Income Tax Returns For Salaried Individuals

Simplified Guide to Income Tax Returns for Salaried Individuals

Filing income tax returns is an important financial responsibility for salaried employees. As per the Income Tax Act, 1961, ITR filing is mandatory wherein a taxpayer reports his total income in a financial year and net tax liability and claims tax deductions using an ITR form. The ITR filing process has been simplified by the Income Tax Department through its e-filing portal. In this article, we explain how salaried employees can file their income tax returns online.

Who should file ITR?

People with an annual income of Rs. 2,50,000 and more must file their ITR as per the new tax regime. There are no higher exemption limits for senior citizens and super senior citizens i.e., those above 80 years of age. Under the old tax regime, the exemption limit was Rs 2.5 lakh for individuals below 60 years, Rs 3 lakh for senior citizens between 60 to 80 and Rs 5 lakh for super senior citizens.

The following individuals must file their ITR:

A person earning income from more than one income source, such as investments, residential properties, capital gains, etc.

  • Those with investments or earnings through foreign assets
  • Those having over one crore rupees of deposits in current accounts of one or more banks
  • If an individual has paid over Rs 1,00,000 as electricity charges in a year
  • If one has made a payment of over Rs 2,00,000 on foreign travel for a person who may or may not be a family member

How to file income tax returns online for salaried employee

Here is a step-by-step guide for filing income tax returns online:

Step 1: Visit the Income Tax Department’s e-filing portal

Step 2: Sign in to the portal by entering your user ID (PAN No.), password and Captcha code. First time users can register using their Permanent Account Number.

Step 3: Go to ‘Income Tax Returns’ under the ‘e-File’ tab. Click on ‘File Income Tax Return’.

Step 4: Choose the assessment year from the drop-down. Select online as the mode of filing. 

Step 5: Choose and download the relevant income tax return (ITR) form. Salaried employees can choose form ITR-1, ITR-2 or ITR-3.

Step 6: Choose the filing type as ‘Original’ if not filing for a revised return.

Step 7: Select the submission mode of ‘Prepare and Submit Online’. Click on ‘Continue’.

Step 8: Provide the relevant details in the ITR form. Add information about tax payments through TDS, TCS and advance tax. Click on ‘Save The Draft’ to keep saving the changes.

Step 9: Calculate the tax payable and pay the tax. Enter challan details in the tax return. If you do not have any tax liability, skip this step.

Step 10: Check and confirm the details provided in the form and submit the form.

How to file an income tax return online for salaried employees for the first time?

Those filing their returns for the first time should register themselves on the official e-filing portal.

  • Visit the website
  • Click on ‘Register’
  • Click on ‘Taxpayer’
  • Submit your PAN details. Now, click on ‘Validate’ and then click on ‘Continue’
  • Enter your name, address, gender, etc.
  • Provide your email ID and registered mobile number
  • Once you have filled the form, click on ‘Continue’
  • An OTP will be sent to your mobile number and email ID.
  • Enter the OTP. You will be redirected to a new window where you must verify the details.
  • If there are any errors, you can edit it. Another OTP will be sent to validate the changes.
  • Set up your password and login message.
  • Click on ‘Register’. You will receive an acknowledgement message.
  • Now, login to the portal and complete the steps for income tax return e-filing.

What Documents are Required for Filing ITR for Salaried Person?

Filing ITR-1 requires certain government-issued documents. These are: 

  • Pan card
  • Aadhaar card
  • Bank statement/Passbook
  • Form 16
  • Salary slips
  • Form 26AS
  • Form 16A 
  • Exemptions under Section 80D and 80U
  • Capital gains statement
  • In addition to these, you will require an income tax login ID and password.

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