ITR Filing for Salaried Employees: Documents, Tax Regime and Due Date

Default Regime, Two Forms, One Date

A salaried employee files ITR-1 or ITR-2, by 31 July where no audit applies. The new regime is the default, and you have to opt out to use the old one. Under it, a standard deduction of Rs 75,000 applies to salary and pension, and a rebate of up to Rs 60,000 means no tax where taxable income is up to Rs 12 lakh, so a gross salary of about Rs 12.75 lakh can end up with nil tax.

Which form

ITR-1 for a resident individual with salary or pension, one house property, other sources, and income within the prescribed limit.

ITR-2 where ITR-1 does not fit: capital gains, more than one house property, foreign assets or income, being a director, or holding unlisted shares.

ITR-3 if you also have business or professional income, with its own date.

Picking the wrong form is a defective return rather than a convenience problem.

The regime choice, explained properly

The Rs 12 lakh figure is a rebate, not an exemption. Income up to Rs 12 lakh produces a tax liability, and the rebate then cancels it. Cross the threshold and the rebate falls away, so the tax does not start at zero on the excess.

Two practical consequences:

Just above the threshold matters. A small increase in income past Rs 12 lakh produces a disproportionate tax effect, subject to marginal relief where available.

The old regime still wins for some people. Large deductions under the old regime, principally house loan interest, HRA and significant Chapter VI-A claims, can still produce a lower liability. The new regime is the default, not automatically the better choice. Run both.

A salaried person can generally choose the regime each year. Someone with business income cannot switch as freely.

Documents to collect

• Form 16 from your employer

• Form 26AS, and the Annual Information Statement, to check what the department already knows

• Bank interest certificates

• Capital gains statements from your broker or fund house

• House property details, rent received, and home loan interest certificate

• Proof for deductions, if using the old regime

• Details of foreign assets, if any

Reconcile to the AIS before you file, not after. Most notices to salaried taxpayers come from a difference between the return and the information already with the department.

The due dates

E-verify within the prescribed period after filing, reported as 30 days. An unverified return is treated as not filed.

If you miss it

A belated return can be filed within the prescribed window, with a late fee and interest, and some losses can no longer be carried forward.

How Northrop LLP helps

Northrop LLP runs the regime comparison on your actual numbers, reconciles your return to the AIS before filing, and handles any notice that follows.