Income Tax Return (ITR) is a form where the taxpayers file the detailed and mandatory information about her/income earned for the financial year and taxes which are applicable to the income tax (I-T) bureau.
The Income Tax forms are of various kinds and depending on the type of taxpayer, the ITR form varies. They are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7 which are announced and documented dated is the duty of every taxpayer money taxpayer to file his/her ITR form before the deadline is over. The applicability of ITR forms differs depending on the sources of the taxpayer’s income, the amount of the earned income, and also the category in which the taxpayer belongs such as individuals, HUF, company, etc.
ITR for Salaried person
As we know, The income tax office has categorized taxpayers into several classes based on income and its source to make tax submission simpler and easy. Therefore, you should not ignore filing the returns appropriately. To people with income up to Rs. Fifty lakhs, the form ITR-1 is required. In this section, we will address who can file ITR-1 and other relevant requirements.
It is significant to note that the Aadhaar card has become a mandatory document that is a requirement for every person in the country. With that in a note, the Department of Income Tax told its residents to link the Aadhaar card with the PAN card as this assists in many additional documentation processes and makes work simple. Let us further see how to file an income tax return for salaried people.
Benefits of e-Filing ITR for Salaried Employees
Before stepping into the significance, you will have to keep in mind that the Central Board of Direct Taxes has made regulations stricter for tax evaders. Let’s dive into the significance of filing the taxes for salaried employed online.
- It clarifies that you are a responsible citizen of the country
- Enables getting a loan or a credit card
- Advantages to claiming tax deductions
- Claim tax refund
- Helps to alter your capital gains and losses
- Very useful in processing your visa
Structure of ITR-1 Form
Form ITR-1 is divided into the following parts;
Part A: General Information
Part B: Gross Total Income which contains sections‘ House Property’ and ‘Salary/pension’
Part C: Deductions and Total income taxable
Part D: Computation of Tax Payable which contains the Tax Computation and Tax Status
- Schedule IT: Details of Advance Tax and Self Assessment Tax Payments
- Schedule TDS: Details of TDS (Tax Deducted at Source)
The ITR-1 Form cannot pertain if you compel double taxation relief which comes under Section 90/90A/91.
Eligibility for filing income tax returns for salaried people
- Employees whose income (Salaried / Interest Income) is less than Rs. Fifty Lakhs
- Salaried employees having single or multiple Form sixteen
- Salaried employees having the ownership of properties (single or multiple)
- New joiners or freshers
- If you have a salary above Rs. Fifty Lakhs
- If you are a director in any company or shareholder in the unrecorded company
ITR -1 Form for individuals with an income of Rs. Fifty lakhs from the below-mentioned sources is a standardized one-page form:
- Salary / pension income.
- Revenue from one house property
- All Sources of profits (excluding lottery winning and racehorses profits)
But in the case, if there are clubbed income tax returns, where a spouse or a minor is involved, then this can only be attained if their earnings are identical to the requirements mentioned above.
Documents required for income tax returns for salaried people
- Form sixteen from your company
- Additional Form sixteen
- Form 26AS Tax Credit Statement
- Aadhaar card
- Bank statement if the interest received is above Rs. 10,000/-
- Salary Slip of any month during the Financial Year.