Most of the young generation professionals run away from being involved in tax payment. At first it might sound complicated, but once you get the hang of it, it can be empowering and rewarding. Here are the simple steps for filing returns for salaried employees.
1. The need for paying – This depends on how much you earn and under what heeds. Some of the components of the salary like the basic salary, dearness allowance, bonuses and special allowances are taxable.
2. Tax deduction from source – The tax payable is calculated by the employer and deducts it from the salary but as the tax is payable on the combined total income the TDS by the employer may not be sufficient unless the income from the other sources has been factored in.
3. Need of filing return – The CBDT has exempted the taxpayers with an income of less than 5 lakh from filing their tax return. This exemption can be availed only if you have an income from your salary and bank interest.
4. Form 16 basics – The salaried people are given the Form 16 by the employers which is a certificate of the TDS from your salary. For most of the salaried people, form 16 has most of the details they need to put in their tax return form.
5. How to file – Returns can be filed either online or offline. This can be done through a professional or by yourself.
