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Income Tax Return (ITR) Filing for Salaried Employees in India

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: Verify Credentials →

Tax-Free Income: Salary up to Rs 12.75 lakh effectively tax-free under new regime (FY 2025-26). Rs 75,000 standard deduction + Rs 60,000 Section 87A rebate. Net tax = zero.

New vs Old Regime: New regime default with 7 slabs (Nil to 30%). Old regime wins if total deductions (HRA + 80C + home loan + 80D) exceed Rs 3.75 lakh for income around Rs 15 lakh. Compare both.

Form 16 + AIS: Form 16 is the starting point but must be cross-verified against Form 26AS and AIS before filing. Mismatches trigger automatic Section 143(1) notices from CPC.

Starting Fee: From Rs 499 for ITR-1/ITR-2. Due: 31 July 2026. Belated: 31 Dec 2026 (Rs 5,000 fee). Revised: 31 Mar 2027 (Budget 2026 extension). ITR-U: within 24 months.

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I changed jobs twice in FY 2024-25 and had three Form 16s. Patron consolidated everything, identified a Rs 12,000 tax shortfall I would have missed, and helped me pay it before filing. The regime comparison showed new regime saved me Rs 28,000.
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Rohit S.
IT Professional, Pune
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My employer incorrectly computed my HRA exemption. Patron's CA recalculated it correctly using the three-part formula, saved me Rs 45,000 in additional tax, and reconciled my Form 26AS before submitting my ITR. Outstanding service.
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MNC Employee, Mumbai
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Very proficient and professional staff. As a government employee receiving DA arrears, I needed Section 89 relief. Patron filed Form 10E first and then the ITR-1 with correct arrear relief claimed. No notice, no demand. Highly recommended.
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Had salary income plus ESOP gains from my previous startup. Patron handled the perquisite taxation from Form 16, computed LTCG on the ESOP share sale under Section 112A, and filed ITR-2 with correct Schedule CG. The AIS reconciliation caught a dividend entry I had missed.
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Patron does my family's ITR every year - my own salary ITR plus my wife's salary ITR. The old vs new regime comparison is done individually for each of us. This year they identified that old regime was better for me (large home loan) but new regime was better for my wife. Saved us over Rs 65,000 combined.
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File your salary ITR with expert CA support. Form 16 verification, regime comparison, TDS refund from Rs 499.

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Salary ITR Filing - Guide for AY 2026-27

📌 TL;DR - Salary ITR Services at a Glance

Salaried income taxed under 'Income from Salaries'. ITR-1 (Sahaj) for salary up to Rs 50 lakh with LTCG up to Rs 1.25 lakh. ITR-2 for higher income or capital gains. New regime: salary up to Rs 12.75 lakh tax-free (Rs 75,000 SD + Rs 60,000 Section 87A rebate). Old regime wins if deductions exceed Rs 3.75 lakh. Due: 31 July 2026. From Rs 499.

For over 6 crore salaried taxpayers in India, filing ITR is both a compliance obligation and a strategic financial decision. With the new tax regime as default for FY 2025-26, every salaried employee faces a choice: stay with lower rates and simpler structure, or opt for the old regime with HRA, 80C, and home loan deductions. Getting this right can mean a difference of thousands to lakhs in annual tax.

ParameterDetails
ITR FormITR-1 (Sahaj) up to Rs 50 lakh + LTCG up to Rs 1.25 lakh; ITR-2 for higher income/capital gains/foreign income
Tax-Free Salary (New Regime)Rs 12.75 lakh (Rs 75,000 SD + Rs 60,000 Section 87A rebate = zero tax)
New vs Old RegimeNew regime default. Old wins if deductions (HRA+80C+home loan+80D) exceed Rs 3.75 lakh at Rs 15 lakh income
Form 16TDS certificate from employer. Part A: TDS deposited. Part B: salary breakdown + deductions. Must match 26AS/AIS
Due Date AY 2026-2731 July 2026 (non-audit). Belated: 31 Dec 2026. Revised: 31 Mar 2027 (Budget 2026 extension)
Multiple EmployersAdd all Form 16s. Consolidate TDS. Claim deductions once. Pay self-assessment tax if shortfall
Patron FeeStarting from Rs 499

Content is reviewed quarterly for accuracy.

How Salary Income Is Taxed in India

Salary income is taxed under the head 'Income from Salaries' under the Income Tax Act, 1961. It covers basic salary, DA, HRA, LTA, special allowances, bonuses, ESOPs, perquisites, pension, gratuity, and leave encashment.

Standard Deduction: Rs 75,000 (new regime) / Rs 50,000 (old regime) - flat deduction from gross salary for all salaried employees and pensioners. Family pensioners: Rs 25,000.

Section 87A Rebate (New Regime): Rs 60,000 for taxable income up to Rs 12 lakh. After Rs 75,000 standard deduction, salary of Rs 12.75 lakh = zero tax. Does NOT apply to capital gains at special rates.

Key Terms for Salary ITR:

Form 16: TDS certificate from employer (Section 203). Part A: TDS deposited (TRACES-generated). Part B: salary breakup, exemptions, deductions, net taxable income. Issued by 15 June.

Section 115BAC (New Regime): Default for FY 2025-26. 7 slabs: Nil to 30%. Standard deduction Rs 75,000. Rs 12.75 lakh tax-free. Limited deductions but lower rates.

HRA Exemption (Section 10(13A)): Old regime only. Least of: actual HRA, 50%/40% of basic+DA, rent paid minus 10% of basic+DA. Landlord PAN required if rent > Rs 1 lakh/year.

AIS: Annual Information Statement - captures salary, interest, dividends, property, MF/equity transactions. Must reconcile with ITR before filing.

Form 26AS: Consolidated TDS statement. Match Part A (salary TDS) with Form 16 Part A. Mismatches = TDS credit lost.

Salary ITR Tax Free 12.75L Form 16 Old vs New Sec 87A 60K SD Rs 75K 31 Jul 2026 ITR-1 Sahaj Income Tax Act, 1961 Salary ITR
Income Tax Act, 1961 ITR-1 Sahaj | Sec 115BAC

New Tax Regime vs Old Tax Regime for Salaried Employees

New Regime Slabs FY 2025-26 (Section 115BAC - Default):

Taxable IncomeRate
Up to Rs 4,00,000Nil
Rs 4,00,001 - 8,00,0005%
Rs 8,00,001 - 12,00,00010%
Rs 12,00,001 - 16,00,00015%
Rs 16,00,001 - 20,00,00020%
Rs 20,00,001 - 24,00,00025%
Above Rs 24,00,00030%

Old Regime: Nil up to Rs 2.5 lakh, 5% (2.5-5L), 20% (5-10L), 30% (above 10L). All deductions available: HRA, 80C (Rs 1.5L), 80D, home loan interest (Rs 2L), 80CCD(1B) NPS (Rs 50K), LTA, 80G.

Break-Even Guide: Old regime wins when total deductions exceed approx Rs 2.5-3.5 lakh (Rs 10-15L income), Rs 3.75-4.5 lakh (Rs 15-20L), Rs 5-6 lakh (Rs 20-30L). Key: employees with large HRA + home loan + full 80C benefit from old regime. Run both on actual numbers.

Deductions NOT available under new regime: HRA (10(13A)), LTA (10(5)), 80C (Rs 1.5L), 80D, 80CCD(1B), Section 24(b) self-occupied interest (Rs 2L), 80G, professional tax.

Deductions STILL available under new regime: Standard deduction Rs 75,000, employer NPS 80CCD(2) up to 14% of basic, Agniveer corpus 80CCH, let-out property interest (no limit).

Salary ITR Filing Services by Patron Accounting

ServiceWhat We Do
Form 16 Verification and AIS ReconciliationCross-check Form 16 against AIS and Form 26AS. Identify TDS mismatches, missing income entries, and incorrect deductions before filing. Prevents Section 143(1) notices.
Old vs New Regime ComparisonCompute tax liability under both regimes using actual deductions and exemptions. Present clear comparison with recommendation. Never file under default without informed decision.
HRA Computation (Independent of Form 16)Calculate HRA exemption independently using the three-part Section 10(13A) formula. Claim correct amount even if employer undercomputed in Form 16 Part B.
Multi-Employer ConsolidationConsolidate multiple Form 16s for job changers. Deduplicate deduction claims. Compute combined tax liability. Identify self-assessment tax payable before filing.
Section 89 Relief and Special DeductionsFile Form 10E before ITR for salary arrears. Check Section 89A (foreign retirement), Section 80GG (no HRA but paying rent), and other applicable relief provisions.
Post-Filing SupportMonitor Section 143(1) intimation. Handle mismatch notices and demand resolution. Capital gains integration for ESOP/equity/MF/property in ITR-2.
Our Process

10-Step Salary ITR Filing Process

End-to-end: from Form 16 verification and regime comparison to AIS reconciliation and e-verified ITR filing.

Step 1

Document Collection

Submit Form 16 (Part A + B), Form 26AS, AIS, salary slips, investment proofs. Our CA reviews all documents before starting return preparation.

Documents received CA review started
Collected01
Step 2

AIS and Form 26AS Reconciliation

Compare Form 16 against AIS and Form 26AS. Mismatches in TDS, salary, interest, or dividends identified and flagged with recommended actions before filing.

AIS matched Mismatches flagged
AIS + 26AS
Reconciled02
Step 3

Old vs New Regime Comparison

Compute tax liability under both regimes using your actual deductions and exemptions. Clear comparison with break-even analysis and recommendation presented.

Both regimes computed Recommendation given
OldNew
Compared03
Step 4

Deduction Optimisation

Identify all eligible deductions under the chosen regime. If employer missed HRA, 80D, or other deductions in Form 16 Part B, correct directly in ITR with supporting documents.

Deductions maximised Form 16 gaps fixed
80C+HRA+80DOPTIMISED
Optimised04
Step 5

Multi-Employer Consolidation

For job changers: consolidate multiple Form 16s, deduplicate deduction claims, compute combined tax liability, identify self-assessment tax payable before filing.

Form 16s merged Shortfall computed
F16-AF16-BF16-C
Merged05
Step 6

Section 89 and Special Deductions

File Form 10E before ITR if salary arrears received (DA revision, pay commission). Check Section 89A, Section 80GG, and other applicable relief provisions.

Form 10E filed Relief claimed
Sec 89 + 10EFILED
Filed06
Step 7

ITR-1 or ITR-2 Preparation

Correct form selected based on income profile. All schedules filled. TDS credits from all deductors entered from Form 26AS. Refund or additional tax confirmed.

ITR prepared Schedules complete
ITR-1 / ITR-2PREPARED
Prepared07
Step 8

Self-Assessment Tax Payment

If balance tax after TDS credit, exact amount calculated and Challan 280 payment guided online before filing. Interest under 234B/234C computed if applicable.

Tax computed Challan paid
Challan 280PAID
Paid08
Step 9

E-Filing and Acknowledgment

ITR filed on income tax portal. E-verification via Aadhaar OTP completed. ITR-V acknowledgment shared within 24 hours of filing.

ITR filed E-verified
ITRFILED
Complete09
Step 10

Post-Filing Support

Monitor Section 143(1) intimation and mismatch notices. Response assistance at no additional charge for standard queries. Refund tracking included.

143(1) monitored Refund tracked
Sec 143(1)REFUND
Supported10

Documents Required for Salary ITR Filing

Core Income Documents:

  • Form 16 (Part A + Part B) from each employer for FY 2025-26
  • Form 26AS from incometaxindia.gov.in (consolidated TDS)
  • AIS and TIS from income tax portal
  • Salary slips (April 2025 to March 2026) as backup

Deduction Documents (Old Regime):

  • HRA: Rent receipts + landlord PAN (if rent > Rs 1 lakh/year) + rent agreement
  • 80C: LIC, ELSS, PPF, EPF, home loan principal, tuition fees, NSC, SCSS
  • 80D: Health insurance premium receipts (self, family, parents)
  • Home loan: Interest certificate from bank (Section 24(b) + 80C principal)
  • 80CCD(1B): NPS self-contribution statement
  • 80G: Donation receipts with 80G registration number

Other: Bank statements (interest income), capital gains statements (if ITR-2), advance tax challans, previous ITR, PAN + Aadhaar.

Common Mistakes Salaried Employees Make in ITR Filing

ChallengeImpactHow Patron Accounting Solves It
Filing ITR-1 When ITR-2 RequiredSold shares or capital gains above Rs 1.25 lakh LTCG, foreign income, or company director requires ITR-2. Wrong form = defective return noticeCA verifies income profile and selects correct form. Zero defective return notices on our filings.
Not Reconciling AIS Before FilingAIS pulls data from banks, brokers, third parties. Ignoring AIS mismatches leads to automatic Section 143(1) noticesMandatory pre-filing AIS reconciliation included for every salary client. All mismatches resolved before submission.
Assuming Form 16 Is Always CorrectEmployers make errors in HRA computation, regime selection, or miss deductions. Always verify Part B against investment proofsIndependent HRA computation and deduction verification. Corrections made directly in ITR with supporting documentation.
Multiple Employer TDS ShortfallEach employer computes TDS independently. Combined income may push into higher slab creating unexpected tax liabilityAll Form 16s consolidated. Combined tax computed. Self-assessment tax identified and paid before filing.
Not Filing Form 10E Before Section 89Portal auto-rejects Section 89 relief if Form 10E not filed first. Common for govt/PSU employees with DA/pay arrearsForm 10E prepared and filed before ITR for all clients with salary arrears.

Salary ITR Filing Fees

Fee ComponentAmount
Simple ITR-1 (single employer, no capital gains)Starting Rs 499
ITR-1 with multiple employers or HRA computationStarting Rs 999
ITR-2 with capital gains (equity, MF, property, ESOP)Starting Rs 1,499
Salary + freelance combined ITR-3Starting Rs 2,499
Section 89 relief (Form 10E + ITR)Starting Rs 1,499
NRI salary ITR with foreign incomeStarting Rs 2,999

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free Salary ITR consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Salary ITR Due Dates - AY 2026-27

StageEstimated Timeline
Form 16 from employerBy 15 June 2026
ITR-1/ITR-2 (non-audit)31 July 2026
Belated Return (Section 139(4))31 December 2026 (Rs 1,000 or Rs 5,000 late fee)
Revised Return (Section 139(5))31 March 2027 (Budget 2026 extension)
Updated Return (ITR-U)Within 24 months from end of AY
E-Verification deadlineWithin 30 days of filing (else treated as not filed)

Key: 31 July 2026 is the standard due date for salaried ITR. Late fee: Rs 5,000 under Section 234F (Rs 1,000 if income below Rs 5 lakh). Belated returns cannot carry forward capital losses or house property losses. E-verify within 30 days or return treated as not filed. Revised return extended to 31 March 2027 per Budget 2026 amendment to Section 139(5).

Key Benefits

Why Choose Patron Accounting for Salary ITR

AIS + Form 26AS Reconciliation

Pre-filing mismatch check catches TDS errors before filing, not after a notice. Included for every salary client.

Old vs New Regime Comparison

100% of our salaried clients receive regime comparison before filing. We never file under the default regime without your informed decision.

HRA Computation Expertise

Independent three-part Section 10(13A) calculation. Correct amount claimed even if employer undercomputed in Form 16 Part B.

Multi-Employer Handling

Multiple Form 16s consolidated correctly. Duplicate deduction claims prevented. Tax shortfall identified and paid before filing.

Post-Filing Notice Support

Section 143(1) intimation and mismatch notice handling included. Capital gains integration for ESOP/equity/MF sales in ITR-2.

Why 50,000+ Salaried Employees Trust Patron

50,000+ Salaried Returns Filed - ITR-1 and ITR-2 for employees, pensioners, and government employees.

4.9/5 Google Rating from 500+ verified reviews.

100% Regime Comparison - every salaried client gets old vs new comparison before filing.

Average Refunds Processed within 3-6 months of timely filing.

4 Offices: Pune, Mumbai, Delhi, and Gurugram.

Patron Accounting vs Self-Filing vs Generic Portals

FeaturePatron AccountingSelf-FilingGeneric Portals
AIS + 26AS ReconciliationPre-filing mismatch checkManual - most skip itAuto-flag, no resolution
Old vs New RegimeIncluded for every clientAvailable if you knowAvailable on paid plans
Multi-Employer Form 16Handled by CAPossible but error-proneSupported with guidance
HRA ComputationFull independent calculationMust calculate manuallyMay use Form 16 figure
Section 89 (Form 10E)CA prepares Form 10E firstMust know to file firstUsually add-on service
Capital Gains (ESOP, equity)ITR-2 with full schedulesComplex, high error riskSupported on premium
Post-Filing SupportIncludedSelf-managedCharged separately
Starting PriceFrom Rs 499Free (complexity risk)Rs 499-2,999+

Related Tax Filing Services

Legal Framework for Salary ITR

Governing Law: Income Tax Act, 1961; Finance Act 2025.

  • Section 115BAC: New regime default. 7 slabs Nil to 30%. Standard deduction Rs 75,000.
  • Section 87A: Rs 60,000 rebate (new regime) for income up to Rs 12 lakh. Rs 12,500 (old regime) up to Rs 5 lakh.
  • Section 10(13A): HRA exemption (old regime only). 50%/40% of basic + DA formula.
  • Section 80C: Rs 1.5 lakh (old regime). PPF, ELSS, LIC, EPF, home loan principal, tuition.
  • Section 24(b): Home loan interest Rs 2 lakh (self-occupied, old regime). Unlimited for let-out.
  • Section 89: Relief for salary arrears. Form 10E mandatory prerequisite.
  • Section 234F: Late fee Rs 5,000 (Rs 1,000 if income below Rs 5 lakh).
  • Section 139(5): Revised return deadline extended to 31 March 2027 (Budget 2026).

Due date: 31 July 2026. Portal: incometax.gov.in

Frequently Asked Questions - Salary ITR

Answers about ITR form, tax-free income, regime comparison, HRA, multiple employers, due dates, and Form 10E.

Quick Answers

Q: Tax-free salary under new regime? A: Rs 12.75 lakh (Rs 75,000 SD + Rs 60,000 Section 87A rebate = zero tax).

Q: ITR form for salaried? A: ITR-1 (up to Rs 50L + LTCG up to Rs 1.25L). ITR-2 for higher income/capital gains.

Q: Due date? A: 31 July 2026. Belated: 31 Dec 2026 (Rs 5K fee). Revised: 31 Mar 2027 (Budget 2026 extension).

Q: Old regime break-even? A: Deductions above Rs 3.75 lakh (at Rs 15L income) = old regime wins. Below = new regime.

Due Date: 31 July 2026 - File On Time for Maximum Refund

Late fee: Rs 5,000 under Section 234F (Rs 1,000 if income below Rs 5 lakh). Belated returns cannot carry forward capital losses. E-verify within 30 days or return treated as not filed. Revised return deadline: 31 March 2027 (Budget 2026 extension).

AIS mismatches trigger automatic Section 143(1) notices. Multiple employer TDS shortfall creates unexpected tax demand. Form 10E must be filed before ITR for Section 89 arrear relief.

Action: Call +91 945 945 6700 or WhatsApp us for a free consultation.

File Your Salary ITR with Expert CA Support

Salary ITR filing is more than a compliance obligation - it is a strategic decision between tax regimes, deduction optimization, and TDS refund processing that can save thousands to lakhs.

Patron Accounting handles every dimension - Form 16 verification, AIS reconciliation, regime comparison, HRA computation, multi-employer consolidation, Section 89 relief, and post-filing notice support.

50,000+ salaried returns filed. 4.9/5 Google Rating. 100% regime comparison. Pune, Mumbai, Delhi, Gurugram. From Rs 499.

Book a Free Consultation - No Obligation.

Salary ITR Filing Across India

Expert CA-assisted salary ITR filing with Form 16 verification, regime comparison, and AIS reconciliation.

Content Created: 01 March 2026  |  Last Updated:  |  Next Review: April 2027 (next AY)  |  Reviewed By: CA & CS Team, Patron Accounting LLP

This page covers ITR-1 and ITR-2 for FY 2025-26 (AY 2026-27). Slabs per Finance Act 2025. Budget 2026 changes apply from FY 2026-27. Verify at incometaxindia.gov.in.

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