There are several salaried employees who are looking to file the income tax return online. We all know that that if anyone is the salaried employee then salary is the main source of their income. Employees may also get interest income from bank.
At that time your employer would have to issued the form 16 by now. During the last year the Income Tax Return 1 or ITR-1 has been simplified and it makes it more easier for the salaried employees for filing the ITR online.
One can able to fill the Income Tax return with the help of the online portals. You can able to choose the several tax filing options for your taxes for a fee.
Process of Filing ITR form for a Salaried Person
First thing you need to consider is that what kind of the ITR form that a salaried employee needs to choose. So let us tell you that it all depends on that what kind of the income you have and you are earning. In this process you have to fill a certain type of the ITR form.
If you are a salaried employee, you have to fill ITR-1 which is also known as the Sahaj Form. You need to considered before filing Sahaj form that your income should be less than Rs 50 lakh per year.
It includes that you are earning income from the house property and other sources excluding winning from lottery and income from race horses.
Lets take an example that you are a director in a company or hold unlisted equity shares anytime during a financial year, then you are not eligible to fill ITR-1.
On the other hand you are not eligible to file the ITR-1 if you have taxable capital gains or have the income from the business and the profession. If you have an agricultural income of more than Rs. 5,000 then you are also ineligible to fill ITR-1.
Furthermore we can say that income from more than the one house property that carried the forward losses and that so on. It makes one eligible to use ITR-1, in which case one has to file ITR-2.
At the time of filing the ITR-1 the taxpayers have to report the gross salary as well as the income from salary. It includes all the exempt allowances that includes HRA should be separately mentioned.
For filling up ITR-1 taxpayer also has to provide details of break-up for income earned from other sources like interest income on fixed deposits and so on.
Things to Consider before Income Tax Return Filing for Salaried Employee
During the time of filing income tax return you need to provide the accurate information on the income, as well as deduction and taxes that you have paid.
Below mention are the things to considered when you are filing income tax return.
- Form 16: It is considered as the most important document which your employee will provide you.
- Checkout on the appropriate ITR form: If you are working as a salaried employee and do not have income from some of the sources mentioned above, you have to fill up ITR-1 when filing your taxes.
- Form 26 AS: Form 26AS is a consolidated record of the various taxes deducted from your income and deposited with the Government. Form 26AS can be downloaded through net banking if PAN is mapped to that particular account.
- Savings Bank Account and FD interest: Keep these documents ready for filing the income tax return.
- All the necessary bank details that includes the bank account details and IFSC codes.
How can Salaried Employee File Income Tax Return Online?
There are simply two ways by which you can file income tax return online. By downloading a ITR preparation tool you can prepare the return using the downloaded software, generate the XML and then upload it.
The other is to directly enter details in an online form and submit it. Therefore the second method is available only for ITR-1 and ITR-4 so that salaried taxpayers can use it.
You can choose either of the ways to file income tax return online.
What is the Importance of Filing Income Tax Return for Salaried Employees?
Below mentioned are the importance of ITR filing for a salaried employee. The Central Board of Direct Taxes has made rules stricter for tax evaders.
- By filing Income tax return you can show yourself as a responsible citizen.
- As per the income tax law the individuals who earn a specified amount of income every year are required to file a tax return within due date. Filing your returns is a sign that you have duly paid the tax payable and that you are a responsible citizen.
- On a regular basis if you are filing your income tax return than it is proof that you have a regular income and have paid taxes on it and it is easier to get a loan or a credit card.
- You can easily claim deductions under various sections of the Income Tax Act it is important that you have filed your Income Tax returns every year.
- By filing income tax return you can able to adjust the capital losses against capital gains. A taxpayer can ensure that in case you have any capital loss, you can carry it forward for the next eight consecutive financial years if you file your Income Tax returns regularly.
- If anyone is applying for the visa then the foreign consulate would require proof of your income and Income Tax receipts are required.
Follow 7 Easy Steps for Filing Income Tax Return for Salaried Employee
- To start this process login to the income tax return filing portal with User ID, password, Date of Birth/Date of incorporation and captcha.
- Visit to E file tab and click on Prepare and submit ITR online
- Click on the Income Tax return Form (ITR-1) and assessment year
- Fill in the details and click the ‘Submit’ button
- Upload a digital signature if applicable. Ensure that DSC is registered with e-Filing.
- Click on the ‘Submit’ button
- Click on the link to download the ITR-V. ITR-V will also be sent to the registered email. However ITR-V is uploaded with DSC, the return filing process is complete.
If you are also one of the salaried employee then file your income tax return with the easy process. Keep simple things in mind and file your ITR.