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ITR-1- Guide To File Income Tax Return

ITR-1- Guide To File Income Tax Return

The pre-filling and filing of ITR-1 service is available to registered users on the e-Filing portal. This service enables individual taxpayers to file ITR-1 either online through the e-Filing portal or by accessing the offline excel utility. This user manual covers the process for filing ITR-1 through the online mode.

ITR-1 has five pre-filed sections that you need to validate/ edit before submitting it, and one summary section where you are required to review your tax computation. The sections are as follows:

  1. Personal Information
  2. Gross Total Income
  3. Total Deductions
  4. Tax Paid
  5. Total Tax Liability

Personal Information:-

In the Personal Information section of the ITR, you need to validate the pre-filled data which is auto-filled from your e-Filing profile. You will not be able to edit some of your personal data directly in the form. However, can make the necessary changes by going to your e-Filing profile. You can edit your contact details, filing type details and bank details in the form.

Gross Total Income:-

In the Gross Total Income section, you need to review the pre-filled information and confirm/ edit your income source details from salary / pension, house property, and other sources (such as interest income, family pension, etc.). You can also add details of exempt income, if any.

3.3 Total Deductions:-

In the Total Deductions section, you need to add, delete, and confirm any deductions applicable to you toclaim under Chapter VI-A of the Income Tax Act.

Tax Paid

In the Tax Paid section, you need to confirm taxes paid by you in the previous year. Tax details include TDS from Salary / Other than Salary as furnished by Payer(s), TCS, Advance Tax and Self-Assessment Tax.

Total Tax Liability

In the Total Tax Liability section, you need to review tax liability computed as per the validated sections.

How to Access and Submit ITR – 1

You can file and submit your ITR through the following methods:

  • Online Mode – through e-Filing portal
  • Offline Mode – through Offline Utility

Follow the below steps to file and submit the ITR through online mode

Step 1: Log in to the e-Filing portal using your user ID and password.

Step 2: On your Dashboard, click e-File > Income Tax Returns > File Income Tax Return.

Note: If your PAN is inoperative, you will get a warning message that your PAN is inoperative as its not linked with the Aadhaar. You can click on Link Now button to link PAN with the Aadhaar otherwise click Continue.

Step 3: Select Assessment Year and Mode of filling as Online, then click Continue.

Step 4:  In case you have already filled the Income Tax Return and it is pending for submission, click Resume Filing. In case you wish to discard the saved return and start preparing the return afresh,click Start New Filing.
Step 5: Select Status as applicable to you and click Continue to proceed further.

Step 6: You have two options to select the type of Income Tax Return:

•    If you know which ITR to file, select the ITR form; else
•    If you are not sure which ITR to file, you may select Help me decide which ITR Form to file and click Proceed. Here the system helps you determine the correct ITR, then you can proceed with filing your ITR.

Note: 

  • In case you are not aware which ITR or schedules are applicable to you or income and deductions details, your answers in response to a set of questions will guide in determining the same and help you in correct / error free filing of ITR.
  • In case you are aware of the ITR or schedules applicable to you or income and deduction details, you can skip the questions.

Step 7: Once you have selected the ITR applicable to you, note the list of documents needed and click Let’s Get Started.

Step 8: Select the checkbox applicable to you regarding reason for filing ITR and click Continue.

Step 9: In case you wish to opt for New Tax Regime, select Yes in the Personal Information section. Please note the pop-up information that certain deductions and exemptions are not available in the new tax regime. Review your pre-filled data and edit it if necessary. Enter the remaining / additional data (if required). Click Confirm at the end of each section

Step 10: Enter/ Edit your income and total deductions details in the different sections. After completing and confirming all the sections of the form, click Proceed.

Step 10a: In case there is a tax liability

After clicking on total tax liability, you will be shown a summary of your tax computation based on the details provided by you. If there is tax liability payable based on the computation, you will get the Pay Now and Pay Later options at the bottom of the page.

Note:

  • It is recommended to use the Pay Now option.
  • If you opt to Pay Later, you can make the payment after filing your Income Tax Return, but there is a risk of being considered as taxpayer in default, and liability to pay interest on tax payable may arise.

Step 10b: In case there is no tax liability (No Demand / No Refund) or if you are eligible for a Refund
Click Preview Return. If there is no tax liability payable, or if there is a refund based on tax computation, you will be taken to the Preview and Submit Your Return page.

Step 11: If you click on Pay Now, you will be redirected to e-pay Tax service. Click Continue.

Note: 
•   You will be taken to e-Pay Tax page on the portal for making tax payment after you click Continue. Refer to e-Pay Tax user manuals to learn more.

Step 12: After successful payment through e-Filing portal, a success message is displayed. Click Back to Return Filing to complete filing of ITR.

Step 13: Click Preview Return.

Step 14: On the Preview and Submit Your Return page, select the declaration checkbox and click Proceed to Preview.

Note: If you have not involved a tax return preparer or TRP in preparing your return, you can leave the textboxes related to TRP blank.

Step 15: Preview your return and click Proceed to Validation.

Step 16: Once validated, on your Preview and Submit your Return page, click Proceed to Verification.

Note: If you are shown a list of errors in your return, you need to go back to the form to correct the errors. If there are no errors, you can proceed to e-Verify your return by clicking Proceed to Verification.

Step 17: On the Complete your Verification pageselect your preferred option and click Continue.

It is mandatory to verify your return, and e-Verification (recommended option – e-Verify Now) is the easiest way to verify your ITR – it is quick, paperless, and safer than sending a signed physical ITR-V to CPC by speed post.

Note: If your PAN is inoperative, you will see a warning message in pop-up that PAN of the taxpayer is inoperative as it is not linked with Aadhaar.

You can link PAN with Aadhaar by clicking on Link Now option otherwise click Continue.

Note: In case you select e-Verify Later, you can submit your return, however, you will be required to verify your return within 30 days of filing of your ITR.

Step 18: On the e-Verify page, select the option through which you want to e-Verify the return and click Continue. 

Note:

  • Refer to How to e-Verify user manual to learn more.
  • If you select Verify via ITR-V, you need to send a signed physical copy of your ITR-V to Centralized Processing Center, Income Tax Department, Bengaluru 560500 by speed post within 30 days.
  • Please make sure you have pre-validated your bank account so that any refunds due maybe credited to your bank account.
  • Refer to My Bank Account user manual to learn more.

Once you e-Verify your return, a success message is displayed along with the Transaction ID and Acknowledgement Number. You will also receive a confirmation message on your mobile number and email ID registered on the e-Filing portal.

1. Who is eligible to file ITR-1?

ITR-1 can be filed by a Resident Individual whose:
•    Total income does not exceed ₹ 50 lakh during the FY
•    Income is from salary, one house property, family pension income, agricultural income (up to ₹5000/-), and other sources, which include:
o    Interest from Savings Accounts
o    Interest from Deposits (Bank / Post Office / Cooperative Society)
o    Interest from Income Tax Refund
o    Interest received on Enhanced Compensation
o    Any other Interest Income
o    Family Pension
•    Income of Spouse (other than those covered under Portuguese Civil Code) or Minor is clubbed (only if the source of income is within the specified limits as mentioned above).

2. Who is not eligible to file ITR-1?

ITR-1 cannot be filed by any individual who:
•    is a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI)
•    has total income exceeding ₹ 50 lakh
•    has agricultural income exceeding ₹ 5000/-
•    has income from lottery, racehorses, legal gambling etc.
•    has taxable capital gains (short term and long term)
•    has invested in unlisted equity shares
•    has income from business or profession
•    is a Director in a company
•    has tax deduction under section 194N of Income Tax Act
•    has deferred income tax on ESOP received from employer being an eligible start-up
•    owns and has income from more than one house property
•    is not covered under the eligibility conditions for ITR-1

3. What are the types of income that shall not form part of ITR 1 form?

Following are the types of income that shall not form part of ITR 1 form:-

(a) Profits and gains from business and professions;

(b) Capital gains;

(c) Income from more than one house property;

(d) Income under the head other sources which is of following nature:-

  • winnings from lottery;
  • Activity of owning and maintaining race horses;
  • Income taxable at special rates under section 115BBDA or section 115BBE;

(e) Income to be apportioned in accordance with provisions of section 5A

4. Is it mandatory to define the nature of employment while filing of return?

Yes, it is mandatory to define the nature of employment while filing of return from the following:

  • Central Government Employee
  • State Government Employee
  • Employee of Public Sector Enterprise (whether Central or State Government)
  • Pensioners (CG/SG/PSU/OTHER)
  • Employee of Private Sector concern
  • Not applicable (in case of family pension income)

5. What documents do I need to file ITR-1? Is it necessary to link Aadhaar with PAN to file ITR?

You would need to download AIS and keep copies of Form 16, house rent receipt (if applicable), investment payment premium receipts (if applicable). However, ​​ITRs are annexure-less forms, so you are not required to attach any document (like proof of investment, TDS certificates) along with your return (whether filed manually or electronically). However, you need to keep these documents for situations where they need to be produced before tax authorities such as assessment, inquiry, etc.

Linking of Aadhaar and PAN is important. However, you would still be able to file your ITR if your PAN is not linked with Aadhaar, but you will have limited access on the portal. It is therefore advisable to link PAN with Aadhaar.

6. What precautions should I take while filing the return of income?

•    Download AIS and Form 26AS and check the actual TDS / TCS / tax paid. If you see any discrepancy, you should reconcile it with the Employer / Tax Deductor / Bank.
•    Compile and carefully study the documents to be referred to when filing your ITR, like bank statement / passbook, interest certificates, receipts to claim exemptions or deductions, Form 16, Form 26AS (Annual Information Statement), investment proofs, etc.
•    Ensure details like PAN, permanent address, contact details, bank account details, etc. are correct in the pre-filled data.
•    Identify the correct return for you (from ITR-1 to ITR-7). Provide all the details in the return such as total income, deductions (if any), interest (if any), taxes paid / collected (if any), etc. No documents are to be attached along with ITR-1.
•    e-File the return of income on or before the due date. The consequences of delay in filing returns include late filing fees, losses not getting carried forward, deductions and exemptions not being available.
•    After e-Filing the return, e-Verify it. If you want to manually verify your return, send the signed physical copy of ITR-V Acknowledgement (by speed post) within appropriate timelines of filing the return to Centralized Processing Center, Income Tax Department, Bengaluru 560500 (Karnataka).

7. How do I know which ITR I need to file?

Different tax returns are prescribed for filing by individual taxpayers depending on their source of income and residential status. To determine the correct ITR to file, you can use the Help me decide which ITR Form to file option. You can then proceed to answer the questions displayed to you to determine the correct ITR form to file.

8. What is Form 26 AS?

Form 26AS is statement which shows various details including Tax Deducted/ Collected at Source, Advance Tax / Self-Assessment Tax.
A taxpayer may pay tax in any of the following forms:
•    Tax Deducted at Source (TDS)
•    Tax Collected at Source (TCS)
•    Advance tax or Self-assessment Tax
The Income Tax Department maintains a database of the total tax paid by all taxpayers, which is called tax credit in the taxpayer’s account. The ITD generally allows taxpayers to claim the credit of taxes as reflected in their Form 26AS.

9. I am a joint owner of a house with my spouse. We do not have any additional property. Can I file ITR-1?

Yes, you can file ITR-1 in case the following conditions are met:
•    If you are a single or joint owner of a single property, you can file ITR-1.
•    If you own more than one property, you can’t file ITR-1 (even as a single owner).

10. What precautions should I take to avoid issues while filing my ITR?

To avoid issues in filing your return and getting your refund, ensure you do the following:
•    Link Aadhaar and PAN.
•    Pre-validate your bank account where you want to receive your refund.
•    Choose the correct ITR before filing it; else filed return will be treated as defective and you will need to file a                revised ITR using the correct form.
•    File the return within the specified timelines.
•    Verify your return and you can opt for e-Verification (recommended option – e-Verify Now) is the easiest way to          verify your ITR.
•    File the responses for the notices received from the ITD within the specified timelines.

11. I made a calculation mistake in my filed ITR. Can I correct it and re-submit my return?

Yes, you can re-submit your return in case you have already filed your Income Tax Return but you later discover that you have made a mistake. This is called a Revised Return. Your return has to be revised three months before the end of the relevant AY. For AY 2023-24, the due date for filing revised return is 31st December 2023.

12. Can I file ITR for last 3 years now?

Yes, you can ITR-U, if you have missed to file your previous two ITRs. For current year you can file your normal ITR.

13. What happens if I file Income Tax Return after the due date u/s 139(1)?

In case you miss filing the ITR within the due date u/s 139(1), you can still file your Income Tax Return, but you may be required to pay a late filing fee of up to ₹5000/-. Additionally, you will also be required to pay interest on the tax liability (if any).

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