This post is a guest post by tax2win.in. All views and opinions expressed belong to the original author.
Filing of income tax returns have become online simplifying the whole process. Moreover, the income tax department has also simplified the ITR forms so that you can file your taxes online without any confusion. If you are a salaried individual, your salary income would be your main source of income. Apart from salary income you should also consider all other sources of income and then prepare your returns. If you have any confusion about the tax filing process, here is a detailed guide to help you file your income tax returns –
Filing of income tax returns for salaried individuals
Before explaining the process of filing income tax returns online, here are some things which you should keep in mind –
- Aggregate your income from all sources
The first step in preparing your income tax returns is to find out the total income that you have earned in the year. Though salary income would be the major component of your earnings, do take into consideration any other income which you might have earned from the following heads –
- Income from house property
- Income from capital gains
- Income from other sources
Know the individual incomes of all these heads as you would have to report all the income in the income tax form.
- Choose the correct ITR Form
The next thing which you should know is the ITR form which you would have to file. Salaried individuals can file their income tax returns using Sahaj Form which is also called ITR -1 if their income is up to INR 50 lakhs. ITR-1 would have to be used for recording your incomes and filing your returns. The following, however, cannot be recorded in ITR -1 –
- Winnings earned from lottery, horse racing, etc.
- If you are a company director and own unlisted shares of the company
- Taxable income from capital gains
- Income from business or profession
- Agriculture income which is more than INR 5000
- Income from more than one house property
- Carry forward of losses
If you have any one of the above-mentioned incomes or if your income exceeds INR 50 lakhs, you would have to file returns using ITR–2.
- Segregation of your gross salary income
Under your salary income, there are different components which are allowed as a tax-free income. There are different allowances in your salary like House Rent Allowance (HRA), conveyance allowance, reimbursement of telephone bills, Leave Travel Allowance (LTA), etc. These allowances should be listed separately to find out the taxable income from them.
- Important documents which are required
Lastly, you should keep some important documents handy which would help you prepare your income tax returns easily. These documents include the following –
- Form 16 offered by your employer which shows the details of the TDS deducted by the employer, amount of net salary paid and the TDS deposited with the Government on your behalf
- Form 26AS which shows the TDS deducted from all sources of income. You can cross-check the TDS deducted from salary with the TDS mentioned in Form 26AS matches.
- Interest certificate from your bank which shows the fixed deposit interest earned and the TDS paid on the same
- Bank account statements using which the saving account interest can be calculated
Process of filing income tax returns
Now that you know about the important aspects of filing your income tax returns, you can start filing your returns online. When filing returns online, there are two ways. One, you can download the income tax department’s software and file your returns using the software. Two, you can file your returns directly on the website of the income tax department. Here is a detailed step-by-step process of filing your income tax returns for both the modes –
Mode 1 – Filing returns by downloading the software
- Visit the income tax department’s official website www.incometaxindiaefiling.gov.in and download the tax filing software. The software is available in the ‘Downloads’ section of the website. Ensure that you download the software for the relevant financial year.
- Once you have the software, you can use it to fill in your income details. Use the ‘pre-fill’ button and pre-fill your personal details and PAN number.
- Provide all your income details in the software and hit ‘Calculate’ to calculate your tax liability automatically.
- Pay the calculated income tax and generate the payment details. Once the tax is paid, generate the income tax return form and save it in ‘XML’ format on your computer.
- Visit the income tax website and log-in with your user id, password and date of birth. A captcha code would be displayed which you would also have to enter. If you are a new user, register first using your PAN card number and then login.
- Go to the ‘e-file’ section on the home page and choose ‘Upload Return’.
- Select the correct ITR form, the assessment year and upload the XML file that you saved on your computer
- If you have a Digital Signature Certificate, upload it to complete your tax filing process.
- Hit ‘Submit’ and your return would be filed
If you don’t have a Digital Signature Certificate, after you hit ‘Submit’, ITR-V would be generated. You would have to verify your return using this form. You can either verify ITR-V through electronic mode by getting a OTP on your registered mobile number. Alternatively, you can download the ITR-V and submit it to the Central Processing Centre (CPC) of the Income Tax Department which is located in Bangalore. This submission should be done within 120 days of filing your returns to avoid penalty.
Mode 2 – Filing income tax return online directly
- Visit the income tax website www.incometaxindiaefiling.gov.in
- Log into your account using your user id, password, date of birth and captcha code
- Click ‘e-file’ and select ‘Prepare and submit ITR online’
- Choose the correct income tax return form (ITR -1 or ITR 4S)
- Also choose the relevant assessment year
- Fill in the relevant details in the tax filing section
- Hit ‘Submit’
- If you have the Digital Signature Certificate upload it to complete the tax filing process. If not, you would get ITR-V which you should fill and verify online or by submitting it to the CPC in Bangalore within 120 days of tax filing
An alternate way of filing income tax returns – Tax2Win
A simpler and convenient way to file your income tax return online is to use Tax2Win. Tax2win is an online platform which allows you easy filing of your income tax returns. To file your taxes through Tax2win, all you would have to do would be to upload your Form 16. Once uploaded, the income details would be recorded from the form and your tax liability would be calculated easily. You don’t have to register yourself with the income tax portal nor your income tax credentials.. Everything is done through Tax2win and your tax is calculated. You can then pay your tax and complete the return filing process. To file your taxes through Tax2Win,:
- Simply visit their website https://tax2win.in/
- Upload Form 16.
- The rest would be taken care of by the website itself.
- Verify your computation and approve
- Its done.
The tax filing deadline is drawing nearer and so you should prepare and file your taxes at the earliest to avoid any type of penalty.
- Which income falls under the head ‘income from other sources’?
Interest earned from savings bank account, interest on FDs, dividends received, etc. are common examples of incomes which fall under the head ‘income from other sources’. Any income which does not qualify under the other heads of income falls under ‘income from other sources’.
- Which form would be used if I have a gross salary of INR 75 lakhs?
ITR 2 is to be used for filing your returns if your salary is more than INR 50 lakhs.
- Can I carry forward losses incurred in a financial year?
Yes, certain types of losses can be carried forward to another financial years. However, in such cases, ITR-2 would have to be used for filing returns.