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How to fill Income Tax Return Form 1 (ITR1) - Instructions and Video Tutorial
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:
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You have read Income Tax (IT) Return Filing Which ITR form to use, and now you know that ITR1 is the right form for you. (If you are not sure which income tax return from to use, please read this article)
You have also downloaded the form from Income Tax (IT) Return Filing Which ITR form to use. |
Its time to fill it now! So lets 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 years 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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Note: Please treat the opinion expressed here as a broad suggestion. Please consult your financial planner / investment advisor before making any investment decision.
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Comments
Add a new CommentFeb 19, 2009
Apr 14, 2009
Thanks for your reply.
I need your assistance. My wife is doing online share trading ICICI Direct is the broker. She is a housewife, I transfer some amount in her ICICI Bank account and she uses that amount for buying and selling shares.
Sir, If you don't mind can I ask two questions.
My first question is : Do housewives have to file Income tax return forms, if yes. Then what amount should be shown in salary box/column.
Second question. I downloaded the ITR2 form from
http://www.incometaxindia.gov.in/download_all.asp but the excel work sheet formulas doesn't seem to work properly. Whereas, I found a very helpful ITR2 from from www.gconnect.in which is attached for your
reference. Can I use this from.
Thanks and regards.
G.M. Peerzade
Any person whose income is above the threshold of paying income tax as per the tax slabs has to pay income tax - irrespective of the person's occupation.
(Check out the current income tax slabs at "Income Tax (IT) Slabs / Brackets and rates FY 2008-09 AY 2009-10")
Thus, for this year, she would have to file income tax return if her income (from any source) is over Rs. 1,80,000.
Since she is not employed and doesn't earn any salary, the salary amount would be 0. Her income from share trading would be either short term or long term capital gain. Please check "Long Term and Short Term Capital Gain - Income Tax Calculation" for more information on this.
Important note: Since you provide her the money to invest in shares, any earning would be treated as your earnings, not hers. That is, her income would be CLUBBED with your income, and you would need to pay income tax on it.
The analysis of the form would be quite time consuming - I would try to do it whenever I get some spare time (no promises though!)
Apr 14, 2009
Yes, a furnishing and maintenance allowance would be taxable.
Jun 13, 2009
After Deducting H.r.a, COnveynace, Professional Tax,
that amount will treat as Income Chargeable Under Head.
I think this is correct or wrong plz clarify me.
Thank U
Jun 14, 2009
Jun 16, 2009
I have an House Building Loan from HDFC. I re-paid Rs.30,000/- as Interset and Rs.42,000/-as principal for F-Y 2008-09. Under which section and how i can get benifit in I-Tax.
Please advice.
Thanking you,
Shyamal Dutta
17-6-09
The % exemption would be mentioned on the receipt. If not, you can clarify from their office.
In all probability, it would be 50%.
So, you can claim 50% of the donated amount as exempt for the year in which the donation was made.
You would be tax benefit under sections 80C and 24.
Please read "Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage" for all the details on this.
Jun 25, 2009
Could you please clarify whether it realtes to ONLY CASH deposit OR deposits thru chequestoo?
Thank you.
In my opinion, this applies only to cash deposits and not deposits by cheque.
Jul 02, 2009
Thanks.C.RAMA RAO.
Jul 02, 2009
Does this amount gets clubbed with my income under any relevant act /rule of Income tax Act /Rules? If yes, then which ITR I need to fill to show this amount? So far I have been filing ITR 1 only.
Unfortunately, yes, this income would be clubbed with your income.
(However, please remember that any income earned on this Rs. 24,000 - eg interest earned on it - would not be clubbed with your income in the coming years)
And since you have to club this income with yours, you would not be able to file ITR1. You would need to file ITR2.
In ITR2, please add this income to the relevant field, and also mention this in Schedule SPI.


















