How can a salaried employee file income tax return?

If your main source of income is salary then you need to submit your Income Tax Return, or ITR-1 Form. It is also called Sahaj for tax year 2020-21 to report the income earned during the financial year 2019-20.

Ineligibility to fill ITR-1 Form

Residents whose main source of income is salary will have to fill ITR-1 form. The form is also intended to be used by people who earn money in a fiscal year from pensions, one-house property or other sources, such as the lottery or horse racing.


However, the aggregate amount earned during the assessment year 2019-20 should not exceed an amount of Rs. 50 lakhs.

However, if you are the head of a business that has unlisted shares in the past one year, or have assets or income outside India, then ITR-1 forms are not the right form for you.

“Now Form (ITR1) cannot be used by a resident who is a director in a business or who has invested in unlisted stock of an equity business, despite having a net income within the limit of Rs 50 lakh. Its The reason is the fact that it requires additional information to the CBDT (Central Board of Direct Taxes),” said Gopal Bohra, partner, NA Shah Associates LLP.


ITR-1 Form Filling

Visit the ITR filing site of the tax department and sign in to the system using your user ID and password.

Click on “e-File” and then select ITR Form and Assessment Year.

Fill your income details like salary tax payment, deduction etc details on Form 16.


Verifying this is essential because creating your tax return will not be enough. Otherwise, your tax return will not be filed. Verification can be done on the spot or online. There are also online options like e-verification of returns through net banking or one-time password generation using Aadhaar.


pre-filled data

Many of the information you need to fill in the ITR-1 form will be auto-populated. Your profile and details about TDS, salary etc. will be pre-filled in your ITR-1 application. However, you must check the details filled by you which are in your own form.

From this year onwards, you will have to provide more accurate details of your income. It is necessary to provide details of allowances and perquisites exempted from section 10.


It is also necessary to complete information about income earned or rent from your home properties and other sources, such as interest earned on savings accounts and bank deposits.


components of salary

It is also necessary to report other elements of your tax package such as the standard deduction that reduces your tax-deductible income and thus your tax liability.

Salaried employees must declare the amount of their perquisites, profit instead of salary, tax exemption and entertainment allowance as well as deductions for professional taxes.


income from home

The current period will be the beginning of the financial year and you will be able to take two houses as self-occupied. In the past there was no limit to the number of houses that were self-occupied, only one of them could be considered as self-occupied. The rest were “considered as letting out” and were required to pay taxes on the rental capacity of the property.

You can choose “Deemed Release”.


capital gains

Income tax rules state that the buyer of a property has to deduct TDS at the percentage of 1%, when its value exceeds Rs. 50 lakhs. An amendment was incorporated in the ITR form to provide this detail by the seller.

If tax is deducted or PAN is mentioned from buyer’s documents, disclosure of buyer’s details is required. The details should include the names and PAN of the buyers, their percentage share, address and market price of the property.


other income sources

If you received interest income, you must provide specific information about each source. It is classified under the income tax head “Other Sources”.

This can be an account with a bank for savings or fixed deposits, as well as an income tax refund, which can be in the form of an income pass-through or others.


status as residential

If you leave India frequently, you may need to provide additional information, including the number of days spent in and outside India. A person is considered to be a tax resident if he has been in India for at least 182 days or more during a financial year, and 60 days or more during the financial year and for at least 365 days in the preceding four financial years.


foreign assets

You will need to provide information about your foreign accounts in a depository institution other than your bank accounts abroad. Information about foreign custodial accounts, including debt and equity held in foreign accounts, as well as information on the foreign value of insurance contracts, also need to be included separately in the tax return.

Complete all required information as a lack of disclosure of this information could result in a legal problem.


other amendments

If you donated to charitable organizations, you will need to report cash or other methods separately. Senior citizens earning interest and claiming deduction under section 80TTB should make the disclosure in the space available.

Those whose income from agriculture is more than Rs 5 lakh, they have to provide details like district name and pin code, measurement of land, if the land is leased or owned and if it is water irrigated or irrigated, etc.


contact details

If you are required to submit your return using ITR-1, make sure you remember to include your mobile and address in India.


Required Documents:

You should have these documents ready when you upload your ITR-1 online.

  • skillet
  • Base
  • Bank account details
  • Form 16
  • Investment details
  • Form 26AS

Note that if you file for FY 20-21, you can select AY21-22 in the dropdown while filing your return.


log in:

  • Log in to the taxpayer e-filing portal.
  • You need to enter your PAN card number, password and captcha code to complete the login process.
  • Select ‘e-File’ from the menu
  • Click here to open “Income Tax Return” link

Forms to be filled:

income tax return page

  • Your PAN card data will be automatically populated
  • Select the appropriate assessment year
  • Select your ITR Form Number
  • Select ‘Filing Type’ option as “Original/Modified”
  • Select the submission mode in the form you will prepare and submit the form online
  • Click Continue to finish the task.

Make sure to read the instructions and ensure that you have completed all the relevant and mandatory fields of the Sahaj Form. Select the correct verification option, which is found under the ‘Tax Paid and Verification’ tab.

Simply click on the “Preview and Submit” button. Review all the data included in the ITR before making the submission.

The last step is to verify which you can do by two methods:

  1. Online E-Verification:
  2. From the menu at the top and under the “My Accounts” tab, click on “e-Verification”
  3. Select the ITR you want to verify
  4. If You Have to Pay Additional Taxes If you have to pay any additional taxes, press “Pay Today” and finish the process over the Internet.
  5. In the event that your Aadhaar account number is linked to your mobile number, simply click on “e-Verify using Aadhaar OTP”.
  6. Enter the OTP sent to your mobile and then click on “e-Verification”.
  7. Physical e-Verification
  8. Take a print out of the form. You must add the date, put your signature in the space below, which is indicated.
  9. Mail the documents to the address mentioned through speed mail.
  10. If you have to pay additional tax and you have to pay it, you can do so by depositing the check online or by sending the check as per the information provided on the site.


What is meant by Form 16?

  • Form 16 is a TDS certificate. I-T Department Employers are legally required to deduct TDS on your salary and pay it to the federal government through the I-T department.
  • This Form 16 certificate provides information about the amount earned in the previous year as well as the amount of TDS deducted.
  • It has two sections – Part A contains information about employer and employee’s name, address, PAN, TDS deduction and TAN details.
  • Part B contains details of salary paid, other income, allowances, deductions allowed and tax payable.


What does 26AS mean?

  • Form 26AS is a list of taxes deducted by you and tax to be paid by you. The form is issued through the Income Tax Department.
  • It provides information about taxes collected by deductors on your behalf, tax paid by taxpayers as well as tax refunds received during the financial year. This form is available on the website of the Department of Taxation.

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