ITR of Salaried Person

Documents Required for ITR of Salaried Person

For filing Income Tax returns, we need from you the accurate information on income, deduction and TDS paid. Here is a checklist of what we need for e-Filing your Income Tax returns:

• Form 16: This is the most important document which your employer will provide you. This is the basis of filing the income tax return.
• Information for type of ITR form: We need all the income details to understand which ITR form will be applicable for you.
• Form 26 AS: If you have previously filed ITR, we can access the same from Income Tax Login if you have login credentials. Form 26AS can also be downloaded through net banking if PAN is mapped to that particular account.
• Saving Account Interest and FD Interest: We need Bank statement or passbook for interest on your savings and FD account. Also provide Interest certificates or TDS certificates from banks and Post offices
• Details of bank accounts: We need bank account detail including the IFSC Codes. It is mandatory to give the details of all the saving bank account for filing income tax returns.

Legal Procedures for ITR of Salaried Person

Below are the Steps for e-Filing of Income Tax Return for Salaried Persons:

• You submit all the required details and documents to us.
• Our Compliance Manager (Chartered Accountant) will understand your tax implication and liabilities over phone or video call.
• Preparation of the Income Tax Return after discussing all the points in detail.
• Filing of Income Tax Return with the Income Tax Department on your behalf.
• On successful submission for form, ITR-V would be displayed.
• Click on the link to download the ITR-V. ITR-V will also be sent to the registered email.
• If ITR-V is uploaded with DSC, the return filing process is complete.
• E-verify the Income Tax Return by various methods available by looking at the most feasible one for you.
• CCL Team will also send you the computation of income for your understanding.

Features & Benefits for ITR of Salaried Person

You must have heard or seen many advertisements which encourages the person to file the income tax return with the department. But wait, what is the benefit of filing the same. Well, here are the answer which will enlighten your knowledge and encourage you to file your income tax return with the department. Some of them are given below:

• Law Compliant Citizen: The first and one of the most important benefits of filing of income tax returns is that, it ensures that the individual is compliant with the Indian Income tax laws. By staying within the time lines, the individual would be able to manage his financial affairs effectively.
• Visa Application: If you wish to visit any country and you are applying for a Visa, the foreign consulate would require proof of your income as well as Income Tax receipts. Thus, it is required to file tax returns if you ever go for the Visa processing of any country. The acknowledgment for filing the tax returns would come in handy in case a visa is required to be obtained; the document would serve as proof of the financial soundness of the individual.
• Loan or Credit Card Requirement: If a loan or credit card is required to be obtained from any bank or financial institution, the tax returns would be required to prove the ability of the person to repay the loans or manage credit card. It also becomes a proof that you have a regular income and have paid taxes on it and then Banks and other Financial Institutions feel comfortable in giving you a loan or a credit card.
• To get refund on excess tax paid (if any): If your TDS has been deducted more than your tax liability, it becomes very important that you file your tax returns to claim tax refunds. Without filing the ITR, the Income Tax Department shall not issue tax refunds. Excess taxes paid by an individual either by way of TDS on Fixed Deposit Interests, any other Tax Deductions or advance/self-assessment tax can be refunded only by filing income tax returns.
• To carry forward the Loss: If you have sustained a Business loss or loss under the head “Capital Gains”, you can carry forward the loss only if you file the Income Tax Return by the due date. Therefore, if you have sustained a loss, you must file your Income Tax Return in time if you want to carry forward the loss for future adjustment with your Income. If you have any capital loss, you can carry it forward for the next eight consecutive financial years.
• To avoid penalty: If you do not file your Income Tax Return by 31st July of the assessment year, the Income Tax Department may impose a penalty up to Rs. 10,000. If you do not file the Income Tax Return by the due date, you are liable to pay interest at the rate of 1% of Income Tax payable for every month after the due date till the date of filing the return. Note: Due Date of filing tax return gets extended many-a-times.
• To claim deductions: The Income Tax Act, 1961 has provided many deductions. By filing the Income tax return, you can avail all those deductions which otherwise your employer would have missed it for that you need file your Income Tax returns every year. By submitting the various proof such as PPF, investment, Mediclaim bill etc. You can claim deduction and save tax on your income. You can also file nil return with the department.

Apart from these common benefits, CCL would like to bring your attention to some extraordinary and essential features of filing ITR:

• For appointment in Judicial & Class one Jobs: While applying for judicial post, the candidate who may be a Lawyer, Chartered Accountant or a Company Secretary are required to demonstrate annual professional income with the selection panel. Generally, for these types of post, no client data or record of similar work done previously shall matter to the selection body except previously filed income tax returns that shows the candidate’s credibility. In some of the judicial services 7 years ITR record is checked at the time of interview.
• For accidental claim in third party Insurance: Life is very uncertain we all know this but, in this uncertainty, also, we can protect us and our loved-ones. Nobody wants that their insurance claim be rejected on the basis of non- submission of ITR filing proofs. Therefore, it is very important to file the ITR returns with the department even if income is nil. It can help you in future in case of accidental death of any one member/s in the event of any mishappenning because during court trial insurance company need the proofs of income to arrive at the amount of accidental claim, if any return is missing, mainly last 3 years, this could lower the claim amount or even no claim because court take ITR as only evidence. No wealth record, FD’s, business etc. is given that much importance as compared to ITR in the eyes of law. The formula for claim is by multiplying the Yearly income in ITR with years of expected life of deceased. We at CCL can remind you every year about the regular return filing.
• For immigration profile obtaining visa outside India: This is another benefit of filing your ITR regularly. The High Commissions of various countries or VFS centers across India have huge record of fabricated documents in which income tax returns of visa applicants are one of them. Why? Because travel agents forge it or sometimes show it as regular income tax return by charging huge money. Every assessesee should file genuine return if intention is in mind to go aboard in future. Use it showing your all genuine source of incomes, because immigration officers give due weightage to your annual income. Absence of any single year returns can decrease your chances of foreign visa under visitor, investor or work permits category.
• For eligibility in all Loan cases from Banks: One of the services of all banks either private or Nationalized is to finance the customers in the shape of bank loans, Cash Credit Limit or project funding etc. Income tax returns of last three years are the basic need for it except agriculture limits. Secondly, the PAN is checked over the CIBIL website if Individual or corporate body is not a defaulter in any previous bank. The CIBIL Score plays a critical role in the loan application process. Because this agency keeps the record of your installment payment nature, as it gives the score to your bank which is required for the particular approval of loan case. That is why according to the Supreme Court order, hard recovery of all loans is banned, especially in car loans no forceful possession can be taken by the bank. CIBIL just blacklist such customer for all future loans all over India, based on the PAN card number allotted to such loan defaulter.
• For obtaining Government tenders, registration on panels: As described in earlier points, the value of business profiles of various corporate agencies, contractors, professional service providers or Individuals is dependent on the yearly income tax returns. Sometimes contractors have very good history of procuring heavy projects in their line, be it a service or works contract, but they lack the knowledge & benefit to file the returns on time or sometimes the returns were not filed on the factual provisions (i.e defected returns). For contractors, these returns needed not only to be filed on time, but must be very much accurate & audited (if required), these must be signed with necessary documents because in tender- approval meetings or for finalizing professional panels, the selection body has ample options to mature the tender in favor of the fittest. Sometimes this work is checked by the tender scrutiny committee and five to seven years ITRs are considered to see whether the applicant has done the work of that much amount earlier or not. So next time to enlarge your business horizon and obtaining more tenders from Government or private bodies, one need to file the regular returns every year.