ITR filing or Income Tax Return filing for salaried employees is a mandatory process in India. It is a way to report the income earned during a financial year and calculate the tax liability on it. The last ITR filing date for salaried employees should not be skipped as it can attract heavy penalties.
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ITR filing refers to the process of reporting annual income and related tax information to the government. In India, ITR filing online is a mandatory requirement for all individuals, businesses, and companies that earn income irrespective of the slab they may or may not fall under. It is an annual process completed before the end of each financial year.
The filing can be done online or offline. Online ITR filing is more popular and convenient as it saves time and eliminates the need for physical documentation. The taxpayer needs to register on the income tax department's website and obtain an account. They can then file returns by filling in the relevant details in the online form.
Filing an income tax return for salaried employees has several benefits, including claiming deductions and exemptions on various investments and expenses like insurance premiums, home loans, and charitable donations.
|Category of Taxpayer for Filing Income Tax Return||Due Date for Tax Filing- FY 2022-23 (unless extended)|
|Individual / HUF/ AOP/ BOI (books of accounts not required to be audited)||31st July 2023|
|Businesses (Requiring Audit)||31st October 2023|
|Businesses requiring transfer pricing reports (in case of international/specified domestic transactions)||30th November 2023|
|Revised return||31 December 2023|
|Late return||31 December 2023|
Filing an Income Tax Return (ITR) is a mandatory requirement for all taxpayers in India and it also serves as a crucial document in various financial transactions. The process involves the submission of a detailed report of the income earned from all sources during a financial year, including the taxes paid on it.
Here are some of the key reasons why ITR filing for Salaried Employees is important in India:
Legal compliance: Filing an ITR online is mandatory by law.
Establish financial credibility: Income Tax Returns for Salaried Employees help in assessing credit-worthiness.
Claim refunds: It allows claiming refunds for excess taxes paid.
Avoid penalties: Non-filing of ITR can attract hefty penalties.
Avoid scrutiny: If done before the last ITR filing date for salaried employees, it also helps avoid scrutiny by the Income Tax Department.
Contribution to the country's development: Taxes collected each year contribute to the country's growth and development.
To download ITR forms from the Income Tax Department of India's website, follow these steps:
Step 1: Go to the official ITD website at https://www.incometaxindia.gov.in.
Step 2: Click on the 'Forms/Downloads' option from the menu bar on the home page.
Step 3: Navigate to the 'Income Tax Returns' menu.
Step 4: You will be directed to a new webpage where a list of all the ITR forms can be found.
Step 5: Click on the 'PDF' option next to the form you need to download it.
Make sure to complete the process before the last ITR filing date for salaried employees.
The form to be submitted by a taxpayer depends on the nature of their income. The IT Department's official website provides downloadable forms for different types of income tax returns.
The following are the various types of ITR forms available:
|ITR Form Name||Applicability|
|ITR-1 or Sahaj||The form must be used by individuals who make an annual income of less than Rs. 50 lakh via pension or salary and from only one house property.|
|ITR-2||The form must be used by shareholders of private companies, Directors of Companies, Non-Resident Indians (NRIs), or individuals who make an income via capital gains, from two or more house properties and foreign sources. However, the income of the individual must be more than Rs. 50 lakh.|
|ITR-3||The form must be used by individuals who run a proprietorship or are professionals in India.|
|ITR-4 or Sugam||Individuals who are under the presumptive taxation scheme must use this form. For individuals to join the scheme, they must earn less than Rs.50 lakh from professional income or less than Rs.2 crore from business income.|
|ITR-5||For associations and body of individuals, Limited Liability Partnerships (LLPs), and partnership firms to report their income and tax computation, this form must be used.|
|ITR-6||Companies that are registered in India must use this form.|
|ITR-7||In case of entities claiming an exemption as universities or colleges, scientific research institutions, political parties, and religious or charitable trusts, this form must be used.|
Taxpayers can submit the necessary information directly on the e-filing portal and submit their duly-filled ITR 1 and ITR 4 forms online. Follow these steps to file the ITR online:
Visit the Income Tax e-Filing portal at https://www.incometax.gov.in/iec/foportal/
Login to the portal using your user ID (PAN), password, and captcha code.
Select the 'e-File' menu, and click on the 'Income Tax Return' link.
On the Income Tax Return page, fill in your PAN, select the assessment year, ITR form number, filing type, and submission mode.
Click on 'Continue' to proceed.
Carefully read the instructions, and fill in all applicable and mandatory fields of the Online ITR Form.
Choose an appropriate verification option in the 'Taxes Paid and Verification' tab, including e-verification or sending the ITR-V form by post.
Preview and verify all the data entered in the ITR.
Submit the ITR.
If you choose e-verification, you can do so using the EVC/OTP method within 60 seconds. Otherwise, you can verify the ITR later by using the 'My Account > e-Verify Return' option or sending the signed ITR-V to CPC.
You can view the uploaded ITRs by logging in to the portal.
To file your ITR offline, you need to download the relevant form from the government’s official website. The individuals must duly fill in the information and save the generated XML file to finally upload it on the portal.
If you prefer to e-File your ITR using the XML upload method, you can do so by downloading either the Excel Utility or Java Utility.
Follow these steps to complete the process:
Go to the Income Tax e-Filing portal at https://www.incometax.gov.in/iec/foportal/
Download the appropriate ITR utility under 'Downloads > IT Return Preparation Software'.
Extract the downloaded utility ZIP file and open the utility from the extracted folder. Refer to the 'Read me' document for more information and prerequisites.
Fill in all applicable and mandatory fields of the ITR form.
Validate all tabs of the ITR form and calculate the tax.
Generate and save the XML.
Log in to the e-Filing portal by entering user ID (PAN), password, and Captcha code, and click 'Login'.
Click on the 'e-File' menu and select 'Income Tax Return'.
On the Income Tax Return page, PAN will be auto-populated. Select the assessment year, ITR form number, filing type, and submission mode.
Choose one of the following options to verify the Income Tax Return:
EVC using pre-validated bank account details or Demat account
Get EVC through ‘My Account Generate EVC Option’ or bank ATM
E-Verify later or send signed ITR-V through normal or speed post
Attach the ITR XML file.
For the DSC verification option, attach the signature file generated from the DSC management utility.
For Aadhaar OTP verification option, enter the Aadhaar OTP received in the mobile number registered with UIDAI.
For EVC through bank account, Demat account, or bank ATM verification option, enter the EVC received in the mobile number registered with Bank or Demat Account respectively.
For the other two verification options, the ITR will be submitted but the process of filing the ITR is not complete until it is verified. The submitted ITR should be e-verified later by using 'My Account > e-Verify Return' option or the signed ITR-V should be sent to CPC, Bengaluru.
Submit the ITR.
To view the uploaded ITRs, go to 'My Account > View e-Filed Returns/Forms'.
Filing an Income Tax Return (ITR) in India is an essential annual task that taxpayers must comply with. It is mandatory to report all sources of income, investments, and other relevant details to the Income Tax Department. However, to file an accurate ITR, you need to have certain documents on hand.
Here are some of the documents required to file ITR in India:
PAN card: Permanent Account Number (PAN) is a ten-digit alphanumeric code that serves as a unique identification number for taxpayers. It is mandatory to have a PAN card to file an ITR.
Form 16: Form 16 is a TDS (Tax Deducted at Source) certificate issued by an employer. It contains details of the salary earned, tax deducted, and other income earned by the employee. It is a crucial document for salaried individuals.
Form 16A/16B/16C: Form 16A/16B/16C is a TDS certificate issued by banks, financial institutions, or tenants. It contains details of tax deducted on interest income, rental income, and other sources of income.
Bank statements: Bank statements for the financial year must be kept ready to report interest income earned from savings accounts, fixed deposits, and recurring deposits.
Investment documents: Investment documents such as Mutual Fund Statements, Equity and Bonds investment statements, and other such documents should be kept handy to report capital gains or losses.
Property documents: If you own any property, documents such as the sale agreement, purchase agreement, home loan statement, and rental income details must be kept ready to report rental income or capital gains from the sale of property.
Other documents: Other documents such as medical bills, donations, and other deductions under Section 80D, 80G, etc., must be kept ready to report these deductions accurately.
Filing an ITR in India requires proper documentation to ensure that all income and investments are reported accurately. To avoid any errors or discrepancies, keeping these documents handy is essential to avoid missing the last ITR filing date for salaried employees.
Under section 234F of the Income-tax Act, 1961, individuals who file their income tax returns (ITR) after the due date are charged a penalty known as a late filing fee. The penalty amount for belated ITR is Rs. 5,000 as per the law. However, to provide relief to small taxpayers, the penalty is limited to Rs. 1,000 if their total income is less than Rs. 5 lakhs.
If the last ITR filing date for salaried employees is missed, individuals have to pay penalties of Rs. 5,000 or 10,000 as per their tax slabs. Currently, individuals can file ITR on or before 31 December of an Assessment Year.
Late filing of ITR increases the chances of scrutiny by the Income Tax Department, which can result in additional taxes, fines, or legal action against the salaried employee.
Delayed refunds can cause financial difficulties for people who rely on them to manage their finances, which can happen if they file ITR after the last date.
If the salaried employee fails to file ITR within the prescribed time limit, they may not be able to carry forward losses incurred in the current financial year to subsequent years. It can further affect their tax liability for the next financial year.
Late filing may cause salaried employees to miss out on important tax-saving opportunities such as deductions and exemptions. It can be avoided if the process is completed before the last ITR filing date for salaried employees.
Missing the due date can negatively impact the credit score of all individuals, reflecting poorly on their financial discipline and credibility.
Finally, the consequences of missing the last ITR filing date for salaried employees can cause unnecessary stress and inconvenience along with the implication of hefty fines.
Filing Income Tax Returns in India is not just a legal requirement but also a civic duty. The income tax department has simplified the process of filing ITR through various digital modes, making it convenient for taxpayers. By filing the ITR on time, individuals not only avoid penalties but also contribute towards the nation's development.
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