Hi, there Dear Taxpayer. If you looking to find out and understand How to File Income Tax Return for Salaried Employee then you have landed at the right place. In this easy-to-understandable article, we will discuss all the steps in an easy way about income tax return online for salaried employees.
How to File Income Tax Return for Salaried Employees ?
Timely filing of income tax returns is a crucial financial task. For all salaried employees, it is very important to file their income tax returns on time. It is also necessary to file an income tax return online for many purposes such as to claim a refund, travel abroad (visa application process), and apply for loans. This article will discuss how to file income taxes online for salaried employees. However, there are still many misconceptions about the process of filing returns because of a lack of information. Today, we will answer all your questions about how to file income tax returns online. And we will discuss everything in detail about filing of income tax return in simple steps.
What are the documents required for income tax return filing?
Although, the filing of return is not a difficult task, keeping the following documents handy while filing the income tax return will make the task very easy:
- Pan Number
- Form 26AS
- Form 16A, 16B, 16C
- Salary Pay Slips (of any month – for calculating deductions and exemptions)
- Statements from banks (For calculating the interest earned from savings/ deposit accounts)
- Certificates of interest (from Deposits)
- TDS certificate
- Tax-saving investments proof.
How to File Income Tax Return Online for Salaried Employees Step by-Step?
We have now covered the basics of filing income tax returns. Let us now discuss how to file ITR online for salaried persons. These are the steps to follow:
Step 1: Navigate to the e-filing portal of the Income Tax Department.
Step 2: Log in to the portal using your user ID (PAN), and password. If you are a new user then you can register with this portal using your Permanent Account Number, which will later serve as your user ID.
(i) On the home page navigate to “e file > Income Tax Returns > File Income Tax Return”.
(ii) Now select the Assessment Year from the drop-down menu, and choose the appropriate assessment year. (Assessment Year is the next year to the previous financial year. Example – for the F.Y. 2022-23 the A.Y. would be 2023-24).
(iii) Select the mode of filing as “online”, which is also recommended by the income tax department. (We also recommend doing it in the online mode because most of the data available with the Income Tax Department will come as pre-filled, hence the chance of committing a mistake would be marginalized)
Step 4: – Click on “Start New Filing” if filing afresh (if it is not a revised return)
Step 5: Select “Individual” and click on “Continue.”
Step 6: Next, You will need to choose the correct income tax return form (ITR). Salaried employees can choose ITR-1, ITR-2, or ITR-3 (which we will discuss later in this article). Select the ITR form and click on “Let’s get started”
Step 7: Here you will be prompted with a question – “Are you filing the income tax return for any of the following reasons?”. Here select the reason for filing. If you are not able to decide, then click “Others” and “Continue”.
Step 8: You will now land on a page that says -: “Let’s validate your pre-filled return”. Click on the Personal Information column on this page and do the following on this page:-
(i) Cross-check your personal details (Address, Mobile Number, and Email Address) and edit if required (The confirmation of filing of return as ITR V will be received on this email id).
(ii) Select the nature of employment from the drop-down menu.
(iii) Select the filing section as 139(1) – (It will be auto-selected in most cases).
(iv) Select “NO” for the question “Are you opting for a new tax regime u/s 115BAC ?”, if you want to claim deductions and losses. (Else, if you do not want to claim deductions/ and losses, you may choose “Yes”).
(iv) In the Bank details column select one bank account which is validated. (Your refund will be received in this Bank Account).
(v) Now click on “Continue”.
Step 9: You will see that on the “return summary” page, the personal information column has now got a green tick with confirmed written on it. Now click on the column “Gross Total Income” and do the following on this page:-
(i) Select “Yes” or “No” from the five different exemptions mentioned on the page (Note: you may find pre-filled data in a few columns, please verify them, it may have been submitted by your HR/ Pay Office to the department, which will tally with your form 16 data). Then click on “Continue”.
(ii) You will now land on the page – ” Verify your income source details”.
(iii) Most of the data will be auto-filled here (It will be as per form 16 provided by your employer). The details which will be available there are Income from Salary, Income from House Property, Income from other sources, and exempt income.
(iv) You may fill in the “Interest paid on housing loan” in the column “Income from House Property” to claim a housing loan deduction.
(v) After filling/ checking all the data, click on “Confirm”.
Step 10: You will now again land on the “return summary” page, the personal information column and Gross Total Income have now got a green tick with “confirmed” written on them. Now click on the column “Total Deductions” and do the following on this page:-
(i) Fill in all the deductions, as available in your form 16 and you may also check in your salary slip for any month of the previous year. Then click on “Continue”.
(ii) On the next page “Verify your deductions” check all the details and fill in whichever is required, then click Confirm.
Step 11: You will now again land on the “return summary” page, the personal information column, Gross Total Income, and Total Deductions columns will now have got a green tick with “confirmed” written on them. Now click on the column “Taxes Paid” and do the following on this page:-
(i) Verify the TDS amount deducted by your employer (available in form 16) matches with the pre-filled data on this page.
(ii) Then click on “Continue”.
Step 12: You will now again land on the “return summary” page, all the columns will have now got a green tick with “confirmed” written on them except “Total Tax Liability”. Click on “Total Tax Liability”.
(i) Here you will land on the “Verify your tax liability details” page.
(ii) Check all the prefilled data here and click on “confirm”.
Step 13: You will now again land on the “return summary” page, all the columns will have now got a green tick with “confirmed” written on them.
Congratulations!! If you have reached this step then we are now almost done with the filing of the return, except for a few more simple steps. Click on “Proceed” now to finish filing your return of income.
Step 14: The page will now show the eligible amount of refund/ tax due to the government, as per the details filled in earlier by yourself.
Step 15: Now Click on Preview Return. On the next page click on the check box and click on “Proceed to Preview”. Here you will be able to see the finally prepared “Income tax Return for salaried employee”. You may proceed back and do corrections( If needed) or you may “Proceed to validation”
How to e-verify income tax return?
You must now verify your return using any of the following modes:
- Aadhaar OTP
- Number of bank account
- Number of the Demat account
- Register mobile number
- Net banking
- Bank ATM
- Posting a printed copy of the acknowledgment to the Centralised Processing Centre in Bengaluru (CPC).
This is the full process of How to File Income Tax Return Online for Salaried Employees.
ITR forms for individual salaried employees
The income tax department categorizes taxpayers based on their different income slabs. This helps in deciding which ITR form to file. There are different ITR forms available for individual salaried employees. As discussed below, salaried employees can choose from any one of these ITR forms:
ITR 1 Form: Salaried Employees with a Total Income of Up to Rs50,00,000. Must file their income tax returns using ITR 1 form. The total income is the sum of all earnings from ‘Income From Other Sources’, as well as salaries. An individual must not own more than one property in order to file an ITR 1 form. His/her annual income from agriculture must not exceed Rs5,000.
ITR 2 Form: It is for salaried individuals whose income exceeds Rs50,00,000. Individuals with more than one property should file ITR 2 form. You can also file ITR 2 form in your income tax return if you earn income from capital gains or other sources. However, this does not apply to profits or gains from a business or profession.
ITR 3 Form: If you earn income from salary, business, profession, or house, or capital gains, you must file an ITR 3 form.
When is the Income tax return filing due date?
The due date of filing an income tax return by a salaried employee/ Tax Payer is generally 31st July of the year succeeding the financial year. An employee should be more knowledgeable than simply how to file an IT Return for a salaried individual. This filing is only required if your taxable income exceeds the exemption limit. This exemption limit has been increased to Rs2,50,000 as per the new and old tax regimes. If you have more than Rs2,50,000 in taxable income, ITR must be filed before the due date.
Benefits of filing the income tax return
This question is probably the most frequently asked after how to file an Income Tax Return for a salaried worker. Let’s now discuss the reasons salaried workers should file ITRs and highlight the benefits.
1. Adjustment of capital gains and losses
If you are an investor in the equity market, and you buy or sell shares, filing income tax returns can be especially important. The adjusted short-term capital loss can be carried forward up to 8 years after you submit your ITR for a financial year.
2. Claim tax refunds
After the tax has been deducted, tax refunds can only be obtained by submitting the IT return for the financial year. After you submit returns and claim the tax deduction that you desire, TDS refunds for fixed deposits or rent payments will be initiated.
3. Loans can be applied for quickly and easily
An income tax return is not just a financial statement. It also details your annual earnings. Banks and NBFCs will often request copies of ITRs in order to grant loans such as home loans or vehicle loans. Filing returns even if you have no taxable income will increase your chances of getting a loan approved.
4. Visa Processing
Many foreign consulates will require that you provide your ITR receipt from the past two years at the time of your visa interview. This document proves that the applicant has a substantial source of income in India and strengthens his/her chances of approval for a visa.
Income tax return filing last date for A.Y. 2023-24
The individual income tax return filing last date to file income tax returns for individual taxpayers is generally July 31st of the following financial year. For FY 2022-23, for example, the due date for filing an ITR is July 31st, 2023.
This date can be extended by the Central Board of Taxes (CBDT) if necessary. For FY 2019-2020, the last date for filing ITR was July 31, 2020. However, this was extended to December 31st, 2020 due to Covid-19.
Did you miss the deadline to file your income tax returns? Don’t panic. Let us show you how to file ITRs for salaried employees after the due date.
1. File a late return
A belated return is a form of income tax return that can still be filed after the due date. A belated return can be filed in the same way as an ITR that was filed before the due date. You must choose ‘Return Filed Under Section 139(4)’ when filing a belated ITR return.
2. Pay a late filing fee
A penalty is attached to the late filing of income tax returns. You will be subject to a late filing fee as per Section 234F of the Income Tax Act 1961, which can vary in amount.
Below is a table that shows the average penalty payable to different taxpayer categories:
|Deadline to File an Income Tax Return||Penalty for Taxpayers With Less Than Rs. 5,00,000.000 Total Income||Penalty for Taxpayers With More Than Rs. 5,00,000.00 of Total Income|
|Before or on July 31st||In this instance, a late fee will not be charged.||In this instance, a late fee will not be charged.|
|From September 1 through December 31||Rs1,000||Rs5,000|
|From January 1 through March 31||Rs1,000||Rs10,000|
The main takeaway from this table is that anyone with a net income of less than Rs. 5,00,000 should pay Rs. 1,000 as a late filing fee. These taxpayers are exempt from penalties. Additionally, the maximum penalty for late returns filing is Rs. 10,000
You will lose certain deductions and setoffs when you file a return after the deadline (except for house-property losses).
Be wise and make sure you file your ITRs in a timely manner. This guide should answer all your questions about how to file income taxes online for salaried employees.
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Q: What is an ITR V Form?
A: ITR V is the acknowledgment form that is generated after the successful filing of the Income Tax Return Online
Q: How to file an income tax return?
A: The complete procedure of filing the Income Tax Return Online is given in the blog www.investorgyan.in
Q: How to get an income tax return copy online?
A: The Income Tax return Copy can be downloaded from the returns section of the e-filing website of the Income Tax Department.
Q: How to download the previous year’s income tax return?
A: The Previous year’s Income Tax return can be downloaded from the returns section of the e-filing website of the Income Tax Department.
Q: How to revise your income tax returns?
A; Revised return can be filed u/S 139(4) by logging into the returns section of the e-filing website of the Income Tax Department.