How to File Income Tax Return Online for Salaried Employees?

When it comes to taxation and financial responsibility, one of the essential obligations for a salaried employee is to file their Income Tax Return (ITR) diligently. It's a process that ensures compliance with the law while allowing individuals to manage their finances effectively. This ITR filing guidelines for salaried employees aim to simplify the complex process of online tax filing, specifically for salaried employees. We'll walk you through the steps and requirements, making the complex task of ITR filing more accessible.

Contents

Who is a salaried employee for e-filing of ITR?

A salaried employee, for income tax purposes, is a person who receives a fixed amount of income from an employer for inducing services under a contract of employment. The income may include salary, allowances, perquisites, and other benefits. The salaried employee is liable to pay income tax on the income earned from such employment after deducting the eligible deductions and exemptions under the Income Tax Act 1961. The salaried employee has to file an income tax return every year, reporting the details of income, deductions, taxes paid, and refund claimed, if any.

What are the Basic Exemption Limits for FY 2023-24?

Individuals with an annual income of Rs. 3,00,000 or higher are required to file their Income Tax Returns (ITR) under the new tax regime irrespective of their age.

Under the old tax regime, the basic exemption limits were as follows:

You must file your ITR if:

What are the required documents for a salaried person to file an ITR?

You need to collect all the documents that are relevant to your income tax filing. These include Form 16 (TDS certificate) and any other documents that show your income, deductions, and exemptions. However, if you don’t have Form 16, you can still compute your income using other documents like salary slips, bank statements, and investment statements.

You can also get information about your TDS and TCS from Form 26AS, which is available on TRACES through the Income Tax Portal.) Keep Form 16A, Exemptions under Section 80D and 80U, and Capital gains statement handy if applicable.

Which ITR form is applicable for salaried employees?

While ITR-1 and ITR-2 are typically suitable for salaried taxpayers, the choice of the appropriate ITR form depends on the nature of one's income, and it is essential to analyze this to determine the correct form to use for tax filing.

How to file income tax returns online using Tax2win portal for salaried employees?

Here's a simplified guide on how to file ITR for salaried employees using Tax2win:

When should a Salaried individual File ITR?

If you're employed, it's important to know that you should only file an income tax return when your income goes beyond a threshold limit. For the financial year 2023-24, the old tax regimes have a basic exemption limit of ₹2,50,000. However, the exemption limit under the new tax regime has been increased to ₹3,00,000.

Why Should Salaried Individuals File Income Tax Returns?

Claiming Refunds: When the tax you've paid in advance, based on your self-assessment, is more than the tax you owe according to the regular assessment, you're eligible to claim a refund. Filing an Income Tax Return (ITR) for a financial year allows you to request a refund for excess tax deductions, including refunds related to Tax Deducted at Source (TDS) on rent or fixed deposits.

Simplified Loan Applications: An ITR is a crucial financial document that details your annual income. Banks and financial institutions often require it as proof when you apply for loans, such as home loans. Even if your income isn't taxable, filing an ITR can improve your chances of loan approval.

Visa Application: Some foreign embassies may ask for your ITR receipts from the past two years when you apply for a visa. This document demonstrates your income source in India and can enhance your chances of obtaining a visa.

Managing Capital Gains or Losses: Filing an ITR is particularly advantageous for individuals who invest in the stock market. Based on the ITR you submit for a financial year, any short-term capital losses can be carried forward for up to eight years.

Now that you know how to file your Income Tax Return online if you still need assistance while filing your ITR, our team of tax professionals (Online CAs) can help you understand taxes while filing your ITR with 100% accuracy and maximum tax refund. Book eCA Now!

Frequently Asked Questions

Q - How do I choose my ITR type?

Depending on the kind of taxpayer you are, such as individual, HUF, company, etc., you need to select the ITR form that suits your income source type and total income. You also need to compute the tax liability and pay it before filing the ITR.

Q - What is TDS in income tax?

Tax Deducted at Source or TDS is a system where a person (deductor) who has to make a payment to another person (deductee) will subtract tax from the amount and give the rest to the deductee. The deductor will then pay the tax amount to the Central Government.

Q - Can we file ITR without Form 16 and salary slips?

You can file your Income Tax Returns even if you don’t have Form 16. You just need to use other documents like your salary slips, Form 26AS, AIS, TIS, and investment proofs.

Q - Is ITR 1 for salaried employees?

If you are an individual who earns up to Rs 50 lakh from the below-mentioned sources, you can use the ITR-1 form to file your tax return:
Salary or pension income,
One house property income (except when you have a loss carried forward from previous years)