As the financial year comes to an end, it’s time for the salaried employees in Gurgaon and Faridabad to gear up for the ITR filing season. Income Tax Return (ITR) is a crucial document that every taxpayer has to file annually, declaring their income and the tax paid on it. This is mandatory for every individual whose annual income exceeds the minimum threshold set by the government.
The process of ITR filing can seem daunting and overwhelming, especially for first-timers. However, with proper guidance and preparation, it can be a smooth and hassle-free process. The first step in this process is to gather all the necessary documents required for filing the ITR. For salaried employees, the most important document is Form 16.
Form 16 is a TDS (Tax Deducted at Source) certificate issued by the employer to the employee, which reflects the tax deducted by the employer on behalf of the employee. This document contains details of the employee’s salary, tax deductions, and other relevant information. It is usually issued after 31st May, as 31st May is the due date for filing of TDS returns for salary.
Employers are required to deduct TDS from the salaries of their employees and deposit it with the government. This is done on a monthly basis, and the TDS deducted is reflected in the employee’s Form 26AS. Once the employer files the TDS return, they generate the TDS certificate and Form 16 for the employees.
It is important for salaried employees to ensure that the details mentioned in Form 16 match with their actual salary and tax deductions. Any discrepancies should be brought to the notice of the employer and rectified before filing the ITR. This will ensure that the tax liability is calculated accurately and the ITR is filed correctly.
Apart from Form 16, salaried employees are also required to gather other important documents such as salary slips, bank statements, investment proofs, and rent receipts (if applicable). These documents will help in calculating the total income, deductions, and exemptions applicable while filing the ITR.
It is important to note that the deadline for filing the ITR is 31st July, unless extended by the government. Failing to file the ITR within the due date can attract penalties and interest. Hence, it is advisable to start the ITR filing process well in advance to avoid any last-minute rush or errors.
In case the salaried employee has changed jobs during the financial year, they will have multiple Form 16s from different employers. In such cases, it is important to ensure that the details mentioned in all the Form 16s are consolidated and correctly reflected in the ITR.
For salaried employees who have taken a home loan, they can claim tax benefits on the interest paid and the principal amount repaid under Section 24 and Section 80C of the Income Tax Act, respectively. They can also claim deductions on the premium paid for a health insurance policy, under Section 80D of the Income Tax Act.
It is important to note that the ITR filing process has been made easier and more convenient in recent years, with the introduction of online filing and e-verification. Salaried employees can file their ITR online through the Income Tax Department’s e-filing portal, using their Aadhaar number or PAN card. They can also e-verify their ITR through various methods such as net banking, Aadhaar OTP, or by generating an Electronic Verification Code (EVC).
The ITR filing season can seem overwhelming, but with proper preparation and guidance, it can be a smooth and hassle-free process. Salaried employees in Gurgaon and Faridabad should ensure that they have all the necessary documents.
Moreover, it is advisable to consult a tax expert or a chartered accountant (CA) to ensure that the ITR is filed correctly and all the necessary deductions and exemptions are claimed. A CA can also provide valuable guidance on tax planning and help taxpayers save taxes legally.
In Gurgaon, there are several reputable CAs who specialize in income tax and can assist salaried employees in filing their ITR. They can also provide advice on investment planning and suggest tax-saving instruments based on their clients’ financial goals and risk appetite.
Some CAs in Gurgaon also offer online services, which can be very convenient for taxpayers who do not have the time or resources to visit their office in person. They can simply upload their documents on the CA’s website or email them.
