ITR Filing for Salaried Employees — FY 2025-26 (AY 2026-27)

If you're a salaried employee, filing your Income Tax Return (ITR) for FY 2025-26 is mandatory if your income exceeds ₹2.5 lakh per year. The deadline is 31st July 2026 for most individuals. This guide walks you through everything you need to know.

Which ITR form should you use?

As a salaried employee, you'll use one of these forms:

Form	Use when
ITR-1 (Sahaj)	Salary from one employer, one house property, interest income. Total income up to ₹50 lakh.
ITR-2	Multiple employers, capital gains, more than one house property, or foreign assets. Income above ₹50 lakh.
ITR-3	Salary + business/professional income (freelancing, consulting).

If you're unsure which form applies, a CA will select the correct one before filing — this is one of the most common mistakes in self-filing.

Documents you need

• Form 16 — issued by your employer by mid-June. This is the most important document.
• Form 26AS / AIS — your tax credit statement. Download from the IT portal to verify TDS deducted matches Form 16.
• Bank statements — for all accounts for the full financial year (April 2025 to March 2026).
• Investment proofs — 80C (PF, ELSS, LIC), 80D (health insurance), home loan certificate, HRA rent receipts.
• PAN and Aadhaar — linked to each other and to your bank account.

Old regime vs new regime — which saves you more?

This is the most important decision you'll make when filing. Under the new regime, you get lower slab rates but cannot claim most deductions (80C, HRA, home loan interest). Under the old regime, you keep all deductions but pay higher base rates.

New regime slabs (FY 2025-26)	Rate
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
Above ₹24,00,000	30%

The new regime also has a Section 87A rebate — if your taxable income is up to ₹12 lakh, your tax liability is zero. This makes the new regime very attractive for most salaried individuals with income below ₹12 lakh.

Key deductions available (old regime only)

• Section 80C — up to ₹1,50,000 (EPF, PPF, ELSS, LIC, home loan principal, tuition fees)
• Standard deduction — ₹50,000 (old regime) or ₹75,000 (new regime)
• HRA exemption — if you pay rent and receive HRA in salary
• Section 24(b) — home loan interest up to ₹2,00,000 for self-occupied property
• Section 80D — health insurance premium up to ₹25,000 (₹50,000 for senior citizens)
• Section 80E — education loan interest (no limit)

Common mistakes to avoid

• Not checking Form 26AS before filing — TDS mismatch causes notices
• Forgetting to declare savings account interest (even small amounts from multiple accounts)
• Not claiming all eligible deductions under the old regime
• Filing ITR-1 when ITR-2 is required (e.g. if you sold any mutual funds during the year)
• Missing the e-verification step after filing — your return is not valid until e-verified

Important deadlines

• 31st July 2026 — Last date for salaried individuals (non-audit cases)
• 31st December 2026 — Last date for belated return (with late fee of up to ₹5,000)
• 31st March 2027 — Last date for revised return if you made a mistake

👉 Learn about our CA-assisted ITR filing service or compare ITR filing plans and pricing.