Income Tax Return: Compared to filing other ITR Forms, filing ITR 1 is relatively easy and simple. Here, we explain the filing process of ITR 1 in 10 steps and a video to help you file the return in quick time.
Income Tax Return 2019-20: The last date for filing income tax return (ITR) was extended from July 31 to August 31 to enable taxpayers to file their ITR at ease. However, as usual, many persons might have still waited for the fag end to complete their tax filing process. It is to be noted that for all those who like to do things near the deadline, including the filing of the income tax return (ITR), things may go wrong at the last minute. Thankfully, compared to filing other ITR Forms, filing ITR 1 is relatively easy and simple. Here, we explain the filing process of ITR-1 Form in 10 steps and a video to help you file the return quickly.
Firstly, make sure, you are required to file ITR-1 Form. The ITR-1 Form is to be used only when your total income for the assessment year 2019-20 is not exceeding Rs 50 lakh. Also, ensure that as a resident Indian, you have income from only the following three sources:
(a) Income from Salary/ Pension; or
(b) Income from One House Property; or
(c) Income from Other Sources.
Important to note that if you have capital gains incurred from share market or equity mutual funds or you have income from more than one house property, then instead of ITR 1, you need to file ITR 2. Further, there are certainly other instances when ITR 1 cannot be used. To keep things simple, we do not consider them as of now.
10 steps to file ITR 1 Form
Step 1: You need to log on to the income tax website or the e-filing Portal with your credentials like username ( you PAN) and password. Once logged in, click on ‘Income Tax Return’ under the ‘e-file’ tab on the top panel. Then, click on Fresh Form.
Step 2: On the next page, you will have to enter your PAN and then from the Drop-down select the following:
- Assessment Year – Choose 2019-20, as you will be filing for FY 2018-19.
- ITR Form Number – Choose ITR 1, in this case
- Filing Type – Original/ Revised return ( As you are filing for the first time with no revisions)
- Submission mode – This is an important option to consider. There will be two options – Either ‘Prepare and submit online’ or ‘Upload XML’. In the latter, you will enter the details offline and then upload it into the required path to file it. The easiest way is the former one and therefore let us choose to ‘Prepare and submit online’.
Here, we look at directly uploading the ITR 1 form online, which relatively is a simpler process. You can keep saving the details as Draft while entering data on the screen.
From this year, ITR 1 will have a lot of details pre-filled in the Form. Much of the details such as your name, PAN, date of birth, aadhaar, basic details of your salary which come from your Form 16 and employer filings, details of TDS fetched from Form 26AS, etc, will be there on the screen for you to verify and confirm.
Step 3: The form also asks you whether you want to use the same bank details that you used in the previous ITR filing. One needs to be careful on this as the ITR refund, if any, will go into the bank account whose details are in the records of the I-T department. If you have closed or use less frequently, better to give correct bank details. If the same bank account is to be used, you will have to give approval by selecting the same and then proceed to the next page.
Step 4: The next page with 5-6 tabs shows general instructions to go through to help you in the filing of ITR. In tab 1, there will be basic information like Aadhaar number etc. Under the same Tab, you will have to choose under which section are you filing the ITR –
U/s 139 (1) – On or before the due date – Choose this as you are filing before the due date.
U/s 139 (4) – Belated return
U/s 139 (5) – Revised return
U/s 119 (2) (b) – After condonation of delay
Step 5: Under the next Tab ‘Computation of income and Tax’,
Here, gross salary, allowances and value of perquisites will be captured from your Form 16. It’s better to keep your Form 16 handy, in case, if the pre-filled data does not show complete details. You can also enter figures manually if required. The form is not only pre-filled but also computed and takes into account the ‘Income under the head salaries’.
Must Watch: How To File ITR-1 for AY 2019-20 in less than 15 minutes; Explained on Income Tax Portal
Step 6: Assuming all data is correct, go to the next Tab i.e. House Property. Here we consider a self-occupied property. It allows you to enter any home loan interest that you have paid on a home loan, which is restricted to Rs 2 lakh in a year. If the interest paid is more than Rs 2 lakh and you wish to carry forward the loss under House Property, then ITR 2 form needs to be filed. The amount of interest paid in FY 2018-19 can be had from the statement provided by your lender or banker.
Step 7: Then, you need to enter ‘Income from other sources’ such as interest income, agricultural income or dividend income, income tax refund, family pension etc. These will be shown as a drop-down to select as per your requirement.
Step 8: The computation happens automatically and hence you will be shown the Gross Total Income for the financial year 2018-19. Then, go to Part C which is Deductions.
Section 80 C talks about PPF, EPF, life insurance etc. Some of the data relating to Section 80C would have been pre-filled as you would have given such data to your employer. The maximum deduction allowed will be Rs 1.5 lakh a year under Section 80C. Similarly, a cap of Rs 50,000 is there in case of Section 80D health insurance premium. For section 80G related to donations, you will have to enter such details in a different schedule. Importantly, there are some donations that are eligible for 100 per cent deduction while some others are eligible only for 50 per cent of deduction.
After accounting for Deduction, Total Income gets calculated. (Gross Total Income minus Deductions equal to Total Income). Computation of tax payable is all done automatically.
A mistake many people make is when they do no add exempt income. It is also important to add Exempt income which could be agriculture income, superannuation income etc.
Step 9: On the next page, pre-filled tax details such as TDS will be shown. Go to ‘Taxes paid and verification’ tab which will show any Advance Tax if paid. On this page, bank name has to be added as its not pre-filled.
Step 10: After proper declaration and opting the method to verify, you need to ‘Preview and Submit’ the ITR form. Verification is to be done until then the ITR filing remains incomplete. There are several ways to verify your ITR, including the e-verification using Aadhaar number, which is an immediate process. Once e-verified, your ITR filing for AY 2019-20 is done.