Everything You Need to Know About How to File Income Tax Return Online for Salaried Employees in India
Updated: Jan 16
Filing income tax return (ITR) is a legal obligation for every citizen of India who has taxable income in a financial year. It is also a proof of income that can help you avail various economic benefits such as loans, subsidies, refunds, etc. Filing ITR online is a convenient and hassle-free way to comply with the tax laws and avoid penalties or notices from the Income Tax Department.
Table of Contents
In this article, we will guide you through the steps to file ITR online for salaried employees in India. We will also explain the different types of ITR forms, the documents required, the due dates, and the benefits of filing ITR online.
Which ITR Form to Use?
The first step in filing your ITR online is to choose the correct ITR form that matches your income sources and tax status. There are different types of ITS forms available for different categories of taxpayers. For salaried employees, the most common ITR forms are:
ITR-1 (Sahaj): ITR-1 form is applicable for a resident individual (other than not ordinarily resident) who has a total income of up to Rs. 50 lakh from the following sources:
Salary or pension
One house property
Other sources (such as interest, dividend, family pension, etc.)
Agricultural income up to Rs. 5,000
You cannot use this form if you have any of the following conditions:
You are a director in a company
You have held any unlisted equity shares at any time during the previous year
Do you have any asset or financial interest in any entity outside India
You have signing authority in any account outside of India
You have income from any source outside India
You are a person in whose case tax has been deducted under section 194N (TDS on cash withdrawals)
You are a person in whose case payment or deduction of tax has been deferred on ESOP (employee stock option plan)
You have any brought forward loss or loss to be carried forward under any head of income
ITR-2: This form is applicable for an individual or a Hindu undivided family (HUF) who does not have income from business or profession and who is not eligible for filing.
ITR-3: This form covers income from the following sources:
Salary or pension
House property (more than one)
Capital gains (short-term or long-term)
Other sources (such as interest, dividend, family pension, etc.)
Foreign assets or income
Agricultural income more than Rs. 5,000
ITR-4 (Sugam): ITR-4 form is applicable for an individual or HUF who is resident other than not ordinarily resident or a firm (other than LLP) who has a total income of up to Rs. 50 lakh and who has income from business or profession computer on a presumptive basis under section 44AD, 44ADA or 44AE. This form also covers income from the following sources:
Salary or pension
One house property
Other sources (such as interest, dividend, family pension, etc.)
Agricultural income up to Rs. 5,000
You cannot use this form if you have any of the conditions mentioned above for ITR-1.
You can choose which ITR form is applicable for you by using the ITR Form Finder tool on the e-filing portal.
What are the Types of ITR Forms for Salaried Employees?
The Income Tax Department has prescribed different types of ITR forms for different categories of taxpayers. As a salaried employee, you need to choose the right ITR form based on your sources and amount of income, residential status, and other factors. Here are the four types of ITS forms that are applicable for salaried employees:
ITR-1 (Sahaj): This form is applicable for a resident individual (other than not ordinarily resident) who has income up to Rs. 50 lakh from salary, one house property, other sources (such as interest, dividend, etc.), and agricultural income up to Rs. 5,000. You cannot use this form if you have income from business or profession, capital gains, foreign assets or income, or any unlisted equity shares.
ITR-2: This form is applicable for an individual or a Hindu Undivided Family (HUF) who does not have income from business or profession, but has income from capital gains, foreign assets or income, more than one house property, or any unlisted equity shares. You can also use this form if you are not eligible to file ITR-1.
ITR-3: This form is applicable for an individual or a HUF who has income from business or profession, either as a proprietor or a partner in a firm. You can also use this form if you are not eligible to file ITR-1, ITR-2, or ITR-4.
ITR-4 (Sugam): This form is applicable for an individual or a HUF who is a resident (other than not ordinarily resident) or a firm (other than LLP) who has income up to Rs. 50 lakh from business or profession computed on a presumptive basis under section 44AD, 44ADA, or 44AE of the Income Tax Act. You can also use this form if you have income from salary, one house property, other sources, and agricultural income up to Rs. 5,000. You cannot use this form if you have income from capital gains, foreign assets or income, more than one house property, or any unlisted equity shares.
What are the Documents Required for Filing ITR Online?
Before you start filing your ITR online, you need to keep some documents handy to fill in the required details and verify your income and deductions. Here are some of the documents that you may need for filing ITR online:
PAN card: Your Permanent Account Number (PAN) is your user ID for logging into the e-filing portal and filing your ITR online. It is also used to link your Aadhaar card, bank accounts, Form 16, Form 26AS, and other documents with your ITR.
Aadhaar card: Your Aadhaar card is mandatory for filing your ITR online as per the Income Tax Act. You need to link your Aadhaar card with your PAN card before filing your ITR online. You also need to enter your Aadhaar number or Aadhaar enrolment ID in your ITR form.
Form 16: Form 16 is a certificate issued by your employer that shows the details of your salary income and the tax deducted at source (TDS) by your employer in a financial year. It has two parts: Part A and Part B. Part A shows the summary of your TDS deducted by your employer every quarter and deposited with the government. Part B shows the details of your salary components such as basic salary, allowances, perquisites, deductions under section 16, etc. You need to enter these details in your ITR form to report your salary income and claim credit for TDS.
Form 26AS: Form 26AS is a consolidated annual tax statement that shows the details of all the taxes paid by you or on your behalf in a financial year. It includes the details of TDS deducted by your employer, bank, tenant, etc., advance tax paid by you, self-assessment tax paid by you, refund received by you, etc. You need to download your Form 26AS from the e-filing portal and cross-check it with your Form 16 and other documents to ensure that there is no mismatch or discrepancy in the tax payments. You also need to enter the details of TDS and tax payments in your ITR form to claim credit for the taxes paid.
Bank statements: Bank statements show the details of your bank transactions such as deposits, withdrawals, interest, etc., in a financial year. You need to enter the details of all your bank accounts, including the account number, IFSC code, and the balance as of 31st March of the relevant yeаr in your ITR form. You also need to enter the details of any interest income earned from your bank accounts in your ITR form and pay tax on it if applicable. You also need to choose one of your bank accounts for receiving any refund from the Income Tax Department.
Investment proofs: Investment proofs are documents that show the details of your investments and expenditures that are eligible for tax deductions or exemptions under various sections of the Income Tax Act. For example, you may have invested in life insurance, health insurance, provident fund, mutual funds, etc. or spent on tuition fees, home loan interest, medical expenses, etc. that can reduce your taxable income and tax liability. You need to enter the details of these investments and expenditures in your ITR form and claim the deductions or exemptions as per the applicable sections and limits. You also need to keep these documents handy in case of any scrutiny or verification by the Income Tax Department.
What are the Steps to File ITR Online and Offline?
Filing ITR online is a simple and easy process that can be done by following these steps:
Online Mode
Step 1: Visit the Income Tax e-filing portal: The first step is to visit the official Income Tax e-filing portal using your web browser and click on ‘Login’. Enter your PAN in the User ID section, your password, and the captcha code. Click on ‘Continue’. Check the security message in the tick-box and click on ‘Proceed’.
Step 2: Go to ‘File Income Tax Return’: The next step is to click on ‘e-File’ tab > ‘Income Tax Returns’ > ‘File Income Tax Return’. Select the assessment year as ‘AY 2023-24’ and the mode of filing as ‘Online’ or ‘Offline’. If you choose offline mode, you need to download the Excel or Java utilities of the ITR form, fill it offline, and upload it on the portal. If you choose online mode, you can fill the online form on the portal itself.
Step 3: Select status: The next step is to select your filing status as ‘Individual’, ‘HUF’, or ‘Others’. Choose ‘Individual’ if you are filing ITR as an individual taxpayer and click on ‘Continue’.
Step 4: Select ITR type: The next step is to select the types of ITR form that is applicable for you based on your sources and amount of income, residential status, and other factors. You can refer to the above section on types of ITS forms for salaried employees to choose the right ITR form for you. Click on ‘Continue’.
Step 5: Choose the reason for filing ITR: The next step is to choose the reаson for filing ITR from the given options such as ‘Original/Revised Return’, ‘Notice u/s 139(9)’, ‘Notice u/s 142(1)’, etc. Choose ‘Original/Revised Return’ if you are filling your original return for the first time or revising your already filed return. Click on ‘Continue’.
Step 6: Add bank account details and other information: The next step is to add your bank account details such as account number, IFSC code, balance as on 31st March of the relevant year, etc. in your ITR form. You also need to choose one of your bank accounts for receiving any refund from the Income Tax Department. You also need to add other information such as Aadhaar number or Aadhaar enrolment ID, address, mobile number, email ID, etc. in your ITR form.
Step 7: Fill income and deduction details: The next step is to fill your income and deduction details in your ITR form based on your sources and amount of income, investments and expenditures, tax payments, etc. You need to refer to your Form 16, Form 26AS, bank statements, investment proofs, and other documents to fill these details accurately and correctly. You also need to verify these details with your documents to avoid any mismatch or discrepancy. You can also use the pre-fill option available on the portal to auto-fill some of these details from your previous returns or Form 26AS.
Step 8: Calculate tax liability and pay tax if any: The next step is to calculate your tax liability based on your taxable income and the applicable tax rates and slabs. You can use the tax calculator available on the portal to do this. You also need to deduct the taxes already paid by you or on your behalf such as TDS, advance tax, self-assessment tax, etc. from your tax liability to arrive at the net tax payable or refundable. If you have any net tax payable, you need to pay it online using the challan ITNS 280 available on the portal or through any other authorized mode. You need to enter the details of the challan such as BSR code, date of payment, serial number, and amount in your ITR form. If you have any net refund, you will receive it in your bank account that you have chosen for refund.
Step 9: Preview and verify your ITR form: The next step is to preview your ITR form and verify all the details that you have entered. You can also edit or modify any details if required. You need to ensure that there is no error or omission in your ITR form and that it matches with your documents and Form 26AS. You also need to check the tax computation summary and the verification section of your ITR form.
Step 10: Submit your ITR form: The final step is to submit your ITR form by clicking on the ‘Submit’ button. You will receive an acknowledgement number and a message on your screen confirming the successful submission of your ITR form. You will also receive an email with a copy of your ITR-V (verification form) attached to it.
Step 11: E-verify your ITR form: The last step is to e-verify your ITR form within 120 days of filing it. E-verification is a process of confirming your identity and authenticity of your ITR form using an electronic mode such as Aadhaar OTP, net banking, bank account number, demat account number, etc. You can e-verify your ITR form by logging into the e-filing portal and clicking on the ‘e-Verify’ option under the ‘My Account’ tab. You can also e-verify your ITR form by downloading the ITR-V from the portal or from your email and sending it to CPC Bangalore by post within 120 days of filing it.
Offline Mode
In the offline mode, you can download an excel or java utility of the ITR form from the e-filing portal and fill it offline using your computer. This mode is suitable for complex ITR forms such as ITR-2 and ITR-3. To file your ITR offline using this mode, follow these steps:
Step 1: Click on ‘e-File’ > ‘Income Tax Returns’ > ‘File Income Tax Return’.
Step 2: Select the assessment year and the mode of filing as ‘Offline’.
Step 3: Download the excel or java utility of the ITR form that is applicable for you.
Step 4: Extract the utility and open it using Microsoft Excel or Java Runtime Environment.
Step 5: Enable the macros and read the instructions carefully.
Step 6: Fill the relevant details in the utility such as personal information, income details, tax details, deductions details, etc. You can use the prefill option to auto-fill some of the details from your PAN database or Form 26AS.
Step 7: Validate all the sheets and check for any errors or warnings. You can use the calculate tax option to check your tax liability or refund amount.
Step 8: Generate an XML file of your ITR form and save it on your computer.
Step 9: Login to the e-filing portal and click on ‘e-File’ > ‘Income Tax Returns’ > ‘File Income Tax Return’.
Step 10: Select the assessment year and the code of filing as ‘Offline’.
Step 11: Select your filing status as ‘Individual,’ ‘HUF,’ or ‘Others.’
Step 12: Select the ITR form that is applicable for you.
Step 13: Choose the reason for filing your ITR such as ‘Original/Revised Return’, ‘Notice u/s 139(9)’, ‘Notice u/s 142(1)’, etc.
Step 14: Add your bank account details and other information such as Aadhaar number, mobile number, email ID, address, etc.
Step 15: Upload the XML file of your ITR form and click on ‘Submit’.
Step 16: Choose an option to e-verify your ITR such as Aadhaar OTP, net banking, bank account number, demat account number, etc.
How to E-verify Your ITR?
After submitting your ITR form online, you need to e-verify it within 120 days to complete the process. E-verifying your ITR means confirming your identity and the authenticity of your ITR. You can e-verify your ITR using any of the following methods:
Aadhaar OTP: You can use this method if you have linked your Aadhaar number with your PAN and mobile number. You will receive a one-time password (OTP) on your registered mobile number that you need to enter on the e-filing portal to e-verify your ITR.
Net banking: You can use this method if you have access to net banking facility of your bank account that is linked with your PAN. You need to login into your bank account and select the option to e-verify your IT on the e-filing portal.
Bank account number: You can use this method if you have prevalidated your bank account number with your PAN and mobile number on the e-filing portal. You will receive an OTP or an electronic verification code (EVC) on your registered mobile number or email ID that you need to enter on the e-filing portal to e-verify your ITR.
Demat account number: You can use this method if you have revalidated your demat account number with your PAN and mobile number on the e-filing portal. You will receive an OTP or an EVC on your registered mobile number or email ID that you need to enter on the e-filing portal to e-verify your ITR.
You can also e-verify your ITR by sending a signed copy of the acknowledgment (ITR-V) by post to the Centralized Processing Center (CPC) of the Income Tax Department in Bengaluru within 120 days of filing your ITR. However, this method is not recommended as it is time-consuming and prone to errors.
What are the Benefits of Filing ITR Online?
Filing ITR online has many benefits over filing it offline such as:
It is convenient and time-saving as you can file it from anywhere and anytime using your computer or smartphone.
It is accurate and error-free as you can use the pre-fill option, tax calculator, and other features available on the portal to fill and verify your details.
It is secure and confidential as you can use your PAN, password, Aadhaar OTP, etc. to login and file your ITR online.
It is fast and easy as you can e-verify your ITR online without sending any physical documents by post.
It is transparent and trackable as you can check the status of your ITR filing, processing, refund, etc. online using the portal.
Conclusion
Filing income tax returns online for salaried employees in India is a simple and easy process that can be done by following the steps mentioned above. Filing ITR online not only helps you comply with the tax laws and avoid penalties or notices from the Income Tax Department but also helps you avail various financial benefits such as loans, subsidies, refunds, etc. Filing ITR online also has many benefits over filling it offline such as convenience, accuracy, security, speed, transparency, etc. "Get Expert Tax Assistance with TaxBuddy Today! Maximize Your Returns and Ensure Seamless Tax Filing. Don't Miss Out, Contact Us Now!"
FAQs
Q1: What is the date for filing income tax return for salaried employees in India?
A1: The due date for filing income tax return for salaried employees in India for the assessment year 2023-24 is 31st July 2023. However, due to the COVID-19 pandemic, the government may extend this date further.
Q2: How can I check if my employer has deducted TDS from my salary and deposited it with the government?
A2: You can check if your employer has deducted TDS from your salary and deposited it with the government by downloading your Form 26AS from the e-filing portal or from TRACES website. Form 26AS shows the details of all the TDS deducted by your employer and other deductions and deposited with the government in a financial year. You can also check your Form 16 issued by your employer that shows the summary of your TDS deducted and deposited every quarter.
Q3: How can I claim refund of taxes paid by me or on my behalf?
A3: You can claim refund of excess tax paid by you or on your behalf by filing your income tax return online and showing the net refund amount in your ITR form. You also need to choose one of your bank accounts for receiving the refund in your ITR form. The Income Tax Department will process your ITR and issue the refund to your bank account after verifying your details and tax payments.
Q4: How can I revise my income tax return if I have made any mistake or omission in it?
A4: You can revise your income tax return if you have made any mistake or omission in it by filing a revised return online usіng the sаme ITS form and mode of filing as the original return. You need to choose the reаson for filling IT as ‘Revised Return’ and enter the acknowledgement number and date of filing of the original return in your revised return. You can revise your income tax return any number of times before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
Q5: How can I e-verify my income tax return using Aadhaar OTP?
A5: You can e-verify your income tax return using Aadhaar OTP by following these steps:
Link your Aadhaar card with your PAN card if not already done.
Login to the e-filing portal and click on the ‘e-Verify’ option under the ‘My Account’ tab.
Select the option ‘I would like to generate Aadhaar OTP to e-Verify my return’.
Enter your Aadhaar number and click on ‘Generate OTP’.
You will receive an OTP on your registered mobile number linked with Aadhaar.
Enter the TOP and click on ‘Submit’.
You will receive a message confirming the successful e-verification of your ITR.
Q6: How can I check the status of my income tax return filing, processing, refund, etc.?
A6: You can check the status of your income tax return filing, processing, refund, etc. by logging into the e-filing portal and clicking on ‘View Returns/Forms’ option under ‘My Account’ tab. You can select the relevant assessment year and type of form as ‘Income Tax Return’ and click on ‘Submit’. You will see the details of your ITR such as acknowledgement number, date of filing, status, etc. You can also click on ‘View Details’ to see more information such as date of processing, refund amount, mode of payment, etc.
Q7: What are the consequences of not filing income tax return or filing it late?
A7: Not filing an income tax return or filing it late can have serious consequences such as:
You may have to pay interest under section 234A at 1% per month or part thereof on the net tax payable from the due date till the date of filing.
You may have to pay a penalty under section 234F at Rs. 5,000 if you file after the due date but before 31st December of the relevant assessment year or Rs. 10,000 if you file after 31st December of the relevant assessment year. However, if your total income does not exceed Rs. 5 lakh, the penalty will be limited to Rs. 1,000.
You may lose some benefits such as carry forward and set off of losses, deduction under section 80IA/80IAB/80IB/80IC/80ID/80IE, etc.
You may face scrutiny or notice from the Income Tax Department for non-compliance or evasion of tax.
Q8: What are the documents that I need to keep after filing my income tax return online?
A8: After filing your income tax return online, you need to keep these documents for future reference or verification:
A copy of your ITR-V (verification form) that you receive by email after submitting your ITR online.
A copy of your Form 16 issued by your employer that shows the details of your salary income and TDS.
A copy of your Form 26AS that shows the details of all the taxes paid by you or on your behalf in a financial year.
A copy of your bank statements that show the details of your bank transactions and interest income in a financial year.
A copy of your investment proofs that show the details of your investments and expenditures that are eligible for tax deductions or exemptions under various sections of the Income Tax Act.
