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How to fill Income Tax Return Form 1 (ITR1) – Instructions and Video Tutorial

Step by step instructions, and a demo video tutorial, that guides you about filling the Income Tax Return Form 1 – ITR1 before filing it. It’s really simple – read on, or watch the demonstration video.

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:



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”.

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…)

Other articles you might be interested in:

How to fill Income Tax Return Form 1 (ITR1) – Part 1:

How to fill Income Tax Return Form 1 (ITR1) – Part 2:



Interest Payable

13a. Interest u/s 234A: This is the interest payable if you are filing your return after the due date. It is calculated at 1.5% of the tax payable for every month (or partial month) of delay.

If you need to pay an interest for this reason, indicate the relevant amount in box 13a.

13b. Interest u/s 234B: This is the interest payable if you have not paid 90% or more of the expected advance tax amount by 31st March of the year. It is calculated at 1.5% of the advance tax shortfall for every month (or partial month) of delay.

If you need to pay an interest for this reason, indicate the relevant amount in box 13b.

13c. Interest u/s 234C: This is the interest payable if you have not paid the expected advance tax amount by the required date (Sep 15, Dec 15 and Mar 15). It is calculated at 1.5% of the advance tax shortfall for every month (or partial month) of delay.

If you need to pay an interest for this reason, indicate the relevant amount in box 13c.

13d. Total interest: Add amounts from boxes 13a, 13b and 13c, and put it in box 13d.

14. Total tax and interest: Add the amounts from box 12 and box 13d, and put it in box 14. This is your total income tax liability for the year, and is the amount payable by you to the department of income tax.


Taxes Paid

15a. Advance Tax: If you have paid any advance tax, put the amount in box 15a.

15b. Tax Deducted at Source (TDS): Add up the TDS for all your income (that is, from one or more form 16 and form 16A), and put it in box 15b.

15c. Self Assessment tax: When you anticipate that the tax deducted at source (TDS) and advance tax paid by you is not sufficient to meet your income tax liability, you pay the anticipated difference as self assessment tax at the end of the financial year.

(Want to know what terms like financial year, assessment year and previous year mean? Please read “Income Tax (IT) Jargon – Financial Year (FY), Assessment Year (AY) and Previous Year (PY)”)

If you have paid any self assessment tax, put it in box 15c.

15d. Total taxes paid: Add up the amounts from boxes 15a, 15b and 15c, and put it in box 15d.

16. Tax payable: If the amount in box 14 is greater than the amount in box 15d (that is, if tax payable is more than the tax you have already paid), subtract the amount in box 15d from the amount in box 14.

This is the amount that you need to pay now. Put this in box 16.

Refund

Feel happy if you have to claim a refund! This means that you don’t have to pay any more income tax, and in fact, you would get some of the money back!

17. Refund: If the amount in box 14 is less than the amount in box 15d (that is, if tax payable is less than the tax you have already paid), subtract the amount in box 14 from the amount in box 15d.

This is the amount of refund that you would receive from the department of income tax. Put this in box 17.

Note: You need to fill items 18 to 20 only if you are claiming a refund. (That is, only if box 17 has been filled)

18. Bank Account Number: Put your bank account number here. It is compulsory if you are claiming a refund.

19. Mode of refund: You can get your refund in two ways – it can be directly deposited in your bank account (faster), or a cheque can be sent to you by post (slower).

Choose the method that you want.

20. Bank account details: If you choose direct deposit in 19, you need to provide the MICR code of your bank branch. You can find this 9 digit code on any of you cheque leaves.

You also need to indicate the type of bank account that you have – savings or current.


Details of Tax Deducted at Source (TDS)

21. TDS on Salary: Here, you give the details of the TDS on your salary. You can get all the details from the form 16 issued by your employer.

If you have more than one form 16, fill up the details in separate rows.

22. TDS on Interest: Here, you give the details of the TDS on the interest earned by you. You can get all the details from the form 16A issued by the TDS deductors (usually banks).

If you have more than one form 16A, fill up the details in separate rows.

Details of Advance Tax and Self Assessment Tax

23. Advance Tax and Self Assessment Tax: Give the details of any advance tax and / or self assessment tax that you may have paid.

You can get these details from the receipts received for these.

Transactions reported through Annual Information Return (AIR)

24. Annual Information Return (AIR): If there are any transactions that need to be reported through the AIR, mention them here.

These include high value transactions, like depositing a total of more than Rs. 10 Lakhs in a savings account in a year, purchase of a house for more then Rs. 30 Lakhs, credit card bills for the year being more then Rs. 2 Lakhs, etc.

25. Tax exempt interest income: If you have any interest income which is exempt from income tax (for example, interest on RBI’s 7% / 8% / 9% relief bonds, interest on gold deposit bonds, etc.), please indicate it here.

This is for information only.


Conclusion

In the end, put you name and your father’s name, place, and date, and sigh the return form!

Please note that even married women have to put their father’s name, and not their husband’s name.

Tax Return Preparer (TRP) Details

26. TRP Details: This is applicable only if the return has been prepared by a tax return preparer.

If you are reading this article, in all likelihood, your return would not be prepared by a TRP!

If it is indeed prepared by a TRP, these details would be filled by him / her.


That’s it! Your ITR1 has been completely filled up.

Although it seems complicated, it’s quite simple, isn’t it?

Happy tax filing!

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