Synopsis
ITR-1, also known as Sahaj, is used by most individual taxpayers to file their income tax returns. Here is a step-by-step guide on how to file ITR-1 completely online on the new income tax portal for FY 2021-22 (AY 2022-23). While filing ITR online, ensure that information pre-filled in the ITR form is correct. If not, then correct the information in the online form.
The due date to file an Income-tax return (ITR) by an individual taxpayer [not subject to tax audit as per the provisions of Income-tax Act, 1961 for the Financial Year (FY) 2021-22 or Assessment year (AY) 2022-23 currently is July 31, 2022.
Who can use Form ITR-1
A resident and ordinary resident (ROR) taxpayer having a total income up to Rs 50 lakh from salary, one house property and income from other sources can file an ITR using Form ITR-1.
However, Form ITR-1 cannot be used by a taxpayer who is either a Director in a company or has invested in unlisted equity shares or in cases where tax has been deducted at source (TDS) on certain cash payments or if income tax is deferred on Employee Stock Option Plans or has agricultural income above Rs 5,000.
Read More: Filing Tax Returns Early? Here’s What You Need To Know About Form 26AS
Choosing tax regime in Form ITR 1
The optional new tax regime was introduced from the FY 2020-21 (AY 2022-23), and a taxpayer at the time of filing ITR must choose whether he/she wants to opt for such regime under section 115BAC of the Act if beneficial vis-à-vis the regular tax regime. A taxpayer filing Form ITR-1 can change the tax regime from the one declared to the employer at the time of deduction of tax at source on salary payment or considered for payment of advance tax during the course of the year.
ITR filing mode
A taxpayer can submit Form ITR-1 electronically. This can be done via a completely online method or in a partially online and partly offline method. In the latter mode, one needs to download the prefilled JSON file and use the JSON utility to fill the details before uploading the same on the income tax e-filing website to complete the filing process.
Pre-filled information
Form ITR-1, if filed completely online, comes with certain pre-filled information such as personal details, salary income, dividend income, interest income etc. However, if you use partial online and partial offline method, then individual taxpayer will be required to download JSON utility from new income tax portal. The pre-filled data will required to be imported to the JSON utility.
Step by Step process for filing Form ITR-1 in complete online mode
Go to www.incometax.gov.in and login with your credentials. Your PAN/Aadhaar number is user ID for login.
1. Go to E-File > Income Tax Returns -> Select ‘File Income Tax Return’ from the menu.
Read More: Types of ITR forms in India
2. Select the Assessment Year (AY 2022-23), Mode of filing (online), applicable status (e.g. Individual) and ITR Form (ITR-1) on the landing page and click on “Let’s get started”.
3. Select the applicable reason for filing the return of income as shown below and select ‘Continue.’
4. On the next page, the taxpayer would see 5 tabs under ‘Let’s Validate your pre-filled data’. These 5 tabs are: Personal Information, Gross total income, Total deductions, Tax paid and Total tax liability. You need to fill and validate all these five tabs.
Personal Information Tab: This tab has taxpayer’s personal information such as profile (name, address, PAN, Aadhaar number, date of birth), contact details (mobile number, address and email address), Nature of employment, filing section and bank details. Details of profile and contact details are captured from the taxpayer’s e-filing account. Out of these two contact details are editable. Taxpayer has to select applicable nature of employment from drop down menu.
Next, a taxpayer is required to select filing section under which tax return is being filed and whether he/she wishes to opt for the optional new tax regime. At the end taxpayer is required to confirm bank accounts held in India during FY 21-22 and select the bank account in which he/she wants to receive the refund (in case more than 1 bank account is reported) and click on confirm. As the bank details are auto populated from last year return filed, taxpayer can verify the same and change them accordingly.
Gross Total Income: Usually, several of the fields under this tab will come pre-filled. The tab will show your income from various sources (heads of income) such as income from salary, house property, interest etc.
– Income from Salary – This data will be pre-filled from the taxpayer’s Form 16 (in case the person is salaried); thus, taxpayer should verify that all the tax-exemptions from salary income applicable to him /her have been claimed.
In this tab, the taxpayer is required to select the salary exemptions apart from those in Form 16 (for e.g. House Rent Allowance, Leave Travel Allowance etc.). If the pre-filled income is correct, then confirm it. If wrong then change it and correct information.
– Income from House Property – Rental income, interest on housing loan will be pre-filled basis the Form 16 (if declared to the employer). However, it is advisable to validate the pre-filled details before proceeding. In case these are not pre-filled then you will have to fill in case you have income from house property.
– Income from Other Sources – Here income from other sources is to be filled (checked and corrected if pre-filled). Examples of this type of income include: – interest income from saving bank accounts and fixed deposits, dividend income (to be reported on quarter-wise), interest accrued on contribution to provident fund to the extent taxable and any other income.
Total Deductions: Chapter VI-A deductions claimed through employer (already forming part of your Form 16 as well) would be auto-filled herein like deduction under Section 80C towards provident fund, life insurance premium etc., under Section 80D towards medical insurance premium etc., Also, if any such deduction was not claimed through employer, then it can be claimed directly in the return of income by providing requisite details therein. These details will be auto-populated from Form 16, provided you have opted for the old income tax regime with the employer as well as at the time of filing ITR. If any deduction is missed in the Form 16, then you can claim it while filing ITR.
Tax Paid: Details in this tab would be pre-filled from Form 26AS/AIS with TDS, TCS, advance-tax and Self-Assessment Tax (SAT), if any, paid by the taxpayer.
Total Tax Liability: This tab shows total income, taxes paid, interest payable, late fee (if any) and automatically computes the details of tax payable by or refund due to. Click on confirm and on proceed to the next page.
5. Return Summary: It is the summary of all tabs and taxpayer should ensure that all tabs are reflected as ‘Confirmed’ and select ‘Proceed’ to Tax Summary tab.
6. Tax Summary: In this tab, taxpayer can view the tax summary (Nil payable/refund) of the tax return.
7. Declaration tab: Once all the details in the form have been entered, the taxpayer is required to fill requisite details in the declaration confirming that all details provided in the return are accurate and complete and click on ‘Preview Return’.
8. Preview and submit: Taxpayer can verify the personal information, income details and taxes paid in the preview version. Upon verification, he/she should click on ‘Proceed to Validation’ if details entered are correct. In case any errors are noted, taxpayer should click on ‘Edit’ to make the necessary corrections in the relevant tab/section.
Once return of income is filed, an SMS/e-mail intimation confirming the filing is sent by the tax department to the taxpayer. Post successful submission, the acknowledgement (ITR-V) is sent to taxpayer’s registered email id. One can also retrieve it manually from the income tax website.
9. Verification: After successful validation, the taxpayer may proceed to verify tax return either electronically through net banking, Aadhaar OTP etc. or can take a printout of the ITR-V (acknowledgement) and sign it and send it manually to the CPC, Income Tax Department, Bengaluru within 120 days of e-filing of the return of income.
Note that signature has to be in blue ink and you can send the ITRV only via speed post or normal post. The ITRV cannot be sent via courier or registered post.
