Filing Income Tax Returns (ITR) is an important financial responsibility for every salaried person in India. It shows that you are a responsible citizen and helps you when applying for loans, visas, and credit cards. But many salaried employees are unsure about one thing — how much does it cost to file an ITR?
What is ITR?
An ITR (Income Tax Return) is a form in which one declares amounts of income, expenses, investments, and taxes paid to the department. Other than the salary, one may have income from rent, interest, capital gains, or freelance work.
Why is ITR Filing Important for Salaried Employees?
Even though your salary may be subject to TDS or tax withholding, you must still file your income tax return for the following reasons:
- Proof of income
- Required for visa applications
- Useful while obtaining loans
- To carry forward capital losses
Who Should File ITR?
One must file ITR if:
- If the person is earning over ₹2.5 lakh (basic exemption), there is pressure on him/her to pay income tax.
- Your refund claim is then to be followed on.
- He might have some income from foreign sources.
- A bank deposit of more than ₹1 crore might be made.
- The electricity bill amounting to almost ₹1 lakh a year.
- Cost of foreign travel almost ₹2 lakh.
Types of ITR Forms for Salaried Employees
Filing of the return is done when:
- Income does not exceed ₹50 lakh.
- Income comprises salaries, pensions, one house property, or interest.
In any case, if there is a component of capital gains or income from business, one should file either ITR-2 or ITR-3.
Ways to File ITR
You can file ITR:
- On your own (self-filing)
- Through a CA (Chartered Accountants)
- Government portal: incometax.gov.in
ITR Filing Fees for Salaried Employees
Let’s break down the typical ITR filing costs for salaried people:
1. Self-Filing (Do It Yourself)
- Cost: ₹0
- If you’re comfortable using the Income Tax Portal, you can file for free.
- Use Form 16 from your employer, bank interest statements, and AIS data.
2. Using Online Tax Platforms
| Plan Type | Features | Price (Approx.) |
| Free Plans | Basic filing using Form 16 | ₹0 |
| Assisted Filing | Expert help + document review | ₹500–₹1,000 |
| CA Review & Filing | Detailed review by tax expert or CA | ₹1,000–₹2,000 |
| Premium Services | Tax planning + investment advice | ₹2,000–₹5,000 |
3. Through a CA (Chartered Accountant)
- Cost: ₹1,000 to ₹5,000
- Depends on your income level and complexity (like capital gains, house property, etc.)
| Complexity Level | Typical Charges |
| Salary income only | ₹1,000–₹1,500 |
| Salary + House Property | ₹1,500–₹2,500 |
| Salary + Capital Gains | ₹2,000–₹4,000 |
| Multiple Income Sources | ₹3,000–₹5,000 |
What Decides the Fees?
The fees for filing ITR for salaried employees can vary depending on several important factors. One of the main elements is your income source. If you earn only from salary, the filing process is usually simple and cheaper. However, if you also have income from rent, interest, capital gains, or freelance work, the complexity increases, and so does increase the filing cost by a CA. The type of ITR form also matters—ITR-1 is basic and used for simple cases, while ITR-2 or ITR-3 involves more details and may require expert help.
If you choose to get your ITR reviewed or filed by a Chartered Accountant (CA) or tax expert, the charges will naturally be higher. The timing of filing can also affect the price—many platforms offer discounts for early filers. Lastly, if you’re claiming refunds or carrying forward losses, the process needs more attention, which might slightly increase the filing fee.
Can You File ITR for Free?
Yes, you can fileITR for free if your income is simple—mainly from salary and interest, and you have Form 16 from your employer. The Income Tax Department’s official portal allows individuals to file their returns at no cost. It’s user-friendly and guides you through each step.
These tools are especially helpful if you don’t need expert review or complex tax calculations. Just gather your documents, specially Form 16, PAN, and bank details, and follow the simple steps online. If you’re comfortable with basic technology and reading instructions carefully, you can easily complete the process on your own without spending a rupee.
Penalty for Late Filing
Penalty for Late Filing of ITR can lead to extra costs and missed benefits. If you file your return after the due date (usually July 31 for salaried individuals), a late filing fee is charged under Section 234F of the Income Tax Act. If your total income is up to ₹5 lakh, the penalty is ₹1,000. However, if your income exceeds ₹5 lakh, the penalty can go up to ₹5,000. Additionally, you cannot carry forward any losses (like losses from house property or capital gains) if you miss the deadline.
This means you lose out on future tax-saving opportunities. Also, refunds (if any) may get delayed. Hence, it is highly recommended to file your ITR on time to avoid penalties and keep all your tax benefits intact.
Tips to Save ITR Filing Fees
- File early to get discounts on platforms
- Keep documents ready – Form 16, interest certificates, rent receipts
- Learn basic filing – Use government portal
- Choose right platform based on income type
- Avoid penalty by filing before deadline
Free ITR Filing for Low-Income Individuals
Some platforms and NGOs provide free ITR filing for people earning below ₹5 lakh/year. Also, if you are a senior citizen, many CAs offer low-cost or free help.
When Should You Choose Paid Filing or Hire a CA?
You should consider paid filingor Hire a CA if:
- Were you confused by the tax rules?
- Do you possess one or two Form 16s?
- Were there spells of employment between the months?
- Are you seeking to claim for rent paid, a loan on a house, or capital gain exemptions?
Documents Needed for ITR Filing online
Here’s a list of common documents you need for online ITR filing:
- Form 16 from employer
- PAN Card & Aadhaar
- Bank interest certificates
- Rent receipts (if claiming HRA)
- Investment proofs (80C, 80D, etc.)
- Capital gain statements (if any)
- Form 26AS & AIS report
Conclusion
Filing your ITR is important, and it doesn’t have to be expensive. Many salaried employees can file it for free or at a low cost. The key is to understand your income sources and choose the right method. Whether you file on your own or hire help, make sure it’s done before the deadline to avoid penalties.
FAQs
1. Is ITR filing free for salaried employees?
Yes, salaried employees can file ITR for free if they do it themselves using the Income Tax Department’s official website. Many online tax filing platforms also offer free basic plans for simple cases like salaried income. You don’t need to pay unless you choose extra help or services.
2. How much does a CA charge to file ITR for a salaried person?
A Chartered Accountant (CA) usually charges between ₹1,000 to ₹3,000 for salaried individuals, depending on how complex your income or deductions are. If you have multiple income sources or want detailed help, the cost may go up. For simple cases, the charge is usually on the lower side.
3. Are online ITR filing websites safe?
Yes, popular tax websites like ClearTax, Quicko, and TaxBuddy are considered safe for filing ITR. These platforms use secure, encrypted systems to protect your data. Always use trusted websites, check for the padlock symbol in the address bar, and avoid sharing sensitive details on unknown platforms.
4. Can I get a tax refund if I file ITR?
Yes, if your employer deducted extra TDS or you paid more tax than required, you can claim a refund when you file your ITR. The refund amount gets credited directly to your bank account after processing. Always enter correct bank details and verify your ITR to get it faster.
5. What happens if I don’t file ITR on time?
If you miss the deadline, you may face a late filing fee of ₹1,000 to ₹5,000, depending on your income. You could also lose the chance to carry forward losses or claim certain benefits. The sooner you file, the better. Avoid waiting till the last minute.
6. What is Form 16?
Form 16 is a certificate given by your employer that shows your total salary earned and the tax deducted (TDS) during the year. It’s very helpful while filing your ITR, as it includes your PAN, TAN of employer, salary breakup, and tax deposited with the government on your behalf.
7. Which ITR form should a salaried person use?
Most salaried employees with income below ₹50 lakh, and no business income or capital gains, should use the ITR-1 (Sahaj) form. If you have other income sources like rental income, or income from capital gains or foreign assets, then you may need to use ITR-2 or ITR-3.
8. Can I file ITR using just my mobile phone?
Yes, filing ITR through a mobile phone is easy and possible, especially for salaried individuals. You can use the official income tax portal or trusted apps to file your return. Just make sure you have a stable internet connection, access to Form 16, and your documents ready.
9. Do I need to submit physical copies to the tax department?
No, physical submission is not required. You can file your ITR completely online, and once submitted, you can do e-verification using Aadhaar OTP, net banking, or other methods. Only in rare cases are physical forms needed. Keep digital copies for your own records and future reference.
10. When is the last date to file ITR for salaried employees in 2025?
The expected last date for ITR filing for salaried persons is July 31, 2025. However, sometimes the government extends the deadline. It’s best to file early to avoid last-minute issues, late fees, or missed refunds. Set reminders and prepare your documents in advance to stay stress-free.
Read Also related articles: