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Introduction:

Filing Income Tax Returns is mandatory for anyone falling under the government’s tax slab in India, whether you’re self-employed, a salaried professional, or a business owner. Adhering to the Income Tax Act of 1961, it’s essential to report income and expenses annually. With the convenience of online filing, salaried employees can easily comply with these rules and stay compliant with the law.

Understanding ITR: 

The Income Tax Return Act categorizes salary as a distinct head, covering various components like wages, gratuity, pension, leave encashments, provident fund (to a chargeable extent), and advance payment of salary under section 17. Income tax is calculated based on these elements. Salaried employees with a total income of up to INR 50 lakh can use ITR-1 (Sahaj) for online filing, and those earning under INR 2.5 lakh annually are exempt from tax. For individuals earning over INR 50 lakh, ITR 2 is applicable, with the choice between ITR 1 or ITR 2 dependent on income levels for salaried employees.

Tips for Salaried Employees in Online ITR Filing

If you’re a salaried employee not exempt from tax filing, familiarize yourself with these steps for ITR filing using this straightforward checklist.

Visiting the Income Tax E-Filing Portal

Start the process by visiting the income tax e-filing portal, enabling you to file your return with just a few clicks; you can easily find and access the portal online.

User Registration/Login Steps

First-time tax filers must register on the ITR e-filing portal, providing details including PAN. After registration, log in with your PAN, password, and captcha for future access, as all salaried employees are required to have an account to file ITR online.

 Selection of E-Tax Filing

Following registration and login, select the “e-file” option, where a drop-down list appears. Choose “Income Tax Returns” and then proceed with “File Income Tax Return.”

Select Your Filing Method

Upon completing this step, you will be directed to a new page where you can opt to either choose a new ITR application or resume a previously saved one

Choose the Assessment Year

During this step, you need to choose the assessment year for filing your income tax return. The assessment year is the year following the end of the financial year in which you earned income. Additionally, select “online” as the mode of filing and click to continue.

Select the Suitable ITR Form for Salaried Employees

For salaried individuals, selecting ITR-1 or the SAHAJ form, which is applicable to them, is the initial step. After choosing the form, click to proceed to the next stage.

Choose Your Filing Status

When filing ITR, as a salaried individual, choose the status option “Individual” from the available options like HUF and others.

Choose the Purpose for Filing ITR

In this step, you’ll be prompted to specify the reason for filing the ITR, which may include factors like income not covered by basic exemptions or spending over INR 2 lakh on foreign travel. Choose the relevant option and proceed to the next step by clicking.

Submit Essential Details

To successfully complete the ITR filing, you’ll need to provide and verify some details, including:

• Personal data, such as your Aadhar, bank account information, PAN, and basic contact details
• Include your gross total income as a salaried employee, comprising salary, advanced salary, gratuity, leave encashments, pension, etc., 
• Consider total deductions, including provident funds, pension, and tax-saving deductions
• Take into account the payment of taxes by both you and your employer, incorporating TDS and TCS calculations
• Calculate your total tax liability, including fees and other charges

Verification of your ITR application

Giving the ITR process all of your information is only half the job. For your submission to be accepted, you must also finish the verification procedure. There’s a few ways you can go about it:

• Verify Using Aadhar OTP
• Choose to E-Verify Later
• Verify Using Digital Signature
• Verification with Pre-Existing Bank Code

After verification, you can submit your application or save it for later previewing. Be cautious, as changes are not allowed after clicking submit. Review every area and form carefully before submission. Track your ITR status by logging into the portal later.

Conclusion

It’s essential for salaried employees to focus on accurate and timely tax filing, even with TCS and TDS deductions, as they don’t ensure immunity from additional tax liabilities. Verify your filing status and proceed with the steps unless exempt, and working with a tax professional can offer guidance, preventing errors and potential penalties in the long run.