Information technology has revolutionized the tax regime worldwide. Procedures from filing your returns to gathering information were never so easy. Now to file a basic salary IT return you do not even need a consultants help. You can file your Income Tax returns on your own.
Income Tax Department has a really good platform to assist tax payers file their returns and provide other information. You need to register on Income Tax website to access your account for filing returns, view TDS credits and compliance. Registration on Income Tax website is PAN based.
What are the requirements for registration on Income Tax website and who can register on Income Tax website?
The only requirement is that you must have a PAN to register on Income Tax website. Anyone with a valid PAN can register on IT portal. Procedure is very simple, you need to visit the web portal of IT department and follow the registration link. A page for registration will open, select the appropriate options and fill details asked there. Mobile number and E-mail id is must, you will receive OTP on provided mobile number and email for varification. Provide a valid E-mail and Mobile number, in case you forget your password in future, you will receive OTP on registered mobile and email for password reset.
What is the due date for filing Income Tax return for salaried employees and what happens if return is not filed within due date?
Section 139 of Income Tax Act, 1961 covers the provision relating to filing of returns. As per section 139 you are required to file return of income, if during the previous year your total income exceeded the maximum amount which is not chargeable to income-tax.
Due date of filing the returns is July 31st of every year.
In case returns are not filed within due date, further interest is charged and penalty provisions also get attracted.
Which ITR form should be used by employees to file the ITR?
If you do not have any other income except Income from house property or interest, you can file your return with form ITR-1. You can also disclose your house property income and other incomes such interest on FD or interest on saving bank accounts.
What is the procedure to file ITR-1 by salaried employee ( How to file ITR-1 form )?
Procedure to file ITR-1 is very simple, in fact form is really very simple and can be filed by anyone. Before initiating the process of filing, keep the following details ready:
- Address, you can provide only one address in ITR form. Decide in advance which address you wish to provide in form.
- Form 16 and 16A.
- Details/computation of interest income earned on FD or SB account or on any other deposits.
- Details of all your bank accounts: Bank name, IFSC, Account number and nature.
- Computed income from House property if any.
If you have not provided details of 80C, 80D, 80G etc. to your employer, you can claim these deduction at the time of filing your returns. Keep the computed figures ready. Once you are ready with these information, the procedure to file IT return is as follow:
- Login to your account, user id is your PAN. Fill PAN, DOB and password.
- Once you have logged in to your account, you can see different menus. Go to the menu described in below image.
The menu is e-File, click on Prepare and Submit Online ITR. Clicking on this link will open a form.
- Once you have clicked on above link, the following page will open.
Fill the relevant details. PAN will be auto populated in your ITR form. Select the ITR for as ITR-1. Select the assessment year. Assessment year immediate next year to your financial year. For example, your salary for the year 2016-17 will be taxed in Assessment year 2017-18.
Choose the address from where it should be filled. If you want to use the address provided in you PAN application, select it otherwise you have 2 more options. You can edit address even if select any of these options.
Signing with Digital signature is optional.
- Submit the initial form.
- Once you have submitted the form, a new page with the following form will open.
This is your form ITR-1. The form has different sections. Instructions are given on opening screen. Different menus in form are:
Personal Information: Here you can fill your personal information such as address, contact details, nature of employers etc.
Income Details: This section is to provide information about your incomes. We will discuss it in detail in next point.
Tax Details: Here you need to fill the details of tax paid by you. Either in form or TDS, advance tax or self assessment tax. Luckily this gets auto populated from data of 26AS. Still its advisable to recheck this form with form 26AS.
Taxes Paid and Verification: Here you will get a summary of Tax payable and refunds for your return. Also you need to fill the bank details in this section.
80G: This is regarding 80G deductions (Donations etc.)
AL: Here you need to disclose your Assets and Liabilities. This is optional and required compulsory for income more than 50 Lakhs.
Its advised that you keep saving draft of this form as details will get deleted on session out.
- Lets see the Income Details form.
Its a simple and straight forward form. The first box is for your salary Income. Fill the box, from you form 16 provided by your employer. Here you should give the salary number after all deductions such HRA, conveyance.
If you own a house and receiving rental income. You need to provide your rental income in second box.
Third box is for incomes from other sources such as interest on FD, SB account etc.
Down you will see the deduction form. Here mention your deduction under 80C (LIC, PF etc.) and other sections.
- Your tax will be auto calculated.
- The final step is to check Taxes Paid and Verification. Make sure your tax liability is NIL and all credits are properly claimed. Fill your bank details and verification details.
Upon filling the form you can submit this form. After submitting the form, acknowledgement will be generated. You need to post this acknowledgement to CPC, address is given in footer of acknowledgement.
To be contd....
Posted 1 year, 8 months ago by CA Pulkit Sharma
Awesome guide sir! it was helpful.
Posted 1 year, 7 months ago by ak anjana
Can you please explain following topic which are mostly asked questions about salary taxation?
When should an employee receiving income from salary should file his return?
Is it compulsory to file returns to get a housing loan or credit card?
What are the different exemption available to employees that he can claim in his CTC and save taxes?
What re the different deductions on investment in LIC, PF, Insurance or any other?
Posted 1 year, 7 months ago by Stock Guru
A very detailed article on payroll taxation in India. Let us try to make this article as an ultimate guide for taxing of salary income.
I think Stock Guru has a valid point. We should add this part in this article to make it a complete guide.
Posted 1 year, 7 months ago by Rahul Rai
Thank you very much for appreciating this discussion post. For sure I will be adding topics listed by Stock Guru. Other than these topics I shall also list down the following topics in the very same article to make it perfect guide.
- Calculation of income from House property and how to disclose it in ITR form.
- Treatment to long term capital gains upon selling of House property.
- Deduction under 80C including deduction against housing loan repayment.
- Deduction of Interest paid on housing loan.
- Various deductions that employees can deduct from claim in CTC to save taxes.
You can list down other topics if you feel these should form part of this article.
Posted 1 year, 7 months ago by CA Pulkit Sharma
Posted 1 year, 7 months ago by Rupam Chakma Babu
Calculation of income from House property and how to disclose it in ITR form and save tax.
In this post I will be explaining how to calculate income from house property to disclose in your ITR-1 form while filing your return of income.
In ITR-1 form you can show income from 1 house property.
The calculation as per Income Tax law is as follow:
First you need to calculate Gross Annual Value of property.
Gross Annual Value (GAV) of a house property is highest of:
Rent received or receivable
Fair Market Value
If you are covered under rent control act, GAV will be highest of:
After calculation of GAV, you need to calculate income from housing property as:
A. Gross Annual Value (A)
B. Less: Municipal Taxes Paid (B)
C. Net Annaul Value (NAV) (A-B)
D. Less: Standard deduction under (C-D) E
F. Less: Interest paid on housing loan (E-F)
Lets understand the above example with an example,
Suppose A owns a house in Bengaluru and rent received is Rs. 6,50,000 for the year.
The rent received is highest and is GAV.
Suppose he paid 35,000 Rs. for municipal tax and Rs. 1,20,000 as housing loan interest.
Income from housing property for A will be calculated as follow:
Gross Annual Value (GAV) of house = Rs. 6,50,000
Less: Municipal Taxes Paid = Rs. 35,000
Net Annual Value of House = Rs. 6,15,000
Less: Standard Deduction u/s 24 = Rs. 1,84,500
Less: Interest paid on housing loan = Rs. 1,20,000
Taxable income from house property= Rs. 3,10,500
Posted 1 year, 7 months ago by CA Pulkit Sharma
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