How to File Income Tax Return Online for a Salaried Employee?

Filing income tax returns is important for every salaried employee, even if you don’t have any tax liability towards the government. The tax returns act as proof of income, which helps you to get access to various financial products like loans. 

For the assessment year (AY) 22-23 or Financial Year FY21-22, the last date to file your income tax return is 31st July 2022. Therefore, before this date, you need to file your income tax returns or else you have to pay late fees. 

Any person employed in a public or private enterprise, drawing monthly remuneration in the form of salary needs to file income tax returns. If you are confused or don’t know how to file income tax returns online, this blog is for you. 

Before starting to file your income tax returns online, you need to calculate your total income for the financial year 2021-2022. 

The Form-16 issued by your employer helps to find out the total income you have earned through salary and total taxes deducted from the source. But, if you have other income sources like capital gains, house rental income, then you need to calculate beforehand. 

For salaried employees, there are two types of income tax return forms, ITR-1 and ITR-2. The ITR-1 is for individuals who have a total income of not more than Rs 50 lakh from salary. Those whose income has crossed this threshold and who wish to claim expenses under the head “income from other sources” should consider filing ITR-2. 

Steps to File ITR-1 

Income Tax Returns can be filed offline and online, i.e., in two different ways.

Online

Follow the below steps for filing ITR online.

Step 1: Visit the Income Tax e-filling Portal. 

Step 2: Use your PAN No., Password, and Captcha to log in to the e-Filing Portal.

Step 3: Look up the “e-file” menu on the bar. Click on the “Income Tax Return” link.

Step 4: Once you are on the page, expect the following. 

• PAN Details will have auto-populated values.
• Choose the “Assessment Year”
• Choose the “ITR Form Number”
• Under Filing Type, choose “Original/Revised Return.”
•  Click on “Prepare and Submit Online” present under “Submission Mode.”

Step 5: Click on Continue 

Step 6: Before proceeding, go through the instructions, and fill out all the mandatory details.

Step 7: Select the accurate verification type under the “Taxes Paid and Verification” tab. To verify your Income Tax Return, choose any one of the following: 

• I would like to e-Verify
• I would like to e-Verify within 120 days from the date of filing
• I don't want to e-Verify and would like to send signed ITR-V through normal or speed post to "Centralized Processing Center, Income Tax Department, Bengaluru - 560 500" within 120 days from the date of filing.

Must Read: How Salaried Employees Can Get a Personal Loan in India?

Step 8: After verifying all the data in the ITR, click on the “Preview and Submit” button.

Step 9: Submit your ITR

Step 10: Choose the e-Verify option and provide the OTP when prompted.

• The CSV should be entered within 60 seconds to avoid any inconsistencies later. If it takes more than 60 seconds, the ITR will be auto-submitted.

Offline

Follow the below steps for filing ITR offline.

Step 1: Visit the Income Tax e-filling Portal. 

Step 2: Navigate to Downloads > IT Return Preparation Software and download the ITR utility.

Step 3: Open the utility once the zip files are successfully downloaded. 

Step 4: The ITR form has all the applicable and mandatory fields; fill it out.

Step 5: Calculate the tax after validating the tabs of the ITR form.

Step 6: Save the XML once it is generated successfully. 

Step 7: Use your PAN No., Password, and Captcha to log in to the e-Filing Portal.

Step 8: Look up the “e-file” menu on the bar. Click on the “Income Tax Return” link.

Step 9: Once you are on the page, expect the following. 

• PAN Details will have auto-populated values.
• Choose the “Assessment Year”
• Choose the “ITR Form Number”
• Under Filing Type, choose “Original/Revised Return.”
• Click on “Prepare and Submit Online” present under “Submission Mode.”

Step 10: To verify yourself, choose from the list of options, i.e., tax return, Aadhar OTP, and EVC.

Step 11: Click on “Continue”

Step 12: Attach the ITR XML file

Step 13: If your verification method is DSC, attach the signature file.

Step 14: Enter the Aadhar No. and OTP that you will receive on your mobile number if that is your selected verification method.

Step 15: For EVC, enter the EVC you will receive on your phone.

Step 16: Submit the ITR.

Conclusion

Compared to earlier times, filing income tax returns online have become easy and can be done without seeking the help of any professional. For any person, it is an important document and one should file an income tax return even if he/she doesn’t have any significant income. It comes in handy and allows you to negotiate a competitive interest rate when taking a personal loan for salaried employees. 

The last date of filing ITR in 2022 for salaried individuals with income less than INR 5 cr per annum is July 31, 2022.