Income Tax Return Filing - Salaried Person
Introduction
The Income Tax Return (ITR) is a document that taxpayers in India must file with the Income Tax Department every year. The purpose of the ITR is to report a taxpayer's income and taxes paid on it during the previous financial year. In this article, we will discuss the process of filing an income tax return for salaried persons in India.
Types of Income Tax Returns
There are several types of Income Tax Returns in India, but salaried persons usually file the ITR-1 form. The ITR-1 form is also known as the Sahaj form and is meant for individuals who earn income from salary, one house property, other sources like interest on savings bank account, etc., and have a total income of up to Rs. 50 lakhs.
Documents Required for Filing Income Tax Return
Before filing your income tax return, you must have the following documents:
Form 16: This is a document provided by your employer that shows your salary details, taxes deducted, and other allowances.
Bank Statements: You will need your bank statements to show your income from interest on savings accounts, fixed deposits, or recurring deposits.
Investment Documents: You will need documents related to investments such as LIC policies, mutual funds, etc.
Aadhaar Card: Your Aadhaar card is mandatory to file an income tax return in India.
PAN Card: You also need a PAN card to file an income tax return.
Other Documents: You may also need other documents such as rent receipts, medical bills, etc., for claiming deductions.
Steps for Filing Income Tax Return
Step 1: Register on the Income Tax Department's e-filing website
To file an income tax return online, you need to register on the Income Tax Department's e-filing website. If you are a first-time user, click on the 'Register Yourself' button and fill in the required details.
Step 2: Download Form 26AS
Form 26AS is a document that shows the tax deducted at source (TDS) from your salary, interest income, etc. You can download Form 26AS from the TRACES website or from your bank's net banking portal.
Step 3: Check Form 16
Check your Form 16 to ensure that the details mentioned in it match with your salary and TDS certificates.
Step 4: Fill in the details in the ITR form
After verifying Form 16 and Form 26AS, you can start filling in the details in the ITR form. The ITR-1 form has different sections for different types of income such as salary, house property, etc. Fill in the details as per your income sources.
Step 5: Claim deductions
There are several deductions available under the Income Tax Act, such as Section 80C, Section 80D, etc. Claim the deductions that you are eligible for.
Step 6: Calculate tax payable or refund due
After claiming deductions, calculate your tax payable or refund due. If you have paid more taxes than you owe, you will be eligible for a refund.
Step 7: Verify the ITR form
After filling in all the details, verify the ITR form by clicking on the 'Validate' button. This will generate an XML file that you need to save on your computer.
Step 8: Upload the ITR form
Log in to the e-filing website, go to the 'Upload Return' section, and upload the XML file.
Step 9: E-verify the ITR
You can e-verify your ITR using Aadhaar OTP, net banking, or by generating an electronic verification code (EVC).
Penalty for Non Filing
In India, the Income Tax Department has set certain deadlines for filing Income Tax Return (ITR). If you fail to file your ITR within the prescribed deadline, you may have to face penalties and other consequences. The penalty for late filing of ITR 1 (for individuals having income from salaries, one house property, and other sources) is as follows:
Late filing fees: If you file your ITR after the due date but before December 31 of the relevant assessment year, you will have to pay a late filing fee of Rs. 5,000. However, if your total income is less than Rs. 5 lakhs, the late filing fee will be capped at Rs. 1,000.
Interest on Tax Due: If you fail to file your ITR on time, you will have to pay interest on the tax due. The interest will be calculated at the rate of 1% per month or part thereof, from the due date of filing the return until the date of actual filing of the return. This interest is applicable on the balance tax amount after deducting TDS.
Disallowance of Losses: If you fail to file your ITR on time, you may not be able to carry forward losses from previous years. You will have to file the ITR within the specified time limit to carry forward the losses.
Prosecution: If you repeatedly fail to file your ITR or provide incorrect information in your return, the Income Tax Department may initiate criminal proceedings against you under section 276CC of the Income Tax Act, which can result in imprisonment for a term of 3 months to 2 years.
It is important to file your ITR on time to avoid these penalties and other consequences. The due date for filing ITR 1 for the financial year 2021-22 is 31st July 2022, which may be extended by the government in certain circumstances.
