Category: Payroll

Guide to File Income Tax Return (ITR) 1 Online:

Part-A (General Information)

• Create a profile on the IT department tax filing website i.e. http://incometaxindiaefiling.gov.in
• Make sure that a functional email id and mobile number to authenticate the profile.
• Then need to quote the Adhaar number in the form and verify the Adhaar details as well.
• Select the form applicable in your case. For most individuals, it is ITR 1- SAHAJ.
• SAHAJ is for individuals having income from salaries, one-house property, and income from other sources such as dividends, interest income, income from winnings, etc.

Part-B (Gross total income)

• Details of Employer like TAN , Name, Nature& Address of Employer
• Salary details
• All the allowances which are exempted
• All the value of perquisites
• Net salary
• Deduction in u/s 16
• Income chargeable under the head ‘salaries’
• Gross Rent received
• Tax paid to local authorities
• Annual value
• 30% of the annual value
• Interest payable on borrowed capital
• Arrears/unrealized rent less than 30%
• Deduction u/s 57(iia)

Sum of the entire amount will come under Gross Total Income

Part C – Deductions u/c VI-A and Taxable total income

Here the deduction limit will be as per income tax act

• 80C,80CCC,80CCD(1),80CCD(1B),80CCD(2),80DD,80DDB,80E,80EE,80EEA,80EEB,80GG,80GGC,80U
• Value of Total deduction

Total income (Gross Total Income – Deductions U/c VI-A )

Part D – Computation of tax payable (Valuation of Tax Payable)

• D1 Tax payable on total income
• D2 Rebate u/s 87A
• D3 Tax after rebate
• D4 Cess on D3
• D5 Total tax and cess
• D6 Relief u/s 89(1)
• D7 Interest u/s 234A
• D8 Interest u/s 234B
• D9 Interest u/s 234C
• D10 Fee u/s 234F
• D11 Total tax, fee, and interest
• D12 Total tax paid
• D13 Amount payable
• D14 Refund
• Exempt income

Part E – Other Information (banking details)

1. IFSC Code of the bank
2. Name of the bank
3. Account Number

Final Step

• The return that which is  filed will not be treated valid unless it is verified
• The taxpayer has to verify and self-attest the form at the last by signing the verification content after entering all the details such as name, parent name and PAN details
• For physical verification of the return, print the acknowledgment of ITR-V, sign it in blue ink, and send it to the Centralized Processing Centre (Bangalore) within 120 days of filing your return.

Important Terms to Understand In ITR-1 SAHAJ Form for AY 2020-21

• Revised Return: There is an option of re-file, so if you have made certain mistakes, you can rectify them again. For the FY 2019-20 the taxpayer can furnish the revised return on or before 31 March 2021.
• Advance Tax: If the tax on other income is above Rs. 10,000 in a year, the assesse is required to calculate and deposit the advance tax. This advance tax is to be paid on a quarterly basis such as on, June, December, September and March.
• Annexure-less Return: Annexure-less return which means it doesn’t require to affix any documents with the ITR-1 Form.