Of course, YES! If you're making big money, you would have to share a part of it with the government.
Understand that there's a difference between the liability to file your income tax return and the discharge of tax liability. When your employer deducts tax from the source (TDS), you're discharged of tax liability. However, you're still tasked for income tax return filing for various purposes.
The simple funda is if your gross total income is more than the exemption limit, you have to go for income tax filing.
The exemption limit for an individual below the age of 60 is Rs 2.5 lakh.
For individuals between the ages of 60 and 80, the exemption limit is Rs 3 lakh.
And for those above the age of 80 years, the income tax exemption limit is Rs 5 lakh.
If your gross income falls outside the apt exemption, you would have to file for income tax.
(There are certain cases where even when your income is less than the exempted amount, you would still have to file for income tax. Example: if your bank account, asset, or any other financial interest in any asset is located outside the country.)
Besides, even with TDS, it makes much sense to file for the tax to avail of various deductions under Chapter VIA and claim for your refunds and benefits.
In short, salaried employees must file for income tax if they are earning more than the exempted amount.
Now the next most obvious question comes…
How to file an income tax return online for a salaried employee?
For salaried employees, you need to file form ITR 1 (SAHAJ).
Your PAN card will be your user ID.
There are two ways from here to file for tax. You either download the form, fill it out offline, and then submit it online. OR, you do it all online.
Many people choose to download the form and then upload it. It's much more convenient and error-free. And that's what you're recommended.
After you have logged into your account and are on your dashboard, in the drop-down of "My Account" on the menu bar, you will find "Download Pre-Filled XML". Click on that, and after providing your PAN number the XML file will be downloaded.
Open it, and fill in all the necessary details. Once completed, click the 'Calculate Tax' button. Pay the amount online and then fill in the challan details after you upload the file.
Following, click "Validate". Then save the file in Excel format on your desktop.
Now log into the IT department website using your credentials and then upload the XML file.
The end step is verification. If your Aadhar is linked to your PAN, this will be as easy as possible. You can digitally verify your income tax filing through Aadhar OTP. You will receive an OTP on the mobile number linked to your Aadhar. Input that OTP and ta-da!
That's how to file an income tax return for salaried employees.
Easy!