ITR: How to file form ITR-1 on Income Tax Portal? 

Last Updated at: Jan 07, 2020
ITR: How to file form ITR-1 on Income Tax Portal?

The Indian Income Tax Act, 1961 is an important piece of legislature that lays down all the rules regarding the payment of income tax in India. Failure to comply with the rules and regulations mentioned in this act can lead to severe penalties being levied on the offender. Therefore, people who have a job and fall within the taxable bracket have to ensure they comply with the rules stated in this act. Choosing the right form is a big part of filing your taxes because if you submit the wrong form, the filing comes under the defective list, which will result in you having to file another return. Filing an ITR-1, which is also known as SAHAJ is a must for many types of employees in India. Here’s a look at everything you need to know about ITR-1 and how to file it.

ITR-1- Who needs it?

This form must be filled by resident individuals whose total income is not more than Rs 50 lakh. The source of income could be from:

  • Salary or pension
  • One house property or
  • Other sources 

Hence, this is the return to file for most salaried professionals in India. However, if you have secured capital gains or own more than one property in India, you will not be eligible to file ITR-1. Also, if the income of a spouse or minor is clubbed with the assessee’s, they are eligible to file ITR-1 only if the clubbed income falls under INR 50 Lakhs.

Who is not eligible to file ITR-1?

This form cannot be used by any person who is:

  • a Director in any company, corporation or firm
  • Has unlisted equity shares in the previous fiscal year
  • Has any asset or financial interest in any property outside India
  • Has the authority to sign in any account outside India
  • Earns from any other source outside India

This form cannot be filed by any individual who has a source of income included in the below-mentioned list:

  • Profits  from business and professions 
  • Capital gains
  • Income arising from a second property
  • Income from lottery or racehorses
  • Income taxable as per rules laid down in section 115BBDA and 115BBE;
  • Income that falls under section 5A
  • Any income from agricultural activities that exceed ₹5,000.

Further, the ITR-1 may not be filed by individuals who have made the following claims deductions or tax relief:

  1. Loss under income from house property
  2. Loss under income from other sources
  3. Relief as per section 90 or 91
  4. Claims made as per section 57, excluding clause (iia) 
  5. TDS credited in the hands of another individual

Care must also be provided to ensure that the form is filed without any attachments. No document, not even the TDS certificate must be attached to this form, as all forms and such documents will be returned to the assessee. Also, the assessee must file only one copy of the form. If the form was filed via the paper form, then ITR-V must also be duly filed.

Structure of ITR-1

ITR-1 contains the following parts:

Part-A: General information like PAN, Name, DOB, Contact number, email address, etc. 

Part B: Gross total income details like salary, deductions, standard deductions, entertainment allowance, income from house property and other sources

Part C: Deductions like Govt pension scheme, health insurance, medical treatment, educational loans, donations made to charitable trusts, etc.

Part D: Computation of tax payable 

Part E: Other information like details of the bank account

How to file ITR-1?

You can file ITR-1 online on the income tax portal or offline. 

Here’s a look at how you can do so:

  1. Through e-filing option available on the IT Department’s web portal

Following the filing of the form in such a manner, verification may be done via:

  • Attaching a DSC or Digital Signature Certificate to the verification form
  • Verifying through Electronic Verification Code method
  • Sending signed Form ITR-V to the following address within 120 days from filing the return

Post Bag No. 1, Electronic City Office, Bengaluru— 560500, Karnataka

  • For filing ITR-1 offline, the taxpayer must submit the hardcopy of the form to the office of the IT Dept along with the Form-V as a sign of acknowledgement. This is allowed only for super-senior citizens, that is, people who are above 80 years of age.

Filing the form online

Step 1: Log in to the official portal of the IT Department using your credentials

Step 2: Then go to E-File >>Income Tax Return

Step 3: Your PAN will be auto-populated. Select the assessment year and select the ITR Form Name as 1 and click on Continue

Next, the page you land on has seven tabs in it. They include:

Step 4: Instructions which must be read by the assessee before filing the form

Step 5: General Information: This includes your personal details

Step 6: Computation of Tax: This section contains all the details regarding salary income, income from property, interest on income and deductions claimed. The tax payable is auto-calculated by the portal, and the taxpayer must cross-check and verify this amount before proceeding further. Details regarding the property owned by the taxpayer will be pre-filled from last year’s forms but the assessee must take care and go through all the information provided before moving forward.

Step 7: Tax details: This includes details regarding TDS, TCS deductions and advance and self-assessment tax paid by the taxpayer. While a major part of this form is pre-filled from information provided on Form 26AS, taxpayers must go through this page with focus and cross-check all the values.

Step 8: Taxes paid:  This tab contains details regarding the tax payable after making the deductions necessary as per the details provided in the TAX Details tab of the form. It also takes into account all deductions possible as per sections 80G and 80GGA. If tax is found due, then the taxpayer must first file that as the self-assessment tax before proceeding. After doing so, the challan details received after paying the self-assessment tax must be duly filled into the Tax Details tab. Taxpayers must also provide details of the bank accounts they hold. Details of dormant accounts which have not been operational for a period more than 3 years may be omitted. All mentioned accounts must be linked to the taxpayer’s PAN and must be pre-validated before filing the form.

Step 10: Donations-80G: This section will include all details pertaining to donations made by the taxpayer to funds, charities and other institutions which fall under section 80G. The taxpayer must specify the amount paid, whether in cash or via other modes and donations made via cash which exceed Rs 2,000 will not be considered for deductions.

Step 11: Donations-80GGA: This section contains details regarding donations made to scientific institutions and research centres as listed under section 80GGA. This deduction may be claimed by all individuals other than ones who earn an income via a business.

Next, the taxpayer must verify all the forms submitted via the methods mentioned above.

Step 12: Once the submission is complete, you may download a copy for preview. If you find any errors, you can make the corrections by clicking on the Edit button. If everything looks good, click on Proceed for final submission to complete filing the form.

Once the above-mentioned steps are completed, you must verify it either through Digital Signature Certificate, Aadhaar OTP or the Electronic Verification Code. You will be prompted to enter the verification details at the beginning. 

After doing so, on receiving the application, the taxpayer will be notified via an SMS to their registered mobile number, or through an email to their registered email ID.