How to file income tax return online for salaried employees?

If your primary source of income is salary, you need to file an income tax return. In this article, we are going to tell you how to file your Income tax return online. 

If you are a salaried employee, then salary is the primary source of your income. You may have an interest income from the bank. In such a case, you need to file an ITR-1 form on the income tax website

Now the question arises. How to file income tax return online for salaried employees? 

Who can file ITR-1?

ITR-1 is filed by the taxpayers whose income is up to Rs 50 lakhs from the below-mentioned sources:

  • if the taxpayer having Income is from one house property (the case where carry forward of losses of previous years, are not included in this ITR)
  • if the taxpayer having Income from pension or salary
  • if the taxpayer having Income from other sources
  • if the taxpayer having an agricultural income of up to 5 thousand.

Who cannot file ITR-1?

  • The taxpayer whose income is more than Rs 50 lakhs is not eligible to furnish this form.
  • Non-residents and RNOR (Residents not ordinarily resident) cannot file ITR 1.
  • Taxpayers who have two or more house properties are not eligible.
  • Assessees having income under business or profession head are not eligible.
  • Taxpayers who have long or short-term capital gains
  • A taxpayer who is a director in a company.
  • The taxpayer has investments in unlisted equity shares.
  • Taxpayers whose income from agriculture means is more than Rs. 5,000
  • The taxpayer who claims relief for foreign taxes paid or claim double taxation relief, as mentioned in section 90/90A/91.
  • The taxpayer cannot file ITR 1 if the residents have any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.

“Now the ITR-1 can only be used by the Individuals who are the Ordinary Resident, and their total income is not more than Rs.50 lakhs. The income source should be Salaries, pension, One House Property, Other Sources (Interest, etc.), and Agricultural Income up to Rs.5 thousand.” 

Steps to follow for Filing of ITR -1.

Now we will look at the steps to follow for e-Filing of returns if you are a salaried employee.

Step 1: Log in to the e-Filing website with a User ID, password, Date of Birth/Date of incorporation, and captcha.

Step 2: Go to ‘e-File’ and click on ‘Prepare and submit ITR online.’

Step 3: Select the Income Tax return Form (ITR-1) and assessment year.

Step 4: Fill in the details and click the ‘Submit’ button.

Step 5: On successful submission for form, the system will generate ITR-V. Click on the link to download the ITR-V. ITR-V will also send to the registered email. 

Step 6: Verification Process – After the successful submission of ITR, you need to verify your ITR using your Aadhar OTP, Internet banking Demat Account, or sending the signed generated acknowledgment (ITR-V) to CPC within 120 days from the date of submission of ITR. The return will process only after the verification. The process of filing your returns online is now complete.

Significant Changes in ITR 1 Form for AY 2020-21

The income tax department has made several changes in the ITR form FY 2019-20 and declared the ITR forms 1 to 7 for the financial year 2019-20. The individual must fill the ITR for the income earned in the financial year 2019-20 (amid April 1, 2019, and March 31, 2020).

  • New information about “Schedule DI” for furnishing the data of investments executed through the extended period
    • President of India has announced on March 31, 2020, that has increased the limit till July 31, 2021, for doing the investments, payments, and FD’s in FY 2019-20 for declaring subtraction under Chapter VI-A, section 10AA and sections 54 to 54GB in the ITR 1
  • ITR filing under the Seventh proviso to section 139(1)
    • The Finance executed the seventh proviso to section 139 (No. 2) Act, 2019 to make people aware who enters into high-value transactions and post the ITR 1
  • The type of employment is to be grown.
    • The taxpayer requires the individual to furnish the employment type as needed in ITR-1 and, till the previous year, listed only the following.
      • Government
      • Public sector undertaking
      • Pensioners
      • Others
    • THE latest ITR-1 form elongate the set of employers. There are six types present for the selection of employment type:
      • Central Government
      • State Government
      • Public sector undertaking
      • Pensioners
      • Others
      • Not Applicable
  • Need for unique document identification if the return is filed with a reply to the announcement.
    • The Document Identification Number (DIN) given to authorities to quote the same is made essential by CBDT. The DIN mechanism is created to maintain the audit of the communication for the department within the assessee.
  • Under Chapter VI-A, the resulting alterations in the Schedule of deductions.
    • Under section 80EEA and Section 80EEB initiated by the Finance (No.2) ACT 2019, for providing deduction concerning interest on housing loan and loan on electric vehicles.
  • A taxpayer can Select Various Bank Accounts for Compensation.
    • During the filing of ITR, the taxpayer is obliged to furnish all the bank accounts present in India in the previous year. From the displayed accounts, the taxpayer is needed to display at least one account where he seeks to pay the refund.

Pre-filled details

A lot of information that you are required to fill in the ITR-1 form will be pre-filled. Details about your profile, salary, TDS, etc. will be auto-populated in the ITR-1 form. But you still need to verify all those pre-filled details in the ITR form on your own.

From this year, you must provide a more detailed break-up of your salary along with the below-given details. 

1. Have you deposited the amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current account during the previous year?               

2. Have you incurred expenditure of an amount or aggregate of the amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or any other person?

3. Have you incurred expenditure of amount or aggregate of the amount exceeding Rs. 1 lakh on the consumption of electricity during the previous year?                 

4. You also need to mention details of perquisites and allowances exempt under Section 10.

You are also required to fill in details on income or RentRent from house property and income from other sources like interest on a savings account, bank deposits, etc.

Components of ITR-1

1. Salary/Pension components

You also need to disclose other components of your package, including standard deduction, which reduces your taxable income, thereby reducing your tax liability.

Salaried employees also have to report the value of perquisites, profit instead of salary, exempt allowances, and deductions for entertainment allowance and professional tax.

2. House Property

In this field, you need to fill in the details of RentRent received if your property is on RentRent or you own more than two residential houses. The details of interest payable on loan taken of Construction of the house claimed as deduction from the income from house property. 

Note: From the FY 2019-20, you can consider two properties as self-occupied.

3. Income from other sources

You will have to provide detailed information of all sources if you have earned interest income, categorized under the income-tax head “other sources.”

These could be a bank savings account, fixed deposits and income-tax refund, pass-through income, or others.

4. Residential status

If you frequently travel out of the country, you may need to provide more details, such as the number of days spent in and outside India. An individual is considered a tax resident if they are present in India for at least 182 days or more in an FY, 60 days or more in an FY, and 365 days or more during the preceding four FYs.

5. Deductions under Chapter – VIA

  • Here is the list of some Deductions 
  • 80C – Life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.
  • 80CCC – Payment for Pension Fund                                    
  • 80CCD(1) – Contribution to pension scheme of Central Government
  • 80CCD(1B) – Contribution to pension scheme of Central Government
  • 80CCD(2) – Contribution to pension scheme of Central Government by employer
  • 80D-Deduction in respect of Health Insurance premia. (Please fill 80D Schedule. This field is auto-populated from schedule 80D.) 
  • 80DD – Maintenance including medical treatment of a dependent who is a person with a disability
  • 80DDB – Medical treatment of specified disease                           
  • 80E – Interest on loan taken for higher education                           
  • 80EE – Interest on loan taken for residential house property 
  • 80EEA-Deduction in respect of interest on loan taken for certain house property
  • 80EEB-Deduction in respect of the purchase of an electric vehicle 
  • 80G – Donations to certain funds, charitable institutions, etc. (Please fill 80G Schedule. This field is auto-populated from schedule 80G.)                                                                             
  • 80GG – Rent paid                                                                            
  • 80GGA – Certain donations for scientific research or rural development (Please fill 80GGA Schedule. This field is auto-populated from schedule 80GGA.)                                                   
  • 80GGC – Donation to Political party                                              
  • 80TTA – Interest on saving bank accounts in case of other than Resident senior citizens
  • 80TTB- Interest on deposits in case of Resident senior citizens    
  • 80U – In the case of a person with a disability                                        

 6. Contact details

If you are supposed to file your returns in the ITR-1 form, remember it is mandatory to mention your address and mobile number in India.

7.  TDS/TCS – 

Usually, this field is auto-populated; you can still verify the TDS or TCS details from your Form 26AS. If you have made any self-assessed tax payment before filing the ITR, you must manually enter the details of the tax paid in the given field before submitting the ITR-1. 

 

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