How To File Income Tax Return (ITR) Online For Salaried Employee?
Filing income tax returns on time is an important financial activity for salaried individuals in India. However, the procedure for submitting taxes is still bounded by a number of misconceptions and a general lack of information. So, today we are here to answering all questions on how to file income tax online for salaried employees.
Filing Income Tax Returns Online for the first time can be a difficult task, but when you are aware of the procedures for filing returns, you can make it a matter of just a few minutes. For a salaried employee form 16 is very important for filing returns as it certifies the deduction of “ Tax deducted at source”.
When should a salaried employee file ITR?
If you work as an employee, you should be aware of more than just how to file an IT return for a paid individual. You should be aware that such a filing is only required if your taxable income exceeds the exemption limit. As of 2021, the exemption limit under both the old and new tax regimes is ₹2,50,000. So, if you make more than ₹250,000 in taxable income, you must file ITR before the due date.
Things to remember while filing IT returns
· Do not wait for the due date to file the IT return.
· Always collate all the documents needed to file ITR
· Pick the correct IT return form. This is important.
Benefits of filing Income Tax Return for Salaried Employees
There are many benefits pursuant to filing the tax return. Here we are taking
a look at some of them:
1. Claiming Refund:
Once you file your Income Tax Return online, you can claim the Income Tax Refund. It is mandatory to file Income Tax Return, in order to get Income Tax Refund
2. Processing of documents:
While applying for loans, the eligibility and quantum of loan would depend on one’s income which can be established through filed ITRs.
3. Visa processing
At the time of the visa interview, several foreign consulates require you to furnish your ITR receipt for the last couple of years.
4. Adjustment of capital gains or losses
Filing income tax returns is particularly important if you invest in the stock market and buy and sell shares. Furthermore, when you file your ITR for a particular financial year, you can carry forward your adjusted short-term capital losses for up to 8 years.
5. It is an income proof or a net worth certificate
Salaried persons get Form 16 as their income proof but businessmen, consultants and partners of firms do not get Form 16. Hence, ITR receipts become an even more important document for them, provided their annual income exceeds the basic exemption limit of Rs 2.50 lakh. For all sorts of financial transactions, ITR receipts will be the only proof of income and tax payment for the self-employed.
Documents Required to File Income Tax Return For Salaried Employee
· Aadhaar — Number
· PAN — Number
· TDS Certificates — From 16 or Form 26AS
· Bank Account — Account number, IFSC details, bank name, etc.
How to File ITR Online for Salaried Person?
· Visit the e-filing website: https://incometaxindiaefiling.gov.in/
· Register at the website using the PAN number. It becomes your ID.
· View Form 26AS. It shows the tax deducted by the employer. The TDS on Form 16 should match this amount.
· Download the ITR Form that is applicable to you. If you do not know the right form, consult Power Of Factorial.
· Complete the entire form by filling in the required details and then submit it.
· Click the Calculate Tax button, to know your payable amount.
· If applicable, pay the required tax.
· Enter the challan details on the tax return section of the form.
Conclusion
So, now you know the value of filing Income Tax Return online, it is recommended for the taxpayers who do not have taxable income to file voluntary Income Tax Filing in Bangalore, in order to avail the above-mentioned benefits. So, be wise and file your ITRs on time. We hope that this guide answered all questions on how to file IT returns online for salaried employees.
