ITR- Salaried Employees

WHAT IS A ITR- SALARIED EMPOLYEES?

The income earned by the individuals and businesses are subject to tax. The tax levied on the income of a person is Income tax, which is levied and collected by the Central Government. Such tax on income earned is payable in the same financial year wherein it is accrued in the form of advance tax. But the intimation and calculation of the income as well the tax liability is provided in the Assessment Year. This intimation form is called Income Tax Return. The form and time limit for filing ITR are different for different taxpayers based on the criteria.ITR- Salaried Employees.

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ITR -1 Form is a simplified one-page form for individuals having income up to Rs 50 lakh from the following sources :

  1. Income from Salary/Pension
  2. Income from One House Property (excluding cases where loss is brought forward from previous years)
  3. Income from Other Sources (excluding winning from Lottery and Income from Race Horses)
  4. In the case of clubbed Income Tax Returns, where a spouse or a minor is included, this can be done only if their income is limited to the above specifications. ITR- Salaried Employees

ADVANTAGES OF INCOME TAX RETURNING

Allows carry forward of losses

Most businesses in their initial years face losses from the business. The business loss or capital losses can be carried forward up to 8 years if the ITR is filed. This loss can also be adjusted against the future income that lowers taxable income in the future. If ITR is not filed, the taxpayer is deprived of this benefit.

Loan Processing and high risk cover

The numbers and the capital base defined by the income tax return is helpful for the loan processing. Higher the financial worth, easier the loan processing. The same applies to high-risk cover insurance. The ITR is a considerable document for making decisions in this regards.

Claim refund of TDS paid from salary

Salaried personnel receives the income after deduction of applicable TDS. It may happen that after the eligible deductions, the tax liability is lower than the amount of TDS actually deducted. In such cases, the excessive payment can be claimed in the form of refund only if ITR is filed by the person.

Define financial worth

The ITR filed with the Government defines the financial worth of the taxpayer. The track of ITR shows the financial capacity and also increases the capital base of a person. Hence, the track of income and financial worth is decided by the previously filed ITR. The investors and institutions look forward to returns filed to know the capacity of the business.

DOCUMENTS REQIURED FOR FOR ITR FILING

Bank Account Statement

The statement for concerned Financial Year is required to assess other incomes

PAN Card

PAN Card of the taxpayer

Entities PAN Card

In case of company or firm, PAN card of all directors or partners is required

Financial Statements

For business entities, except proprietorship, financial statements are required

Aadhar Card

In case of company or firm, Aadhar card of all directors or partners is required

Investment/ expenses u/s 80

Details about the investments made or expenditure u/s 80 must be provided

Form 16

The salaried person should provide the TDS Certificate, known as Form 16

Cancelled Cheque

Cancelled cheque of the taxpayer’s bank account is required

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