Mohali's IT corridor — spanning Phase 8, IT City, Aerocity, and Sector 67–74 — is home to tens of thousands of salaried IT professionals working with companies like Infosys, Wipro, Quark, Nagarro, SoluLab, and hundreds of product and services firms. Every year, most of these employees face the same set of ITR filing questions: which form, which regime, what to do about ESOPs, what happens if they switched jobs, and whether their employer's TDS was enough.
This article answers those questions specifically for Mohali IT employees — with the exact process, the common pitfalls, and what to collect before you sit down to file.
Key Takeaways
- ITR filing deadline for salaried employees: 31 July 2026 (for AY 2026-27)
- New tax regime is the default — your employer uses it unless you declare otherwise
- Always check AIS (Annual Information Statement) before filing — it shows all income the IT department has data on
- Switched jobs? Aggregate both salaries — shortfall in TDS must be paid as self-assessment tax before filing
- ESOPs: taxed as perquisite at allotment; capital gains at sale — two separate tax events
- Freelance work alongside salary? You must file ITR-3, not ITR-1 or ITR-2
Which ITR Form Should You Use?
Choosing the wrong form is one of the most common mistakes. Use this guide:
- ITR-1 (Sahaj): Only salary income (one employer), interest/dividend income, one house property. Total income below ₹50 lakh. No capital gains. No foreign assets or income. Simple salaried employees with a straightforward tax profile.
- ITR-2: Salary income + capital gains (including ESOP sale), or two or more properties (rented or self-occupied), or income above ₹50 lakh, or foreign assets. Applies to most mid-senior IT employees with ESOPs or rental income.
- ITR-3: Salary + business or professional income. If you do freelance projects, consulting, or any business activity alongside your job, you must file ITR-3.
Filing ITR-1 when you should file ITR-2 (for example, if you sold ESOP shares and had capital gains) is treated as a defective return. The income tax portal will send a notice asking you to refile — causing delays and potential interest.
Old Regime vs New Regime — Which to Choose?
Under the New Income Tax Act 2025, the new tax regime is the default for salaried employees. Your employer deducts TDS under the new regime unless you declare your preference for the old regime in writing.
New Tax Regime (Default)
- Lower slab rates
- Standard deduction of ₹75,000 allowed
- No deductions for HRA, home loan interest (self-occupied), LTA, 80C, 80D
- Better for employees with few deductions or high salary
- No declaration needed — it is the default
Old Tax Regime
- Higher slab rates
- HRA exemption, home loan interest deduction, LTA, 80C (₹1.5L), 80D (health insurance) all available
- Better for employees with substantial deductions (home loan, HRA, investments)
- Must declare preference to employer at the start of the year
For most Mohali IT employees earning ₹8–15 lakh with a home loan or HRA, the old regime often saves more tax. For those earning ₹20 lakh+ with few deductions, the new regime usually wins. RLVC calculates both before recommending — do not assume.
Step-by-Step: How to File Your ITR
Collect Form 16 from Your Employer
Form 16 is your TDS certificate from your employer. It has Part A (TDS details) and Part B (salary breakup, exemptions, deductions, and tax computation). Your employer must issue Form 16 by 15 June of the assessment year.
Download Your AIS from the Income Tax Portal
Log in to incometax.gov.in → Annual Information Statement. AIS shows all income data the IT department has received — salary, interest, dividends, capital gains from broker, rent received, etc. Cross-check every figure with your own records. If you find an error, raise a feedback on the portal.
Gather All Other Income Documents
Collect: bank interest certificates (FD interest, savings account), dividend statements, rental income records, capital gains statements from your broker (if you sold shares or ESOP shares), and any other income source details.
Compute Tax and Pay Self-Assessment Tax if Needed
If any tax remains after accounting for all TDS, pay it as self-assessment tax through the income tax portal (Challan 280) before filing. Filing with unpaid tax due attracts interest.
File ITR Online and E-Verify
File the correct ITR form on incometax.gov.in. After submission, e-verify within 30 days using Aadhaar OTP, net banking, or bank account EVC. E-verification completes the filing process. Unverified ITRs are treated as invalid.
Switched Jobs Mid-Year? Read This Carefully
Switching jobs during the year is extremely common in Mohali's IT sector. The tax implication most employees miss: your previous employer deducted TDS based only on the salary they paid you — without knowing what your new employer would pay for the rest of the year.
When you combine both salaries, your total income may push you into a higher slab, meaning the total TDS deducted by both employers combined was less than the tax actually owed. This shortfall must be paid as self-assessment tax before you file your ITR.
When joining a new employer mid-year, provide your previous employer's Form 12B (details of salary from previous employer) to your new employer. This allows the new employer to factor in your total annual income and deduct TDS correctly for the remainder of the year. Most employees do not do this — RLVC will compute the correct position and ensure you pay any difference before the ITR deadline.
ESOPs — Two Separate Tax Events
Many Mohali IT companies — especially MNCs and growth-stage startups — offer Employee Stock Option Plans (ESOPs). The tax treatment has two stages:
Stage 1 — When ESOPs Are Exercised (Allotment): The difference between the fair market value (FMV) of the shares on the date of allotment and the exercise price you paid is treated as a perquisite — added to your salary income and taxed accordingly. Your employer calculates this and deducts TDS on it. You will see it in Part B of your Form 16.
Stage 2 — When You Sell the Shares: The gain from selling the shares (sale price minus FMV at allotment) is capital gains income. If you sell listed shares within 12 months, it is short-term capital gain (taxed at 20%). If held more than 12 months, it is long-term capital gain (taxed at 12.5% above ₹1.25 lakh). Unlisted shares have a 24-month threshold for LTCG. This must be reported in your ITR — it will not be in your Form 16.
If your employer is a foreign company and the shares are listed overseas (for example, on NASDAQ or NYSE), the tax rates and reporting requirements are different from Indian-listed shares. Foreign assets must also be disclosed in Schedule FA of your ITR. RLVC handles this regularly for Mohali IT employees working in MNCs.
Freelance Work Alongside Your Job
A significant number of Mohali IT professionals take on freelance projects, consulting, or part-time remote work alongside their primary job. This creates additional taxable income that is typically not reflected in Form 16 and for which no TDS may have been deducted.
Freelance income from clients — whether domestic or foreign — is business or professional income. You must file ITR-3 (not ITR-1 or ITR-2) to report both your salary and freelance income. You can also claim business expenses incurred in earning the freelance income (laptop, software subscriptions, internet, etc.) against it.
Frequently Asked Questions
My employer already deducted TDS from my salary. Do I still need to file an ITR?
Yes. Filing an ITR is mandatory if your gross total income exceeds the basic exemption limit, regardless of whether TDS has been deducted. Even if TDS covers your full liability, filing is the only way to claim a refund, carry forward capital losses, and stay formally compliant.
Which ITR form should an IT employee in Mohali use?
ITR-1 if only salary income (one employer), interest, one property, income below ₹50 lakh, no capital gains. ITR-2 if you have capital gains (including ESOP sale), two or more properties, or income above ₹50 lakh. ITR-3 if you have freelance or business income alongside your salary.
I switched jobs mid-year. How do I file my ITR?
Collect Form 16 from both employers. Add both salary figures as your total salary income. Check if the combined TDS is less than the actual tax due — if so, pay the difference as self-assessment tax before filing. Use your AIS to verify both employers' salary figures match what you have received.
My company allotted me ESOPs. What is the tax treatment?
At the time of exercise (allotment), the difference between FMV and exercise price is taxed as salary — your employer deducts TDS and shows it in Form 16. When you later sell the shares, the sale gain is capital gains — short term (20%) or long term (12.5% above ₹1.25 lakh for listed shares). Report both stages in your ITR.
What is the ITR filing deadline for salaried employees?
For salaried employees not subject to tax audit, the due date is 31 July of the assessment year. For AY 2026-27, this is 31 July 2026. Filing after this date attracts a late fee of up to ₹5,000 and interest at 1% per month on the unpaid tax.