Way to Financial Freedom

This blog will help you to file own IT Returns online with ITR-1 form for Assessment Year 2021-22 (Financial Year 2020-21) with new IT Returns site 2.0.

Last Date: 31 December 2021. Advised to file income tax by October to get ITR processed quickly.

ITR-1 form is applicable if you have income from following sources:

Salary
One House property rent / loan
Other Sources (Interest on saving bank account / FD etc)
Agriculture income less than Rs 5000
Total Income less than 50 Lac

Prerequisites for e-filing, (Keep below documents ready before you file returns)

Form 16 from employer
Form 26AS
Interest from saving bank account / FD
Dividend Income
Tax free income like interest from PPF
All bank account numbers
Any investment that is not declared with company or not reflected in Form 16

Follow below steps to e-file your IT Returns (click on pictures to enlarge)

Step 1- Login to new site https://www.incometax.gov.in/

User ID is your PAN

On Dashboard, verify and update contact details and bank details

Secure account is optional

View and Download Form26AS

Step 2- Start New Filing from Dashboard

follow images sequence, all are self explanatory

Step 3- Fill Personal Information

Select Others for Private Job

Select Tax Regime Old or New

Select any Validated bank account for refund

Confirm Personal Information

Step 4- Fill Gross Total Income

Refer Form 16 to answer below questions

Income from Salary should be auto populated from Form 16

If Income from house property is not auto populated, fill it from Form 16

Enter Interest component of home loan from Form 16 (max limit 2 lac for self occupied)

Enter interest from bank saving account and FD

Declare exempt income

Confirm Gross Total Income

Step 5- Fill Total Deductions

80C Deduction

Mediclaim 80D

Deduction for Saving bank account interest 80TTA (max 10000, this will NOT be available in Form 16)

Enter complete Mediclaim details from Form 16

Claim for Self and family

Claim for Parents if you are paying premium for Parents

Confirm Total Deductions

Step 6- Verify Tax Paid from From 26AS

Confirm Tax Paid

Step 7- Verify Total Tax Liability

Make sure total tax payable is 0 before submit, if tax is payable, then recheck all sections again. Still if tax payable exists, then make additional tax payment online from same portal to make tax payable 0.

Confirm Tax Liability

Step 8- Preview and Validate Returns

Select Self and verify PAN

Check for validation errors

Step 9- eVerify and Submit Returns

Select Aadhar OTP if your mobile is linked to Aadhar, else use Net Banking option

Enter OTP and Submit Returns

Congrats !! You are DONE. No need to send ITR signed copy.

Step 10- Track return processing status on Dashbaord

Hope this post makes e-Filing 2.0 easy. Please share this blog link to your contacts and post your comments to improve this blog. You can also reach me at mihir.sdoshi@gmail.com.

Thanks

Mihir

This blog will help you to file own IT returns online with ITR-1 form for Assessment Year 2020-21 (Financial Year 2019-20).

Last Date: 30 November 2020. Advised to file income tax by September to get ITR processed quickly.

ITR-1 form is applicable if you have income from following sources:

Salary
One House property rent / loan
Other Sources (Interest on saving bank account / FD etc)
Agriculture income less than Rs 5000
Income less than 50 Lac

Prerequisites for e-filing

Form 16
Form 26AS (refer Step 4 below)
Interest from saving bank account / FD
Any investment that is not declared with company or not reflected in Form 16

Follow below steps to e-file your IT Returns (click on pictures to enlarge)

Step 1 – Get Form 16 from your employer

Step 2 – Register yourself at site https://www.incometaxindiaefiling.gov.in/home

Step 3 – Login on site

User ID is your PAN

Step 4 – Download From 26AS
Follow link My Account --> View Form 26AS (Tax Credit), you will be redirected to TRACES site. Download form 26AS for current Assessment year.

Step 5 – e-File ITR-1
Follow link e-File --> Income Tax Return.
Select current Assessment Year and ITR form as ITR-1 and Submission mode as Prepare and Submit Online.

Select active back accounts from last year submission.

Step 6 – Fill Part A General Information
Personal information will be pre-filled. Validate and modify information.
Nature of employment: Others (for Private sector)
Filed u/s: 139(1)-On or before due date (if you file before last date)

Are you filing return of income under seventh provision to section 139(1): No

Step 7 – Fill Schedule 80D

Take 80D details from Form 16,

Seperate medical premium amount for self / your family and your parents and enter. (look at your salary slip to get exact distribution of premium between self family and parents)

Step 8 – Computation of Income Tax
Add Salary/ Pension Details from Form 16
Professional tax: 2500

Type of House Property: Select 'Self Occupied' for property if you are residing. Select 'Let Out' for rented property and provide rent details.
Interest payable on borrowed capital: Enter from Form 16. Applicable for home loan interest. (max limit 2,00,000 for 'Self Occupied' property)
Income from Other Sources: Not available on Form 16
Enter interest earned from all saving bank accounts + interest from all FDs

Deductions

If you have invested after 1 April 2020 to 31 July 2020 select YES or select NO

80C: Investments - enter from Form 16 section 80C (max limit 1,50,000)
In case investments are not declared with employer, enter actual amount invested.

80D: Health Insurance Premium - This will be auto calculated from 80D Tab

80G: Charity Donations - Auto calculated from Donations-80G tab
80TTA: enter interest earned from all saving bank accounts (excluding interest on FD. Max limit 10,000)
80TTB: For senior citizons only - enter interest earned from all saving bank accounts (Max limit 50,000)

Exempt Income For reporting Purpose: Enter tax exempted income like Dividends form shares, PPF Interest etc.

Computation of Tax Payable will happen automatically. Do not change anything here.

Step 9 – Verify Tax Details
Details of Tax deducted at source from Salary will be auto populated. Tax deducted must match with Form 26AS. If not matching them enter details from Form 26AS.

Step 10 – Verify Taxes Paid
Make sure Amount Payable is 0.
You can have Refund in case extra tax is deducted by employer

In case Total Amount Payable is more than 0, then cross verify all amounts entered from Form 16.
If everything is correct, pay remaining taxes by 'e-Pay Tax' action front of Amount Payable OR e-Pay Tax link on http://www.incometaxindiaefiling.gov.in/home. You will be redirected to NSDL website.

Select Challan No. 280 to make tax payment. After making payment BSR code and Challan number will be generated. Enter these details in Taxes Details tab Advance Tax and Self Assessment Tax section. Total Payable amount will become 0 now.

Step 11 – Verify all Bank account details

Select at least 1 account for refund

Step 12 – Verification and Preview
Make sure Total Tax Payable is 0 before you Submit.
Verify name / PAN Number. My Capacity as 'Self' for IT return.
Enter Place details
Select I would like to e-Verify option and Preview & Submit.

Step 13 – eVerify and Submit
Preview all details and Submit.
OTP will be sent on mobile linked to Aadhaar number. Enter OTP and Submit.
If you have selected EVC option. Enter EVC generated from Bank ATM or verify from online banking.

Step 14 – Acknowledgement

You are Done! You will get Return successfully eVerified screen. No further action required.

You will get acknowledgement email with attachment.

Password: Enter your PAN (in small letters) and Date of Birth or Incorporation (in ddmmyyyy format)

Do NOT send this Acknowledgement to CPC Bengaluru.

Please post your comments to improve this blog. You can also reach me at mihir.sdoshi@gmail.com.

Learn more on investing at Finology.

Thanks,
Mihir