Income Tax Return Filing for Salaried Person (AY 2024-25)
Before we discuss how to file ITR online for salaried persons or employees, let’s understand who should file ITR.
The Income Tax Act 1961 makes it mandatory to furnish ITR for taxpayers with Income above the Basic Exemption Limit.
Therefore, any individual whose total income before deductions exceeds the basic exemption limit (currently Rs. 2.5 lakh for individuals below 60 years of age, Rs. 3 lakh for individuals aged 60 to 80 years, and Rs. 5 lakh for individuals above 80 years) is required to file an ITR.
Thus, an assessee whose gross income is more than the basic exemption limit before deductions under Sections 80C, 80CCD, 80D, 80TTB, and 80TTB is required to file
Steps to File Online ITR for Salaried Employees
To file your Income Tax Return (ITR) as a salaried individual, you need to follow these steps:
1. Gather all the required documents:
Collect all the necessary documents such as Form 16 (TDS certificate issued by your employer), salary slips, bank statements, investment proofs, and any other relevant financial documents.
2. Choose the correct ITR form:
As a salaried individual, you will typically file your ITR using ITR-1 or ITR-2 form, depending on your income sources and eligibility criteria. Review the income tax department’s guidelines to determine the appropriate ITR form for your situation.
Recommended Read: Types of ITR forms
3. Calculate your total income:
Add up your salary income, income from other sources (if any), and any additional income such as rental income, interest income, etc. Calculate your total taxable income after considering eligible deductions under various sections of the Income Tax Act.
4. Compute tax liability:
Use the applicable income tax slabs and rates to compute your tax liability. Deduct any TDS (Tax Deducted at Source) already deducted by your employer from your tax liability.
5. File the ITR online:
Visit the income tax department’s e-filing website (https://www.incometaxindiaefiling.gov.in) and register or log in with your credentials.
Select the appropriate ITR form and fill in the required details, including personal information, income details, deductions, and tax payments made.
6. Verify and submit the ITR:
Review all the entered information for accuracy. If there are any errors or discrepancies, correct them before final submission. Once you are satisfied with the information, submit the ITR online.
You may be required to digitally sign the ITR using a Digital Signature Certificate (DSC) or generate and submit an Electronic Verification Code (EVC) through Aadhaar OTP, Net banking, or other available options.
7. Keep a copy of the filed ITR:
After successful submission, download and save a copy of the filed ITR acknowledgment (ITR-V) for your records. If you have e-verified the ITR using EVC, you don’t need to send the physical copy of the ITR-V to the income tax department.
8. e-Verify ITR to complete the verification process:
e-verify ITR (within 30 days) to complete the filing process. You can e-Verify using any of the various methods – Aadhaar OTP / EVC (using a pre-validated bank / demat account) / Net Banking / Digital Signature Certificate (DSC).
If you don’t opt for the e-verify option, you need to physically sign the ITR-V and send it to the Centralized Processing Centre (CPC) of the income tax department within 30 days of filing. The address will be mentioned in the ITR-V form.
Professional advice:
It’s recommended to consult a tax professional or use the services of a chartered accountant if you have complex income sources or if you are unsure about any aspect of filing your ITR. They can provide personalized guidance and ensure compliance with tax regulations.
What are the documents required for Filing ITR for a Salaried Person?
When filing your Income Tax Return (ITR) as a salaried individual, you will need the following documents:
- Form 16: Form 16 is a TDS certificate issued by your employer. It contains details of the salary paid to you and the taxes deducted at source (TDS) on your salary. It is one of the most important documents for salaried individuals.
- Salary Slips: Collect your salary slips (payslips) for the financial year. These documents provide a breakdown of your monthly salary, allowances, deductions, and any other relevant information.
- Bank Statements: Obtain your bank statements for the financial year from all your bank accounts. These statements will help you verify your income, deductions, and other financial transactions.
- Investment Proofs: Collect proofs of investments and expenses eligible for tax deductions. This includes documents related to investments in PPF, National Savings Certificates (NSC), tax-saving fixed deposits, life insurance premiums, medical insurance premiums (under Section 80C, 80D, etc.), home loan interest certificates (if applicable), etc.
- Rent Receipts and House Rent Agreement: If you are claiming House Rent Allowance (HRA) or rent paid as a deduction, Collect rent receipts and a rent agreement copy from your landlord.
- Form 26AS: Download your Form 26AS, which is a consolidated statement of all tax-related transactions. It includes TDS deducted by your employer, TDS on interest income, TDS on rent, etc. You can download Form 26AS from the income tax department’s e-filing website or the TRACES portal.
- Aadhaar Card/PAN Card: Keep a copy of your Aadhaar Card and PAN Card handy as they are required for identity verification and linking with your ITR.
- Any other supporting documents: If you have additional income sources or specific deductions to claim, gather relevant supporting documents, such as documents related to income from house property, capital gains, business/profession, etc.
Important Note:
It’s important to note that the specific documents required may vary depending on your individual circumstances, the nature of your income, and the deductions you intend to claim. It’s always advisable to consult a tax professional or refer to the income tax department’s guidelines for the most accurate and up-to-date information regarding the required documents for filing your ITR.
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