How to fill Income Tax Return Form 1 (ITR1) - Video Tutorial Part 1:

How to fill Income Tax Return Form 1 (ITR1) - Video Tutorial Part 2:

It’s time to fill it now! So let’s get started.

Personal Information

This is the very first section. Here, you provide your:

• Name
• Full address, including the pin code
• PAN Number
• Date of Birth
• Employer Category
• Gender
• Email address
• Phone number, including the STD code

Filing Status

Designation of Assessing Officer: You can get this from your previous year’s return. It would look something like “ITO, Salary Ward-14(1) / 312-W-1”.

Return filed under section: Here, you have to fill a two digit code depending on why or when you are filing the return.

It is primarily to indicate if you are filing the return voluntarily, or as a response to some notice from the income tax officers.

You can find the right code from the ITR1 filing instructions (which can be downloaded from “Income Tax (IT) Return Filing – Which ITR form to use”)

Original / Revised: Indicate if it is an original return, or a revised return.

For most people, it would be an original return. But if you are filing the return again after modifications, please select “revised”.

In case you are filing a revised return, you would also need to indicate the receipt number and the date of filing of the original return. You can get these from the acknowledgement you received for the original form.

Residential Status: Please select the correct residential status. For most people, it would be “Resident”.

Income and Deductions

This is the most important section of the form – here, you provide the details of the income earned, and the deductions that you want to claim.

1. Income from Salaries: Indicate the income you have earned from salary or pension in the box numbered 1.

2. Income from other sources: Indicate the income received from family pension in the box numbered 2a, and indicate any interest income you have received during the year in the box numbered 2b. This is normally the interest you have earned on bank fixed deposits and savings bank accounts.

Add 2a and 2b, and put the sum in the box numbered 2c.

Add the amounts from boxes 1 and 2c, and put it into box 3. This is your gross total income for the year.

4. Deductions: This is where you put the investments you have made to save tax!

a. 80 C: This is where the bulk of your investments would go. It includes investments like PF, PPF, ELSS, etc. (Maximum Rs. 1 Lakh)

(To know all about section 80C deductions, please read “Saving Income Tax – Understanding Section 80C Deductions”)

b. 80 C C C: Include any amount that you have invested in a pension fund. (Maximum Rs. 10,000, and counted towards Section 80C limit)

c. 80 C C D: If you are a government employee employed after 1st January 2004, indicate the amount paid by you for your pension fund. (Maximum 10% of your salary)

d. 80 D: If you have paid any medical insurance premiums, indicate those amounts here. (Maximum Rs. 15,000)

e. 80 D D: If you have incurred expenses for the medical treatment of any handicapped dependent, you can claim that amount here.

f. 80 D D B: If you have spent on medical treatment for yourself or your dependents for diseases specified in this section, indicate the amount here.

g. 80 E: If you are paying interest on an educational loan for yourself or your spouse / children, the interest can be claimed here. There is no upper limit on the amount that you can claim here.

h. 80 G: If you have made any qualifying donations, please claim them here.

i. 80 G G: This is for claiming deduction for rent paid by you. (Maximum Rs. 2000 per month)

j. 80 G G A: This is for claiming deductions for donations made for scientific research or rural development.

k. 80 G G C: This is for claiming deductions for donations made to political parties.

l. 80 U: This is the deduction available in case of permanent physical disability. The deduction allowed is a lump sum of Rs. 40,000.

Add up all the amounts (from a to l), and put the sum in box 4m.

5. Total Income: Subtract the amount in box 4m from the amount in box 3, and put it in box 5.

6. Agricultural Income: If you have any income from agriculture or farming (more than Rs. 5,000), put it in box 6.

Please note that there is no income tax on agricultural income (that is, agricultural income is fully exempt from income tax), but it is included here for the purpose of determining the correct slabs / brackets for your income.

7. Aggregate income: Add the amounts from boxes 5 and 6, and put them in box 7.

Income Tax Computation

8a. Tax Payable on aggregate income: Here, you calculate the income tax payable according to the income tax slabs. Put this amount in box 8a.

(To know the income tax slabs / brackets applicable to you, and to calculate the income tax based on it, please read “Income Tax (IT) Slabs / Brackets – FY 2008-09 AY 2009-10”).

8b. Rebate for agricultural income: This is the tax only on the agricultural income – that is, tax calculated as if your only income is the agricultural income. Calculate this, and put it in box 8b.

9a. Tax payable on total income: Subtract the amount in box 8b from the amount in the box 8a, and put the result in box 9a.

9b. Surcharge: If your total income (that is, your income after deductions – this is the amount in box 5) is more than Rs. 10 Lakhs for the year, then calculate 10% of the amount in box 9a, and put it in box 9b.

9c. Education Cess: Add the amounts in boxes 9a and 9b, and calculate 3% of this amount. Put it in box 9c.

9d. Total tax: Add the amounts in boxes 9a, 9b and 9c, and put it in the box numbered 9d.

10. Relief u/s 89: This relief in income tax is available when salary is paid in arrears or in advance. Indicate this amount in box 10. (This would not be applicable in most cases)

11. Relief u/s 90 / 91: This is the relief regarding double taxation. (This would not be applicable in most cases. If you feel you need to fill this amount, you should consult a chartered account - CA)

12. Balance tax payable: Subtract the amounts in the 10 and 11 from the amount in box 9d, and put the resultant amount in box 12.

(Continue to Page 2 to see rest of the ITR1 filling instructions...)

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