ITR Filing for Salaried Person
Filing ITR for salaried person is an essential financial responsibility. It is a process where salaried employees report their income, deductions, and taxes paid to the Income Tax Department. The Income Tax Return for salaried employee ensures transparency and helps claim tax refunds and deductions.
Benefits of ITR Filing for Salaried Person
Filing ITR for salaried person has multiple advantages:
Easy loan approvals: Banks require ITR proofs.
Claim tax refunds: Get refunds if excess tax was paid.
Proof of income: Useful for visa applications.
Carry forward losses: Offsetting capital gains against losses.
Avoid penalties: Timely filing prevents late fees.
ITR Filing Process for Salaried Employees
Filing Income Tax Return for salaried employee can be simple if done correctly. Here’s a step-by-step process:
Collect documents: Form 16, salary slips, PAN, Aadhaar.
Choose the correct ITR form: Typically ITR-1 (Sahaj) for salaried.
Calculate total income: Include salary, capital gains, and other sources.
Claim deductions: Under sections 80C, 80D, etc.
Compute tax liability: After deductions.
File online: Use the Income Tax e-filing portal for Online ITR filing for salaried.
Verify ITR: Complete e-verification via Aadhaar OTP or net banking.
ITR for Salaried Person with Capital Gains
If you have capital gains (from stocks, property, etc.), it’s crucial to report them accurately. Use ITR-2 if:
Long-term or short-term capital gains are involved.
Foreign income or assets exist.
Proper disclosure ensures compliance and accurate tax computation.
ITR Filing Last Date for Salaried Employees
The ITR filing last date for salaried employees is typically 31st July of the assessment year. Filing after this date may attract penalties under Section 234F.
ITR Refund for Salaried Individuals
If excess tax has been deducted (TDS), filing your ITR for salaried person helps claim refunds. After successful filing:
Check refund status on the e-filing portal.
Refunds are usually processed within 30-45 days.
Common Mistakes to Avoid While Filing ITR for Salaried Person
When filing ITR for salaried person, mistakes can lead to penalties or delayed refunds. Here’s what to avoid:
- Incorrect Form Selection: Use ITR-1 (Sahaj) for most salaried individuals; switch to ITR-2 if you have capital gains.
- Mismatch in TDS Details: Ensure Form 26AS matches with Form 16.
- Omitting Additional Income: Include bank interest, freelance income, or rental income.
- Ignoring Deductions: Maximize claims under Section 80C, 80D, 80G, and more.
- Not Verifying ITR: E-verification is mandatory for ITR processing.
Deductions & Exemptions Available for Salaried Individuals
Maximize your tax savings while filing your Income Tax Return for salaried employee by utilizing these deductions:
- Section 80C: Up to ₹1.5 lakhs on PPF, EPF, ELSS, etc.
- Section 80D: Medical insurance premiums (₹25,000 for self, ₹50,000 for senior citizen parents).
- Section 10(14): HRA, LTA, and other special allowances.
- Standard Deduction: ₹50,000 directly deducted from your salary income.
- Section 80G: Donations to approved charities.
Documents Required for ITR Filing for Salaried Employees
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How to Check ITR Refund for Salaried Individuals?
After filing your ITR for salaried person, follow these steps to check your refund status:
- Visit the Income Tax e-filing portal.
- Login using PAN credentials.
- Go to “My Account” → “Refund/Demand Status.”
- Enter assessment year and check refund status.
Penalties for Late ITR Filing for Salaried Employees
Missing the ITR filing last date for salaried employees can result in:
- Late Fee (Section 234F): ₹1,000 – ₹5,000 depending on income levels.
- Interest Penalty (Section 234A/B/C): On outstanding tax dues.
- Ineligibility to Carry Forward Losses: Especially for capital gains and business losses.
Comparison: Old Tax Regime vs. New Tax Regime for Salaried Individuals
While filing ITR for salaried person, you can choose between:
- Old Tax Regime: With deductions and exemptions (80C, 80D, etc.).
- New Tax Regime: Lower tax slabs but no major deductions.
| Income Slab | Old Regime | New Regime |
|---|---|---|
| Up to ₹2.5L | NIL | NIL |
| ₹2.5L – ₹5L | 5% | 5% |
| ₹5L – ₹7.5L | 20% | 10% |
| ₹7.5L – ₹10L | 20% | 15% |
| ₹10L – ₹12.5L | 30% | 20% |
| ₹12.5L – ₹15L | 30% | 25% |
| Above ₹15L | 30% | 30% |
Tip: Choose the regime based on total deductions and tax liability.
Top Tax-Saving Tips for Salaried Individuals
- Utilize Section 80C fully (PPF, ELSS, NSC, etc.).
- Opt for NPS under Section 80CCD(1B) for an additional ₹50,000 deduction.
- Claim HRA, LTA, and other allowances.
- Invest in Health Insurance for 80D deductions.
- Make use of Section 80G for charity donations.
FAQ's on ITR for Salaried Person
Yes, by using salary slips, Form 26AS, and bank statements, you can still file ITR.
Generally, ITR-2 if you have capital gains or foreign income.
You can file a Revised ITR under Section 139(5) before the end of the assessment year.
Yes, without e-verification, your ITR won’t be processed.
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