How to File Income Tax Return Online for a Salaried Employee?

Filing income tax returns is important for every salaried employee, even if you don’t have any tax liability towards the government. The tax returns act as proof of income, which helps you to get access to various financial products like loans. 

For the assessment year (AY) 22-23 or Financial Year FY21-22, the last date to file your income tax return is 31st July 2022. Therefore, before this date, you need to file your income tax returns or else you have to pay late fees. 

Any person employed in a public or private enterprise, drawing monthly remuneration in the form of salary needs to file income tax returns. If you are confused or don’t know how to file income tax returns online, this blog is for you. 

Before starting to file your income tax returns online, you need to calculate your total income for the financial year 2021-2022. 

The Form-16 issued by your employer helps to find out the total income you have earned through salary and total taxes deducted from the source. But, if you have other income sources like capital gains, house rental income, then you need to calculate beforehand. 

For salaried employees, there are two types of income tax return forms, ITR-1 and ITR-2. The ITR-1 is for individuals who have a total income of not more than Rs 50 lakh from salary. Those whose income has crossed this threshold and who wish to claim expenses under the head “income from other sources” should consider filing ITR-2. 

Documents Required to File Income Tax Return (ITR) Online

You need to required the following documents for ITR filing

• Form 16 and 16AS
• Interest income certificate from bank
• Investment proofs
• Rent receipts (for those who live in rented accomodation)
• House rental income (for those who have rented out property)
• Interest certificate on housing loan
• Proof for other income sources

Steps to File ITR-1 

If it is your first time filing your income tax return, then register yourself in the income tax portal using your PAN card and AADHAR card. For best results, please ensure that your mobile number is updated against your Aadhaar card, and that your bank account(s) are linked to your PAN, Aadhaar and mobile number. 

Others who are registered on the portal can log in with their credentials. 

• Go to the menu section and select E-File > Income Tax Returns > File Income Tax Returns.
• Select the applicable Assessment Year, i.e., AY 2022-2023 for filing tax returns for the FY 2021-2022 and mode of filing, i.e., Online, and then click on continue
• Select your ITR form type, i.e. ITR-1
• In the next, select the appropriate reason for filing the income tax return and then click on continue

Now comes the most important part in the process of filing an income tax return.

Must Read: How Salaried Employees Can Get a Personal Loan in India?

In the current tab, there are five tabs, which you need to validate. It consists of personal information, gross total income, total tax deductions, total tax paid and total tax liability. 

• In the Personal Information tab, check the personal details like PAN, Date of Birth, mobile number, and email address. Also, select the nature of employment applicable to you. 
• In the Gross Total Income tab, select the exemptions applicable to you. In case, the details are captured in Form 16 by the employer, you can skip the process and click on continue. In the next tab, provide details of all “income from other sources” like dividend income, rental receipts from house property, interest income from bank deposits, etc. 
• In the Total Deductions, fill in the applicable areas to claim a tax deduction under sections 80C, 80D, 80CCD. In case, the details are provided in Form 16, this section will come in pre-filled, which you need to validate. 
• In the final section, Tax Paid, the details from Form 26AS with TDS, TCS, Advance Tax, and Self-Assessment Tax will come pre-filled. The system will automatically compute the tax liability.

Now, in the next step, after confirming all the details provided in the tax return form, click on proceed. A tax summary will be generated by the system, in which it will mention your total tax liabilities. In case, there is a refund, the system will register the request for a refund to the bank account. If there are any dues, you need to pay the amount. 

Once all steps are completed, you need to preview the return and submit it. Post successful submission, you need to successfully validate the tax return electronically either through net banking or AADHAR OTP. Alternatively, you can also send the signed income tax return copy to CPC, Income Tax Department within 120 days of filing the tax return.

Conclusion

Compared to earlier times, filing income tax returns online have become easy and can be done without seeking the help of any professional. For any person, it is an important document and one should file an income tax return even if he/she doesn’t have any significant income. It comes in handy and allows you to negotiate a competitive interest rate when taking a personal loan for salaried employees. 

The last date of filing ITR in 2022 for salaried individuals with income less than INR 5 cr per annum is July 31, 2022.