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Salaried Tax Filing Registration in India

Filing taxes as a salaried individual in India is a crucial annual task that ensures compliance with the country's tax laws. Whether you're a new taxpayer or looking to streamline your filing process, understanding the essentials can make the entire process smoother. Here’s a comprehensive guide to help you navigate salaried tax filing in India effectively.

Understanding Income Tax Basics

Income tax is levied by the government on the income earned by individuals, including salaried employees, self-employed professionals, and businesses. For salaried individuals, income tax is typically deducted at the source by employers through TDS (Tax Deducted at Source) and then filed with the Income Tax Department.

Components of Salary

Your salary includes various components, such as basic salary, allowances (like house rent allowance, transport allowance), special allowances, bonuses, and any perquisites provided by your employer (like accommodation, car facility, etc.). These components collectively form your taxable income.

Key Deadlines and Penalties

  • July 31 (Generally): Deadline for individuals (except those liable for audit) to file ITR for the previous financial year
  • Late Filing: A penalty may be levied for late filing, depending on the delay.

ITR Forms Applicable for Salaried Employees

For salaried employees in India, the applicable Income Tax Return (ITR) form depends on various factors such as income sources, residential status, and specific financial situations. However, typically, salaried employees whose income is primarily from salary, house property, and other sources like interest income generally use the following ITR forms:

  • ITR-1 (Sahaj): This form is for individuals having income from salaries, one house property, other sources (interest, etc.), and whose total income does not exceed Rs. 50 lakh.
  • ITR-2: This form is for individuals and HUFs not having income from profits and gains of business or profession.
  • ITR-3: This form is for individuals and HUFs having income from profits and gains of business or profession.

Salaried employees should choose the appropriate ITR form based on their specific income sources and other financial activities during the assessment year. It's advisable to consult with a tax advisor or accountant for precise guidance tailored to individual circumstances.

Steps to File Income Tax Return (ITR)

Here’s a step-by-step process for filing your income tax return:

  • Calculate Your Income: Sum up your total income from salary, and other sources like house property, capital gains, etc.
  • Claim Deductions: Utilize deductions available under various sections (like 80C, 80D, etc.) to reduce taxable income.
  • File ITR Online: Use the Income Tax Department's e-filing portal or other authorized portals to file your return.
  • Verify Return: After filing, verify your return using Aadhaar OTP, EVC (Electronic Verification Code), or by sending a signed physical copy

Process of Salaried Tax Filing Through Filinglounge

The process of Salaried Tax Filing through the Filing Lounge typically involves several steps to ensure accurate and timely submission of Income Tax Returns (ITR). Here's a general outline of how the process might proceed:

Registration and Information Gathering:
  • Visit the Filing Lounge website and register/log in to your account.
  • Provide basic information such as PAN (Permanent Account Number), personal details, contact information, etc.
Document Collection:
  • Upload or provide necessary documents such as Form 16 (issued by your employer), details of income from salary, house property, other sources like interest income, investments made under Section 80C, 80D, etc.
Data Entry and Preparation:
  • Filing Lounge assists in data entry and preparation of your Income Tax Return (ITR) form based on the information provided.
  • They ensure that all income sources, deductions, and exemptions are accurately reflected in the ITR form.
Review and Verification:
  • Review the prepared ITR form to ensure all information is correct and complete.
  • Filing Lounge may conduct an internal verification process to minimize errors and discrepancies
E-filing and Submission:
  • Once verified, Filing Lounge will electronically file (e-file) your ITR through the Income Tax Department's e-filing portal
  • They will provide you with an acknowledgment receipt (ITR-V) upon successful submission.
Follow-up and Support
  • Filing Lounge offers support for any queries or clarifications related to your filed ITR
  • They may also assist in responding to any notices or communications from the Income Tax Department
Post-Filing Services:
  • Keep track of your refund status if applicable and assist in any necessary revisions or amendments to your ITR.

Salaried Tax Filing with filinglounge

Filing Lounge provides services for salaried tax filing, ensuring a streamlined process for individuals to file their Income Tax Returns (ITR) online. They typically assist with preparing and submitting ITR forms such as ITR-1 (Sahaj), which is commonly used by salaried individuals with income from salary, house property, and other sources like interest income.

If you're considering using Filing Lounge for your tax filing needs as a salaried individual, they can help navigate through the documentation required, and deductions available, and ensure compliance with tax regulations. Their services often include e-filing through the Income Tax Department's portal, making the process convenient and efficient. If you have specific questions or need assistance with tax filing, Filing Lounge could be a valuable resource.

Related Guides

Documents Required For Salaried Tax Filing

Proprietorship vs Limited Liability Partnership (LLP) vs Company

Features Proprietorship Partnership LLP Company
Definition A sole proprietorship is an unregistered business entity managed by a single individual. A legal contract between multiple parties to jointly manage and run a business operation. A business type that combines aspects of a partnership and the limited liability of a corporation. A registered business where owners and shareholders have limited liability.
Ownership
  • Single individual
  • Min 2 Partners
  • Max 50 Partners
  • Designated Partners: Min 2(No upper limit)
  • Min: 1 shareholder (for a private company), 7 shareholders (for a public company)
  • Max: 200 shareholders (for a private company), no upper limit (for a public company)
For One Person Company
  • Minimum: 1 individual
  • Maximum: 1 individual
Registration Time 7-10 working days
Promoter Liability Unlimited Liability Limited Liability
Documentation
  • Partnership Deed
  • PAN card of the partnership firm
  • LLP Agreement
  • Incorporation Certificate
  • PAN card of the LLP
  • MOA
  • AOA
  • Certificate of incorporation
  • PAN card of the company
Governance No specific governing law Governed by the terms outlined in the partnership deed Governed by the LLP agreement Governed by a formal structure including a Board of Directors
Transferability Business cannot be transferred Ownership transfer requires the consent of all partners as outlined in the partnership deed. Transferable Easily Transferable for public companies. In private companies, there might be some restrictions.
Compliance Requirements
  • Income tax filing if the turnover exceeds Rs. 2.5 lakhs.
  • Must file ITR 5
  • Must file ITR 5
  • File Form 11
  • Form 8
  • MCA filing
  • Auditor's appointment
  • File ITR 6

Salaried Tax Filing FAQ's

Who needs to file Income Tax Returns (ITR)?

Individuals whose total income before deductions exceeds the basic exemption limit are required to file an ITR. For the assessment year 2024-25, the basic exemption limit for individuals below 60 years of age is Rs. 2.5 lakh

Which ITR form should salaried individuals use?

Salaried individuals typically use ITR-1 (Sahaj) if their income is from salary, one house property, and other sources like interest income, provided their total income does not exceed Rs. 50 lakh. If they have income from a business or profession or multiple house properties, they might need to use ITR-2 or ITR-3.

What documents are needed for filing ITR?

Common documents include Form 16 (issued by the employer), bank statements, details of investments, proof of house property income, and other relevant financial documents.

What is the due date for filing an ITR?

The due date varies depending on the taxpayer's category and specific circumstances but is generally July 31st for individuals (non-audit cases). It's advisable to check the current year's due date as it can be extended by the Income Tax Department.

Why should I file an ITR even if my employer has deducted TDS (Tax Deducted at Source)?

Filing ITR is necessary to report all sources of income, claim deductions, and avail tax refunds if applicable. It also serves as proof of income for various financial transactions.

What are the consequences of not filing an ITR on time?

Failure to file ITR on time may attract penalties and interest on taxes due. It could also impact future financial transactions such as loan applications or visa processes where proof of income is required.

How can I file an ITR?

ITR can be filed online through the Income Tax Department's e-filing portal (https://www.incometaxindiaefiling.gov.in) or authorized e-return intermediaries. Some taxpayers may also file manually by submitting physical forms to the tax department.

Can I revise my ITR after filing?

Yes, if you discover any errors or omissions after filing your original ITR, you can file a revised return within a specified time frame. This ensures that correct information is provided to the Income Tax Department.

What is Form 16 and why is it important?

Form 16 is a certificate issued by employers to employees showing details of salary earned and taxes deducted during the financial year. It is important as it serves as a primary document for filing ITR and reconciling income details.

What are deductions available to salaried individuals?

Salaried individuals can claim deductions under various sections of the Income Tax Act such as Section 80C (for investments like PF, PPF, LIC, etc.), Section 80D (health insurance premium), Section 24 (interest on home loan), etc. These deductions help reduce taxable income.

Can I file ITR if I have income from multiple sources?

Yes, individuals with income from salary, house property, business or profession, capital gains, and other sources can file ITR. They need to use the appropriate ITR form that matches their income sources.

What is the difference between an assessment year (AY) and a financial year (FY)?

Financial Year (FY) is the year in which income is earned (e.g., FY 2023-24), while Assessment Year (AY) is the year following the FY in which income is assessed and taxes are paid (e.g., AY 2024-25).

How can I check the status of my filed ITR?

Taxpayers can check the status of their filed ITR online through the Income Tax Department's e-filing portal using their PAN (Permanent Account Number) and assessment year details.

What should I do if I receive a notice from the Income Tax Department?

If you receive a notice, carefully read and understand the contents. Respond within the stipulated time frame, either online through the e-filing portal or by visiting the tax department if required. Seek professional advice if needed.

Can I file an ITR after the due date?

Yes, you can file a belated return after the due date but before the end of the relevant assessment year. However, there are certain implications such as late filing fees and the potential loss of certain deductions.

What is an income tax refund and how can I check its status?

An income tax refund is the excess tax paid by the taxpayer which is returned by the Income Tax Department. You can check the status of your refund online through the e-filing portal or by contacting the tax department.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

FSSAI Registration
IE Code
Trademark Registration
Copyright Registration
Salaried Tax-filing
GST Return Filing

MCA Compliance

Each registered entity is required to meet its compliance duties at the close of each financial year. This generally includes auditing financial statements, filing income tax returns, and submitting annual forms to the Ministry of Corporate Affairs (MCA).

Compliance For Form Due date Penalty
Commencement of Business Intimation to Registrar for Commencement of Business Within 180 days from incorporation INR 50,000 on company and INR 1,000 per day on directors for each day of default
Annual KYC of Directors DIR 3 E-KYC 30th September of every year INR 5,000 for late filing
Appointment of Auditor Form ADT 1 Within 15 days of the AGM INR 300 per day (max INR 12,000)
Financial Statements Form AOC 4 Within 30 days from the AGM INR 100 per day of default
Annual Return Form MGT 7 Within 60 days from the AGM INR 100 per day of default

All Limited Liability Partnerships (LLP) in India must file annual returns with the Ministry of Corporate Affairs (MCA). FilingLounge provides affordable services to help you keep your LLP compliant.

LLP Compliance Form Due date Penalty
Annual KYC of Directors DIR 3 KYC 30th September of every year INR 5,000 for late filing
Annual Return Form 11 May 30th every year INR 100 per day of default
Statements of Accounts and Solvency Form 8 30th October every year INR 100 per day of default (minimum penalty INR 10,000)

In addition to the filings listed above, there may be other compliance requirements relevant to LLPs. To ensure all compliance needs of your LLP are met, please seek assistance from a Filinglounge Advisor.

Entity Compliance Form Due date
Private Limited Company Annual Return MGT-7 Within 60 days from the conclusion of the AGM
Financial Statements AOC-4 Within 30 days from the conclusion of the AGM
DIR-3 KYC DIR-3 KYC 30th September every year
Return of Deposits DPT-3 30th June every year
Appointment of Auditor ADT-1 Within 15 days from the conclusion of the AGM
Income Tax Return (Non-audit case) ITR-6 31st July every year
Income Tax Return (Audit case) ITR-6 30th September every year
Annual GST Return GSTR-9 31st December of the subsequent financial year
MSME Form Form 1 (MCA) half-yearly return by 31st October (April to September), & 30th April for the period October to March every year
Limited Liability Partnership Income Tax Return (Non-audit case) ITR 5 31st July every year
Income Tax Return (Audit case) ITR 5 30th September every year
Annual Return Form 11 30th May every year
Financial Statements Form-8 30th October every year

Note : There might be extra filings needed depending on your business type and activities. Talk to a FilingLounge advisor to get the right guidance for your company's compliance.