Comprehensive Guide to Income Tax Filing for Salaried Employees

  1. Which form is used for filing ITR by a salaried employee?

A salaried employee receives a fixed amount of income from an employer for providing services under a contract of employment. The aforesaid income include salary, allowances, perquisites, and other benefits. The salaried employee is required to pay income tax on the income earned from employment during the assessment year under consideration after deducting the eligible deductions and exemptions under the Income Tax Act 1961.

The salaried employee is required to file an income tax return every year if his gross income exceed Rs. 2,50,000/-.  Salaried person is required to report his details of income, deductions claimed, taxes paid, and refund claimed, if any as per the ITR form. Taxcellent helps you to file Income Tax Return in Delhi as well as anywhere in the world as per Income Tax Provisions

  1. What are the Basic Exemption Limits for FY 2022-23 and FY 2023-24? 

Individuals having annual income of Rs. 3,00,000 or higher are liable to file their Income Tax Returns (ITR) under the new tax regime irrespective of their age. Whereas, under the old tax regime, the basic exemption limits were as follows:

An assessment is mandatorily required to file their ITR if:

  1. What are the documents required for filing an ITR by a salaried person?

An assessee needs to collect all the documents that are relevant to your income tax filing. These include Form 16 (TDS certificate) and any other documents that reflect incomes, deductions, and exemptions. However, if an assessee don’t have Form 16, then also income can be computed for offering it in ITR using other documents like salary slips, bank statements, and investment statements.

An assessee can also get information about their TDS and TCS from Form 26AS as available on TRACES through the Income Tax Portal. Other relevant documents such as Form 16A, documents related to exemption u/s Section 80D and 80U, and Capital gains statement are useful for income tax calculation if applicable.

  1. Applicability of ITR form for salaried employees 

ITR-1 and ITR-2 are typically suitable for salaried taxpayers, the applicability of the appropriate ITR form depends on the nature of an assesse income.

  1. When can a salaried individual file ITR?

If an assessee is employed, then such assessee should only file an income tax return when their income goes beyond a threshold limit. For the financial year 2022-23, both the old and new tax regimes have a basic exemption limit of ₹2.5 lacs. However, for the financial year 2023-24, the exemption limit under the new tax regime has been increased to ₹3,00,000 whereas for older regime, it remains same.

For better understanding, if an assessee is  a salaried individual, then such person needs to file their income tax return for FY 2022-23 (Assessment Year 2023-24) only if their annual income exceeds ₹2,50,000.

  1. What are benefits of filing Income Tax Returns? 

Taxcellent helps you in preparing tax computation as well as timely filing of ITR in India. 

Taxcellent helps you in claiming tax refunds by filing ITR. We also helps you in obtaining loans such as business loans or home loans.

Taxcellent - For All Chartered Accountants Services

We have launched a range of Chartered Accountants Services for families along with a complete income tax filing product suite covering ITR-1 to ITR-7. With the launch of our families division, we aim to help millions of Indians with financial literacy, compliance and investment.

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