Updated on: Jul 3rd, 2023
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5 min read
The first step to filing tax returns as a salaried individual is to obtain your Form 16 from your employer. Before proceeding, it's essential to understand what Form 16 is - a TDS Certificate that outlines your Taxable Income and TDS. It is the employer's responsibility to provide Form 16 to all employees. In the unlikely event that your employer fails to provide you with Form 16, don’t worry; you can still e-File your return yourself. ClearTax shows you how!
Alternatively, just complete an OTP verification on Cleartax and have all your details pre-filled like name, contact, salary income etc.
Add up the net salary from all the payslips you have received from your employer throughout the financial year. If you have switched one or more jobs in a financial year, make sure you include payslips from all employers you have worked for in the year.
Calculate the TDS deducted by your employer over the year and match the amount mentioned on your Form 26AS. Click here to learn how to download your Form 26AS. If you see a discrepancy in the TDS amount actually deducted and the amount that is supposed to be deducted, contact your employer immediately and ask them to rectify the error.
Many employees have a House Rent Allowance (HRA) component in their salary. To claim the HRA deduction, you must submit your rent receipts to your payroll department in advance. If you haven’t submitted the receipts to your employer, you can always claim it while filing. If you are unsure how to calculate HRA, just contact ClearTax and our Tax Experts can help you out.
A number of investments are tax deductible. Keep your investment documents handy and compute the amounts eligible for deduction under sections 80C (Life Insurance, Employee Provident Fund, Public Provident Fund etc.), 80D (Medical insurance premium), 80E (Interest on education loan) etc. While claiming deduction for Provident Fund, make sure you claim only your contribution to the PF, and not your employers’ contribution. Click here to read about the various deductions you can avail.
If you earn an income from any source other than your salaried job, do not forget to include it under taxable income. Such sources of income can include interest earned on Fixed Deposits, income from rent on property owned by you etc.
If you find that the total tax paid by you in the financial year is less than what is actually payable as per the Form 26AS, pay the variance online. Learn how to pay tax online.
After you have ensured that the taxes paid by you match the taxes payable by you, go on to file your returns online. ClearTax is the easiest way to e-File your Tax Returns online.
Filing tax returns as a salaried individual starts with obtaining Form 16 from the employer. Understand taxable income, TDS. ClearTax simplifies the process step by step including collecting payslips, finding tax credit, claiming deductions, paying additional tax if needed, and finally filing the return. ClearTax provides an easy way to file the returns online with all details pre-filled.