How to File ITR Online as a Salaried Person?
When it comes to filing income tax returns (ITR), the question on most taxpayer's minds is "How to file an income tax return for salaried individuals. In this informative post, we are going to tell you how to file your tax return online if you are a salaried person. When you are a salaried employee, the main source of your income is salary, and you may have interest income from the bank.
What is Income Tax Return (ITR)?
ITR (Income Tax Return) is a document that needs to be filled by every taxpayer with the tax authority every financial year. Income tax return contains the complete details of income sources and the tax liability on them. We have 7 different types of ITR forms such as ITR1, ITR 2, etc. Remember, the applicability of these forms depend on a variety of factors like the amount of income and income sources.
Benefits of filling your ITR on time
- Filing your tax return regularly means you have a regular income and you have paid your taxes on it. It will help you get loans from the bank easily.
- You can claim deductions under different sections of income act if you have filed your income tax return on time every year.
- Filing your tax return on time means you are eligible for a refund and can claim it.
- People who are applying for a Visa, then the overseas consulate would need proof of your income and income tax receipts are needed.
- If you file your ITR regularly, you can carry forward any capital loss for the next 8 consecutive financial years in case you have such losses.
What ITR Forms are applicable for a salaried person?
The Income Tax Return for individuals depends on their income as well as the category of taxpayers which they belong to. The forms which are relevant to a salaried person are ITR1 and ITR2.
ITR1: it is also known as SAHAJ form and needs to be filled by working taxpayers whose total yearly income doesn't exceed Rs. 50 lakh. Any person whose income from agriculture does not exceed Rs. 5000 or who has a one house property also needs to submit ITR1.
ITR2: This form is for those whose income is above Rs. 50 lakh. Also, the income source can involve income from capital gains or even the agricultural income can exceed Rs. 5000. If you have made an investment in unlisted equity shares, then you have to file ITR2.
How to file your income tax return online?
There are two ways for ITR filing online in India.
- Download the ITR preparation software and prepare the return using the downloaded software and later generate the XML and then upload it.
- Directly enter all your details in an online form and submit it. Keep in mind, the second method is available only for ITR1 and ITR4 so that if you are a salaried employee then you can use it. Filing ITR online is a better option than the first one, if you need my personal opinion. If you still facing any issue in ITR filing in Delhi, then our professional team will happy to assist you.
Steps of filing ITR Online:
Step1: Login to e-filing web portal with your user id, password, date of birth or date of incorporation and captcha.
Step 2: Go to the e-file and click on "prepare and submit ITR online".
Step 3: Now select the ITR form (ITR1 or ITR4s) and the assessment year like 2019-20.
Step 4: Now Fill all your details and click on the submit button.
Step 5: Now upload your Digital signature certificate or DSC if applicable. Ensure the DSC is registered with e-filing. Click on the submit button.
Step 6: ITR-V would be displayed if the digital signature certificate is not used on successful submission. Now click on the link (send to your registered email id) and download the ITR v. If ITR is uploaded with DSC, the tax return filing process online is done.
Step 7: In case the tax return is not uploaded with DSC, then you can print the ITR-v form and sign and submit it to CPC within 120 days from the date of e-filing.
Step 8: The tax return will be processed upon the receipt of the signed ITR-V, so check your email or sms for reminders on non-receipt.
Step 9: The process of preparing and submitting the income tax return online is completed.
Documents required for filing ITR online for salaried employees
There are six important documents required for Income tax return filing for individuals. They are PAN/ TAN application card, Bank account details, form 16, Aadhar card, investment details and form 26AS.
What are the checklists of income tax filing online for salaried employees?
When you are filing ITR online, you need accurate information on your income, taxes and deductions. Let's take a look at the checklist when e-filing your income tax return.
- The most vital document which your employer will provide you is form 16.
- People who are salaried employees and do not have income from any other sources have to fill up ITR 1 when filing tax returns online.
- Form 26AS is a consolidated record of a variety of taxes deducted from the income and deposited with the concerned authority.
- For saving bank account and FD interest, you need a few documents such as a passbook for interest on your savings account, keep ready of all your bank details with IFSC code, interest certificates or TDS filing return certificates from post offices and banks.
According to income tax law, people who earn a specified amount of income every year have to file a tax return on that amount within the due date. Filing your income tax return is a sign that you have paid the tax payable and that you are a loyal and responsible citizen of India.
If you need any information or help regarding ITR filing in India, contact ExpertBells now.