Income Tax E-Filing Process For Salaried Individuals

In India, we pay two types of taxes to the government:

  • Direct tax – it is deducted from the salary/income you earn and hence, is also known as income tax.
  • Indirect Tax – Also known as Service Tax or Value Added Tax (VAT), which is charged by restaurants/theatres & e-commerce websites on services & goods, respectively. However, these indirect taxes have been replaced with the newly introduced unified tax, the Goods and Services Tax (GST).

All salaried individuals have to follow the procedure of online tax filing as per the provisions made under the Income Tax Act of India. They receive a form 16 from their respective employers that have almost every details of their income mentioned in it and is used for tax filing.

Read About: How to Save Tax

Step-by-step procedure to follow while e-filing income tax:

1: First of all, you should be acquainted with the fact that which income bracket do you fall in before starting with e-filing income tax. As per Indian IT (Income Tax) laws, salaried individuals’ incomes fall under different brackets (tax slabs) and each one of them has a different tax rate assigned to it:

  • Income earners in the range of 2.5 lakhs INR to 5 lakhs INR = 10% of the total taxable income
  • Income earners in the range of 5 lakhs INR to Rs 10 lakhs INR = 20% of the total taxable income
  • Income earners with an income of more than 10 lakhs INR = 20% of the total taxable income
  • Income earners with or less than an annual salary of 2.5 lakhs INR aren’t liable to pay any taxes.

2: Keep the required set of documents handy before you start your tax filing procedure. This set of documents includes Form 16 (issued by your employer), Form 16A, receipts of different investments made by you such as LIC, etc.).

3: The online tax filing facility has made the entire process considerably easier and faster. Following these simple steps will help you get registered on the official website of the Income Tax department in the easiest possible way:

  • Visit and select the option of “Register Yourself” at the top right corner.
  • Click on the option of “Individual” as the user type and then click on “Continue”, as mentioned on the registration form.
  • On the next page, fill the details in all the fields with asterick and then click on “Continue”.
  • It’s important to realize that all the communication by the IT department will be shared on the mobile number and email-id shared by the taxpayer. Hence, make sure to cross-check the mobile number and email-id entered in the form before clicking on “Submit” button, on the next page.
  • Once you’ve submitted this form, you’ll receive an email and an OTP (One Time password) to the shared email id and mobile number, respectively. Click on the activation link shared in the email. It will automatically take you to the activation page, where you’ll need to enter the OTP sent to you.
  • Your registration is successfully completed once you have entered the OTP and you can login on the website to access your account.
  • You will also need to submit the Form 10E, if you receive your salary in arrears. This form is available on the official website of income tax department. If you are receiving arrears but haven’t submitted this form, your return won’t be processed until and unless you get the form submitted.

In case you have paid extra taxes, you can easily claim a refund through filing income tax returns with the help of ITR form. Also, it’s important that you complete your tax filing procedure before the deadline of a particular financial year, as late tax filing can result in hefty penalties.

Read About: How to File Your ITR Online?

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