The Income Tax Act, 1961, mandates Indian taxpayers to furnish details of their income earned and applicable taxes on the same through a form. This form is known as an income tax return or ITR. An assessee, therefore, submits this form to the Income Tax Department of India.
Additionally, the information of income provided in this form pertains to a given financial year, i.e., a year commencing from April 1st and ending on March 31st of the subsequent year.
Furthermore, before we dig into how to file income tax returns for salaried employees, let’s understand who should file them. Individuals who fall into the following categories are liable to file ITR:
Age of the Individual | Amount of Income |
Up to 60 years of age | ₹2,50,000 |
Between 60 years to 80 years of age | ₹3,00,000 |
Above the age of 80 years | ₹5,00,000 |
At this point, a message flashes on your computer screen, prompting successful e-filing. Subsequently, an acknowledgement form called ITR-V is generated. Now, you must verify your return by way of any of these modes:
As mentioned earlier, salaried individuals in India can opt for any of the following ITR forms:
Filing income tax returns is especially for you if you invest in the equity market and buy or sell shares. Moreover, the adjusted short-term capital losses can be carried forward for up to 8 years when you submit the ITR for a given financial year.
Once the tax is deducted, you can get tax refunds only by submitting your IT return for the financial year. Therefore, refunds on TDS on rent payments or fixed deposits get initiated after you file returns and claim your desired tax deduction.
An income tax return is more than just a financial statement – it specifies your annual earnings as well. As a result, banks and NBFCs often require copies of ITRs for granting loans, such as a home loan or vehicle loan. Moreover, filing returns despite having no taxable income increases the chances of loan approval compared to an individual with the same income but no ITRs.
Generally, the last date to file an income tax return for individual taxpayers is July 31st in the subsequent financial year. For example, the due date to file an ITR for FY 2019-2020 was July 31st, 2020.
However, this date is subject to extension as and when deemed suitable by the Central Board of Taxes (CBDT). For instance, although the last date to file ITR was July 31st, 2020, for FY 2019-2020, it was extended to December 31st, 2020.
Have you missed out on the due date to file your income tax return? Do not fret. Allow us to explain how to file ITR for salaried employees after the due date:
1) File a belated return
You can still file your income tax return after the due date, which is known as a belated return. Filing a belated return is essentially the same as filing an ITR before the due date. The primary difference while filing a belated return is that while filing the applicable ITR form, you must select ‘Return Filed under Section 139(4)’.
2) Pay a late filing fee or penalty
The downside to filing an income tax return after the due date is that it attracts a penalty. Therefore, you are liable to pay a late filing fee under Section 234F of the Income Tax Act, the amount of which is variable.
The table below highlights the amount of penalty generally payable by different categories of taxpayers:
The key takeaway from the above table is that individuals with a total income below ₹5,00,000 should pay ₹1,000 as a late filing fee. As a result, these taxpayers enjoy relaxation on the payment of penalties. Additionally, the maximum penalty applicable when filing belated returns is ₹10,000.
However, when filing a return after the deadline, you shall lose certain deductions and set-offs on carrying forward losses (except for house property losses) as prescribed under Section 139(1).
So, be wise and file your ITRs on time. We hope that this guide answered all questions on how to file IT returns for salaried employees.