Salaried employee working from home? Check Income Tax rules for e-filing ITR on new portal

New e-filing portal to have a free ITR preparation software program with interactive questions to assist taxpayers to file ITRs 1, 4 (on-line and offline) and ITR 2 (offline) to start with. Consultant picture

Revenue Tax Return (ITR) submitting for salaried staff throughout make money working from home 2021: The Revenue Tax submitting season has began. This 12 months, the federal government has launched a brand new e-filing portal to make tax submitting straightforward for all classes of taxpayers. In regular instances, the due date for ITR submitting for salaried taxpayers stays thirty first July of yearly. Nonetheless, as a result of Covid pandemic, the due date has been prolonged to thirtieth September 2021 this 12 months.

Amid lockdowns, a lot of salaried staff are working from house. For such salaried taxpayers, there are some mandatory guidelines they need to pay attention to. Have a look:

Kind No. 16 and Revenue Tax Return (ITR)

Sujit Bangar, Founder Taxbuddy.com, mentioned if the earnings of a salaried worker crosses Rs 2, 50,000, he must pay tax on the earnings above this restrict. Due to this fact, your employer deducts earnings tax (TDS) from wage and deposits with Authorities. The small print of such taxable earnings, deductions and TDS are supplied by the employer to an worker in a selected type which is called Kind 16.

Bangar mentioned that this 12 months, employer is required to concern Kind 16 to staff earlier than fifteenth July. “It ought to be saved in thoughts that this isn’t an ITR. You might use this way for submitting your ITR. The small print talked about on this Kind as per these you have got submitted to your employer. Your taxable earnings could also be extra or lesser than that in Kind 16 supplied you have got documentary proofs towards your claims.”

ALSO READ | New Income Tax e-filing website: ITR e-filing 2.0 portal launched; check link, features, benefits

New Tax Regime vs Previous Tax Regime

From this ITR (for monetary 12 months 2020-21), taxpayers are given the choice to decide on between previous tax charges and new tax charges.

Bangar mentioned that new tax charges are lesser than previous tax charges. Nonetheless, in the event you select new tax charges, you can not declare any tax deductions to scale back your taxable earnings. You must select the tax regime the place your tax legal responsibility is decrease. The selection of New Tax Regime have to be particularly indicated in ITR Kind.

Deductions Particular for Salaried Workers

There are some exemptions and deductions particular to salaried staff.

These are Normal Deduction of Rs.50,000, numerous allowances like schooling allowance, expense associated allowances and so forth. Most vital allowance is Home Lease Allowance (HRA), which have to be computed rigorously in your ITR. The deductions on PF, gratuity and NPS are crucial.

LTC Voucher Scheme

For FY 2020-21, Bangar mentioned the Authorities relaxed guidelines concerning claims for Go away Journey Allowance for salaried staff in Authorities and personal sector each. As an worker, in case you are receiving an LTA in your wage and you might not go on journey due to covid, you’ll be able to nonetheless declare such exemptions by spending as per LTC Voucher scheme. The utmost restrict for tax exemption is Rs.36, 000 per particular person within the worker’s household or one-third of the quantity spent on such GST liable items and companies whichever is lesser.

Curiosity for submitting late ITR

This 12 months, the date for submitting ITR is prolonged to thirtieth September 2021. Nonetheless, in case your self evaluation tax after masking of TDS quantity is greater than Rs 1 lakh, then you might be charged curiosity for submitting past thirty first July. Due to this fact, it’s higher to file your ITR earlier than thirty first July, in case your tax legal responsibility even after TDS is greater than Rs.1 lakh, mentioned Bangar.