5 lakh taxable? Should I still file ITR? ▾

Under the new regime, income up to ₹7 lakh is tax-free after the Section 87A rebate (₹25,000 rebate). Under the old regime, income up to ₹5 lakh is effectively tax-free via the ₹12,500 rebate. However, filing ITR is still recommended even if no tax is payable — it's required for visa applications, bank loans, credit cards, and acts as income proof. It's also legally required if income exceeds the basic exemption limit (₹3L new regime / ₹2.5L old regime).

What is Form 26AS and why is it important? ▾

Form 26AS is the consolidated tax credit statement from the Income Tax Department showing all TDS deducted from your income across all sources, advance tax paid, and self-assessment tax paid. It's available on www.incometax.gov.in. Always reconcile your Form 16 with Form 26AS before filing — any mismatch can lead to tax demand notices. TAXAJ CAs do this reconciliation as part of every filing.

Can I file a revised return if I made a mistake? ▾

Yes. A revised return can be filed within one year from the end of the assessment year or before completion of assessment, whichever is earlier. For FY 2025-26 (AY 2026-27), you can revise until 31st December 2027. Note that revised return filing is not included in the basic TAXAJ plan — if the revision is due to incorrect information provided by you, additional charges may apply.

What is the refund policy if no CA is assigned? ▾

Refund is applicable only if no CA has been assigned on your case. Once a CA has started working on your return — reviewed Form 16, pulled 26AS, or begun computation — the plan cannot be refunded. If for any reason TAXAJ is unable to complete your filing, a full refund will be processed within 7 working days. For detailed terms, visit our refund policy page.

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