How to File ITR Online for Salaried Employees?
- Author :
- TATA AIG Team
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Income tax return, or ITR, is a mandatory requirement by the government of India. It is a legal document that announces your total income, investments, and tax liabilities.
The ITR needs to be filed every year before a pre-specified last date. Not filing an ITR within the stipulated time can attract heavy penalties along with other consequences.
If you are filing an ITR for the first time or wondering how the process works, you have come to the right place.
This blog will outline the complete steps to file ITR online for salaried individuals. In this post, we will also discuss other useful details regarding the ITR filing type for salaried persons.
ITR and Basic Tax Exemption Limits
Individuals with a yearly income of ₹3,00,000 or above are mandated to file an ITR as per the new tax regime FY 2023-24.
The table below shows the basic tax exemption limits for different categories of taxpayers as per the old and new tax regimes.
|Age of Taxpayer
|Annual Income (Old tax regime — FY 2022-23 and FY 2023-24)
|Annual Income (New tax regime — FY 2023-24)
|Up to 60 years of age
|Between 60 to 80 years of age
|Above 80 years of age
You must file an income tax return if:
You earn from multiple sources, including investments, capital gains, residential properties, etc.
You have earnings or investments in foreign assets.
You have paid more than ₹1 lakh as electricity charges in a given year.
Your deposits in your current account in any one or multiple banks are more than ₹1 crore.
You have made a payment of more than ₹2,00,000 towards foreign travel.
Types of ITR Forms for Salaried Employees
There are different types of ITR forms applicable to different types of taxpayers. At the time of filing the tax returns, you must select the form that is applicable to you.
So, before discussing the process of filing ITR for individual salaried persons, let’s take a look at different types of ITR Forms.
ITR-1: Also known as SAHAJ, it is the most common salaried employee ITR form. It is applicable for taxpayers whose total income is not more than ₹50 lakh.
It is suitable for individuals who earn through salary, pension, rent from a single residential property, and other sources such as interest gains and dividends. Besides, persons whose agricultural income is not more than ₹5,000 can also use this ITR form.
ITR-2: This ITR form is designed for both HUF (Hindu Undivided Families) and individuals who meet certain criteria.
These criteria include not being engaged in any profession or business that is eligible for ITR-1, investment in foreign assets, being a director of a private company or investing in equity shares that are not listed.
ITR-3: It is applicable for individuals who have a business income besides the income from other sources.
Note that this form is not applicable to salaried employees unless they earn from a business in addition to their salary income.
ITR-4: This ITR form is suitable for individuals whose total income is up to ₹50 lakh. It is specifically designed for individuals whose business income is defined under IT sections 44ADA, 44AD, and 44AAE.
Although most salaried individuals typically opt for ITR form 1, you can choose the one that appropriately matches your income and profession. Note that the income tax return for government employees as well as private employees can be filed using the same form.
Documents Required to File ITR Return for Salaried Person
Below are the main documents required to file ITR-1 for salaried individuals:
Capital Gains Statement
Tax exemptions under Section 80D and 80U (if applicable)
How to File ITR for Salaried Person Online
Following are the steps to file ITR in detail:
Step 1: Login e-Filing Portal
Visit the official income tax e-Filing Portal and navigate to the Login window.
Enter your PAN/ Aadhaar/ Other User ID.
Select “Continue” and check the security message box.
Enter your password.
Step 2: Select the “File Income Tax Return” Option
Navigate as follows: “e-File” -> “Income Tax Returns” -> “File Income Tax Return".
Step 3: Choose the Income Tax Assessment Year
Select “Assessment Year” and click on the current year, for example, “AY 2023-24”.
Select the Mode of Filing as “Online”.
Step 4: Select the Status Applicable to You
There are three options: Individual, HUF and Others. Select “Individual”.
Step 5: Select the Applicable ITR Form
Depending on your income type and profession, select the right ITR Form from the dropdown. Refer to the section above for details on salaried employee ITR type.
Step 6: Choose the Reason for ITR Filing
There are three options, and you need to choose the one appropriate for your situation.
Taxable income is over the exemption limit defined under the tax regime.
You meet certain criteria that mandate you to file an ITR.
Select any one of the above and click “Continue”.
*Step 7: Add Your Bank Details and Other Useful Information *
On the next screen, you are required to fill in your bank details along with other information. While most of these details are automatically filled, it is important to recheck and verify them. If everything is correct, validate the details and confirm the return summary.
Step 8: e-Verify Your ITR
This is the most critical step, and missing it is equivalent to not filing an ITR. You can e-verify your income tax return through multiple methods such as Aadhar OTP, Net Banking, and Electronic Verification Codes.
Alternatively, you can also send a physical copy of your ITR-V to the Income Tax Department CPC (Centralised Processing Centre) located in Bangalore.
How to Confirm if ITR is Filed?
To make sure your ITR is filed on time, it is recommended to check your filing status. Here is how to do that:
Step 1: Visit the income tax e-Filing Portal and log in using your ID and password.
Step 2: Navigate to e-File -> Income Tax Returns -> View Filed Returns.
Step 3: All your filed returns will be displayed on this page. You can use the “Filter” option for sorting your filed returns based on Filing Type and Assessment Year. By clicking “View Details”, you can learn about the status of your filed ITR.
Different Types of Tax Saving Options to Consider
The Income Tax Act of India provides various exemptions and deductions using which taxpayers can reduce their tax liabilities while increasing their tax savings. Below are the most common deductions available through old and new tax regimes:
Upto ₹1.5 Lakh Deductions u/s 80C: To benefit from this option, you can invest in tax-saving instruments such as mutual funds, LIC, ELSS, deduction on home loan principal amount, and so on.
Standard Tax Deduction: A standard tax deduction of ₹50,000 is available for salaried employees.
Deductions u/s 80D: Section 80D of the Income Tax Act offers excellent deductions on a medical insurance plan for family and self. Under this section, you can claim deductions on health insurance premiums paid for yourself, your husband/wife or your dependent parents.
Deductions u/s 80E for Higher Education: You can avail of tax deductions on higher education loans from known financial institutions.
Deductions u/s 80G: This option offers tax deductions up to a certain limit for donations made to any charity organisation.
Invest in Government Savings Schemes: You can also save on your tax by investing in schemes such as Sukanya Samriddhi Yojana and depositing in a Post Office Savings account up to a certain limit.
Note that the new tax regime FY 2023-24 has scrapped some of the above-mentioned deductions. You will be able to claim the exemptions and deductions based on your selected regime.
Every individual in India who is earning more than the basic exemption limit defined under the income tax regime is mandated to file an income tax return. It is a legal, financial exercise that informs the government about your profession, income, and tax obligations.
We have discussed the complete steps to file ITR online for salaried individuals. We have also shared some great ways to save tax. We hope it helps.
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Can I file my ITR myself online?
Yes, you can file your ITR yourself on the Income Tax e-Filing Portal. However, if you don’t have enough experience and knowledge, then it is better to hire an income tax professional to do the ITR filing on your behalf.
Can I file my ITR at any time?
You need to file your ITR for a given financial year, starting from April 1st to March 31st, before the given due date.
What is the penalty for not filing an ITR?
If you fail to file your ITR within the stipulated time frame, you will be levied a late-payment penalty of ₹5,000. If your income is below ₹1 lakh, this penalty is ₹1,000. Further, if you still don’t file an ITR, then you may attract an interest of 1% per month on your unpaid tax under IT Section 234A.
Disclaimer / TnC
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