NOW IT IS EASIER TO SUBMIT ITR-1 ONLINE

During the period from May to July, Taxpayers are kept busy submitting their Income Tax Returns (ITRs). As is the case every year, I have already submitted my ITR-1. Additionally, I have assisted my colleagues in submitting their ITRs. Over the years of doing this, I have realized that some people feel hesitant and anxious about submitting ITRs on their own. However, there’s no need to fear any longer. Read this blog post attentively and follow the instructions step by step. By the end, you’ll find that your ITR has been submitted smoothly. In this blog post, we will specifically discuss the online submission of ITR-1 for Salaried Individuals. The process of submitting ITR-1 is now more user-friendly than ever. It is easier to submit ITR-1 online. 

PREPARATION:

Let us review the points in the preparatory phase.

1. Nowadays almost everybody has at least one email ID. If you do not have an email ID, please create one.
2. If you have multiple mobile numbers, write the number connected to your Aadhaar. 
3. You should be paying LIC premiums for yourself and your dependent family members. Calculate the total of all premiums paid during the last Financial Year. 
4. If you held any Tax Savings Fixed Deposit during the last Financial Year, note down the exact amount of the Fixed Deposit. 
5. Include the total amount of interest received from Fixed Deposits with Banks and the Post Office.
6. Write down the amount of Health Insurance Premium paid during the last Financial Year for you and your dependent family members. 
7. If you have a home loan, note down the amount of Interest and Principal paid during the Financial Year. 
8. Record the amount of Salary or Pension received during the Financial year.

You will need to generate one if you do not have the password to log in to the Income Tax site.

HOW TO REGISTER ON THE INCOME TAX SITE:

1. If you do not have an email ID, please create one.
2. Go to the Income Tax e-filing portal by searching on Google.
3. On the Home page click on Register.
4. Enter PAN in the provided box and validate it. 
5. You’ll need to provide mandatory details such as your Name, Date of birth, Residential status etc. and then click ‘continue’.
6. You’ll be prompted to enter your Primary Mobile Number, Email ID, and Address. After you’ve entered all the required details, click ‘continue’. 
7. Two separate OTPs will be sent to your Email ID and your Mobile number. Enter the OTPs in the designated boxes. 
8. You will be asked to set a Password. The Password should contain at least eight characters, with a combination of upper case and lower case letters, at least one number and a special character. 

Visit the Income Tax e-filing portal and log in using your PAN and Password. Follow the suggested steps.

First, obtain your 26AS, AIS and TIS Forms.

HOW TO DOWNLOAD ’26AS’:

1. Place your cursor on ‘E File’, then navigate to ‘Income Tax Return’ and click on ’26AS’.
2. On the Disclaimer page, click ‘confirm’.
3. Check the box that reads “I agree to the usage and acceptance of Form 16/16A generated from TRACES” and then click ‘Proceed’.
4. Click on ‘View Tax Credit (Form 26AS/Annual Tax Statement)’.
5. Select Assessment Year and choose ‘View HTML’.
6. Click ‘View/Download’.
7. Next, click ‘Export as PDF’. 

In this 26AS Statement, you will find details of money received from all the Banks, as well as tax deducted.  

HOW TO DOWNLOAD ‘AIS’:

1. Click on ‘AIS’ on the Home page.
2. Click ‘Proceed’.
3. Next to Instructions, click ‘AIS’.
4. Click on ‘Annual Information Summary (AIS)’.
5. Click ‘Download’
6. Click ‘Download’ against the ‘Annual Information Summary (AIS)’ PDF.
7. Go to the Activity History.
8. Click on the Download icon next to ‘AIS Download PDF’.

Please note that this AIS is Password-protected. To open it, you need to enter your PAN in lowercase and your date of birth in the ‘ddmmyyyy’ format.

HOW TO DOWNLOAD ‘TIS’:

1. Click on ‘AIS’ on the Home page.
2. Click ‘Proceed’.
3. Next to Instructions, click ‘AIS’.
4. Click on ‘Taxpayer Information Summary (TIS)’.
5. Click ‘Download’.

Please note that this TIS is Password-protected. To open it, you need to enter your PAN in lowercase and your date of birth in the ‘ddmmyyyy’ format.

LET US NOW FILL OUT AND SUBMIT ITR-1:

1. On the Home page, place the cursor over ‘E file’, navigate to ‘Income Tax Return’ and then click on ‘File Income Tax Return’.
2. Choose the Assessment Year, click on ‘Online’ and then continue.
3. Click ‘Start New Filing’. 
4. Select ‘Individual’ and continue. 
5. Choose ‘ITR-1’ and click ‘Proceed’. 
6. Click ‘Let’s Get Started’.

Now, you need to carefully complete the relevant fields in five sections. These five sections are ‘Personal Information’, ‘Gross Total Income’, ‘Total Deductions’, ‘Tax Paid’ and ‘Total Tax Liability’. 

PERSONAL INFORMATION SECTION:

In this ‘Personal Information’ Section, you’re required to input your details such as your name, PAN, Aadhaar number, Mobile number, full address, Bank Account details, and more. In this section, you’ll also need to indicate whether you prefer the Old Regime or the New Regime for submission of the ITR. Please be aware that selecting the New Regime might make certain deductions unavailable.

GROSS TOTAL INCOME SECTION:

In this ‘Gross Total Income’ Section, you are required to report various types of income in the designated boxes. Enter your Pension or Salary details separately in the appropriate box. Show the interest earned from all the sources, such as Bank Fixed Deposits, Post Office Savings Schemes etc., under the category ‘Income From Other Sources’. Additionally, include Income from Savings Accounts. It’s recommended to cross-reference your information with 26AS, AIS and TIS.

TOTAL DEDUCTIONS SECTION:

Carefully complete the relevant fields in this section.  There are multiple sections where deductions can be claimed. Some common sections include 80C, 80D, 80TTA, 80TTB and others. The maximum deduction available under section 80C is Rs.1,50,000/-. It’s important to understand the available deductions under section 80D.

1. For taxpayers below 60 years of age who pay Health Insurance premiums for themselves and for their dependent spouse and children, the maximum deduction available under section 80D is Rs.25,000/-.
2. For taxpayers below 60 years of age who pay Health Insurance premiums for themselves and for their dependent spouse and children and parents below 60 years of age, the maximum deduction available under section 80D is Rs.50,000/-.
3. For taxpayers below 60 years of age who pay Health Insurance premiums for themselves and for their dependent spouse and children and senior citizen parents, the maximum deduction available under section 80D is Rs.75,000/-.
4. For senior citizen taxpayers who pay Health Insurance premiums for themselves and for their dependent spouse and children and senior citizen parents, the maximum deduction available under section 80D is Rs.1,00,000/-.

TAX PAID SECTION:

In this section, you will find details about the Tax paid during the last Financial Year, including TDS (Tax Deducted at Source), TCS (Tax Collected at Source), Advance Tax, and Self Assessment Tax.

TOTAL TAX LIABILITY SECTION:

Based on the income and deductions details provided earlier, the computation of your Total Tax Liability is determined. If your Total Tax Liability exceeds the tax already paid, you will need to pay the remaining balance. Conversely, if your Total Tax Liability is less than the tax paid, the Income Tax Department will refund the excess amount to your bank account, as specified in the Personal Information Section.

It’s advisable to make your tax payment online. Once you’ve paid the tax online, you’ll receive a receipt from the bank. Take note of the BSR code, Challan number, Date of Challan, and the Tax amount from the receipt. Add this information to the Self Assessment Tax Section. 

With this, you have completed the process of filling out ITR-1. 

HOW TO SUBMIT ITR-1:

1. Click on ‘Preview Return’.
2. Proceed by clicking ‘Proceed to Preview’.
3. Continue by clicking ‘Proceed to Validation’.
4. Click ‘Proceed to Verification’. 

To complete the verification process, you will need to choose one of the three options: ‘E-Verify Now’, ‘E-Verify Later’, and ‘E-Verify via ITR-V’. Opting for ‘E-Verify Now’ is recommended. 

1. You will receive an OTP on the mobile linked with your Aadhaar. 
2. Complete the E-Verification process using the Aadhaar OTP. 
3. Your ITR-1 has been successfully submitted. 
4. Download the receipt. 

CONGRATULATIONS, YOU HAVE SUCCESSFULLY SUBMITTED ITR-1.