ITR for Salaried Person – Are you a salaried individual wondering how to file your Income Tax Return (ITR)? You’re not alone! Filing income tax returns on time is important for salaried individuals in India. But, many people are confused about how to do it, especially if it’s their first time.
Consider these numbers:
- Over 8.18 crore Income Tax Returns (ITRs) were filed for the assessment year 2023-2024.
- And during this period, the e-filing Helpdesk encountered around 27.37 lakh queries from taxpayers.
It’s clear that many people find it difficult to file their ITR. But don’t worry, we’ll help you.
In this comprehensive guide, we’ll show you the step-by-step process on how to file ITR for salaried person, making it easy to understand and follow.
Let’s make sure you file your ITR accurately and hassle-free!
What is ITR?
An Income Tax Return (ITR) is a document that Indian taxpayers must file annually with the Income Tax Department. It’s a way for individuals to declare their income and the taxes paid during a specific financial year, which runs from April 1 to March 31 of the following year. The government uses this information to assess income, calculate tax liabilities, and ensure correct tax payments.
Your ITR includes details such as your income from various sources, deductions claimed, and taxes paid. Filing your ITR is mandatory if your income exceeds the specified threshold. Every year, you need to file your Income Tax Return (ITR) before a pre-specified last date. Failure to file it within the stipulated time can result in heavy penalties and other consequences.
It’s an essential financial responsibility for individuals to fulfil their tax obligations and maintain compliance with tax laws.
Who is a Salaried Employee for Filing of ITR?
A salaried employee for filing an Income Tax Return (ITR) is an individual who receives a fixed income from an employer for providing services under a work contract. This includes wages, bonuses, and any other compensation received for services rendered.
Salaried employees must file an ITR if their total income exceeds the basic exemption limit set by the Income Tax Department. They must pay income tax on the earnings from their job after deducting eligible deductions and exemptions under the Income Tax Act of 1961.
Every year, the employee must file an ITR. The income tax return for salaried person must include,
- Income
- Deductions
- Taxes paid
- Any refunds claimed
This is the process for ITR for a salaried person.
Basic Tax Exemption Limits
Individuals with an annual income of INR 3 lakh or more are required to file an ITR under the new tax regime for FY 2023-24.
The following table outlines the basic tax exemption limits for different taxpayer categories under both 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 | INR 2,50,000 | INR 3,00,000 |
| 60 to 80 years | INR 3,00,000 | INR 3,00,000 |
| Above 80 years | INR 5,00,000 | INR 3,00,000 |
You are required to file an income tax return if:
- You earn income from various sources, such as – investments, rental properties, or capital gains.
- Your electricity bills exceed INR 1 lakh in a year.
- You hold earnings or investments in foreign assets.
- You have spent over INR 2 lakh on international travel.
- Your total deposits in current accounts exceed INR 1 crore.
You must file IT return for salaried person depending on your age and income if it exceeds the limits.
When Should a Salaried Individual File ITR?
A salaried individual should file their Income Tax Return (ITR) if their taxable income exceeds the exemption limit. For the Financial Year 2022-23, the basic exemption limit under both the old and new tax regimes is INR 2,50,000.
However, for the Financial Year 2023-24, the exemption limit under the new tax regime has been raised to INR 3,00,000.
Therefore, salaried individuals must file their ITR for the Financial Year 2023-24 (Assessment Year 2024-25) only if their annual income exceeds INR 2,50,000 or INR 3,00,000, depending on the regime.
ITR Form for Salaried Employee
Different types of ITR forms are available for various taxpayers. When filing your tax returns, it’s essential to select the right ITR form for salaried individuals.
Before we talk about the process of filing ITR, let’s take a look at different types of ITR Forms:
- ITR-1 (SAHAJ)
ITR 1 for salaried employees, also known as SAHAJ, is the most common type of ITR form used by individuals. This form is commonly used by salaried employees whose total income is not more than INR 50 lakh.
It’s suitable for individuals earning through,
- Salary
- Rent from a single residential property
- Pension
- Other sources, such as interest gains and dividends
Individuals with agricultural income not exceeding INR 5,000 can also use this form.
- ITR-2
This form is made for both HUF (Hindu Undivided Families) and individuals who meet specific criteria. These criteria include,
- Not having a job or business that qualifies for ITR-1
- Investing in assets overseas
- Being a director of a private company
- Investing in shares that are not listed on the stock exchange
- ITR-3
This form is for individuals who have income from a business as well as from other sources. Keep in mind that salaried employees cannot use this form unless they also earn money from a business alongside their salary.
- ITR-4
This ITR form for salaried person is applicable for individuals whose total income is up to INR 50 lakh. It is made for individuals who earn income from businesses defined under IT sections,
- 44ADA
- 44AD
- 44AAE
While most salaried individuals typically use ITR form 1, you can choose the one that suits your income and job. Remember, both government and private employees can use the same ITR form for salaried individuals to file their income tax returns.
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Documents Required to File ITR Return for Salaried Person
Here’s the list of important documents required for income tax return for salaried person.
- Aadhaar Card
A unique identification card issued by the Government of India.
- PAN (Permanent Account Number)
Ten-digit alphanumeric number issued by the Income Tax Department.
- Form 16
A TDS certificate is issued by employers detailing the salary earned and the TDS deducted.
- Form 16A
TDS certificate for income other than salary, such as interest or rent.
- Form 26AS
Consolidated tax statement showing tax deductions and payments.
- Bank Statements
Record of financial transactions through the bank account.
- Salary Slips
Detailed breakdown of salary earned.
- Capital Gains Statement
Required for individuals with capital gains from asset sales.
- Tax Exemption Documents (if applicable)
Documents related to tax exemptions under Section 80D and 80U.
- Additional Documents
More documents may be required depending on your financial situation:
- Investment proofs (such as receipts for LIC premiums, PPF contributions, ELSS investments, etc.)
- Rent receipts (if HRA is claimed)
- Home loan interest certificate (if applicable)
- Medical bills for medical reimbursement
- Details of other income sources such as rental income, interest income, or freelance income
These documents are important for accurately reporting income, claiming deductions, and filing an Income Tax Return (ITR) for a salaried person.
How to Register Yourself on the e-Filing Portal?
If you’re filing your income tax returns for the first time, the first thing you need to do is register on the e-filing portal. Here’s a step-by-step guide to register on the portal:
- Visit the e-Filing Website
Go to https://www.incometax.gov.in/iec/foportal
- Click on ‘Register’
Once on the website, find and click on the ‘Register’ button.
- Choose ‘Taxpayer’
Select the option that says ‘Taxpayer’.
- Enter Your PAN Details
Input your PAN details and click on ‘Validate’. Then, click on ‘Continue’.
- Provide Your Personal Details
Fill in your name, address, gender, and other required information.
- Enter Your Email ID and Mobile Number
Provide your email ID and the mobile number that is registered with your PAN.
- Continue Filling the Form
After entering your details, click on ‘Continue’.
- Verify Your Details
Check the details you provided. You will receive an OTP on your registered email ID and mobile number.
- Enter the OTP
Enter the OTP received on your email ID and mobile number to verify.
- Verify the Details Again
After OTP verification, review the details you provided. If there are any mistakes, you can edit them. Another OTP will be sent to validate the changes.
- Set Up a Password
Finally, set up a password and a secure login message.
- Click on ‘Register’
Once everything is filled correctly, click on ‘Register’. You will receive an acknowledgement message confirming the success of the registration process.
After registering, you can proceed to file your income tax return form for salaried person. Remember to calculate your taxable income after deductions and select the correct ITR form based on your category.
How to File Income Tax Return Online for Salaried Employee
If you are wondering how to file ITR for salaried person via the online e-filing portal, follow these steps.
Step 1: Login to the e-Filing Portal
- Go to the official income tax e-filing Portal and find the Login section.
- Enter your PAN, Aadhaar, or Other User ID.
- Click on “Continue” and check the security message box.
- Enter your password and click “Continue”.
Step 2: Go To ‘File Income Tax Return’
Click on the ‘e-File’ tab > ‘Income Tax Returns’ > ‘File Income Tax Return’.
Step 3: Select the Right ‘Assessment Year’
- Select ‘Assessment Year’ as ‘AY 2024-25’ if you are filing for FY 2023-24. Similarly, choose ‘AY 2023-24’ if you are filing for FY 2022-23.
- Use the mode of filing as ‘Online’ and select the filing type correctly as original return or revised return.
- After that, click “Continue.”
Step 4: Select the Status
- Select your applicable filing status: Individual, HUF, or Others.
- For salaried employees, select ‘Individual’ and click on ‘Continue’.
Step 5: Select Filing Type in ITR for Salaried Person
- Choose the correct ITR Form from the dropdown menu based on your income type and profession.
- There are 7 ITR forms available, of which ITR 1 to 4 is applicable for Individuals and HUFs.
- For example, choose ITR 1 for salaried employees if your income is less than INR 50 lakh.
Step 6: Choose the Reason for Filing ITR
Select the reason for filing your returns. You can choose from:
- Taxable income is more than the basic exemption limit
- Mandatorily required to file ITR due to specific criteria
- Others
Select the appropriate reason and click “Continue.”
Step 7: Validate Pre-filled Information
- Check the pre-filled details such as PAN, Name, Aadhaar, Date of Birth, contact information, and bank details. Also, provide your bank account information if required.
- Ensure that all the information is correct and complete. Review your income, exemptions, and deductions.
- Confirm the summary of your returns, validate the details, and make the payment of balance taxes if applicable.
Step 8: E-Verify ITR
- This is a crucial step. You must e-verify your income tax return to complete the filing process.
- You can e-verify your ITR using various methods such as Net Banking, Aadhar OTP, or 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.
These are the simple steps to file ITR online for salaried employees. Make sure you follow these steps properly and file your tax before the deadline.
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How to File ITR for Salaried Employees (Offline Method)
Now that you know how to fill income tax return online for salaried employee, let’s see how to do it online.
Here are some steps on how to file income tax return for salaried employee via the offline method:
Step 1: Get the ITR Form
- Visit the official Income Tax Department website.
- Download the ITR form in either Excel or Java utility format.
- Make sure you choose the form for the right assessment year.
Step 2: Fill in the Form
- Open the downloaded ITR form on your computer.
- Fill in all the required details accurately, including personal information, deductions, income, and tax liability, following the instructions given.
Step 3: Collect Supporting Documents
- Gather all necessary documents that support the information you’ve entered in your ITR form.
- Documents may include Form 16, TDS certificates, Form 26AS, and relevant financial statements.
Step 4: Calculate and Pay Tax
- Figure out your tax liability for the financial year using the appropriate tax rates and deductions.
- If you owe any taxes, make sure to pay them before filing your return.
Step 5: Review the Form
- Check all fields in the ITR form for accuracy and completeness.
- Make sure there are no errors in the information you’ve provided.
Step 6: Generate JSON File
- Once you’ve filled in all the necessary details, generate a JSON file of the ITR form using the provided utility.
- Save the JSON file on your computer.
Step 7: Submit the Form
Upload the JSON file to submit your ITR form.
Step 8: E-Verify Your Return
Use methods like Aadhaar OTP, net banking, or electronic verification code (EVC) to complete the verification process.
How to File ITR without Form 16 and Salary Slip
You can file your income tax return (ITR) even if you don’t have Form 16 and salary slips. Here’s how:
- Collect alternative documents like bank statements, investment proofs, rent receipts, and other income-related documents.
- Estimate your income and deductions accurately.
- Use these details to fill out the appropriate ITR form.
- Declare all income sources and claim eligible deductions.
- Verify TDS details with Form 26AS.
- File your return and e-verify using Aadhaar OTP, net banking, or Electronic Verification Code (EVC).
Note:
It’s important to accurately estimate your income and deductions in the absence of Form 16 and salary slips.
Declaration of all income sources is crucial to avoid any discrepancies.
How to Check If Your ITR Is Filed?
To confirm whether your ITR has been filed successfully, follow these simple steps:
- Step 1: Go to the income tax e-Filing Portal and log in using your ID and password.
- Step 2: Click on e-File, then go to Income Tax Returns, and select View Filed Returns.
- Step 3: On this page, you’ll see all your filed returns. You can use the “Filter” option to sort your filed returns based on Filing Type and Assessment Year. By clicking “View Details”, you can check the status of your filed ITR.
ITR Filing Last Date for Salaried Employees
The e-filing of Income Tax Return (ITR) for the Financial Year 2023-24 (AY 2024-25) began on April 1, 2024.
The deadline for ITR filing for salaried employees for the Financial Year 2023-24 (AY 2024-25) without a late fee is July 31, 2024.
If you miss this deadline, you can still file a belated return until December 31, 2024. However, you’ll have to pay interest under Section 234A and a penalty under Section 234F.
ITR Filing Guidelines for Salaried Employees
Here are some important guidelines for filing income tax return form for salaried person.
- Collect all necessary documents like Form 16, salary slips, and investment proofs.
- Choose the correct ITR form (usually ITR-1) applicable to your income sources.
- Ensure accurate details of income from salary, including allowances and perks.
- Declare income from other sources like bank interest, rental income, etc.
- Deduct eligible investments under Section 80C, 80D, and other applicable sections.
- Verify TDS details with Form 26AS to avoid discrepancies.
- Double-check bank account details for refund purposes.
- File your return by the due date to avoid penalties.
- E-verify your return using Aadhaar OTP, net banking, or Electronic Verification Code (EVC).
- Keep copies of filed returns and supporting documents for future reference.
Why Should Salaried Individuals File Income Tax Returns?
Salaried individuals should file income tax returns for several reasons:
- Legal Obligation: It’s a legal requirement mandated by the government.
- Claiming Refunds: You might be eligible for a tax refund if you have excess TDS deducted.
- Financial Records: Filing returns helps maintain a record of your financial transactions.
- Loan Applications: It serves as proof of income when applying for loans or credit cards.
- Visa Processing: Necessary for visa processing, especially for foreign travel or immigration.
- Avoid Penalties: Non-filing can lead to penalties and legal consequences.
- Compliance: Ensures compliance with tax laws and regulations.
- Government Benefits: Required for availing various government benefits and schemes.
- Credit Score Improvement: Can contribute positively to your credit score.
- Building Financial History: Contributes to building a credible financial history.
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Wrapping Up
Filing your Income Tax Return (ITR) as a salaried person is important to meet your tax obligations. By following our guide on how to file ITR for salaried person, you can ensure a smooth and accurate filing experience.
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FAQs
- Can I file my ITR myself?
Yes, you can file your ITR yourself by following our guide.
- What is ITR 2 for salaried employees?
ITR-2 is for salaried individuals with income from sources other than salary, such as capital gains, house property, and more.
- Can ITR-1 be filed for capital gains?
No, the ITR for salaried person with capital gains is ITR-2.
- How much does it cost to file ITR?
The cost of filing ITR can vary based on the complexity of the return and the method used, but typically ranges from free to a few thousand rupees for professional services.
- What is the ITR number for salaried person?
For salaried individuals, the ITR forms commonly used are ITR-1 (SAHAJ) and ITR-2.
- Can salaried individuals with business income use ITR forms?
Yes, salaried individuals with business income can use ITR-4, which is specifically designed for them. It is mostly used for salary plus business income ITR filing.
- What is ITR 4 for salaried employees?
ITR-4 is for salaried individuals and HUFs with income from business or profession under the presumptive income scheme.
- Which ITR form is for salaried person with share trading?
The ITR form for salary person with share trading is ITR-2. It includes income from capital gains.
