What is Income Tax Return (ITR)?Income tax return or ITR are documents that need to be filed by the taxpayers with the tax authority every financial year. It contains the details of the sources of income and the tax liability on them. Till date, the tax authority has issued 7 types of ITR forms, namely, ITR 1, ITR 2, etc. till ITR7. Their applicability depends on various factors such as the amount of income and the sources from which they are generated.
Which Forms Are Applicable to A Salaried Person?The ITR for salaried person depends on their income and the category of taxpayers which they belong to. ITR 1 and ITR 2 are the forms relevant to a salaried person.
- ITR 1: Also known as the Sahaj form, it is to be filed by employees whose total annual income doesn’t exceed Rs 50 lakh. An individual whose income from agriculture doesn’t exceed Rs 5000 or who has a one-house property also falls under the ambit of ITR 1.
- ITR 2: It is for the use of individuals whose income is more than Rs 50 lakh. The income source may involve income from capital gains, or the agricultural income may exceed Rs 5000. Also, if the individual has made investments in unlisted equity shares, they have to file ITR 2 instead of ITR 1.
How To File ITR Online?There are basically two ways in which an individual can e-file the ITR. One is simply by entering the details on the portal itself. The other involves downloading the ITR software and preparing the details to be filed in the XML format. The file can then be uploaded to the portal directly. A salaried employee can easily file their ITR by visiting the income tax authority portal: www.incometaxindiaefiling.gov.in/.
The steps include:
- Before starting the process, make sure to have all the necessary documents with you handy. These include your PAN, Aadhaar, Form 16, bank and investment details.
- Register or login to the website www.incometaxindiaefiling.gov.in/, and select the user type.
- Download and make the necessary changes in Form 26AS. It contains the details of all the taxes deducted from your income.
- Calculate the total income tax liability.
- Deduct the eligible amount from the tax liability. Taxes which have been paid already such as TDS are deducted in this step.
- After paying all the tax dues, you can file the applicable ITR file.
- You need to verify the ITR filing by one of the six methods mentioned.
- Once the verification is complete, the IT department will process and verify the details provided by you.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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