Hi Friends,
This is the season of financial year closing and return filing. This blog is written to provide some insight into individual return filing and to ease this process for salaried people of India.
I have provided a step by step guide to file return for FY 2016-17 in ITR 1. The due date for filing return is 31st July, 2017.
Individuals having income from salary, one house property and income from other sources and having total income up to Rs 50 lakhs need to file ITR 1.
There are 2 ways to file the return, a) download the form, fill details and upload , or b) enter details directly on the website. The easiest way is to file it directly on the website and the process is explained below.
1. Go to https://incometaxindiaefiling.gov.in/
2. Click on quick filing of returns on the left hand corner of the page. This will take you to the login page.
3. USER ID is your PAN. If you are filing online return for the first time please click on Register now. In case someone else has been filing return on your behalf, you may reset your password with the help of your email id and mobile number.
4. After login in Click on e-file and select the option "prepare and submit online ITR".
5. Select assessment year as 2017-18 for return filing.
6. ITR Form name - ITR 1
7. Prefill address option can be selected based on your current/permanent address. For first timer, you can extract details from your PAN.
8. Read instructions carefully.
9. Go to personal information tab. This will ask you for your basic information like address, email and mobile number, employer type and residential status. For people staying and working in India, residential status will be "Resident". Review and update the details. Do not forget to save the page.
10. Click on next tab - Income details.
11. Income from salary needs to be entered as per form 16 after all deduction u/s 10.
12. Select the type of house property. For simplicity we consider that the assesse has one self occupied house property. In this case the interest paid on housing loan for the year up to a maximum of Rs 2 lakhs, will be considered as loss from house property and needs to be entered as negative. For this purpose you can log in into your loan account and download the Income tax certificate from the bank which will provide the break up of interest and principal payment made.This should be left blank for assesse staying in a rented house.
13. Income from other sources - typically interest on bank deposits, can be calculated from your bank statement. Interest on savings bank deposit can be claimed as deduction u/s 80TTA up to Rs 10,000.
14. Under the deduction U/S 80C, we need to enter the amount of investment made in mutual funds, 5 year FD, PPF, PF, NSC etc to a maximum of Rs 1.5 lakhs. This amount is generally given in Form 16 obtained from the employer after verification of proofs submitted with the employer.
15. Premium paid on medical health insurance can be claimed U/S 80D.
16. Note if any deduction for medical allowance, insurance premium, leave travel allowance or any other deduction was not claimed with the employer, the same can be claimed while filing the return. In this case the total taxable income and tax liability will not tally with the Form 16.
17.Any other deduction if claimed can be entered as per Form 16.
18. The total tax liability will be calculated automatically. Please save and move to the next tab.
19. Tax Details - This tab will show the salary TDS deducted by the employer and the TDS on interest, if any, deducted by the bank. Please verify the same with the TDS certificate (Form 16 for salary TDS and Form 16A for others).
20. Taxes paid and verification - All fields will be picked up automatically here. Please verify. Final tax payable/refund amount will reflect.
21. Below in part D14, the details of all bank accounts held in the financial year needs to be provided.
22. Enter declaration details in the verification column.
23. 80G tab is relevant for people who have made donations in the financial year which is eligible for deduction. Deduction certificate is provided by donee is such cases.
24. Save and submit.
25. Return can be e verified through internet banking or by linking your return to the Adhaar card.
The above process is very simple and generic for those who need to file return simply on the basis of Form 16 obtained by the employer. Might seem a little difficult and scary at first but trust me its not.
You can get in touch with me on rakshaagarwal89@gmail.com to help with your return filing at a very nominal fee.
Signing off
CA Raksha Agarwal
This is the season of financial year closing and return filing. This blog is written to provide some insight into individual return filing and to ease this process for salaried people of India.
I have provided a step by step guide to file return for FY 2016-17 in ITR 1. The due date for filing return is 31st July, 2017.
Individuals having income from salary, one house property and income from other sources and having total income up to Rs 50 lakhs need to file ITR 1.
There are 2 ways to file the return, a) download the form, fill details and upload , or b) enter details directly on the website. The easiest way is to file it directly on the website and the process is explained below.
1. Go to https://incometaxindiaefiling.gov.in/
2. Click on quick filing of returns on the left hand corner of the page. This will take you to the login page.
3. USER ID is your PAN. If you are filing online return for the first time please click on Register now. In case someone else has been filing return on your behalf, you may reset your password with the help of your email id and mobile number.
4. After login in Click on e-file and select the option "prepare and submit online ITR".
6. ITR Form name - ITR 1
7. Prefill address option can be selected based on your current/permanent address. For first timer, you can extract details from your PAN.
8. Read instructions carefully.
9. Go to personal information tab. This will ask you for your basic information like address, email and mobile number, employer type and residential status. For people staying and working in India, residential status will be "Resident". Review and update the details. Do not forget to save the page.
10. Click on next tab - Income details.
11. Income from salary needs to be entered as per form 16 after all deduction u/s 10.
12. Select the type of house property. For simplicity we consider that the assesse has one self occupied house property. In this case the interest paid on housing loan for the year up to a maximum of Rs 2 lakhs, will be considered as loss from house property and needs to be entered as negative. For this purpose you can log in into your loan account and download the Income tax certificate from the bank which will provide the break up of interest and principal payment made.This should be left blank for assesse staying in a rented house.
13. Income from other sources - typically interest on bank deposits, can be calculated from your bank statement. Interest on savings bank deposit can be claimed as deduction u/s 80TTA up to Rs 10,000.
14. Under the deduction U/S 80C, we need to enter the amount of investment made in mutual funds, 5 year FD, PPF, PF, NSC etc to a maximum of Rs 1.5 lakhs. This amount is generally given in Form 16 obtained from the employer after verification of proofs submitted with the employer.
15. Premium paid on medical health insurance can be claimed U/S 80D.
16. Note if any deduction for medical allowance, insurance premium, leave travel allowance or any other deduction was not claimed with the employer, the same can be claimed while filing the return. In this case the total taxable income and tax liability will not tally with the Form 16.
17.Any other deduction if claimed can be entered as per Form 16.
18. The total tax liability will be calculated automatically. Please save and move to the next tab.
19. Tax Details - This tab will show the salary TDS deducted by the employer and the TDS on interest, if any, deducted by the bank. Please verify the same with the TDS certificate (Form 16 for salary TDS and Form 16A for others).
20. Taxes paid and verification - All fields will be picked up automatically here. Please verify. Final tax payable/refund amount will reflect.
21. Below in part D14, the details of all bank accounts held in the financial year needs to be provided.
22. Enter declaration details in the verification column.
23. 80G tab is relevant for people who have made donations in the financial year which is eligible for deduction. Deduction certificate is provided by donee is such cases.
24. Save and submit.
25. Return can be e verified through internet banking or by linking your return to the Adhaar card.
The above process is very simple and generic for those who need to file return simply on the basis of Form 16 obtained by the employer. Might seem a little difficult and scary at first but trust me its not.
You can get in touch with me on rakshaagarwal89@gmail.com to help with your return filing at a very nominal fee.
Signing off
CA Raksha Agarwal
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