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File Income Tax Return - ITR 1 Online for Salaried Employee
Income from salary
It is important for salaried individuals to file their returns. Individuals whose annual income is below the taxable should also file their ITR. There are a great many advantages of filing the income tax return such as availing loans, traveling abroad, claiming a refund, etc. In this article we discuss how to file income tax return online for salaried employee.
Contrastingly, not filing your income tax return despite having taxable income can make you liable for penalty and prosecution provisions of the income tax act. Below, we list down some of the important points to remember for salaried persons while filing their ITR.
The ITR 1 form has 5 sections that are required to be filled before submitting it. The sections are mentioned below:
Gross Total Income
Total Tax Liability
How to File ITR 1 Using JSON Utility from AY 2021-22?
After an individual has downloaded the Offline JSON Utility on their system, they will be taken to the Homepage for filing the Income Tax Return.
Click on Continue
After you install the utility, you will land on the homepage. Now click on continue to file your ITR for AY 2021-22
Select the applicable option
You will find 3 tabs namely: Returns, Draft Version of Returns and Pre-filled Data. Select the option that is applicable to and click on ‘File Return’
Click on ‘Import Pre-filled Data’
Now, you have to select the ‘Import Pre-filled Data’ option. This will import all the data that you have already saved on your system and will pre-filling information in the ITR
Enter the PAN and Assessment Year
Now, enter the PAN details of the taxpayer and select the assessment year, and then click on proceed
Download the ‘Pre-filled JSON’
Next, download the pre-filled JSON from the e-filing website by logging into your account.
Upload the Pre-filled JSON File
Now, export the pre-filled JSON file from your system and upload it and then click proceed
Click on ‘File Return’
Now you will be redirected to the file ITR screen which will contain the basic pre-filled information from the JSON file
Select the Status
Next, select the applicable status and click on continue
Select ‘ITR 1’
Now from the options given select ITR 1
Click on ‘Let’s get started’
In order to start filing your ITR, click on ‘Let’s get started’
Fill the applicable and mandatory fields of the Form
Enter in all the necessary and applicable details, validate all the tabs of the ITR form and then Tax will be calculated
Now Submit your Return
After you have confirmed all schedules, you can submit and preview your return
Download or Print the Preview
You can now download or print the preview on your system for your reference
Click on ‘Proceed to Validation’
Now return to the screen and click on ‘Proceed to Validation’ to validate the return
Validate the Errors
If there will be any errors, taxpayer will have to validate that, post that one can “Download the JSON”
File ITR 1 Online using the eFiling Website
Log in to the e-filing portal using your user ID & password.
Click on e-file > Income Tax Returns > File Income Tax Return from the dashboard
Select the appropriate assessment year
Select the online mode of filing the ITR
Select the applicable status and click on proceed
Select the ITR 1 option from the list provided
Once you have selected the ITR applicable to you, note the list of documents needed and click Let’s Get Started
Select the checkboxes applicable to you and click Continue
Review your pre-filled data and edit it if necessary. Enter the remaining / additional data (if required). Click Confirm at the end of each section
Enter your income and deduction details in the different section. After completing and confirming all the sections of the form, click Proceed
In case there is a tax liability, you will be provided with the options to pay it at that instant or you can pay it later
After paying tax, click Preview Return. If there is no tax liability payable, or if there is a refund based on tax computation, you will be taken to the Preview and Submit Your Return page
On the Preview and Submit Your Return page, enter Place, select the declaration checkbox and click Proceed to Validation
Once validated, on your Preview and Submit your Return page, click Proceed to Verification
On the Complete your Verification page, select your preferred option and click Continue
On the e-Verify page, select the option through which you want to e-Verify the return and click Continue
How to File ITR with Multiple Form 16?
A taxpayer may have multiple Form 16 if they changed jobs during the financial year. They get Form 16 from both their current employer and past employer at the end of a financial year. The taxpayer needs to File ITR-1 on the Income Tax e-Filing portal even though he has received Multiple Form 16.
Steps to e-File return with Multiple Form 16
Collect Form 16 from respective employers. A lot of people assume that they can’t be issued Form 16 from the previous employer since they have left the job during the year. But you should contact your previous employer and ask for form 16. You can not file your ITR without knowing the taxable salary income earned from all the employers.
Check your Form 26AS and compare TDS amount with each Form 16. If there are any discrepancies between the details mentioned on Form 26AS and Form 16, report the same to your employer before filing your ITR.
Add up the salary particulars(basic salary, perquisites, allowances etc) from multiple Form 16 and recalculate your tax liabilities. Since Individual employers only consider salary payment made by them, your total tax liability might be different after adding up the multiple salary incomes during the year.
For Example – If employer A paid the salary of INR. 5,50,000 then he will deduct TDS on INR. 5,50,000 at slab rate. Now if you join employer B who has made payment of INR. 10,20,000 then he will deduct TDS on INR. 10,20,000 at slab rate. Whereas your actual taxable salary income will be INR. 15,70,000 and it will be charged to tax as per applicable slab rates.
If you hadn’t mentioned correct/complete details regarding your tax-saving deductions to your employers, there are chances of excess/short TDS deductions. Your tax liabilities might change after calculating the combined income and deductions from multiple employers. So don’t forget to include all chapter VI-A (Section 80) deductions while calculating taxable income.
If you’re falling short in TDS paid, you need to pay the difference, plus interest u/s 234A, 234B, 234C as Self-Assessment tax before you file your return. After payment of self-assessment tax, you can add the details of the challan in return and file your ITR.
If there’s an excess in TDS paid after combining the income and deductions, you can claim for refunds in your ITR.
You can also ask your current employer to issue you a consolidated Form 16 where they’ll club your income details from your previous employer using your Form 12BB – in which case your current employer will calculate & deduct TDS as per your combined total income.
e-File Income Tax Return without Form 16
Employers may fail to provide Form 16 to their employees due to various reasons. In such a case, employees find it difficult to file an ITR without Form 16. This is because they don’t know their taxable salary and TDS amount.
Follow these steps to e-file your ITR without Form 16
You can know your taxable salary for a particular financial year from Line No. 6 of Form 16 Part-B. But when you have not received Form 16 from your employer, you need to calculate your taxable salary for a financial year from payslips
Add up all the gross salary received during the year
Deduct the allowances to the extent exempt from tax such as
HRA, LTA, Conveyance Allowance, and other allowances
Deduct any tax on employment and statutory deduction paid by the employer
In case you changed jobs during the year, you need to consider the total gross salary from all the employers while calculating taxable salary income.
When you are an owner of a house property and if it is let out, then you must report the rental income in your ITR. It is covered under the head ‘Income from House Property’. When you have income such as interest from bank deposits, Recurring Deposits, etc. it will be included under the head ‘Income from Other Sources‘. You can check your passbook, Form 16A and Form 26AS to make sure that you are not missing any income.
Chapter VI-A(Section 80) Deductions will help you save tax. Income Tax Act allows the deduction to taxpayers for certain tax-deductible investments/expenses. For eg. Investment in PPF, ELSS, National Pension Scheme, etc. And expenses like a life insurance premium, medical insurance premium, higher education loan, etc. are allowed as a deduction under chapter VI-A. Keep your investment documents/payment receipts handy while filing the return.
Form 26AS is a tax credit statement. It contains details of self-assessment/advance tax deposited by you as well as TDS deducted and deposited by others on your income. It is important to go through Form 26AS and make sure that you are not missing out on any tax credits while filing your IT return.
After adding all the taxable incomes for a particular year and claiming all eligible deductions and considering all TDS credits, If there are tax dues then pay the same to the IT Department. Enter the tax payment details in IT Return. This tax is known as Self Assessment Tax. Remember to pay tax dues before filing your return otherwise, your return will be considered as a defective return. In case you have paid excess tax during the financial year, you can claim a tax refund while filing your ITR.
Now you are all set to file your tax return. You can file your tax return online with Quicko in a jiffy. It is the easiest way to file your return without any hassle. It is important that you file your income tax return before the due date to avoid penalties and non-compliance.
How to file income tax return online for salaried employee?
Individuals can file their tax returns by preparing it on their own and submitting it on the Income Tax e-Filing portal. They can also prepare it offline with the help of the ITR preparation utility. The third option would be to file through an e-return intermediary (ERI) like Quicko.
How to file ITR if I only have Form 16 from my current employer and not from my previous employer?
First, add the salary income of the current employer as per Form 16. And then calculate the taxable salary from the previous employer as per salary slips and file your ITR.
Can I file a return after the Due Date?
Yes. You can file a ‘Belated Return’ after the due date. You can file a belated return before the end of Assessment Year or before the completion of the assessment whichever is earlier. Late filing fees as per section 234F will also be levied.