Income Tax Return is the form in which salaried individual files information about his/her Income and tax thereon submit to Income Tax Department at the end of each financial year. As per the income generation, various forms like ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 are available. However, the most important and common form which mostly all have to file is ITR 1.
The last day for filing ITR is July 31 for the year 2017-18 and it is an obligation to file Income tax return as it is a proof of an individual’s tax compliance and financial prudence. However, this year the ITR form has been revised by the department, so fill the form with proper care and keep all your documents handy before starting the procedure.
So to ease your tax filing, here is complete step by step guide to file income tax return:
Which ITR form belongs to you?
Based on the various forms which we have told you in the starting of the blog, not everyone belongs to you; however, keep in mind these points while choosing the ITR form:
- For salaried professionals or pensioners; ITR-1 (Sahaj) and ITR-2
- For self-employed professional or one who runs a small business; ITR-4 (Sugam)
- For individuals and HUFs having income from a proprietary business or profession; ITR 3
- For persons other than,- (i) individual, (ii) HUF, (iii) company; ITR 5
- For Companies other than companies claiming exemption under section 11; ITR 6
- For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) ; ITR 7
However, ITR 1 and 4 is available online, rest all have to be filled offline.
Eligibility-ITR 1 form
An Individual who earns Income for a Financial Year only through the following means is eligible to fill the ITR-1 SAHAJ form:
- Through Salary or Pension
- Through One House Property
- Through other sources such as interest from savings bank account, fixed deposits etc.
These are the main documents one must keep handy while filling up the ITR 1 form:
- Permanent Account Number or PAN card
- Aadhaar card
- All bank statements
- Form 16 issued by your employer
- Copy of your last year’s ITR
- Proof of investments for deductions under Section 80 C which allows the taxpayer to save up to Rs 1.5 lakh in the financial year
Following Investments can be claimed under Section 80C:
- Premium paid for Life insurance
- ELSS or Mutual Fund investments
- Contributions towards Provident Fund
- Premiums paid for retirement
- Tuition fees for children
- Principal for home loan
- National Savings Certificate
- Bank FD or similar deposits
- Amount paid to National Pension System or other similar account
Other investments which can be claimed are as follows:
- Excess house rent paid over the HRA. (Rented accommodation)
- Deduction for higher education loans
- Medical insurance premiums for self, family, or parents
- Saving account Interest up to Rs 10,000
- home loan interest
- Donation to Prime Minister’s Relief Fund
- Income from patents and royalties
ITR1 filling procedure
Once you have collected all the required documents and have done proper calculations, you can now file your ITR 1 completely online on the income tax e-filing website (https://www.incometaxindiaefiling.gov.in/home). The steps include:
- Login on the above given web portal of Income tax e-filing. Register through your PAN card which will be your user ID
- Upload form 16. You can check your tax credit statement on Form 26AS and know about taxes being deducted by your employer. TDS as per Form 16 must tally with the details noted on Form 26AS
- Click “Download” tab and choose for financial year 2017-18 and download ITR form 1 which is required in most of the cases
- Claim deductions if any
- Calculate tax payables and pay taxes.
- Do not forget to re-check the personal details.
- Now click submit. Note down acknowledgement number.
- If your PAN is linked to the Aadhaar number your ITR would be digitally signed or you would need to send ITR-V signed to CPC.
- Track status of previous refund by providing PAN number and assessment year.
Things to keep in mind
To ensure ease of filing ITR this year, next year and every year, never forget these important points:
- Always keep your documents ready and in a safe place. This is very basic information; but if you miss out any of the document, then it may lead to unprecedented delays.
- Evaluate each and every numbers and details before filing in order to avoid last minutes hassles.
- Never hide and sources of income while filing ITR as it can become a major hassle later.
- Verify ITR and claim Section 80 deductions. After you e-file your return, you need to e-verify ITR-V using Aadhaar, net banking, or by other ways of electronic verification.
Important dates to remember
31 July 2018. Deadline for salaried taxpayers to file tax returns for the financial year 2017-18; If you miss this deadline penalty of Rs 1,000-5,000 will be made.
31 December 2018. Date till which taxpayers can file their return after giving a penalty of Rs 5,000 (Rs 1,000 for those with income under Rs 5 lakh)
31 March 2019. The final deadline for filing returns for the assessment year 2018-19. After this date, taxpayers will be allowed to file returns only if the tax authorities allow them to do so under exceptional circumstances.