How to File Income Tax Return (ITR) Online - ITR1 Step by Step Guide

As per section 139(1) of the Income Tax Act, 1961 in India, individuals whose total income during the previous year exceeds Rs 5,00,000, should file their income tax returns (ITR). ITR can be filed both online and offline. Here this article will tell you the step-by-step process to file Income Tax Return Online

Anyone can file the ITR by both mediums Online & Offline. This article is a detailed guide for online ITR Processing. The last date for ITR filing this year is 31 July.

Who should e-file income tax returns?

  • ITR (Income Tax Return) filing is very easy and can be done by all assessments.
  • Individual Tax Payers & HUF (below 60 years of age) - Income Rs 2,50,000+
  • Individual Tax Payers & HUF (Between 60-80years of age) - Income Rs 3,00,000+
  • Individual Tax Payers & HUF (Above 80years of age) - Income Rs 5,00,000+
  • Company or a Firm Owner having profit or loss
  • I want to claim a tax refund for the financial year.
  • Indian resident acts as a signing authority for foreign account
  • Indian resident possesses an asset or getting financial interest located outside of India
  • If Sold equity shares in a company or unit of equity-oriented mutual funds or unit of business trust for more than Rs.2,50,000 and have gained tax-exempt long-term capital gains from the same.
  • A person who claims relief under sections 90 or 90A or deductions under section 91.
  • All companies.
  • A firm (which does not come under section 44AB), AOP, BOI, Artificial Juridical Person, Cooperative Society, and Local Authority (ITR 5).

What happens if you don't file Tax Returns

  • Failing to file returns could result in legal implications for individuals, especially if they file a revised return in the future.
  • Under the Income Tax Act, non-filing of returns can lead to a penalty amount of Rs 5000
  • Panel interest is applicable for delayed filing, only if you have any pending tax liability
  • A belated return does not allow you to carry forward losses from capital gains, income from a business, and other income sources
  • Filing a belated return can result in a loss of interest on the refund.

How to Choose the Right ITR Form to file your taxes online?

ITR 1 which is also known as SAHAJ is for Individuals whose income is within Rs. 50 Lakhs and limited to Salary/Pension, One House Property, and other sources (Excluding winning from lottery and racehorses).

ITR 2 is for Individuals and Hindu Undivided Families (HUF) not having income from business or profession.

ITR-3 can be filed by an Individual or HUF deriving income from a proprietary business or profession.

Who has opted for the presumptive income scheme as per Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act, and business turnover is less than Rs 2 Crores?

Firms, AOPs, BOIs, LLP firms, Artificial judicial persons as per section 2(31(vii)) and 160(1(iii)(iv)), local authorities, cooperative societies, and registered societies.

Companies are other than companies claiming exemption under section 11.

Persons including companies required to furnish returns under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)

Documents Required to file ITR

If you are required to file an income tax return (ITR) then you can file it by following the mentioned procedure.-
  • PAN card
  • Aadhaar Card
  • Bank account details
  • Form 16 (issued by the employer)
  • Form 16A / TDS certificate
  • Challan of tax payment made like advance tax or self-assessment tax
  • Income tax e-filing profile (profile on ITR e-filing portal)
  • Equity Linked Savings Scheme/Mutual funds investment
  • Loan details if any
  • Insurance
  • Documents on the purchase and sale of investments/assets
  • Form 26AS
  • Your children’s school tuition fees
  • Stamp duty and registration charges
  • Interest certificates from banks and post office
  • Deductions under sections 80D to 80U
  • Capital gains
  • Original Return/Notice
  • Pension Certificate
  • Salary Arrears
  • Foreign Salary Slips
  • Foreign Tax Returns
  • Rent Agreement/Receipts
  • Travel Bills
  • Withdrawn PF
  • Gratuity/Leave Encashment
  • Joining Bonus
  • Bank passbook/statement
  • Dividends/warrants
  • Interest Certificates
  • Accrued Interest
  • Lottery/Prize winnings
  • Agricultural Income
  • Clubbed Income

How to File ITR Form 1 - SAHAJ

ITR -1  Form is a simplified one-page form for individuals having income upto Rs 50 lakhs from Salary, Pension, House Property, and other sources.

Fields in ITR 1 Form?

There are 5 Parts to ITR Form 1 -

Part A (General Information) - Name, Address, PAN Number, Mobile Number, Email Address, Aadhar Number, Return Filing Details

Part B (Gross Total Income)
  • Part B1 - Salary details, All not exempted Allowances, All the Values of Prerequisites, Profits in lieu of salary, Deduction u/s 16, Income chargeable under the head salaries
  • Part B2 - Gross Rent received, Tax paid to local authorities, Annual value, 30% of the annual value, Interest payable on borrowed capital, Income chargeable under the head ‘head property
  • Part B3 - Income from other sources
  • Part B4 - Gross Total Income (B1+B2+B3)

Part C (Deductions and taxable total income) - 80C, Any other, Value of Total deduction, Total income (B4 – C1)

Part D (Computation of Tax Payable) - 
  • D1. Tax payable on total income
  • D2. Rebate u/s 87A
  • D3. Tax after rebate
  • D4. Cess on D3
  • D5. Total tax and cess
  • D6. Relief u/s 89(1)
  • D7. Interest u/s 234A
  • D8. Interest u/s 234B
  • D9. Interest u/s 234C
  • D10. Fee u/s 234F
  • D11. Total tax, fee, and interest
  • D12. Total tax paid
  • D13. Amount payable
  • D14. Refund
  • Exempt income

Part E (Other Information) - IFSC Code of the bank, Name of the bank, Account Number
Schedule IT (Detail of Advance tax and Self Assessment Tax payments) - BSR Code, Date of Deposit, Serial number of challan, Tax Paid

Schedule TDS(Detail of TDS/TCS) - TAN of deductor/ PAN of the tenant, Name of the deductor, Amount subjected to deduction, Year of tax deduction, Tax deducted, Amount claimed in the year.

Documents that you should keep in hand before filling out your ITR-1 form are:

  • Form 16S by the Employer
  • Form 26AS
  • Receipts: Proof of certain exemptions or deductions (such as HRA allowance or Section 80C or 80D deductions)
  • PAN card
  • Bank Investment Certificates: Interest from bank account details – Bank Passbook or FD Certificate

Due Date for Filing ITR 1 Online AY 2022-2023

The due date is extended for AY 2021-22 for filing Income Tax Returns from 31st July 2021 to 31st August 2022 for certain categories.

How to File ITR 1 Form Online

Here we will let you know the step-by-step guide to filing ITR Form 1
  • Visit the Income-tax department’s ITR filing website 
  • Log in with your user ID and password (If you are New User, register your details first)
  • Go to “E-File” and select the ITR 1 form from the Dropdown Menu Assessment Year as 2021-2022 and submission mode as Prepare and submit online.
  • Select Authentication mode: Three modes to Verify ITR - (i) Aadhar OTP (ii) Already generated EVC through my account (iii)Like to send signed ITR through Normal or Speed post to the centralized processing center, Income Tax Department, Bengaluru
  • Click on Continue Button. There will be 7 Tabs- 
    • The first tab (Instructions) - There will be a list of the instructions for filling in the data, read the instructions carefully before proceeding

  • Second Tab (Personal Information) -  Here you need to enter your personal details i.e First Name, Middle Name, Last Name, PAN Card Number, Date of Birth, Flat/Door/Building Number, Road/Street, Area/Locality, Town/City/District, State, Pin Code, Email Address, Mobile Number, Landline Number, Employer Category (Government, PSU, Others), Tax Status, Residential Status, etc.
  • Third Tab (Income Tax Details) - Fill in the all given details ie. Salary (Excluding All allowances, perquisites, and profits in lieu of Salary), Allowances Not exempt, Value of perquisites, Profits in Lieu of Salary, Deductions u/s 16. Here all your income and Deductions are to be filled under different sections

  • Fourth Tab - Fourth Tab contains the deducted tax, Tan Number of the company, Company Name, and many other fields as in the image below.

  • Fifth Tab - Fifth Tab is to fill in Bank Account Details, Verification, Total Tax paid, Amount Payable,

Sixth Tab (80G) 
  • Fill in all donations which come under tax-free deductions.

How to e-Verify Income Tax Details

e-Verification Options How to Enable
Digital Signature Certificate Profile Setting ->Register Digital Signature Certificate
Aadhar OTP Profile Setting ->Link Aadhar
Prevalidated Bank Account Profile Setting ->Prevalidate Your Bank Account
Prevalidated Demat Account Profile Setting ->Prevalidate Your DMAT Account
Login through Netbanking and upload your Income Tax Return for seamless e-Verification

In Short
  • Login to the Income tax department’s website for ITR filing and then sign in with your user ID and password
  • Click “E-File” on the top Navigation menu 
  • Select the ITR form and Assessment Year
  • Fill in the details of the income from Form 16 like salary break-up details, tax payments, deductions, etc.
  • Verify the ITR either offline or online. There are online options like e-verifying returns through net banking and generating a one-time password through Aadhaar.

1 comment:

  1. To complete your ITR filing process, you have a step-by-step guide by registering in an e-filing portal to verify your ITR. Similarly, videos will guide you to the tax revenue process.
    The ITR1 format has been subject to different changes this year, and this income tells you the income you need to keep in your hand in order to repay your income. Watch the video on ITR and file ITR-1
    The next step after entering the e-filing website. See how to fill in the first part 'section a general information'. See how to file a file on ITR1 online for 2017-18 fiscal year.
    Enter your income details in the next builder tab 3 once you fill in the 'General Information' section of ITR-1. The Pay Salary Form asks you to provide you with five details of your income: a) Exemption (i) This is part of the form of exemptions under section 16 of the Income and Profit to the Income instead of Salary.
    The biggest advantage of using ITRs online is to make it more popular with the details of your profile and tax phase, that is, the 26AS form. However, you have to check the details shown in tab 4. Watch the video to see the DDS details.