Now, that the deadline for filing of Income Tax return by salaried employees is not far off i.e July 31, 2017, those salaried individuals earning an annual income of less than Rs. 50 lakh can file their return using the simplified one page ITR1 Sahaj Form.
This form however cannot be used in a case when the assesse who is a salaried employee also has income from more than one house property, income from agriculture over Rs. 5000, foreign income or assets, business income or income by way of gambling or winning from lottery or capital gains income.
ITR 1 Sahaj includes the following; Part A- General information, Part-B-gross total income, Part C-deductions and taxable income, Part D- tax payable computation, Part E-Other information, Schedule IT- details of self-assessment and advance tax payments and lastly Schedule TDS- detail of TDS or TCS.
For your ease, here is provided step-by-step instructions to do the reporting and complete the ITR filing process.
Part A-General information
In this section, you are required to fill in all general details that include your name, PAN, communication address, e-mail address for faster communication with the tax department. From July 1, mandatory quoting of Aadhaar is also made and for it a 28-digit column is there. In case you have the Aadhaar then you need to provide the 12-digit aadhaar else the 28-digit enrolment number if you have applied for the same.
Part B- Gross total income
To arrive at the gross total income, 3 columns with income from salary, income from house property and income from other sources are required to be filled. For filling income from salary, you can take the help of Form 16 issued by your employer.
For income from house property, only one property can be taken into consideration. And in case where the assesse earns income from more than one house property, the ITR 1 Sahaj form cannot be used. In case of loss due to home loan, the figure can be specified with a negative sign. Income for other sources such as interest income etc from investments made are also to be reported. In case of loss arising due to other sources, Form 2 has to be used.
Part C- Deductions and Total taxable income
This part in the form includes all the allowable deductions and has 5 columns, for deductions u/s 80 C that cover investment towards insurance, PF, tuition fees, NSC etc. to the maximum of Rs. 1.5 lakhs. Other deductions are allowed under section 80D- health insurance premium for self, spouse, dependent parents or children to a maximum of Rs. 60000. Another column provides for deductions in respect of any donations paid to charitable institutions etc u/s 80G. 80TTA provides deduction for interest earned on savings account to a maximum of Rs. 10000. For other allowable deductions, a column is provided and against it you can specify the amount mentioning the applicable section.
Part D- Computation of tax payable
Depending on the total salary arrived at after providing for all of the deductions and claiming all rebates and relief, you can compute the total tax amount payable. In case you total income does not exceeds Rs. 5 lakh, you can claim rebate as per section 87A to the maximum of Rs. 5000 and claim can be also be made in respect of any arrears or advances that are received during the financial year. Exempt income including agriculture income, LTCG and dividend income are also to be notified.
Part E- Other Information
All bank account details that are held by the assesse are to be provided. You are also required to give in the details of the account in which you would like your refund amount to be credited. As an additional requirement, after demonetization, assesse is also required to furnish the amount that is deposited in either of the account between November 9, 2016 and December 12, 2016. It is to be noted however that such details are to be provided only when the aggregate cash amount during the period is equal to or over Rs. 2 lakh.
Schedule IT and Schedule TDS
You have to give in the details of all the tax payments including advance and self-assessment tax paid by you including their details such as the date of payment, challan serial number, tax amount paid and BSR code. Taking into consideration, form 16 issued by the employer, you need to give in the complete details of each of the TDS or TCS transaction on your income. For TCS, form 27D issued by the tax collector can be used to provide in the complete details.