Income Tax || How to Prepare ITR-1
ITR-1 (Sahaj) is an income tax return form used by individual taxpayers in India. It is one of the simplest forms and is meant for people with straightforward income sources. Here's a detailed overview:
Who Should File ITR-1?
ITR-1 is suitable for resident individuals whose total income is up to ₹50 lakh and who have income from the following sources:
Salary or Pension: Income received as a salary or pension.
Income from One House Property: Income from a single house property (excluding cases where there is a loss carried forward from previous years).
Other Sources: Income from other sources such as interest from savings accounts, fixed deposits, and other sources, but excluding lottery winnings or income from racehorses.
Agricultural Income: Agricultural income up to ₹5,000.
ho Cannot File ITR-1?
You cannot file ITR-1 if:
- Your total income exceeds ₹50 lakh.
- You have more than one house property.
- You have income from capital gains.
- You have income from business or profession.
- You are a director in a company.
- You have invested in unlisted equity shares.
- You have income from foreign sources or foreign assets.
- You have income from lottery, racehorses, legal gambling, etc.
- You have a loss that needs to be carried forward under any head of income.
Structure of ITR-1 Form
The ITR-1 form is divided into several sections:
Part A: General Information
- Personal details like name, PAN, address, Aadhaar number, etc.
- Details about the filing status (original or revised return).
Part B: Gross Total Income
- Income from salary/pension.
- Income from house property.
- Income from other sources.
Part C: Deductions and Taxable Total Income
- Deductions under Chapter VI-A (Sections 80C, 80D, 80G, etc.).
- Computation of taxable total income.
Part D: Tax Computation and Tax Status
- Computation of tax payable.
- Details of advance tax, self-assessment tax, and TDS.
Part E: Other Information
- Bank account details.
- Details for refund, if applicable.
Verification
- Declaration and signature by the taxpayer.
Benefits of Filing ITR-1
- Filing ITR-1 is a straightforward process, making it easy for eligible taxpayers.
- It helps in establishing a record of income, which is useful for loan applications, visa processing, etc.
- Timely filing and payment of taxes help avoid penalties and legal issues.
ITR-1 is an essential form for salaried individuals and pensioners with simple income structures, ensuring compliance with tax regulations.
How To Process ITR 1 in Software:
Step 1:
Go to Quick Access >> ITR 1:
Step 2:
To enter the details and income in the related heads while preparing your income tax return, follow these steps:
1. Personal Information
- PAN: Enter your Permanent Account Number.
- Name: Ensure your name matches the PAN records.
- Aadhaar Number: Link your Aadhaar with PAN.
- Address: Provide your current residential address.
2. Filing Status
- Filing Status: Specify whether the return is original or revised, and also fill in the other details related to the return.
3. Bank A/c and TRP Details
- Bank Account Number: Provide your bank account number.
- IFSC Code: Enter the IFSC code of your bank branch.
- Account Type: Specify whether it is a savings or current account.
- TRP Detail: Enter the TRP Details.
4. Details of Taxes Paid
- Advance Tax: Enter details of advance tax paid, if any.
- Self-Assessment Tax: Include details of any self-assessment tax paid.
- TDS (Tax Deducted at Source): Verify and enter TDS details from Form 16 and Form 26AS.
5. Income from Salary/Pension
- Employer Details: Enter the name and PAN of your employer.
- Gross Salary: Mention the total salary as per your Form 16.
- Exempt Allowances: Enter details of exempt allowances such as HRA, LTA, etc.
- Deductions under Section 16: Standard deduction, professional tax, etc.
6. Income from House Property
- Address of Property: Provide the address of the house property.
- Annual Value: Mention the annual value of the property (self-occupied properties have an annual value of zero).
- Interest on Home Loan: Enter the interest paid on the home loan under Section 24(b).
- Net Income/Loss: Calculate the net income or loss from house property.
7. Income from Other Sources & Exempt Income
- Interest Income: Include interest from savings accounts, fixed deposits, and recurring deposits.
- Dividend Income: Mention the amount received as dividends.
- Other Income: Include any other income like family pension, gifts, etc.
8. Deductions Under Chapter VI-A
- Section 80C: Enter eligible investments like PPF, NSC, life insurance premiums, etc.
- Section 80D: Provide details of health insurance premiums.
- Section 80G: Enter donations made to charitable organizations.
- Other Deductions: Include deductions under sections like 80E (education loan interest), 80TTA (interest on savings account), etc.
9. Relief Under section 89
- Form 10E: Enter the Related details and the Generate From 10E and then Click on Upload (More Detail)
10. Relief under section 90/91
- Rebate and Relief u/s 90/91: Enter The income and details and then showing the data in the computation and also showing in the Return Form Under Schedule FSI.
11. Generate and Submit
- Once all details are entered, generate the computation.
- Submit the form and verify it electronically or through a physical ITR-V.
Hope This Helps.
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