Hello Taxpayer! How are you?
Are you ready to file your return for the A.Y. 2019-20?
I hope you are all engaged in last minute preparation for tax computation and return filling.
All the tax consultants are very busy now.
Because the deadline for return filing is 31st July (For normal taxpayers).
Today, I want to share you how to file ITR-1 for the A.Y. 2019-20.
After reading this article. you can file your ITR-1 by yourself.
Believe me, it is very easy.
So, may I start the conversation? Yes? OK!
- 1 What is ITR-1
- 2 Eligibility Criteria
- 3 What is the PART of this ITR form?
- 4 # PART A- General Information
- 5 # PART B- Gross Total Income
- 6 # PART C- Deduction and Taxable total income
- 7 # PART D- Computation of Tax payable
- 8 # PART E- Other Information
- 9 # Schedule IT
- 10 # Schedule TDS
- 11 # Verification
- 12 # How to file ITR-1 online
- 13 # e-Verification Procedure.
- 14 # Final Word
What is ITR-1
ITR-1 is also known as “SAHAJ”.
Sahaj means “easy”.
And definitely, it is very easy to file ITR-1.
If your income is not more than Rs. 50 Lakh, then only you can use it.
Suppose you are a businessman and your income is not more than Rs. 50 Lakh for the A.Y. 2019-20.
You can’t use this form to file your return.
Because you are not eligible.
Let us see the eligibility criteria.
I have already told you if your income is not more than Rs. 50 Lakh, you can use ITR-1.
But this is just one part of the eligibility criteria.
Now, I will tell you who is eligible and who is not.
Who is an eligible person?
If you want to file your return through ITR-1 form, the following conditions must be satisfied:
- You must be an Individual.
- You must be a Resident and Ordinarily Resident. Therefore, if you are a resident but not ordinarily resident or a Non-resident, then you are not eligible.
- Total income for the previous year 2018-19 does not exceed Rs. 50 Lakh.
Besides above, you have income under the following heads:
- Income from Salary or from Pension, or
- Income from ONE House Property, or
- Income from Other Sources.
Here, income from other sources means dividend income, interest income, etc.
Further, the above income includes clubbing of income also.
You may be clubbed for any sources of income but ITR-1 can be used only for the above income categories.
For further knowledge, you may read the following:
- Tax on Dividend Income in India.
Who can’t use this form?
This return form can’t be used by an individual whose total income for the A.Y. 2019-20 includes:
- Income from more than one house property;
- Income from winning from lottery or income from racehorse;
- Profits & gains from the business/profession;
- Capital Gain;
- Loss under the head “Income from Other Sources”;
- Income taxable under section 115BBDA/115BBE;
- Agricultural Income in excess of Rs. 5000;
- Brought forward loss or the loss to be carried forward under the head “income from house property”;
- Any claim of relief under section 90 and/or section 91;
Further, this return form can’t be used by an individual who:
- is a Director of a company;
- has held any unlisted equity shares at any time during the previous year;
- has any asset (including financial interest in any entity) located outside India;
- has signing authority in any account located outside India;
- has income from any source outside India.
What is the PART of this ITR form?
There are five types of Parts and two Schedules in this ITR-1 form. They are:
- PART A- General Information.
- PART B- Gross Total Income.
- PART C- Deduction and Taxable Total Income.
- PART D- Computation of Tax Payable.
- PART E- Other Information.
- Schedule IT- Details of Advance Tax and Self Assessment Tax Payments.
- Schedule TDS- Details of TDS/TCS, and
# PART A- General Information
As you can see this field require general information about you.
The lists of general information are given below:
- You should provide your PAN, Name, and DOB as per your PAN card.
- Your Aadhaar number is mandatory. It is a 12 digits number.
- In case you have applied for your Aadhaar card, you must give the Aadhaar enrollment number (28 digits).
- Your mobile number and email address are very important. Any notification will be sent to your mobile number and email id.
- Your postal address is required.
- The next section is your “Nature of Employment”. You may be a Govt. employee or a pension holder or a PSU employee or an employee in a private sector. You have to choose the correct one.
All of the above are normal information. However, you have to provide some important information also. And they are:
- You have to choose the nature of your return i.e. it is an original return u/s 139(1) (Return filed on or before due date) or a revised return u/s 139(5) or belated return u/s 139(4) or after condonation of delay u/s 119(2)(b).
- You may file your return in response to a notice u/s 139(9), 142(1), etc. You must select the correct checkbox indicating the applicable section.
- Your return may be a revised return or a defective return. You should provide the original return’s acknowledgment number and the return filing date.
- If the return is filed in response to a notice or an order, you should provide the unique number and date of such notice or order.
# PART B- Gross Total Income
It is the main part of this return form.
You have to provide the details of your income.
Part B is divided into 4 parts.
Part B1 is for information about your salary income.
Part B2 is for income from house property.
Part B3 is for information about income from other sources.
And last but not least, Part B4 is shown the Gross Total Income.
B1- Gross Salary
In this section, you have to provide the following information:
- Salary as per section 17(1).
- Value of Perquisites as per section 17(2).
- Profit in Lieu of Salary as per section 17(3).
- Allowance to the extent exempt u/s 10 ( drop down to be provided in e-filing utility)
The drop-down lists for exempted allowance are given below:
No. 1: Select the button “Add Row”
No 2: A drop down box will open. Click on the select button under nature of exempt allowance.
No 3: Then you can find the list of all exempt allowance.
I hope you can understand the online selection procedure.
Besides above the following information is also required:
- Standard deduction u/s 16(ia),
- Entertainment Allowance u/s 16(11) and
- Professional Tax u/s 16(iii).
Finally, you will get your “Income chargeable under the head salary”.
B2- Income from House Property
In this section, you have to provide the following information:
- Type of house property. Here type means whether it is self-occupied or let out or deemed to be let out. You must click on the correct one.
- If the house property is let out, you have to provide the information about the amount of “Gross rent received/receivable/letable value during the year”.
- Tax paid to local authorities.
- Interest payable on borrowed capital.
- Arrears/unrealized rent (if any) received during the year.
Finally, you can find income chargeable under the head “House Property”.
B3- Income from other sources.
You can found it from the drop-down list (in case of e-filing).
However, the following information is required:
- Income from other sources like interest from saving bank account, etc.
- Deduction u/s 57(iia) [In case of family pension only].
Image of the drop-down list
No 1: Add row
No. 2: Select the income
# PART C- Deduction and Taxable total income
In this part, you have to choose the relevant deduction under the proper head. The list of the required deduction is given below:
- Section 80C: Deduction in respect of life insurance premium, contribution to provident fund, 5 years bank FD, etc.
- Section 80CCC: Deduction in respect of certain pension funds.
- Section 80CCD(1) and 80CCD(1B): Deduction in respect of contribution to pension scheme of Central Government.
- Please remember, the maximum limit of deduction under section 80C, 80CCC, and 80CCD(1) is restricted to Rs. 150000.
- On the other hand, the amount of eligible deduction u/s 80CCD(1B) is Rs. 50000.
- Section 80CCD(2): Deduction in respect of employer’s contribution to the pension scheme of the Central Government. The eligible amount is 10% of salary.
- 80D: Deduction in respect of health insurance.
- 80DD: Deduction in respect of maintenance including medical treatment of a dependant who is a person with a disability. The eligible amount of deduction is Rs. 75000. However, in the case of severe disability, the amount of deduction is Rs. 100000.
- 80DDB: Deduction in respect of medical treatment. The maximum limit of deduction is Rs. 40000. However, for senior citizen, the amount is Rs. 100000.
- 80E: Deduction in respect of interest on loan for higher education.
- 80G: Deduction in respect of donation to charitable funds, institution, etc.
- 80TTA: Deduction in respect of interest in savings account. The maximum allowable deduction is Rs. 10000.
- 80TTB: Deduction in respect of interest on deposits in case of senior citizens. The maximum allowable deduction is Rs. 50000.
- 80U: Deduction in respect of person with disability. The minimum amount of deduction is Rs. 75000 and for severe disability is Rs. 125000.
There are so many deductions other than above. You have to choose the correct deduction applies to you.
# PART D- Computation of Tax payable
In this part, you can come to know about your tax liability or refund, as the case may be.
In offline mode, you have to calculate your tax liability manually.
However, in the case of online mode, it is automatic.
The list of the required information is given below:
- Tax payable on total income. For calculation, you can use the income tax slab rate.
- Rebate u/s 87A.
- Health and education cess. It is 4% on the amount of tax payable.
- Relief u/s 89(1)
- Interest u/s 234A, 234B and 234C, if any.
- Fee u/s 234F
- Total Taxes paid. In offline mode, you have to fill it manually. In the case of online mode, you have to fill schedule IT and schedule TDS. Automatically, the amount of tax paid will insert at this section.
- After that, you can find your tax liability amount or refund amount.
# PART E- Other Information
You have to provide the details of the bank accounts held in India at any time during the previous year excluding dormant account.
Dormant accounts are those accounts which are not operational for more than 3 years.
The following information is required:
- 11 digits IFSC code of the bank.
- Name of the bank.
- Account Number.
- You have to select one account for refund purpose.
Please provide information about your all bank accounts whether saving or current.
# Schedule IT
In this section, you have to provide the details of self-assessment tax or advance tax payments.
The following information is required:
- BSR code of the bank at which tax was deposited.
- Date of deposit of the tax.
- The serial number of Challan.
- The amount of tax paid.
# Schedule TDS
In this section, you have to provide the details of TDS/TCS, if any.
The required information is as follows:
- TAN of the deductor/collector. In case the tax is deducted by the tenant, the PAN of the tenant is required.
- Name of the deductor/collector/tenant.
- The amount of payment or receipt in respect of which tax has been deducted or collected.
- The Year of tax deduction/collection.
- The amount of TDS/TCS.
In offline mode, your verification part looks like this
However, in the case of online mode, it looks like below:
All the information are the same. Only in case of offline mode, stamp and signature of receiving official are required.
You just put in the required space:
- Father’s Name
- Capacity. Here capacity is “Self”
- Name of TRP (Tax Return Preparer, if any)
- Identification Number of TRP, etc.
# How to file ITR-1 online
You can file your ITR 1 either in offline mode or in online mode.
In both modes, the steps are the same as explained above.
However, online mode is much easier.
The software (Excel utility or Java utility) is very user-friendly.
The main advantage of online filing is you can generate most of the information automatically.
Let us see the following steps.
Step 1. Go to incometaxindiaefiling.gov.in
Step 2: In the right side, you can see the download section. In that section, you can find in red color ” IT Return Preparation Software”. Click on it.
Step 3: You can find the software. There are two types of software. One is in excel mode and another is in Java. I like java most because it is more user-friendly.
Step 4: Download JAVA (Click on download link).
Step 5: You will receive a Zip file. Extract it. You can see the following icon named “ITR-1_AY201920_PR2” after extracting it.
Step 6: Click on it. You e-filing software will open.
Step 7: In online mode, you can generate maximum required information by one click on the “prefill” button. It will show you this information.
Step 8: You can download prefilled XML from your account in e-filing portal. It looks like bellow
Now, you can easily download your all general information by a few simple steps.
This is the main advantage of online filing.
In offline mode, you have to write everything. You have to calculate all by yourself.
But in online mode, everything is automatic.
After downloading the prefilled XML, you just upload it. And then start your filing.
# e-Verification Procedure.
After filing, you must submit your ITR-V within the stipulated time. Otherwise, your return will be invalid.
In case of online mode, it is very easy to verify your return through e-verification.
You can e-verify your return by
- Net Banking
- Bank ATM
- Aadhaar OTP
- Bank Account Number
- Demat Account Number
- Manual Submission.
You can see the procedure from the income tax portal.
In the case of offline mode, you have to sign the ITR-V and submit by registered post or speed post to CPC at the following address:
“Post Bag No. 1, Electronic City Office, Bengaluru- 560500, Karnataka”.
# Final Word
It is really easy to file your ITR -1.
At first, prepare every calculation and collect every information before filing.
Otherwise, it will be difficult in proper e-filing.
In case of any difficulty, you can mail me.
I will help you as per my capacity.
Finally, if you find this article is helpful, please share it. So that others can take advantage of this article.