Salary Income

Overview

The ITR for a salaried individual depends on their earnings and the category of taxpayers to which they belong to.ITR 1 and ITR 2 are the forms appropriate to a salaried person.

ITR 1: Also identified as the Sahaj form, it is to be filed by employees whose entire annual income doesn’t exceed Rs 50 lakh. An individual whose income from farming doesn’t exceed Rs 5000 or who owns a one-house property also comes under

ITR 1.
ITR 2: It is for the management of individuals whose salary is higher than Rs 50 lakh. The income source may include income from property incomes, or the agricultural income may exceed Rs 5000. Also, if the individual has gained investments in unlisted equity shares, they have to file ITR 2 instead of ITR 1.

TYPES OF ITR FORM

ITR-1: For Individuals being a Resident (other than Not Ordinarily Resident) having Total Income up to Rs.50 lakhs, having Income from Salaries, One House Property, Other Sources (Interest, etc.), and Agricultural Income up to Rs.5 thousand(Not for an individual who is either Director in a company or has invested in Unlisted Equity Shares).

ITR-2: For Individuals and HUFs do not have income from profits and gains of business or profession.

ITR-3: For individuals and HUFs having income from profits and gains of business or profession

ITR-4: For Individuals, HUFs, and Firms (other than LLP) being a Resident having Total Income upto Rs.50 lakhs and having income from Business and Profession which is computed under sections 44AD, 44ADA or 44AE

ITR-5: For persons other than Individual, HUF, Company (Partnership Firm, Aop / Boi)

ITR-6: For Companies other than companies claiming exemption under section 11

ITR-7: This form is relevant for all people who are required to file tax returns under the Section 139(4A), Section 139(4B), Section 139(4C), Section 139(4D), Section 139 (4E), or 139 (4F) that mainly includes Trust, University, etc.

Due Dates For Filing Income Tax Returns :

Category of Assessee	Due Date
Individual	31st July
Body of Persons (BOP)	31st July
Hindu Undivided Family ( HUF)	31st July
Association of Person (AOP)	31st July
Business (Audit Cases)	30th September

Our Process

Step 1

Discussion and collection of basic information

Step 2

Choosing applicable ITR Form

Step 3

Collection of Documents

Step 4

Computation of Tax Liability

Step 5

Form Filling & Submission

Step 6

Sharing Filled Documents

Choose Your Package

All Inclusive Pricing – No Hidden Fee

Basic
- ₹ 800
- - Income From Salary upto 50 Lakh
  - Rent Income
  - Income From Other Sources
  - Tax Payment Assistance
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Standard
- ₹ 1250
- - Income From Salary More Than 50 Lakh
  - Rent Income
  - Income From Other Sources
  - Tax Payment Assistance
  - Multiple Forum 16
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Premium
- ₹ 2000
- - Income From Salary More Than 50 Lakh
  - Rent Income
  - Income From Other Sources
  - Tax Payment Assistance
  - Multiple Forum 16
  - Director in Company
  - Arrear of Salary
  - Full Year Support for any assistance
  - Suggestion to Maximise Tax Deduction
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Ultimate
- ₹ 2500
- - Income From Salary More Than 50 Lakh
  - Rent Income
  - Income From Other Sources
  - Tax Payment Assistance
  - Multiple Forum 16
  - Director in Company
  - Arrear of Salary
  - Capital Gain on Sale of Property, Shares, Mutual Fund
  - Profit & Loss From Future & Options or Intra Day
  - Full Year Support for any assistance
  - Suggestion to Maximise Tax Deduction
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Benefits

Taxable Income

If you have taxable income in India, you must record your ITR in India. This is appropriate for a person if his/her taxable income surpasses INR 2.50 Lakh. In case you are a Company, LLP, or Partnership Firm, you must file ITR irrespective of your profit or loss.

Financial Power

A good track record of consistent ITR Filing shows your financial strength and is significant in your regularity. This serves you to receive instantaneous bank credits and also a visa. Henceforth, it is advisable to file ITR on a routine basis.

Trustworthiness

Filing an ITR improves your reliability and your credit availing capacity from the bank aspect. Even if you are not accountable for ITR filing for any reason, it is a good practice to file the same. Your ITR helps as proof of your Income. No other document does this job.

Tax Refunds

For any reason, if your TDS has been deducted and the same is higher than your exact tax payable, such a refund request can only be done by filing an accurate IT return in time. You won’t notice your returns if you don’t file your ITR.

Move Forward Losses

If you have acquired any losses in your business on account of expenses or reduction, you must file your return to move ahead of those. The advantage of this can be availed once you have taxable income. Such losses, then, can be set off on taxable profits.

Avoiding Tax Notices

There are many measures defined under the Act, in which you may be assisted legal notification if you have not filed your ITR. Filing your ITR precisely and in time can assure you that you don’t have to meet any of these.

Documents Required

All Form 16 Part A & B from your Companies

Form 26AS Tax Credit Statement

PAN & Aadhar Card

Income Tax Login Credentials

Bank statement if the interest received is above Rs. 10,000/-

Salary Slip of any month during the Financial Year

Any Other Income or Investment Proofs that hasn't been declared or mentioned in Form 16.

Bank Account Number, IFSC Code

Housing Loan repayment schedule or loan repayment Certificate in case of home loan if any

Details of Investment for 80C / 80D/ 80 G Deduction

Clear All Your Doubts !

I am supposed to file ITR-2 and not ITR-1 if my maximum exempt income exceeds Rs. 5,000. What qualifies as exempted income?

You should file ITR-2 if your total exempted income exceeds Rs. 5,000. Certain incomes are exempt under Section 10 of the Income Tax Act. Following are the examples of exempt income:

Agricultural income
LIC Maturity amount as per section 10 (10D)
Long term capital gain on listed shares and securities as per section 10(38)

Gratuity, leave encashment and pension may be exempt under Section 10 of the Act.

While filing ITR-1 should Interest Income be shown in Income from Other Sources if TDS has already been deducted?

Yes, you should always include Interest Income under Income from Other Sources, even if tax has been deducted by the bank

Is there any restrictions on the number of returns I can file using one email id and mobile number?

Yes, you can only file 10 returns using the same email id and mobile number.

There is no refund due to me. Do I still have to fill in my Bank Account details in the Income Tax Return?

Yes, it is mandatory to fill in your bank account details, whether you have a refund due or not. This is because it has been noticed that many taxpayers end up paying more than their required tax liability. In such cases, the Income Tax Department needs to send refunds within a certain amount of time. If you do not fill in your bank account details, the process would be considerably delayed.

What income am I taxed for?

Your income is not equal to your salary. You could earn income from several other sources other than your salary income. Your total income, according to the Income Tax Department, could be from house property, profit or loss from selling stocks, or from interest on a savings account or fixed deposits. All these numbers get added up to become your gross income.

Income from Salary: All the money you receive while rendering your job as a result of an employment contract.
Income from House Property: Income from house property you own; property can be self-occupied or rented out.
Income from other sources: Income accrued from Fixed Deposits and Savings Account come under this head.
Income from Capital Gains: Income earned from the sale of a capital asset, say mutual funds or house property.
Income from business and profession: Income/loss arising as a result of carrying on a business or profession. Freelancers' income comes under this head.

What is TDS shown in my payslip?

Your employer deducts tax from your salary and pays it to the I-T Department on your behalf. It's called TDS. TDS is tax deducted at the source. Your employer cuts a portion of your salary every month and pays it to the Income Tax Department on your behalf.
Based on your total salary for the whole year and your investments in tax-saving products, your employer determines how much TDS has to be cut from your salary each month.
For a salaried employee, TDS forms a major portion of an employee's income tax payment. Your employer will provide you with a TDS certificate called Form 16 typically around June or July showing you how much tax was deducted each month.

What is Form 16?

Form 16 is a TDS certificate. Your employer is required by the I-T Department to deduct TDS on your salary and deposit it with the government.

The Form 16 certificate contains details about the salary you have earned during the year and the TDS amount deducted.

What is Form 26AS?

Form 26AS is a summary of taxes deducted on your behalf and taxes paid by you. This is provided by the Income Tax Department.
It shows details of tax deducted on your behalf by deductors, details on tax deposited by taxpayers, and tax refund received in the financial year.

What is Basic Salary?

This is a fixed component in your paycheck and forms the basis of other portions of your salary and hence the name. It is usually a large portion of your total salary. HRA has also defined a percentage of this Basic Salary. Your PF is deducted at 12% of your Basic Salary

What is HRA?

House Rent Allowance: Salaried individuals who live in a rented house/apartment can claim House Rent Allowance or HRA to lower taxes. This can be partially or completely exempt from taxes. The allowance is for expenses related to rented accommodation.

What is the due date for return filing for individuals?

Individuals need to file their return by 30th September of next year, i.e for income earned in Financial Year, the return has to be filed by 30th September, every year.

Can I file a revised return to correct a mistake in the original return filed?

Yes, the return can be revised within one year from the end of the relevant assessment year or before completion of the assessment whichever is earlier. The filing of revised returns is not part of the plan. Plan buyer is required to provide full and accurate details to avoid the need for any rectification in the originally filed return.

Can a return be filed after the due date?

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

Am I required to keep a copy of the return filed as proof and for how long?

Yes, under the Income-tax Act legal proceedings can be initiated up to 4 to 6 years (depending upon case to Expert's) before the current financial year. However, in certain Authority the proceedings can be initiated even after 6 years, hence, it is advised to preserve the copy of the return for at least 6 years or maintain it as long as possible.

Do I need to attach details of TDS deducted, proof of investments, etc?

ITR return forms are attachment less forms and hence, you are not required to attach any document (like proof of investment, TDS certificates, etc.) along with the ITR (whether filed manually or electronically). However, these documents should be retained and produced before the tax authorities when demanded in situations like assessment, inquiry, etc.

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