AY 2025-26: Step-by-Step Guide for Salaried Employees to File ITR Online

As the financial year comes to a close, the season for filing Income Tax Returns (ITR) approaches. For Assessment Year (AY) 2025-26, the deadline for salaried individuals is typically July 31, 2025, and meeting this deadline is crucial to avoid penalties. While the process might seem complex, the online e-filing portal has made it more streamlined than ever. This guide is designed to simplify the process of salaried employees income tax filing for AY 2025-26, making it easy for you to file your return accurately and on time from the comfort of your home. By following these structured steps, you can confidently navigate the e-filing portal, ensure all your information is correct, and complete your tax obligations with ease.

Before You Begin: Key Concepts for AY 2025-26

Before diving into the filing process, it’s essential to understand a few fundamental concepts that form the basis of your tax return. Getting these right will prevent common mistakes and ensure a smooth filing experience. These concepts include the difference between a Financial Year and an Assessment Year, selecting the correct ITR form for your income profile, and understanding the key documents that provide the data for your return.

Understanding Financial Year (FY) vs. Assessment Year (AY)

One of the most common points of confusion for taxpayers is the distinction between the Financial Year (FY) and the Assessment Year (AY). The Financial Year is the 12-month period during which you earn your income. The Assessment Year is the year immediately following the financial year, in which the income earned in the FY is evaluated and taxed.

For the upcoming tax filing season, we are concerned with AY 2025-26. This corresponds to the income you earned during the Financial Year 2024-25, which ran from April 1, 2024, to March 31, 2025. Always ensure you select the correct Assessment Year (2025-26) when you begin the filing process.

Which ITR Form Should You Use? ITR-1 (Sahaj)

The Income Tax Department provides different forms for different types of taxpayers. For most salaried individuals, the applicable form is ITR-1 (Sahaj). It is the simplest form, designed for residents with a straightforward income profile. You are eligible to file ITR-1 if you meet the following criteria:

Your total income does not exceed ₹50 lakh during the financial year.
Your sources of income include Salary or Pension.
You have income from one house property (excluding cases where a loss is brought forward from previous years).
Your income from other sources includes interest from savings accounts, deposits, etc.
Your agricultural income is up to ₹5,000.

If your financial situation is more complex—for instance, if you have earned income from capital gains (like selling stocks, mutual funds, or property) or have income from foreign assets—you will need to file ITR-2.

The Importance of Form 16, Form 26AS, and AIS

These three documents are the pillars of your income tax return. The data from these forms helps you fill out your ITR accurately and verifies the information you provide.

Form 16: This is essentially your salary TDS (Tax Deducted at Source) certificate, issued by your employer. It is a crucial document for salaried employees. It has two parts:
- Part A: Contains details of the TDS deducted and deposited by your employer with the government, along with your PAN and your employer’s TAN.
- Part B: Provides a detailed breakup of your salary, including any allowances, perquisites, and the deductions claimed under Chapter VI-A (like Section 80C, 80D, etc.).
Form 26AS: This is your annual consolidated tax statement, often called a tax passbook. It can be accessed from the e-filing portal and shows all taxes that have been deposited against your PAN. This includes TDS deducted by your employer, TDS by banks on interest income, advance tax paid by you, and self-assessment tax payments. You must cross-verify the TDS figures in your Form 16 with those in Form 26AS.
Annual Information Statement (AIS): The AIS provides a much more comprehensive view of your financial transactions throughout the year. It includes information on salary, interest income, dividend income, securities transactions, and more, gathered from various sources. It is highly recommended to review your AIS on the portal for accuracy before filing your return, as it helps identify any income you might have overlooked.

Checklist: Documents Required for Salaried Employees Income Tax Filing

Being prepared with all the necessary documents before you sit down to file your ITR can save you a significant amount of time and prevent errors. It ensures you can correctly report your income and claim all the deductions you are eligible for. Here is a handy checklist of the documents you should gather:

PAN Card: Your Permanent Account Number is your primary identifier.
Aadhaar Card: It is mandatory to link your PAN with Aadhaar.
Form 16: Issued by your employer(s). If you worked for more than one employer during the FY, you will need Form 16 from each of them.
Bank Account Statements/Passbook: To ascertain the interest earned on your savings accounts and fixed deposits during the year.
Proof of Investments for Deductions:
- Receipts for investments under Section 80C (e.g., ELSS, PPF, life insurance premiums, home loan principal repayment).
- Receipts for health insurance premium payments for Section 80D.
- Donation receipts for claims under Section 80G.
Home Loan Interest Certificate: If you have a home loan, your bank will provide a certificate detailing the principal and interest paid during the year. The interest component can be claimed as a deduction.
Rent Receipts: If you are claiming House Rent Allowance (HRA), you need rent receipts and your landlord’s PAN if the annual rent exceeds ₹1 lakh.
Primary Bank Account Details: Your bank account number and IFSC code are required. Ensure this account is pre-validated on the portal to receive any tax refunds seamlessly.

A Step-by-Step ITR Guide for Salaried Employees (Online Filing)

With your documents in hand, you are ready to begin the filing process. This online ITR filing guide for salaried individuals will walk you through each step on the official government portal. The process is designed to be user-friendly, with much of your data pre-filled for convenience.

All the following steps should be performed on the official Income Tax e-filing portal: https://www.incometax.gov.in/.

Step 1: Login to the e-Filing Portal

First, navigate to the official Income Tax e-filing website. On the homepage, click the ‘Login’ button. Your User ID is your PAN, and you will need to enter your password. If you have forgotten your password, you can reset it using options like Aadhaar OTP. For first-time users, you must click on ‘Register’, provide essential details like PAN, name, and address, and set up your account.

Step 2: Navigate to File Your Return

Once you have successfully logged in, you will be directed to your personal dashboard. Here, you will find several options. To start the filing process, click on the e-File menu item at the top. From the dropdown, select Income Tax Return, and then click on ‘File Income Tax Return’.

Step 3: Select Assessment Year and Mode of Filing

On the next screen, you need to provide two key pieces of information. First, select the Assessment Year for which you are filing the return. For income earned between April 1, 2024, and March 31, 2025, you must select 2025-26. Next, choose the Mode of Filing. Select ‘Online’ to fill and submit the form directly on the portal. Click ‘Continue’ to proceed.

Step 4: Start New Filing and Select Your Status

If you have a saved draft, you can resume it. Otherwise, click on ‘Start New Filing’. The system will then ask you to select your status. As a salaried individual, you should choose ‘Individual’ and click ‘Continue’. The next step is to select the appropriate ITR form. Based on the eligibility criteria discussed earlier, select ITR-1. Once selected, click on ‘Proceed with ITR-1’.

Step 5: Validate Your Pre-filled Information

The portal simplifies the process by breaking it down into three stages: Validate Returns, Confirm your Return Summary, and Verify & Submit. Click on ‘Let’s Get Started’. You will be asked to choose a reason for filing your return; the most common reason is ‘Taxable income is more than basic exemption limit’. The system will then display your return summary with several tabs like Personal Information, Gross Total Income, and Total Deductions. Most of this information will be pre-filled using data from your employer, banks, and other sources linked to your PAN. This is a critical step. Your primary task is to meticulously review and validate the data in each tab. To help with this process, it’s wise to be aware of the Common Mistakes in Income Tax Returns and How to Avoid Them. Compare the pre-filled salary figures with your Form 16 and interest income with your bank statements and AIS. If you find any discrepancies, you must edit and correct them.

Step 6: Confirm Income and Deduction Details

Navigate through the different sections to verify and complete your return.

Gross Total Income Tab: In this section, verify the salary details that are auto-populated from your Form 16. If you have other income, such as interest from a savings account or a fixed deposit, you must add it here under the relevant income heads.
Total Deductions Tab: This is where you claim your tax-saving deductions. Enter the details of all your eligible investments and expenditures under sections like 80C (PPF, ELSS, Life Insurance), 80D (Health Insurance), 80TTA (Interest on Savings Account), etc. For a more detailed list, refer to our guide on the Top 10 Tax Deductions for Salaried Employees in India. Ensure that you have the necessary proofs for every deduction you claim, as you may be asked to furnish them later.

Step 7: Review Tax Liability and Submit

After you have confirmed all your income and deduction details, the portal will automatically compute your tax liability. The ‘Tax Paid’ section will show the TDS deducted by your employer and any advance tax you may have paid. The final calculation will show either the total tax payable by you or the refund amount you are eligible for. If there is tax due, you must pay it using the ‘Pay Now’ option. Once confirmed, click ‘Preview Return’. Go through the entire ITR form draft carefully. If you are satisfied that all information is correct, click ‘Proceed to Validation’.

Step 8: e-Verify Your Return – The Final Step

This final step explains how salaried employees file income tax online from start to finish. After your return is successfully validated (the system checks for errors), you can proceed to the final step of verification. It is crucial to understand that your ITR filing is incomplete until it is verified. You must verify your return within 30 days of filing. The easiest and recommended method is e-verification. Here are the most common ways to do it:

Aadhaar OTP: This is the fastest method. An OTP will be sent to the mobile number linked with your Aadhaar card. Enter the OTP to instantly verify your return.
Using Net Banking: Log in to your internet banking account, navigate to the ‘Tax’ or ‘e-File’ section, and select the option to e-verify your income tax return.
Using Bank Account EVC: You can generate an Electronic Verification Code (EVC) through your pre-validated bank account on the e-filing portal. This EVC is then used to complete the verification.

What to Do After You File Your ITR?

Once you have successfully filed and e-verified your return, your job is mostly done. However, there are a few post-filing actions you should be aware of.

Check Your ITR Status

You can track the status of your filed return on the portal. Log in and navigate to e-File > Income Tax Returns > View Filed Returns. Here, you will see the status of your return for AY 2025-26. The status will progress from ‘Successfully e-verified’ to ‘Processed’. If the tax department finds any issues, the status may change to ‘Processed with demand’ or ‘Processed with refund’.

Download Your ITR-V (Acknowledgement)

The ITR-V (Income Tax Return Verification) form is the official acknowledgement that your return has been filed. Once your return is e-verified, you can download this document from the ‘View Filed Returns’ section. It is important to download and save a copy of your ITR-V and the complete ITR form for your personal records.

Receiving Your Refund

If your ITR processing results in a tax refund, the amount will be credited directly to your pre-validated primary bank account that you mentioned while filing. The refund is typically processed within a few weeks to a couple of months after your return is successfully processed by the Income Tax Department.

Conclusion

Filing your income tax return is a duty that every responsible citizen must fulfill. The online process has made it incredibly convenient, but it requires careful attention to detail. By following the steps outlined above—gathering your documents, logging into the portal, meticulously validating the pre-filled data, claiming all eligible deductions, and finally, e-verifying your return—you can complete the process accurately. Timely and correct salaried employees income tax filing not only keeps you compliant with the law and helps avoid penalties but also fosters financial discipline. It is a key step in maintaining a clean financial record.

While this step-by-step ITR guide for salaried employees covers the essentials, tax laws can be complex. If you want to ensure 100% accuracy and maximize your tax savings, let the experts at TaxRobo help. Contact us today for professional ITR filing services!

Frequently Asked Questions (FAQs)

Q1: What is the deadline to file ITR for AY 2025-26 for salaried individuals?

A: For salaried individuals whose accounts are not required to be audited, the due date is typically July 31, 2025. It’s always best to check the official Income Tax Department website for any announcements regarding extensions. Failing to meet this deadline can result in consequences as outlined in Section 234F: Penalties for Late Filing of Income Tax Returns.
Q2: Can I file my ITR if my employer has not provided Form 16?

A: Yes, you can. You can calculate your taxable income using your monthly salary slips and cross-verify the TDS deducted with your Form 26AS and AIS. However, it is a legal obligation for your employer to provide you with Form 16.
Q3: What if I make a mistake in my original ITR filing?

A: The Income Tax Act allows you to file a ‘Revised Return’ to correct any errors, omissions, or wrong statements in your original filing. You can file a revised return anytime before the end of the assessment year (i.e., before March 31, 2026, for AY 2025-26).
Q4: Is it mandatory for salaried employees to file ITR if all taxes have been deducted as TDS?

A: Yes, it is mandatory to file an ITR if your gross total income (before claiming any deductions under Chapter VI-A) exceeds the basic exemption limit for the financial year. Filing is also necessary if you want to claim a tax refund, carry forward losses, or if you need proof of income for applying for loans or visas.

Salaried Employees Income Tax Filing: 2025-26 Guide!