Income tax for salaried employees in India

Pick the right regime, check your Form 16 and payslip, and file ITR-1 with confidence.

Which regime is better for me?

The new regime is the default. It gives a ₹75,000 standard deduction and, thanks to the section 87A rebate, no tax on taxable income up to ₹12 lakh (about ₹12.75 lakh of salary). The old regime only wins if you claim large deductions such as 80C, 80D, HRA and home-loan interest.

Which ITR form do I file?

Most salaried residents with income up to ₹50 lakh file ITR-1. It now covers up to two house properties and up to ₹1.25 lakh of long-term gains on listed shares or equity funds. Anything beyond that, such as other capital gains, foreign assets or crypto, means ITR-2.

What should I check before filing?

Your employer must give you Form 16 by 15 June. Before you file, match its salary and TDS figures with your Form 26AS and Annual Information Statement (AIS) on the income tax portal.

I changed jobs during the year. What now?

Each employer may give you the standard deduction and assume a lower slab, so too little tax can be deducted. Tell your new employer your earlier salary (Form 12B), or expect to pay the difference when you file.

Rules for FY 2025-26 income, updated 23 September 2026. Section numbers are from the Income-tax Act 1961; the Income-tax Act 2025 renumbers them from FY 2026-27. This is general information, not tax advice.

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Frequently asked questions

Is salary up to ₹12 lakh tax-free?
Under the new regime, taxable income up to ₹12 lakh pays no tax because of the section 87A rebate. With the ₹75,000 standard deduction, salary up to about ₹12.75 lakh is tax-free.
Can I switch between the old and new regime every year?
Yes, if you only have salary income. You can choose a different regime each year when you file your return, whatever you told your employer.