Income Tax Returns for Salaried Employees
Posted by Ananya Nair on February 20th, 2020
Before filing ITR, you should know few things and these are –
- Importance of e-filing
- Checklist to file ITR
Importance of e-Filing for Salaried Employee
If you are a salaried employee, there are certain benefits you can get. Here we are sharing some points on importance of e-filing for salaried employees -
- It shows that you are a responsible citizen: According to Income Tax law, individuals who earn a specified amount of income every year are required to file a tax return within the ITR filing due date. Filing your tax returns is a sign that you have duly paid the tax payable and that you are a responsible citizen of India.
- To get a loan or a credit card: If you have filed your Income Tax returns regularly, it is proof that you have a regular income and have paid taxes on it. Because of this you can get a loan or a credit card easily.
- Claim tax deductions: To claim tax deductions under various sections of the Income Tax Act it is important that you have filed your Income Tax returns every year.
- Claim tax refund: Filing your income tax returns is crucial if you want to eligible for a refund and want to claim it.
- Adjust your capital gains and losses: Your capital losses can be adjusted against capital gains. Also as a taxpayer, you can ensure that in case you have any capital loss, you can carry it forward for the next e8 consecutive financial years if you file your tax returns regularly.
- Visa processing: If you are applying for a Visa, the foreign consulate asks for proof of your income and Income Tax receipts.
Checklist of Income Tax e-Filing for Salaried Employee
- Form 16: This is the most important document which your employer will provide you.
- Decide on the suitable ITR form: If you are a salaried employee, you have to fill up ITR-1 when E-Filing your taxes.
- Form 26 AS: Form 26AS is a consolidated record of the various taxes deducted from your income and deposited with the Government. You can download Form 26AS through internet banking if PAN number is mapped to that particular account.
- Savings Bank Account and FD interest: Keep the following documents ready -
- Bank statement or passbook for interest on your savings account.
- Interest certificates or TDS certificates from banks and Post offices
- Details of bank accounts and IFSC codes: You also need to keep ready your bank accounts and IFSC codes details because you need to list them in the ITR form.
Steps to follow for e-Filing for Salaried Employee
Step 1 - Login to the e-Filing website with a User ID, password. Enter Date of Birth/Date of incorporation and Captcha.
Step 2 - Go to ‘e-File’ and click on ‘Prepare and submit ITR online’.
Step 3 - Select the Income Tax return Form (ITR-1) and assessment year
Step 4 - Fill in the details and click the ‘Submit’ button
Step 5 - Upload a digital signature if applicable. Ensure that DSC is registered with e-Filing.
Step 6 - Click on the ‘Submit’ button
Step 7 - On successful submission for form, ITR-V would be displayed (if DSC is not used). Click on the link to download the ITR-V. ITR-V will also be sent to the registered email. If ITR-V is uploaded with DSC, the return filing process is complete.
If the tax return is not uploaded with DSC, the ITR-V form should be printed, signed and submitted to CPC within 120 days from the date of e-Filing. The tax return will be processed only after the signed ITR-V is received. Check your email and SMS regularly for reminders on the non-receipt of ITR-V.
The process of filing your returns online is now complete.
In case you need assistance with the ITR Filing, you can arrange a call from FinacBooks business advisors at 8800221252.
About the Author
I am Ananya Nair senior accountant at FinacBooks that offers comprehensive solutions on Company registration, MSME Registration, FSSAI Registration, GST Registration, Business Accounting and Bookkeeping for freelancers, contractors and small business owners across India.
