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File Income Tax Return Online for Salaried Employee

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Maharshi Shah

Income from salary
Income Tax
Salaried Individuals

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.

Why Should Salaried Person File ITR?

It is mandatory to file the ITR if the gross total income exceeds the limit of INR 2,50,000 in the FY, subject to certain conditions. The limit for senior citizens is INR 3,00,000. Furthermore, it is also important to file an ITR for such individuals to:

Which ITR should a Salaried Person File?

The Income Tax Department (ITD) requires salaried individuals to file the ITR 1 Form. In this case, their total salary should be under INR 50 lakhs, inclusive of both salary income and income from other sources. Furthermore, the individual should not have more than one house property and their income from agriculture (if any) should not exceed INR 5,000. They can also file ITR 2 if they have income from salary, more than one house property, income from capital gains and IFOS. Individuals can file ITR 3 if they receive income from business and profession in addition to the above mentioned incomes.

Tax Deducted at Source

TDS will be deducted by the employer. The taxpayer can verify the same on the TRACES website. It is important to verify that the details of TDS are similar to that on the Form 26AS. If there is any mismatch in these details then there will be an issue whilst claiming the refund.

Submission of Correct Proofs

The taxpayer person must have the proofs of amounts they claim as deduction. Some examples of proofs are:

Moreover, furnishing wrong information could lead to a penalty ranging from 50% to 200%.

Investment Planning on Claiming Relevant Deductions

Taxpaying individuals can claim deduction u/s 80C which would comprise of life insurance premium, deposits on money in provident fund, invests in mutual funds, repays house loan, etc, can use up the limit of INR 1,50,000 provided under this section. To claim higher deductions, taxpayers would have to invest in other sections. These sections are as National Pension Scheme (NPS), subject to specific conditions, can allow taxpayers to claim an additional deduction of INR 1,50,000.

Disclosure of Income

Individuals should disclose all sources of income they receive including those from prize or lottery winnings, rental income, etc. If there is any income the taxpayer is earning via savings bank deposit, recurring deposit, fixed deposit or income from other sources such as business or profession too.

Filing Return within Due Date

If the taxpayers do not file the return within the due date, they could attract a penalty of INR 5,000 or more at an interest rate of 1%. Additionally, they could also lose the benefit of a set of losses if any.

Furnish Updated Particulars

It is necessary to input the valid or most recent details such as that of:

Moreover, every type of communication taking place by the ITD with the taxpayer will be done through the email ID and phone number provided by the taxpayer.

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.

  1. Click on Continue

    After you install the utility, you will land on the homepage. Now click on continue to file your ITR for AY 2021-22HomePage to file ITR

  2. 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’File ITR

  3. 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 ITRSelect Pre-filled ITR

  4. Enter the PAN and Assessment Year

    Now, enter the PAN details of the taxpayer and select the assessment year and then click on ‘Proceed’Add PAN and AY

  5. Download the ‘Pre-filled JSON’

    Next, download the pre-filled JSON from the e-filing website by logging into your account.Download Prefilled JSON

  6. Upload the Pre-filled JSON File

    Now, export the pre-filled JSON file from your system and upload it and then click on ‘Proceed’Upload JSON

  7. 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 File ITR

  8. Select the Status

    Next, select the applicable status and click on continueSelect the status

  9. Select ‘ITR 1’

    Now from the options given select ITR 1Select ITR1

  10. Click on ‘Let’s get started’

    In order to start filing your ITR, click on ‘Let’s get started’Click on lets get started

  11. 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 calculatedEnter necessary details

  12. Now Submit your Return

    After you have confirmed all schedules, you can submit and preview your returnSubmit and preview return

  13. Download or Print the Preview

    You can now download or print the preview on your system for your referencedownload preview

  14. Click on ‘Proceed to Validation’

    Now return to the screen and click on ‘Proceed to Validation’ to validate the returnProceed to validate

  15. Validate the Errors

    If there will be any errors, taxpayer will have to validate that, post that one can ‘Download the JSON’ Downlod the JSON

FAQs

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.

Can a pensioner file ITR 1?

Yes, they can file the ITR 1 given they only receive income from pension. Pension income is treated as income from salary income they can also claim standard deduction up to INR 50,000 on pension income.

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.

Got Questions? Ask Away!

  1. Hi Krishna,

    Since you are earning Salary and Capital Gains - ITR 2 will be applicable to you.
    You can check which ITR to file using Know your ITR Form tool.

    Hope this helps :slight_smile:

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