The process of preparing an income tax return is a very complicated one for businesses, salaried individuals, and senior citizens. Fortunately, once you understand how to submit your return, you will be able to do it easily.
Our article will discuss how to file an ITR if you are self-employed, a senior citizen, or own a business
How does ITR filing work?
A self-employed or salaried individual must fill out an ITR form to declare the amount of income tax they have paid in that year. There are different forms you have to fill out based on whether you are a salaried individual or a self-employed individual. The corresponding persons or organizations can currently fill out seven ITR forms.
The process of filing an ITR for salaried individuals
ITR-1s must be filed by every salaried employee. However, your total income in the 2019-20 fiscal year should not exceed *50 lakhs. The ITR-1 is also known as Sahaj, and most information that goes into it is prefilled.
What is the process for filing ITRs for salaried individuals?
In order to file ITRs for salaries and professional income, you have two options. The first is online, and the second is offline. You need a computer to do either of these.
The ITR-1 can be filed online
- Go to www.incometaxindiaefiling.gov.in, the official portal of the Income Tax Department.
- You will need to enter your PAN card number, password, and captcha code in order to login.
- Choose the “e-File” menu option.
- Choose “Income Tax Return” from the drop-down menu.
- Choosing “Income Tax Return” will display the PAN value already filled in. The only thing left is to choose “Original/Revised” as the filing type.
- Choose the “Prepare and Submit Online” submission mode.
- ITR fields should be filled in according to the instructions.
- The final step is to select a verification method and click on the “Preview and Submit” button.
- After uploading the file, you can view it.
- Filing ITR-1 offline
- The ITR-1 form can be filled out offline with JAVA or Excel. Here is how to do so for salary and business income itr filing for proprietorship firm
The first step is to visit the official tax filing website, www.incometaxindiaefiling.gov.in.
- Under “Downloads* IT Return Preparation Software,” choose the ITR-1 form.
- The third step is to download the ZIP file and extract it on your computer.
- ITR-1 forms require the completion of all mandatory fields.
- Make sure that the tabs are validated and the tax is calculated.
- After this, generate and save the XML file.
- The next step is to log into your account with your PAN card, password, and captcha code.
- Choosing the e-file menu is the eighth step.
- Click on “Income Tax Return Link.”
- Choosing the a) Assessment year b) ITR Form Number c) Filing type as “Original/Revised Return” d) Submission mode as “XML” is the tenth step of the process.
- Verify the ITR-1 form using an option in
Please attach the XML file for the ITR. - Observe the uploaded file after submitting the ITR.
In order to file an ITR-1, what documents are required?
There are certain government-issued documents that must be submitted when filing ITR-1. These are:
- I.D. card
- Card-based on Aadhaar
- Statements from the bank/passbooks
- 16-year-old form
- Slips of pay
- The 26AS form
- A16A
- Section 80D and 80U tax exemptions
- A statement of capital gains
- Additionally, you will need an income tax login ID and password.
How can ITR-1s be filed?
For individuals with income up to *50 lakhs from any of the following sources, the ITR-1 form is to be filed by salaried employees.
- Pension or salary income
- One house property income
- Sources of income other than wages
- If income tax is clubbed with a spouse or minor, income should be limited to those specified above
- Does the previous year’s ITR-1 have to be filed for salaried employees?
- It is possible to file your ITR returns for earlier years up to one year after the assessment year ends.
FAQs about ITR Filing for Salaried Individuals
- When is tax deducted from a salary?
Each year, employers deduct taxes from their employees’ salaries. A certain amount of tax is deducted from your salary when the employer determines which tax bracket you fall into and subtracts that amount as tax from you. This is called tax deducted at source. ITR-1 tax returns must include this information.
- How often is salary tax paid?
Income tax is paid monthly by individuals, corporations, and businesses. Even though the tax is deducted monthly from your salary slip, it is calculated annually.
- Is there a way to save taxes?
You can save tax by investing in ELSS, FDs, and insurance policies as well as PPFs. Section 80C of the Income Tax Act has other tax-saving schemes.
Read More: