Step-by-Step Guide to File Salary Income in ITR

Filing your Income Tax Return (ITR) is a crucial responsibility for every salaried individual. The process may seem daunting, but with a clear understanding of the steps involved, you can file your ITR accurately and on time.

This blog provides a comprehensive, step-by-step guide to help you file salary income in your ITR, ensuring compliance with the Income Tax Act, 1961, and maximizing available deductions and exemptions.

---

Why Filing ITR is Important for Salaried Individuals

1. Compliance with Tax Laws: Mandatory if your income exceeds the basic exemption limit (₹2,50,000 for individuals below 60 years).
2. Claiming Refunds: Helps claim a refund if excess TDS (Tax Deducted at Source) is deducted.
3. Loan Approvals: ITR is often required for loan applications and visa processing.

---

Prerequisites for Filing ITR

Before you start filing, gather the following documents:

1. Form 16: Provided by your employer, this contains details of salary income and TDS.
2. PAN and Aadhaar Card: Mandatory for filing ITR.
3. Bank Statements: To report income from interest or other sources.
4. Investment Proofs: For claiming deductions under Section 80C, 80D, etc.
5. Rent Receipts: For claiming HRA exemption.
6. Login Credentials: For accessing the Income Tax e-Filing Portal.

---

Step-by-Step Process to File Salary Income in ITR

Step 1: Determine Your Residential Status

Identify whether you are a Resident, Resident but Not Ordinarily Resident (RNOR), or Non-Resident (NRI) under Section 6 of the Income Tax Act.

Step 2: Choose the Correct ITR Form

• ITR-1 (Sahaj): For individuals with income up to ₹50,00,000 from salary, one house property, and other sources (e.g., interest).
• ITR-2: For individuals with salary income and additional sources like capital gains.

Step 3: Log In to the e-Filing Portal

• Visit the Income Tax e-Filing Portal.
• Log in using your PAN or Aadhaar and password.

Step 4: Select the Filing Option

• Choose File Now under the e-File tab.
• Select the appropriate assessment year (e.g., AY 2024–25 for FY 2023–24).

Step 5: Fill in Personal Information

• Verify details like name, PAN, and address.
• Ensure the information matches your Form 16.

Step 6: Report Salary Income

• Under the “Income from Salaries” head, input details from Form 16, including:
  • Gross salary.
  • HRA and other allowances.
  • Standard deduction of ₹50,000.

Step 7: Report Other Incomes

• Include income from:
  • Bank interest (from savings accounts, FDs).
  • Rental income or other sources.

Step 8: Claim Deductions and Exemptions

• Declare deductions under Section 80C (e.g., PPF, ELSS) and other sections like 80D (health insurance).
• Claim exemptions for allowances like HRA and LTA.

Step 9: Compute Total Taxable Income

• Verify total taxable income after deductions and exemptions.
• The system will calculate your tax liability automatically.

Step 10: Pay Tax (If Required)

• If additional tax is payable, use the e-Pay Tax option to pay it online.

Step 11: Verify and Submit ITR

• Double-check all the details entered.
• Submit your ITR and verify it via:
  • Aadhaar OTP.
  • Netbanking.
  • Electronic Verification Code (EVC).

---

Common Mistakes to Avoid When Filing Salary Income

1. Ignoring TDS Mismatches: Ensure TDS in Form 16 matches your Form 26AS.
2. Not Reporting All Income: Declare income from other sources, even if tax is deducted.
3. Forgetting to Claim Deductions: Maximize deductions under Section 80C, 80D, etc.
4. Missing Verification: ITR filing is incomplete without verification.

---

FAQs on Filing Salary Income in ITR

1. What is the deadline for filing ITR?

The deadline for individuals is generally 31st July of the assessment year.

2. Can I file ITR without Form 16?

Yes, you can calculate salary income using payslips and TDS details in Form 26AS.

3. What happens if I miss the ITR filing deadline?

You can file a belated return until 31st December, but late filing fees under Section 234F may apply.

4. Is salary from a foreign employer taxable in India?

Yes, if you are a resident in India, your global income, including foreign salary, is taxable.

5. Can I revise my ITR after submission?

Yes, you can revise your ITR until the end of the assessment year.

---

Conclusion

Filing salary income in ITR doesn’t have to be overwhelming. By following this step-by-step guide and ensuring accuracy in reporting, you can file your returns effortlessly. Leverage exemptions and deductions to reduce tax liability, and always consult a professional for complex cases.

Want to consult a professional? Contact us: 09463224996.
For more information and related blogs, click here.
Learn more about the e-filing process on the Income Tax India e-Filing Portal.