💰 Salary Income Tax Return Filing – Complete Guide

1️⃣ What is Salary Income Tax Return Filing?

Salary Income Tax Return (ITR) filing is the process of declaring your income from salary, allowances, perquisites, and deductions to the Income Tax Department. It helps in:

• Computing tax liability

• Claiming refunds for excess TDS deducted

• Ensuring legal compliance under the Income Tax Act, 1961

• Serving as proof of income for loans, visas, or financial purposes

Governing Law: Income Tax Act, 1961

2️⃣ Who Should File Salary Income Tax Return?

Filing is mandatory if any of the following apply:

1. Salary income exceeds basic exemption limit:

   • FY 2025–26: ₹3 lakh (individual <60 years)

   • ₹5 lakh (senior citizen 60–80 years)

   • ₹10 lakh (super senior >80 years)

2. TDS deducted by employer needs to be reconciled with Form 26AS

3. Salary from more than one employer

4. Claiming deductions under Chapter VI-A (80C, 80D, 80G, etc.)

5. Foreign income or assets

6. Claiming refund of excess tax deducted

Optional filing:

• If income is below exemption limit but you want to claim refund of TDS

3️⃣ Salary Income Components

4️⃣ Salary Income Tax Deductions

• Section 80C: PPF, LIC, NSC, ELSS, principal on home loan (max ₹1.5 lakh)

• Section 80D: Health insurance premiums

• Section 80G: Donations to charitable organizations

• Section 10(14): Allowances (Transport, Children Education, Hostel)

• Standard Deduction: ₹50,000 for salaried individuals

• HRA Exemption: Part of House Rent Allowance can be exempt

Proper documentation is essential to claim deductions.

5️⃣ Choosing the Correct ITR Form

Most salaried employees file ITR-1 (Sahaj) unless they have additional income sources.

6️⃣ Documents Required

7️⃣ Step-by-Step Salary Income Tax Return Filing Process

Step 1 – Collect Documents

• Form 16 from employer

• Form 26AS (TDS reconciliation)

• Investment & rent proofs

Step 2 – Compute Total Income

• Salary income + allowances + perquisites

• Include any other income (bank interest, capital gains)

Step 3 – Claim Deductions

• Chapter VI-A deductions (80C, 80D, 80G, etc.)

• HRA and standard deduction

Step 4 – Calculate Tax

• Apply applicable tax slab

• Deduct TDS already paid

• Pay self-assessment tax if required

Step 5 – File ITR

• Online: Income Tax e-Filing Portal

• Offline: Using ITR utility (Excel / Java)

Step 6 – Verify ITR

• Mandatory within 120 days

• Methods: Aadhaar OTP, Net Banking, Demat account, or sending signed ITR-V to CPC Bangalore

Step 7 – Acknowledgment & Refund

• ITR-V or e-verification acknowledgment generated

• Refund (if any) credited within 30–60 days

8️⃣ Due Dates for Filing Salary ITR

Filing before due date helps avoid penalties and late fees.

9️⃣ Penalties for Late or Non-Filing

🔟 Advisory Draft – Salary Income Tax Return Filing

To: [Client Name]
Date: __________

Subject: Advisory on Salary Income Tax Return Filing for FY [20XX–XX]

Dear [Client Name],

This advisory provides guidance for filing your Income Tax Return (ITR) for salary income.

Recommended Actions:

1. Collect Form 16, Form 26AS, bank statements, and investment proofs.

2. Determine correct ITR form based on your income sources (usually ITR-1 or ITR-2).

3. Compute total salary income including allowances, perquisites, and other income.

4. Claim eligible deductions under Chapter VI-A (80C, 80D, 80G) and HRA/standard deduction.

5. Calculate tax liability and pay any self-assessment tax if required.

6. File ITR online via Income Tax portal or offline using utility forms.

7. Verify ITR within 120 days using e-verification or sending signed ITR-V.

8. Maintain records of all documents and acknowledgment for future reference or audits.

Benefits: Legal compliance, claiming refunds, proof of income for loans/visas, and avoidance of penalties.

Warm regards,
[Consultant Name]
[Designation / Organization]

🔹 Additional Tips for Salaried Individuals

1. Reconcile TDS in Form 26AS before filing

2. File ITR even if TDS is 100% of tax to maintain record

3. Keep digital copies of all documents for 6 years

4. Claim all eligible exemptions & deductions to reduce taxable income

5. Update PAN & Aadhaar linked details to avoid ITR rejection

6. If changing jobs, ensure previous employer’s Form 16 is accounted for

🔹 Useful Links

• Income Tax e-Filing Portal

• Form 26AS & Tax Credit

• ITR Forms & Utilities

Additional & Advanced Details on Salary Income Tax Return Filing

1️⃣ Salary Income Components Often Overlooked

Some income elements are taxable but often missed by salaried individuals:

Proper reporting ensures no mismatch with Form 26AS and prevents notices from IT Department.

2️⃣ HRA & House Property Details

• House Rent Allowance (HRA) exemption requires:

  • Rent paid

  • Landlord PAN if rent > ₹1 lakh per year

  • Salary slips for HRA component

• Deduction for home loan interest (Section 24b) requires:

  • Principal (under 80C) and interest proof

  • Home loan certificate from bank

Many salaried taxpayers miss these exemptions, reducing their refund potential.

3️⃣ Salary from Multiple Employers

• Collect Form 16 from all employers

• TDS may not have been adjusted cumulatively, requiring self-assessment tax payment

• Use ITR-1 or ITR-2 depending on additional income sources

• Reconcile all TDS with Form 26AS

4️⃣ Advance Tax for Salaried Individuals

• Typically, TDS covers tax liability for salaried individuals

• If salary + other income (interest, freelance work) exceeds ₹10,000 tax payable beyond TDS, file self-assessment or pay advance tax

5️⃣ Income Tax Slab Considerations

• Salaried individuals must consider applicable tax slab under new regime vs old regime

• Evaluate new regime tax rates (lower rates, no exemptions) vs old regime (with exemptions & deductions) to optimize tax liability

6️⃣ ITR Filing Errors to Avoid

• Missing PAN or incorrect PAN

• Incorrect bank account details (refund issue)

• Salary from multiple employers not reported fully

• Incorrect perquisite valuation (company car, stock options)

• Claiming deductions without proof (80C, 80D, 80G)

• HRA exemption without rent receipts

Correct filing prevents penalties, delayed refunds, or IT scrutiny.

7️⃣ Reconciliation with Form 26AS

• Form 26AS shows all TDS deducted and deposited

• Cross-check salary TDS vs Form 16 vs Form 26AS

• Any mismatch must be corrected before filing ITR

8️⃣ Refund Process

• Excess TDS leads to refund

• Refund credited to bank account linked with PAN

• Delays may occur if bank account or PAN mismatch exists

• Refund can be tracked using Income Tax e-Filing portal or TIN NSDL

9️⃣ Filing ITR Without Employer Form 16

• If Form 16 is not received:

  • Collect salary slips, bank statements, and TDS deposits

  • Use Form 26AS for TDS verification

  • Report salary and pay tax (if due)

• Filing is mandatory even if employer fails to issue Form 16

🔟 Advanced Advisory Notes

• Taxpayers with foreign allowances or income must disclose Form 67 and foreign tax credits

• Certain salary benefits are taxable under Fringe Benefit Rules (e.g., car for personal use)

• Late filing after due date attracts Section 234A penalty and interest

• Maintain ITR acknowledgment and Form 16/16A for at least 6 years for scrutiny purposes

1️⃣1️⃣ Advisory Draft – Advanced Salary ITR Filing

To: [Client Name]
Date: __________

Subject: Advisory on Comprehensive Salary Income Tax Return Filing

Dear [Client Name],

This advisory provides guidance for complete salary income reporting and tax filing for FY [20XX–XX].

Recommended Actions:

1. Collect Form 16, Form 26AS, salary slips, bank statements, rent receipts, and investment proofs.

2. Include all salary components, allowances, bonuses, perquisites, and reimbursements.

3. Claim eligible deductions under Chapter VI-A, HRA, and standard deduction.

4. Calculate taxable income accurately, considering multiple employers, perquisites, and exemptions.

5. Choose correct ITR form (ITR-1 or ITR-2).

6. File ITR online via Income Tax e-Filing portal and verify within 120 days.

7. Ensure reconciliation with Form 26AS to avoid mismatch notices.

8. File self-assessment tax or advance tax if TDS is insufficient.

9. Maintain all documents, proofs, and ITR acknowledgments for future audits.

Benefits: Legal compliance, correct TDS credit, maximized exemptions, avoidance of penalties, and smooth financial documentation.

Warm regards,
[Consultant Name]
[Designation / Organization]