Every salaried employee whose gross total income exceeds the basic exemption limit must file an income tax return in India. Under the new tax regime (default from FY 2025-26), the basic exemption limit is ₹4 lakh. However, effective zero tax applies up to ₹12.75 lakh for salaried employees — due to the Section 87A rebate of ₹60,000 on income up to ₹12 lakh and the standard deduction of ₹75,000. Filing an ITR is also mandatory even below the exemption limit if you have foreign assets, have deposited above ₹1 crore in bank accounts, or are claiming a TDS refund. Even if your employer has deducted the full tax as TDS, filing an ITR is necessary to claim refunds, carry forward losses, and maintain financial records.

The due date for income tax filing for salaried employees is 31 July of the assessment year — for FY 2025-26, the due date is 31 July 2026. Unlike business taxpayers who get until 31 August, salaried employees must file by 31 July. If you miss the deadline, you can file a belated return up to 31 December 2026 with a late fee under Section 234F — ₹5,000 for income above ₹5 lakh and ₹1,000 for income below ₹5 lakh. Interest at 1% per month under Section 234A is also charged on any unpaid tax from the due date. Missing the deadline also means you cannot carry forward capital losses from the current year.

ITR-1 filing for salaried employees (also called Sahaj) is the simplest option — for individuals with total income up to ₹50 lakh from salary, one house property, interest income, and long-term capital gains up to ₹1.25 lakh under Section 112A. ITR-2 must be filed if income exceeds ₹50 lakh, if there are capital gains from shares or mutual funds above ₹1.25 lakh, if there are two or more house properties, if there is foreign income or foreign assets, or if the taxpayer is a director in a company. Using the wrong ITR form results in a defective return notice under Section 139(9). Tax Robo selects the correct ITR form based on your complete income profile before filing.

HRA exemption for salaried employees is available only under the old tax regime — it is not allowed if you choose the new tax regime. Under the old regime, the exempt HRA is the lowest of three amounts — actual HRA received from employer, 50% of basic salary if you live in a metro city (Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Pune, Hyderabad, or Ahmedabad) or 40% for non-metro cities, and actual rent paid minus 10% of basic salary. If you pay rent above ₹1 lakh per year, you must provide your landlord’s PAN to claim HRA exemption. If your landlord does not have a PAN, they must provide a declaration. Tax Robo calculates the exact HRA exemption for every salaried client before filing to ensure the maximum benefit is claimed.

Form 16 income tax return filing is the process of using the TDS certificate issued by your employer to file your ITR. Form 16 has two parts — Part A contains the TDS deposited by your employer with the government on a quarterly basis, and Part B contains the detailed breakup of your salary, exemptions claimed (like HRA and LTA), and deductions reported by you to the employer. Your employer must issue Form 16 for FY 2025-26 by 15 June 2026. The income and TDS details in Form 16 must be cross-checked with Form 26AS and the Annual Information Statement (AIS) before filing — any mismatch can trigger a notice from the income tax department. Tax Robo verifies all three documents before preparing your ITR.

New vs old tax regime for salaried employees is the most important decision before filing ITR. The new tax regime (default from FY 2025-26) offers zero tax up to ₹12 lakh (₹12.75 lakh for salaried with standard deduction of ₹75,000) but does not allow HRA, home loan interest, LTA, Section 80C (PPF, ELSS, LIC), or Section 80D (health insurance) deductions. The old tax regime has a higher basic exemption only for senior citizens but allows all these deductions with a ₹50,000 standard deduction. The new regime is better if your total eligible deductions are less than ₹4–5 lakh. The old regime is better if you have significant HRA, home loan interest, and Section 80C investments. Tax Robo compares both regimes for every client and files under the most beneficial option.

Yes, salaried employees can switch between the new and old tax regime every year at the time of filing their ITR. Unlike business owners who face restrictions after opting out of certain schemes, salaried individuals have complete flexibility — you can choose the old regime one year and switch back to the new regime the next year based on whichever is more beneficial. However, if you have business income in addition to salary, you lose this flexibility and can switch only once. To opt for the old tax regime for FY 2025-26, you must file Form 10-IEA on the income tax portal before the ITR due date of 31 July 2026. Tax Robo compares both regimes every year and advises each client on the optimal choice before filing.

Salaried employees commonly receive income tax notices for mismatches between Form 16, Form 26AS, and the filed ITR. The most frequent notice is Section 143(1) intimation — automatically generated after ITR processing, showing a refund, tax demand, or no change. A Section 139(9) notice is sent if the ITR is defective — typically due to wrong ITR form, mismatch in income, or missing schedules. A Section 148 notice is sent for reassessment if the tax department believes income has escaped assessment. All notices must be responded to through the income tax e-filing portal within the specified time. Ignoring any notice leads to ex-parte assessment, penalty, and tax demand with interest. Tax Robo’s CA team handles income tax notice replies for salaried employees — contact us immediately at wa.me/919150461117 after receiving any notice.