Introduction: Understanding ITR-1
ITR-1, also known as 'Sahaj,' is a simplified income tax return form in particular designed for resident individuals with income from salaries, one house property (excluding cases where you'll find loss brought forward from previous years), other sources (excluding winning from lottery and income from race horses). Also, agricultural income up to ₹5,000. If your income profile fits this description, this guide will walk you through the process of filing your ITR-1 form online.
Eligibility Criteria for ITR-1
Here's the thing: Before diving into the filing process, it's vital to confirm your eligibility for ITR-1. You are eligible if:
You are a resident individual (not a non-resident or resident but not ordinarily resident).
Your total income does not exceed ₹50 lakh.
Your income sources are limited to:
Salary/Pension
So, In fact, In fact, One house property (excluding cases of brought forward loss or cases of co-ownership where there's income from more than one property)
Other sources (excluding winning from lottery and income from race horses)
Here's the thing: Agricultural income up to ₹5,000
If you do not meet these criteria, you will need to file a different ITR form.
Preparation: Gathering Essential Documents
Before you begin the online filing process, gather all the necessary documents to make sure a smooth and accurate filing experience. These include:
PAN Card: Your Permanent Account Number is essential for identification and linking your income to your tax account.
Aadhaar Card: While not mandatory, linking your Aadhaar with your PAN can simplify the verification process.
Form 16: This certificate is issued by your employer and contains details of your salary, deductions. Also, tax deducted at source (TDS).
So, Bank Statements/Passbooks: Keep these handy to verify interest income earned on savings accounts and fixed deposits.
So, Investment Proofs: Documents related to investments eligible for deductions under Section 80C (e.g., LIC premium receipts, PPF statements, NSC certificates), Section 80D (medical insurance premium receipts), Section 80G (donation receipts), etc.
Form 26AS: This is a consolidated tax statement available on the Income Tax Department's website, reflecting TDS, TCS. Also, advance tax paid by you. It helps verify the accuracy of TDS amounts mentioned in Form 16.
Step-by-Step Guide to Filing ITR-1 Online
Follow these steps to file your ITR-1 form online:
Step 1: Access the Income Tax e-Filing Portal
Visit the official Income Tax e-Filing portal: https://www.incometax.gov.in/
Step 2: Login to Your Account
If you are a registered user, click on the 'Login Here' button. Enter your PAN, password. Also, captcha code. If you are a new user, you will need to register first by clicking on 'Register' and following the instructions.
Step 3: Go through to the 'e-File' Section
So, Once logged in, go through to the 'e-File' section and select 'Income Tax Returns' and then 'File Income Tax Return'.
Step 4: Select Assessment Year and Filing Mode
You see, Select the relevant assessment year for which you are filing the return (e.g., Assessment Year 2024-25 for income earned during Financial Year 2023-24). Choose the filing mode as 'Online'.
Step 5: Choose the ITR Form
Select 'ITR-1' as the applicable ITR form.
Step 6: Select Filing Reason
Here's the thing: Choose the reason for filing the return. Usually, it will be 'Taxable income is more than basic exemption limit'.
Step 7: Fill in the Required Details
The ITR-1 form is divided into several sections. Carefully fill in the required details in each section. Here's a breakdown of the key sections:
A. Personal Information:
In fact, You see, This section requires you to provide your personal details, such as your name, handle, PAN, Aadhaar number, date of birth, email deal with, mobile number. Also, bank account details. Make sure that all information is accurate and matches the details on your PAN card and bank statements.
B. Gross Total Income:
This section requires you to declare your income from different sources:
Salary/Pension: Enter the details of your salary income as per Form 16. This includes basic salary, allowances, perquisites. Also, profits in lieu of salary.
House Property: If you own one house property, provide details such as the deal with of the property, annual value. Also, any deductions claimed for municipal taxes paid or home loan interest. If the property is self-occupied, the annual value will usually be nil.
Other Sources: Declare any income from other sources, such as interest earned on savings accounts, fixed deposits, or other investments. Remember to exclude income from lottery winnings and race horses, as these are not covered under ITR-1.
C. Deductions:
Claim deductions under different sections of the Income Tax Act to reduce your taxable income. Some common deductions include:
In fact, Section 80C: Investments in LIC, PPF, NSC, ELSS, EPF, tuition fees for children, etc. The maximum deduction allowed under Section 80C is ₹1.5 lakh.
Section 80D: Medical insurance premiums paid for self, spouse, children, or parents. The deduction limit varies based on age and policy type.
Section 80G: Donations made to eligible charitable institutions. The deduction amount depends on the type of institution and the donation amount.
Section 80TTA: Deduction for interest earned on savings accounts, up to ₹10,000.
Section 80TTB: Deduction for interest earned by senior citizens on deposits with banks, post offices, etc., up to ₹50,000.
D. Tax Paid:
Here's the thing: This section requires you to provide details of taxes already paid by you, such as:
TDS (Tax Deducted at Source): This is the tax deducted from your salary by your employer. The details will be available in your Form 16 and Form 26AS.
Here's the thing: Advance Tax: If you have paid advance tax, enter the details of the challan and the amount paid.
Self-Assessment Tax: If you have paid any self-assessment tax, enter the details of the challan and the amount paid.
E. Tax Computation and Tax Liability:
This section automatically calculates your total income, deductions, taxable income. Also, tax liability based on the information you have provided in the previous sections. Verify the calculations to make sure accuracy.
Step 8: Verify the Information
Before submitting the form, carefully review all the information you have entered to make sure its accuracy. Double-check your personal details, income details, deductions. Also, tax paid details. Any errors or omissions can lead to delays in processing your return or even penalties.
Step 9: Preview and Submit the Return
Here's the thing: Click on the 'Preview' button to view a summary of your ITR-1 form. Verify all the details once again and then click on the 'Submit' button to submit your return.
Step 10: Verification of the Return
Here's the thing: After submitting your ITR-1 form, you need to verify it. You'll see several ways to verify your return:
Aadhaar OTP: Generate an OTP on your Aadhaar-registered mobile number and enter it to verify your return instantly. This is the easiest and fastest method.
In fact, Net Banking: Verify your return through your net banking account.
So, Electronic Verification Code (EVC): Generate an EVC through your bank account or Demat account and use it to verify your return.
Offline Verification: Download the ITR-V form, sign it. Also, send it to the Centralized Processing Centre (CPC), Bengaluru, within 120 days of filing your return. This is the most time-consuming method.
Here's the thing: Once your return is verified, you will receive an acknowledgement message on your registered email handle and mobile number. You can also download the acknowledgement receipt from the e-Filing portal.
Important Considerations
So, Here's the thing: Due Date: The due date for filing ITR-1 is usually July 31st of the assessment year. Make sure to file your return before the due date to avoid penalties.
Interest on Late Filing: If you file your return after the due date, you may be liable to pay interest under Section 234A of the Income Tax Act.
In fact, Here's the thing: Penalty for Late Filing: A penalty may be levied for filing your return after the due date under Section 234F of the Income Tax Act. The amount of penalty depends on your income and the delay in filing.
Refunds: If you are eligible for a refund, it will be credited to your bank account after your return is processed. Make sure to provide accurate bank account details to avoid delays in receiving your refund.
Conclusion
Filing your ITR-1 form online is a straightforward process that can be completed in a few simple steps. By following this guide and gathering the necessary documents, you can file your return accurately and without wasting time. Remember to verify your return and file it before the due date to avoid penalties. Staying informed and proactive about your tax obligations is key for financial well-being. Consult a tax professional if you have any complex income sources or require personalized guidance.