5 Important things to know while filing Income tax returns for a salaried employees


These are some very important points that every salaried employee must know while filing the income tax return for the financial year ending 31 March 2015. (see also simple steps to income tax e-filing in India).




1. Is it necessary to file return?

Yes any individual having taxable income before any deduction is required to submit return of income before the due date. The due date of filing return for the previous year 2014-15 having assessment year 2015-16 is 31st Aug 2015.

If an individual has failed to file the return on or before the due date, the same can be filed at any time before the expiry of one year from the end of the relevant assessment year.

2. New Income tax forms for assessment year 2015-2016

ITR1 (sahaj) is a very basic form in which only limited details are required. As a result of limitation on the eligibility many salaried taxpayers had to file ITR2 which is complicated form. Therefore, to remove this limitation form ITR2A is introduced. ITR 2A can be used by an individual or HUF whose income includes:

  • Income from Salary/pension or
  • Income from House Property
  • Income from Other Sources

From AY 2015-16, the payer are not necessarily required to send copy of ITR V to Income tax CPC Office. They can simply authenticate the return by their Aadhar card and the requirement to send the hard copy will not apply

3. Check tax deducted on various income

Form 26 AS contains all details about tax deducted from various source, advance tax paid and details of refund. This can be downloaded from www.incometaxindiarfiling.gov.in

Exemptions and relief

Age Basic Exemption limit (INR)
80 and above 500,000
60-80 300,000
Others 250,000

4. Deduction of interest on house property

Standard deduction of 30% is available on income from house property in lieu of all the expenses. For self-occupied property, deduction of interest on housing loan is allowed up to INR 200,000 and for other house property actual expenditure on interest of housing loan is allowed.

5. Deductions

Every individual is eligible to claim deduction of medical insurance premium up to INR 25,000. Further deduction on medical insurance premium paid for parents is available up to INR 20,000.

Section 80CCE has been amended to increase the aggregate amount of deductions under section 80C, 80CCC, 80CCD (1) from INR 100,000 to INR 150,000.

The following table summarizes the ceiling limit of deductions w.e.f. assessment year 2015-16

Section Particulars Ceiling Limit (INR)
80C Investment in specified instruments 150,000
80CCC Contribution to certain pension funds 100,000
80CCD(1) Contribution to new pension scheme of Government 150,000

If you have any doubts regarding income tax filing, kindly leave your comments. We would try our level best to address those.

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