In India, all taxpayers must submit an income tax return (ITR) to the government to declare their income and assets. The filing of an ITR serves as a means of self-declaration by individuals regarding their income status.
Since filing an ITR was cumbersome and tedious, the government introduced an e-filing portal 📱 to simplify the process and make it taxpayer-friendly 😃.
This article will explain how to file income tax returns online for salaried employees.
When does a salaried employee need to file an Income tax return?
Every assessee whose gross income exceeds the basic exemption limit before any deductions under section 80 must file ITR by the due date 🗓️ as per the Income Tax Act, 1961. An individual is not required to file an ITR if their income amount does not exceed the following limits:
|Individual’s age||Income Exemption limit|
|Up to 60 years||Rs 2,50,000|
|Between 60 years – 80 years||Rs 3,00,000|
|Above 80 years||Rs 5,00,000|
Individuals must file their income tax returns on or before July 31st of the following financial year. If the individual fails to file during this time, he may be subject to penalties.
In certain special cases, the CBDT has the authority to extend the deadline for filing returns. A technical issue on the ITR portal recently postponed the due date for filing the income tax return for the 2020-21 financial year to December 31st. Income tax can also be deducted through group health insurance policy while filing the Income Tax. For more information regarding this visit Plum Insurance.
The following are the deadlines by which individuals must file their taxes to avoid penalties.
|Due date of filing an Income tax return||Penalty for taxpayers having income below Rs 500,000||Penalties for Taxpayers having income above Rs 500,000|
|On or before August 31st||No penalty||No penalty|
|Between September 1st to December 31st||Rs 1000||Rs5000|
|Between January 1st to March 31st||Rs 1000||Rs10,000|
What documents are required to file an Income tax return online?
Individuals must collect certain documents 📝 before filing their income tax returns. The commonly required documents for filing are a copy of the PAN card, a copy of the Aadhaar card, a bank statement, and the login ID and password for the Income Tax Portal.
Additionally, salaried individuals 💸 must have the following documents:
- Form 16
- Form 26AS
- Salary slips
- Form 16A
Which ITR forms apply to salaried employees?
It is imperative to know what ITR forms apply to individuals to understand how to file the income tax return online for salaried employees. Below is a list of different ITRs for salaried employees.
Salaries employees whose total income, including income from other sources, does not exceed Rs50,00,000 are eligible to use this form. In addition, the assessees should not have more than one house property 🏠 or agricultural income exceeding Rs5000.
Salaried employees whose total income, including income from other sources and capital gains, exceeds Rs 50,00,0000 may use this form. There is also no restriction on owning more than one house property.
A salaried employee who receives income from other sources, capital gains, and business or profession will have to file a Form ITR-3. Again, there are no restrictions on owning multiple house property.
How to file an income tax return online for a salaried employee?
We are now familiar with due dates, documents required, and different ITR types. Let us learn how to file an income tax return online for a salaried employee. Here are the steps to follow.
- Those filing an ITR for the first time need to register on the portal using their PAN and Aadhaar number.
- Assessors then can log in to the e-portal by using their user ID and password and entering the Captcha.
- The next step is to select “e-file” under the menu section. Then click on “Income Tax Return” and select the appropriate assessment year.
- Choose the applicable ITR form and download it.
- After that, select the filing type. Select “Original” if the return is not being revised. Click “Continue”.
- Fill in the next page carefully with all the details regarding your personal information, taxes, exemptions, and deductions. As in “Gross Total Income”, pick all the exemptions that apply to you. Then, select all the relevant income from other sources, such as dividends, rental income, and more. Under “total deductions”, enter all applicable deductions. Assessees need to complete these fields only if they are not already captured by Form 16.
- Next, in the “Tax Paid” section, provide the details of TDS, TCS, and advance tax. If form 26AS details are captured, these data will be prefilled.
- Click on “Proceed” after confirming the details.
- There will be a tax summary generated, showing all tax liabilities. The individual must pay the tax dues, and in the case of a refund, the portal will send a refund request to the assessee’s bank account.
- Check the return and submit it. The screen will flash “Successful Filing”. The portal will generate an acknowledgment form, ITR V.
- The last step is to validate the return, with the help of net banking, the Aadhaar OTP, a registered mobile number, or a bank ATM 🏧. An assessee can also send a physical copy of the acknowledgment to the Centralized Processing Center(CPC) in Bangalore.
In a nutshell
There is always an advantage to filing an income tax return, regardless of the assessee’s tax liability. Among the benefits of submitting ITRs are the convenient application of loans, tax refunds, adjustment of capital gains, and more. You can always consult a financial advisor if you have any questions or doubts.