Lets learn this in 4 steps for the sake of easiness -
1. Sumbmitting details to company's finance dept. - Here TDS (tax deduction on source) will be calculated based on your income & tax saving intuments used. They calculate your final tax libility (only for the salary earned) & provide FORM 16 which contains details about your earning, exemptions & taxes.
2. Computing final tax libility - You should add your other sources of income in whatever comes out in form 16 (like income from bank interest etc, banks will issue a FORM 16A for that) to compute your final tax to be paid.
3. Filing ITR - Now the final thing is to file ITR[income tax return] using data collected. find my earlier posts to know the process and its components.
4. Collecting ITR ack - most of the time posted to the address you mentioned in your ITR.
