As per the income tax law, salaried person is required to file income tax return if total gross income exceeds the basic exemption limit. Every salaried person must file even those one whose annual income is under the taxable limit. Income tax department has categorized the taxpayers into different groups based on their salary, income or its source. ITR form-1 is for the people who are earning up to 50 lakhs from other sources such as pension, one house property, lottery etc. Form includes all the details related to total gross income, Deductions and taxable income, computation of tax and tax status. Taxpayers can submit ITR-1 Form either online or offline. However, few changes occurred from the financial year 2013-14, where income is more than Rs. 5 lakhs, they must furnish their income tax returns electronically.
The exempted income exempt incomes are agricultural income, LIC Maturity amount as per section 10 (10D) and Long-term capital gain on listed shares and securities as per section 10(38). ITR filing by salaried persons help them being honest taxpayers but also helps in availing loans, travelling abroad. This also helps as a proof of income required, claiming refund and possible to access many financial assistances such as bank credits, etc.