SALARIED PERSON - INCOME TAX RETURN FILLING

WHICH ITR FORM SHOULD SALARY PERSON FILE?

The income tax return (ITR) form that a salaried person should file depends on various factors, such as the amount of income, sources of income, and whether they are eligible for any deductions or exemptions.

For most salaried individuals who earn income only from salary and interest from savings bank account, the ITR-1 (Sahaj) form is applicable. However, if the individual has other sources of income such as rental income, capital gains, or any other sources of income, then they may have to file a different form such as ITR-2 or ITR-3.

To be more specific, here are the ITR forms that a salaried person can file depending on their sources of income:

ITR-1 (Sahaj): For individuals with a total income of up to Rs. 50 lakhs, who earn income from salary, one house property, and interest income from savings account.

ITR-2: For individuals with a total income of more than Rs. 50 lakhs, who earn income from salary, house property, capital gains, or foreign assets.

HOW TO FILE THE INCOME TAX FOR THE SALARY PERSON?

Filing income tax for a salaried person involves several steps. Here's a general guide on how to file income tax in India for a salaried person:

Gather all the necessary documents:

You need to gather all the necessary documents like Form 16, salary slips, bank statements, investment proofs, and other relevant documents that are required to file your tax returns.

Documents To Be Submitted

• Form 16 from your company
• Additional Form 16
• Form 26AS Tax Credit Statement
• Aadhaar card
• Bank statement if interest received is above Rs. 10,000/-
• Salary Slip of any month during the Financial Year
• Annual Information Statement

Compute your total income:

You need to calculate your total income for the financial year by adding up all your sources of income like salary, interest income, rental income, and other sources.

ITR-1 has five sections that you need to fill before submitting it and one summary section where you are required to review your tax computation. The sections are as follows:

1. Personal Information
2. Gross Total Income
3. Total Deductions
4. Tax Paid
5. Total Tax Liability

Claim deductions:

You can claim deductions on investments made in tax-saving instruments such as Public Provident Fund (PPF), National Pension System (NPS), Equity-Linked Saving Scheme (ELSS), and others. You can also claim deductions on expenses such as tuition fees, medical expenses, and others.

File your tax returns:

You can file your tax returns either offline or online. For online filing, you need to visit the income tax e-filing website, log in with your credentials, and file your returns. For offline filing, you need to download the relevant forms, fill them out, and submit them physically to the income tax office.

Tax Paid:

In the Tax Paid section, you need to verify taxes paid by you in the previous year. Tax details include TDS from Salary / Other than Salary as furnished by Payer, TCS, Advance Tax and Self-Assessment Tax.

Total Tax Liability:

In the Total Tax Liability section, you need to review tax liability computed as per the sections filled previously.

Verify your tax returns:

Once you have filed your tax returns, you need to verify them. You can verify your returns online using your Aadhaar number, net banking, or bank account number. You can also verify your returns offline by sending the signed ITR-V form to the income tax office.

It is advisable to consult a tax expert or a chartered accountant if you are unsure about any of the above steps.