ITR Filing for Salaried Employees (under 50 lakh)

There are a lot of reasons why you must always file income tax returns:

• To abide by the law.


• To prevent any potential legal issues.


• The extra tax paid can be refunded in the following fiscal year by submitting an ITR.


• ITR is recorded with the government and acts as a legal proof of income and identity, which is crucial to submit while applying for loans.


• ITR filing boosts your credit score.


• Sections 70 and 71 of The Income-tax Act 1961 contain some provisions for carrying forward losses of a particular year to the subsequent year which means you can move your loss to the next assessment year.

TDS or Tax Deducted at Source is the tax that your employer deducts from your salary every month and pays to the Income Tax Department on your behalf. Subsequently, your employer determines the amount of TDS that has to be deducted from your salary every month based on your total salary for the whole year and your investments in tax-saving products.
TDS forms a major portion of every salaried employee's income tax payment. Your employer will share a TDS certificate with you called Form 16, typically around June or July, showing the details of the tax deducted each month.

As mentioned in the previous question, your employer has to deduct TDS from your salary and deposit it with the government, as required by the Income Tax Department.
The Form 16 certificate contains details of the salary you’ve earned during the year and the total TDS amount deducted. It has 2 parts, Part A contains the details of the employer and employee name, address, PAN & TAN details, and TDS deductions. Part B contains the details of salary paid, other incomes, deductions allowed, and tax payable.

Form 26AS includes a summary of taxes deducted on your behalf and taxes paid by you, as provided by the Income Tax Department. It will show you the details of tax deducted on your behalf by deductors, details of tax deposited by taxpayers, and the tax refund you’ve received in the financial year. You can access this form from the website of the Income Tax Department.

For the 2023-24 financial year (AY 2024-25), you need to file your income tax returns by July 31, 2024

Yes, you can file a belated return before the end of the assessment year or before the completion of the assessment year, whichever is earlier.

Yes, you can revise your income tax return within 1 year from the end of the relevant assessment year or before the completion of the assessment year, whichever is earlier. We urge you to provide full and accurate details to avoid the need for any change or rectification in the initially filed return. Note: Filing for revised returns is not included in this plan.

To avoid issues in your ITR filing and getting your refund, make sure you do the following:

• Link Aadhaar and PAN.
• Pre-validate your bank account where you want to receive your refund.
• Choose the correct ITR before filing or else the filed return will be treated as defective and you will need to file a revised ITR using the correct form.
• File the return within the specified timelines.
• Verify your return and you can opt for e-Verification (recommended option – e-Verify Now) since it’s the easiest way to verify your ITR.
• File the responses for the notices received from the ITD within the specified timelines.

You are eligible to file ITR-1 if you are a resident individual and your:

• Total income does not exceed INR 50 lakh during the Financial Year
• Income is from salary, one house property, family pension income, agricultural income (up to ₹5000/-), and other sources, which include:
  • Interest from Savings Accounts
  • Interest from Deposits (Bank / Post Office / Cooperative Society)
  • Interest from Income Tax Refund
  • Interest received on Enhanced Compensation
  • Any other Interest Income
  • Family Pension
• Income of Spouse (other than those covered under the Portuguese Civil Code) or Minor is clubbed (only if the source of income is within the specified limits as mentioned above).

There are different penalties associated with filing your Income Tax Returns (ITR) late or skipping the filing entirely. Some of the sections and their penalties include:

• Annual total income under INR 2.5 lakhs: You can file a nil return without incurring any penalty.
• Annual total income under INR 5 lakhs: The maximum fine for filing the ITR late or not at all is INR 1,000/-.
• Annual total income over INR 5 lakhs: The fine for filing an ITR late or not at all is up to INR 10,000/-.