Income tax salary return filing is easy task compared to other income tax returns, like income tax capital gains return, income tax business returns. It takes only patience and compilation of important data for income tax return filing for salaried individual if you follow these simple step by step process.
Step 1 – Preparation of necessary salary data.
- Determine no of companies you have worked with – Incase you have worked with more than one employer, in this case you should have submitted the details of previous employment to current employer during the end of financial year along with any other additional deductions apart from previous employer form 16.
- Reporting of income to employer – Make sure all the income is reported to the employer such as income from fixed deposits , savings account interests. The critical part is most salaried employees forget to declare any capital gains income and it gives additional tax demand during assessment.
- Verify with form 26AS available at income tax department to make sure that all income found in Form 26AS is reported.
- If the current employer does not considered the income from previous employer, or other income kindly consider it as per the provisions of Income tax act.
- Once all these process is completed you should have data of gross salary , exemptions, deductions under chapter VIA etc.
- workout tax using new tax regime u/s 115BAC and old tax regime and use which ever beneficial.
Step 2 – Starting with filing process in Income tax website
- Logon to Income tax E filing website
- Select FILE NOW and select the below options one by one.
- select ay 2021-2022 (Current Ay) for financial year 2020-2021
- select online
- select start new filing
- select individual
- select ITR 1 and proceed with ITR 1
- select taxable income is more than basic exemption limit
Step 3 – Entering data in ITR 1 form
- If you have filed the return earlier all personal data will be prefilled else click on edit and add personal details such as e mail id mobile no, address etc.
- Select nature of employment as other for PRIVATE sector companies.
- If return is filed with in due date select section 139(1) else select relevant section only after careful analysis.
- Add bank details.
- Select YES or No for new tax regime base on analysis in step 1
- Enter the details of income
- enter details of income tax deductions such as chapter VIA
- check if there is any additional tax due apart from tax already paid by TDS , if there is additional tax due other than
- proceed to preview return and submit the return.
submit the return with verify later option so that any delay in receiving aadhaar otp will not stop filing process. Once return is submitted successfully E- Verify using Aadhaar OTP option.
Step 3 – Tracking the return processing
once the return is submitted and e verified the status will show as filed along with verified, wait for few months normally 3 months until the processing is done by the department, nowadays processing of income tax return filing is done as quick as 10 days and 143(1) notice is issued. once 143(1) notice is issued with refund determination with out any changes in income computation you can sit quiet until refund is received.
If there is any demand or refund after processing of income tax return filed, either you should accept the demand or file new return in response to the notice providing correct information under appropriate category.
Common problems in Salary income tax return filing
- Selection wrong assessment year
- Entering deductions in wrong area
- Ignoring form 26AS data
- Selection of wrong assessment year this happens when the person files consider assessment year is same as financial year for simple understanding select assessment year = financial year + 1 so for financial year 2020-2021 assessment year is 2021-2022
- Return is considered as complete only when payment of tax is completed and there is no tax liability, so please complete the payment before submitting the return