Written by : AK Agrawal

An experiences Chartered Accountant and Techno-Functional consultant working in industry for over 10 years dealing with multinational corporate clients. He is loves reading latest trend of technology trend.

How to File Income Tax Returns Online for Salaried Employees?

AK Agrawal
AK Agrawal, Chartered Accountant

Dec 10, 2021 16:16

The economic standstill in the past two years has led the government to take radical decisions to protect individuals and businesses all over the country. This is why the deadline for income tax filing returns (ITR) was extended from July to January 10th 2021. From choosing the right tax form to filing on time, there are various courses of action involved while processing your ITR.

As this wind of change is blowing around the country’s economic decisions, in this article, we are going to navigate the nuances involved in filing income tax returns online for salaried employees.

What is an Income Tax Return?

The income tax return is a form that you have to submit to the income department of India. It includes information about your acquired income and the tax applicable during a year. The tax form that you file varies according to your residential status, total income that you have earned in the financial year 2020-21 and based on the category you belong to.
There are mainly 7 types of forms – ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7 that you are intended to pay before the deadline.

Why should you file Income Tax Returns?

Many gene-z and millennials think that ITR is not compulsory to file if you fall under tax liability, but the truth is that complying with the governmental tax regulations will only bring benefits to you.

  1. If your gross annual income exceeds the basic exemption limit, then you are obliged to file income tax returns. Check out if the rule applies to you below;
  • If you are below 60 years and your income is Rs. 2.5 lakhs.
  • If your age is above 60 and below 80 and your income is Rs. 3 lakhs.
  • If you are above 80 and your income is Rs. 5 lakhs.
  1. You also have to pay if you wish to claim your income tax refund from the government department or if you have capitalised any distant asset during the prescribed financial year.
  2. If you need to enjoy the benefit guaranteed by the government of India.
  3. If you would like to apply for a visa or a loan.
  4. If you fall under the grouping of a business entity, then you have to file ITR despite your profit and loss rate.
  5. If you do not meet the exceptional case limit, but if you fall into the following category, then you need to file an ITR;
  • If you have deposited a net amount of more than 1 crore in one or more bank accounts.
  • If you have sustained an expenditure of more than Rs. 2 lakhs on foreign travel for yourself or any other person.
  • Have spent an aggregate of more than Rs. 1 lakh on electricity consumption.

Who can use ITR 1 form?

As we have mentioned, salaried individuals have to file an ITR-1 form to file their income tax returns. You can use this form if;

  • You are a resident individual
  • Your total annual income is Rs.50 lakh
  • Own house property
  • Have additional income from alternative sources like winning a lottery or from games
  • Agricultural income up to Rs. 5000

However, you cannot use this form if you are;

  • A non-resident or a resident, not ordinary resident (RNOR)
  • Has an income above this threshold
  • Have profit from your business or profession
  • A director in a company
  • Invested in an unlisted share
  • TDS has been withdrawn on certain cash payments
  • Have foreign assets or income
  • If your income tax is deferred on employee stock options (ESOP).

What are the different ways to file ITR?

To file the income tax returns on the salaried income,you can either choose the online or offline filing platform. If you are opting for the offline mode, then use the JSON utility to complete the details and upload them on the income tax website. On the contrary, if you are using the online mode, you need the following documents;

  • Bank account
  • Aadhaar card
  • PAN card
  • Form 16
  • Investment information
  • Form 26AS

If you are filing for the financial year 12-20, then you have to choose AY20-21 from the dropdown to file the return.

Process Involved in Filing Income Tax Returns

To commence the process, you need to assess your primary source of income. As a salaried employee, your primary source is typically your monthly salary. If you fall under this category, then you can file your income tax return using ITR 1 or what is generally called the SAHAJ form. In the 2019-20 tax year, the income threshold is Rs. 50 lakhs or below. To file, you need to register on the e-file website. Apart from this, you also have to update your PAN and Aadhar number on the same website. For successful registration, you can also link your contact number with your respective Aadhaar card. Through this, it is easier to receive e-verification. If there are any pending amounts to be received from your employee, then it is ideal to link your bank account to the e-file website. By doing so, the process of filing becomes smooth, and any late credit will be automatically added to your filing of ITR.

How to file income tax returns?

  • Login to the income tax file portal on the income tax website.
  • Enter your PAN Card number, password and fill in the Captcha Code to complete the login process.
  • Select the ‘e-File menu’
  • Click on the nexus ‘Income Tax Return’.

Then you can start to fill the form on the income tax filing site

  • Your PAN Card number will be auto-populate
  • Choose your application assessment year
  • Select your ITR Form Number
  • Select ‘Filing type’ as ‘Original/Revised Return’.
  • Click on the submission key
  • And finally, click on continue to finish the return filing.

You can cross-check the information given to ensure the accuracy of the information and all the mandatory arenas are filled correctly for successful filing. Below the ‘Taxes Paid option and Verification tab’ you can find the Verification options. To submit the filing click on the ‘Preview and Submit key. Skim through the form again and make sure every portal is filed correctly before final submission. The last stage is a verification and you can do it either through online or offline mode.

For Online verification, follow these steps;

  • Select e-verify from the top menu, which is generally positioned under My account.
  • Select the form that you need to reconfirmation
  • If you are obliged with additional tax, you can simply click on ‘Pay Now’ and close it
  • You can also verify it using Aadhaar OTP if you have linked it before the process.
  • Now, jot down the OTP and click on ‘E-Verify’.

For offline verification,

  • Take a xerox copy of the form and self-attest it using your signature, date and place it at the bottom.
  • Send the document to the address that is given via speed post.
  • If you are paying any additional taxes, then attach the check as mentioned or pay it online.

File your income tax return in time with GoTaxFile!

Identifying the correct form and filing your income tax returns by compiling all the documents may be time-consuming and confusing for some. As the due date and rules are changing, it is crucial to stay updated about the changing tax scenarios. This is why you need the expert assistance of GoTaxFile. We are a holistic avenue that brushes you through the guidelines and helps you file tax complying with the involving legalities. We bring necessary deductions and create a checklist to ensure precision. Get in touch to clarify your suspicions on filing the income tax return for this financial year.

AK Agrawal
AK Agrawal, Chartered Accountant

Dec 10, 2021 16:16

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