I got clients who were employed and filed their returns without any professional help and received notice from tax department for tax liability. Tax department made the It returns filing simple but still people make mistakes and receive the notices. Here are some tips to help the employees to file the IT return.

Which IT Form to be used by Employees to file the tax returns?

The form ITR-1 is to be used by employees to file the income tax returns. However if employees have income from other sources like business, capital gain etc. the form may change.

What are the specific precautions to be taken while filing the ITR-1?

Normally employees dont make any mistakes in reporting the income portion, in most of the cases the mistake was in reporting the Tax Deducted at Source or claiming of Advance Tax paid.

Employees should fill the correct cells to report TDS and advance tax. Don't report TDS and advance tax in a single cell, use specific cells given. Tax department takes the data from form 26AS, if the numbers does not match with form 26AS notice is generated.

Before filing the return, check form 26AS.

Its adviced to filed the return directly on the Income Tax website. Don't download the excel utility, file the return online from the income tax site. TDS data is taken automatically while filing the return online on income tax website.

Fill correct bank account number if you have refund. Refund is transfered online to the bank account details given in ITR. Be carefull and fill the correct bank account details.

Once the return is filed, sign and post the aknowledgement copy to CPC, Bangalore.

Never file it returns by paper mode, always file the returns online. Incase any mistake is made, its easy to rectify if the returns are filed online instead of using paper forms.

Posted 3 years, 5 months ago by CA Pulkit Sharma

What you think should everyone file the income tax returns even if the salary or income is below taxable limits?

Posted 3 years, 5 months ago by Rahul Rai

As per me Income Tax returns should be filed by everyone, whether the income is below taxable limit or not.

Direct benefits are associated with filing the IT returns. If you want a loan, credit card etc. the only method to calculate your repayment capacity is the the income shown in IT returns.

Its not compulsory to file it returns if the income is below taxable limit. But IT Retruns should be filed to receive the benefits which are not available if It Return is not filed.

Posted 3 years, 5 months ago by CA Pulkit Sharma

Even I believe that it is better to visit income tax website regarding the online income tax return filing for salaried employees and follow the instructions step by step.

Posted 2 years, 10 months ago by Dipesh Rane

Correct income tax website has improved a lot and one should visit the site atleast once to see latest changes and understanding the filing requirements.

Posted 2 years, 10 months ago by Rahul Rai

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