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Filing the Income Tax Return is an imperative responsibility of every individual. Not only it is mandatory by law, but also because it is the duty of every citizen, to be honest and regular in paying his taxes. These taxes are directly related to the progress that the country makes. After all, it is the money of the taxpayer that helps the government to function properly.
But there is still a large population of people who are not well aware of the ways to file their taxes. If you too struggle to find out how to file salary details in ITR 1 and ITR 2, read on.
Most of them either don’t know under which category of the IT Return they fall in or many of them don’t know how it is done. Many people consider filing the returns to be a tedious and difficult task. But filing the IT return is no rocket science. In this article, we will discuss how to file salary details in ITR 1 and ITR 2.
When it comes to filing your IT Returns, it is important for you to know what forms are to be filled. What forms you are required to fill is dependent on the type of income, your annual income and the exemptions that you are eligible for. Learning about them before you file your taxes, will help you perform the procedure correctly, which will not only save your time and effort but would also give you peace of mind. So, before we learn how to file salary details in ITR 1 and ITR 2, let us first understand which out of the two you need to fill.
ITR 1 form is to be filled when you are/have any of the following:
You cannot fill ITR 1 when you are/have any of the following:
ITR-2 form is to be filled when you are/have any of the following:
You cannot fill ITR-2 when you are/have any of the following:
In a financial year, the last day to file your Income Tax Return is July 31. Being aware of the decline, helps us being prepared and planning better. You have time to gather the documents and if you do this on time, the filing can be done in a smooth and hassle-free manner.
As a salaried employee, you would need to have
Form 26AS is provided by the Income Tax Department and can be downloaded from the official website of the IT Department. This is a summary or an overall view of the income tax that has been paid by you during a financial year. It shows the different taxes that are subtracted from your income.
Documents of investments that qualify for deduction under Section 80, such as PPF, ELSS, LIC premium certificates, etc.
A few of the Required Documents for claiming Deductions
The following documents must be kept handy:
Allowances : A total of all the allowances that are exempted under Section 10, such as the HRA, House Rent Allowance and TA, Transport Allowance.
Value of Perquisites : Wherever applicable, Value of Perquisites under section 17(2) 21600.00 (as per Form No:12BA) has to be mentioned in Form 16.
As a salaried individual, you need to keep your Form 16 prepared for reference when you fill in your salary details. You must also check if the salary that you receive includes a Professional Tax in it or not. For most professionals, this is a flat amount of INR 2,400 to 2,500 each year.
In case your HRA is not mentioned despite you being eligible, then you have to calculate the House Rent Allowance by making use of the formula that is mentioned in Form 10 under section 10. The least of the following should be preferably claimed as the HRA.
For example, in case your LTA is INR 50,000, the HRA comes to INR 1 lakh. The allowance exempted is INR 1.5 lakhs under the Income Tax Act.
I missed filing my return what do I do?
The last date to file the ITR in 2018 was 31 Dec 2018 by paying a late fee of INR 5,000. There is still time to file the returns for the financial year 2017-2018, you can file it before 31 March 2019 by paying a fine of INR 10,000. Remember that the financial year 2017-2018 ends on 31 March 2019.
Is it necessary to mention my Aadhaar details when filing ITR?
Yes, it is necessary.
My Aadhar card is still not verified, can I file ITR?
Yes, you can. Mention the 12-digit Aadhar enrolment number.
What are allowances?
Allowances are the fixed and systematic payments that are paid to an employee, over and above his salary for the purpose of meeting the employer's requirements.