How to File ITR for Non Salaried Person Online/Offline?

The number of income tax return forms and the various conditions related to them can confuse any taxpayer, especially those who do not have a stipulated monthly income. In the absence of a salary, you might have difficulty choosing the right form to file ITR, let alone carry out the process.

If you are new to the concept of ITR filing, don’t worry! We’ve got you covered with a detailed guide on how to file ITR for a non-salaried person and its importance.

Keep reading!

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What is ITR?

An ITR or an income tax return is a form in which taxpayers need to enter their income details and tax deducted for an assessment year. Based on these income details, the IT Department will calculate your tax liability. If the tax deducted is more than your actual tax liability, you will be eligible for an income tax refund.

There are a variety of forms ranging from ITR-1 to ITR-7, dedicated to different taxpayers. Also, this whole process of filing ITR becomes absolutely necessary when taxpayers meet certain conditions.

Why should you file ITR?

Filing income tax returns comes with several advantages, which we will be discussing later in this piece. However, the foremost reason why you should be filing ITR is it is mandatory for individuals with incomes exceeding the taxable limit.

You can refer to the following table to know about the different exemption limits for individuals of different ages.

Age	Exemption Limit
Up to 60 years	₹2.5 lakhs
Above 60 and below 80 years	₹3 lakhs
Above 80 years	₹5 lakhs

Since we are talking about non-salaried applicants here, let’s focus on the tax filing mandates for income sources like an organisation. If you are wondering how to file an income tax return for a non-profit organisation or a firm/company, know that it is mandatory to file ITR in such cases regardless of profit or loss.

Similarly, knowing how to file a non-resident tax return is essential.

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Which ITR to file for a non-salaried person?

Here is a table containing the ITR forms applicable for different categories of non-salaried individuals. Choose the one best suiting your profile.

Form Type	Applicable For
ITR-3	Individuals and HUFs having income from business or profession
ITR-4	Individuals, HUFs and firms having income from business or profession
ITR-5	Assessees other than companies, individuals, HUFs and those liable to file ITR-7
ITR-6	Companies excluding the ones filing returns under Section 11
ITR-7	Individuals and companies claiming exemption under Section 139(4A) /139(4B) /139(4C) /139(4D) /139(4E) /139(4F)

[Source]

Once you have picked the form you need to file your returns, it is important to know the detailed process for how to file an income tax return for a non-salaried person.

How to file an income tax return for a non-salaried person?

You can file your ITR in both online and offline processes.

Online method

Here is a step-by-step guide on how to file income tax returns online for non-salaried employees.

Step 1: Go to the income tax e-filing portal.

Step 2: Click on “IT Return Preparation Software” on the right sidebar.

Step 3: On the next screen, select the correct assessment year from the drop-down menu.

Step 4: Scrolling down, you will find all ITR forms listed in downloadable formats.

To file ITR as a non-salaried person, choose from any one of the following - ITR-5, ITR-6, and ITR-7 forms as per your suitability. Download either the MS Excel or Java version depending on whichever is supported on your device.

Step 5: The file will be downloaded in a ZIP format. Extract it and open the form.

Step 6: On opening the file, you will find a number of tabs/sections under which you need to fill in different information.

Step 7: Under the first tab, “PART A – GENERAL (1),” you need to enter your personal details like name, DOB, address, etc. If you want a quicker way to fill in these details, click on the “Pre-fill” option on top.

Step 8: Next, a dialogue box titled “Pre-fill ITR” will pop up where you need to enter your e-filing user ID, password, and date of both/incorporation. Besides “Pre-fill Address,” choose any one among “From PAN Details” and “From Previous ITR Form Filed.” Then, hit “Pre-fill” and next click on “OK.” This will fill in most of the fields for required information.

Step 9: Now, you need to manually fill in the other mandatory fields which are still empty. Also, select the type of company and state if it is a private or public company.

Step 10: Next, under “Filing Status,” select the section depending on the time of filing, i.e., before or after the due date, and return type, i.e., revised or modified. Fill in the remaining fields where you have to choose between “Yes” and “No.”

Step 11: After you are done filling in the first section, head on to the next, and similarly fill in all necessary fields. Carry on with the process until the entire form is filled.

Step 12: In case you are filing returns after the due date and need to pay a penalty, click on the “e-Pay Tax” button under “Part B – TTI.” After that, a challan will be generated using which you can complete payment.

Step 13: Under the last tab titled “Verification,” enter your name, your father’s name, your designation in the concerned organisation, your bank account number, and the date to complete the declaration.

Step 14: Check all filled-in details for any mistake. If there aren’t any errors, click on the “Submit” button.

Step 15: You will need to enter your user ID, password, and DOB in a new window to confirm submission. You will also need to enter your user PIN in the next dialogue box before finally clicking “OK.”

The next screen will display a message saying, “ITR Submitted Successfully.” So there you go with the entire procedure on how to file ITR online for a non-salaried person.

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Offline method

If you are wondering how to file ITR for a non-salaried person offline, here is a detailed discourse on this procedure as well.

Step 1: Visit the income tax e-filing portal.

Step 2: Follow steps 1 to 3 of the online filing process.

Step 3: Now, download the file in MS Excel format. It will be saved as a ZIP file on your device. Then, extract the file and open it. You can also log in to your account and select “Download Pre-filled XML,” and import it to the utility to pre-fill available details.

Step 4: Next, fill in all fields with required information similar to the process described in the online method.

Step 5: Generate the XML and save it.

Step 6: Go to the e-filing portal again and sign in with your user ID, password, and security code.

Step 7: Choose “Income Tax Return” from the “e-File” menu.

Step 8: You will be redirected to the income tax return page where you need to select the required assessment year, filing type, and ITR form type. Click on “Upload XML” under submission mode.

Step 9: Choose from the options to verify ITR and hit “Continue.”

Step 10: Upload your ITR XML file and attach other necessary documents depending on your chosen verification type. Click on “Submit.”

There you go, with a detailed description of how to file ITR for a non-salaried person in different ways.

Keep in mind that you also need to know how to file ITR for non-taxable income.

Benefits of filing ITR for a non-salaried person

Now, you might be wondering if going through the lengthy process of ITR filing is actually worth it. Well, it is, and as proof of that, we list the following benefits of completing this process.

In case you have paid taxes exceeding your liability for an AY, you claim this extra amount as refund via ITR filing and save your income.
Filing returns within the due date also gives taxpayers the advantage to carry forward their “Loss of Income” to subsequent years in case the amount exceeds the current year income.
Most financial institutions ask for ITR copies when sanctioning loans. Therefore, filing your returns can help you get such financial products approved faster.
Income tax returns can act as proof of your residence. It can also act as proof of income, which is a boon for independent professionals and freelancers.
ITR copies are also a mandatory document for visa applications.
Other procedures where your income tax return copies will be required are credit card application and availing of high-coverage insurance policies.
Most importantly, filing your returns within the due date can help avoid hefty fines, interests, and even legal complications in the future.

Now that you are aware of the several benefits of filing tax returns, be mindful of certain precautions as well.

What precautions should you take while filing ITR?

Here are some of the measures taxpayers should be mindful of when filing their income tax returns.

Always stay updated with the due date, and try filing your returns before that.
In case it is past the due date, and you are filing a belated return, keep in mind the several late penalties applicable. [Source]
Do not forget to download Form 26AS to check your actual tax paid before filing applicable returns.
Ensure you choose the correct ITR form according to your taxation category.
Carefully calculate your total income, tax liability, and tax paid. Clear all dues, if any, before proceeding to file returns.
Check the list of documents required for ITR filing for a hassle-free procedure.
While filling your ITR form, double check if all entered details are correct.

Keeping the above pointers in mind can only aid in a seamless ITR filing procedure, the steps for which you must have already learned. Now that you know all about how to file ITR for a non-salaried person, Make sure to complete the process within the due date applicable to you.

FAQs about Filing ITR for Non Salaried Person?

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What do I do if I forget to attach my digital signature when filing ITR?

In case you had forgotten to attach your digital signature with your submitted ITR form, you can still verify your tax returns by submitting your signed ITR-V to the CPC, Bengaluru, within 30 days of e-filing.

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How do I file ITR if I haven’t been filing the same for 2 years now?

You can file an updated return within 24 months from the end of assessment year by paying fine and complying with all the conditions of Sec 139(8A).

[Source]

Can I file ITR even if I have no income?

Yes, you can file a NIL return in a similar process when filing any other type of ITR.

How to calculate income tax for non-salaried people?

The best way for income tax calculation for non-salaried people is to use an income tax calculator as it simplifies the process. Else, you can add the total income from various sources like business, profession, or other income and calculate tax as per the applicable tax slabs, which are like those for salaried individuals. However, certain deductions like HRA may not apply.

How to File ITR for Non Salaried Person Online/Offline?

What is ITR?

Why should you file ITR?

Which ITR to file for a non-salaried person?

How to file an income tax return for a non-salaried person?

Online method

Offline method

Benefits of filing ITR for a non-salaried person

What precautions should you take while filing ITR?

FAQs about Filing ITR for Non Salaried Person?

What do I do if I forget to attach my digital signature when filing ITR?

How do I file ITR if I haven’t been filing the same for 2 years now?

Can I file ITR even if I have no income?

How to calculate income tax for non-salaried people?

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