ITR for salaried person must be filed if their salary income exceeds the basic exemption threshold, which is Rs. 250,000 for FY 22–23 and Rs. 300,000 for FY 23–24. As a result, if the employee’s taxable pay exceeds the exemption threshold, they must file an income tax return.
Section 17(1) of the Income Tax Act states that any salary, requirements, and income in lieu of pay are included in the amount of compensation. As a result, the computation of income under the salary head includes the full amount related to salary, conditions, and income received in connection with salary.
In India, timely filing of income tax returns is crucial for maintaining one’s financial stability. However, a number of misunderstandings and a general lack of information continue to surround the return filing process. You may therefore find all the answers to your questions about how to file an ITR for salaried person in this article.
Table of Contents
ITR Form for Salaried Person / ITR type for salaried Person
Following are the ITR form for salaried employees-
ITR 1:
ITR 1 for salaried employees is used when total income is less than or equal to 50 lakhs. The salary and other sources of income were combined to make up the total revenue while ITR1 Filing. The taxpayer can only own one residential property when filing the ITR 1. Agriculture-related income also cannot exceed 5000.
ITR 2:
ITR filing for salaried employees can be done through ITR 2 Form if their total annual income exceeds 50 lakhs. Taxpayers can also submit the ITR 2 if they own more than one residential property. If you are earning money from capital gains other than those from your business or profession, you could also choose ITR 2.
ITR 3:
ITR for salaried employees can also be filed through ITR 3 if you earn income through a wage, a business, a residence, capital gains, or some other source.
Why are Salaried Employees Required to File Income Tax Returns?
Amplification of Capital Gains or Losses
If you invest in the stock market and purchase or sell shares, filing income tax returns is very important for you. When you submit the ITR for a specific financial year, the adjusted short-term capital losses can also be carried forward for up to 8 years.
Request Tax Refunds
Once the tax has been deducted, the only way to receive a tax refund is to file your IT return for that financial year. As a result, TDS refunds on fixed deposits or rent payments begin once you file your taxes and make the necessary tax deduction claim.
Easily Accessible Loan Applications
An income tax return is more than just a financial statement; it also includes information about your annual earnings. As a result, copies of ITRs are frequently needed by banks and NBFCs before they will approve a loan application for a home loan or auto loan. Furthermore, compared to someone with the same income but no ITRs, filing returns while having no taxable income enhances the likelihood of loan approval.
Visa Processing
Several foreign consulates demand that you present your ITR receipts from the previous two years during the visa interview. Producing this document demonstrates that a person has a sizable source of income in India, which improves his or her chances of getting a visa.
What Documents are needed to file an ITR for Salaried Person?
Certain documentation required for filing of ITR
- Bank statement/Passbook
- Form 16
- Salary slips
- Proof of Exemptions under Section 80D and 80U if any
- Proof of deductions to be claimed if any
- Capital gains statement if any
The Deadline for filing an ITR for Salaried Person
For individual taxpayers, the deadline to file an income tax return is typically July 31st of the following financial year. This means that the ITR for FY 2022–23 must be submitted by July 31st, 2023.
How to File an ITR as a Salary Employee?
For salaried employees, the following procedures must be followed while filing their income tax returns.
- Visit the Income Tax Department’s online e-filing portal and log in using your PAN number and password. If this is your first time submitting an income tax return, you should register using a PAN Number, which is regarded as a User Id.
- Select the appropriate assessment year from the menu by clicking on the income tax return in the e-file area. You must also choose an appropriate ITR form, such as ITR 1, 2, or 3.
- If you do not file a revised return, select the original filing type. Choose the mode of submission, such as “prepare and submit online.”
- Determine the amount of tax due and pay it, if applicable.
- Verify the information and press the submit button.
- Use any method, like a bank account number, an Aadhar OTP, a registered mobile number, a bank ATM, and others, to verify the ITR.
Conclusion
ITR for Salaried Individuals – In general, if a salaried employees pay exceeds the basic exemption threshold specified in the Income Tax Act of 1961, they are required to file an income tax return. You should consider how filing an income tax return may affect your finances.