Who can use the ITR-1 form
A Resident and Ordinary Resident (ROR) taxpayer with a total income of up to Rs 50 lakh from salary, house and income from other sources can file an ITR using Form ITR-1.
However, the ITR-1 form cannot be used by a taxpayer who is a director of a company or has invested in unlisted shares or in cases where tax has been withheld at source (TDS) on certain payments in cash or if income tax is deferred on employee stock option plans or has farm income above Rs 5,000.
Choice of tax regime in the ITR 1 form
The new optional tax regime was introduced from fiscal year 2020-21 (AY 2022-23), and a taxpayer at the time of ITR filing must choose whether to opt in to this regime under Section 115BAC of the law if he is a beneficiary vis-à-vis the ordinary tax system. A taxpayer filing Form ITR-1 may change the tax regime from that declared to the employer when withholding tax at source on payment of salary or contemplated for payment of withholding tax in progress. ‘year.
ITR filing method
A taxpayer can submit Form ITR-1 electronically. This can be done through a fully online method or in a partially online and partially offline method. In the latter mode, one needs to upload the pre-populated JSON file and use the JSON utility to fill in the details before uploading it to the income tax e-filing website to complete the filing process.
The ITR-1 form, if filed entirely online, contains certain pre-populated information such as personal data, salary income, dividend income, interest income, etc. However, if you are using a partly online and partly offline method, then an individual taxpayer will be required to download the JSON utility from the new Income Tax Portal. The pre-populated data will need to be imported into the JSON utility.
Step-by-step process for filing Form ITR-1 in full online mode
Go to www. incometax.gov.in and login with your credentials. Your PAN/Aadhaar number is the user ID for login.
1. Go to E-File > Income Tax Returns -> Select “File Income Tax Return” from the menu.
2. Select the assessment year (AY 2022-23), filing method (online), applicable status (e.g. individual) and ITR form (ITR-1) on the homepage and click “Let’s get started”.
3. Select the applicable reason for filing the tax return as shown below and select “Continue”.
4. On the next page, the taxpayer would see 5 tabs under “Let’s validate your pre-populated data”. These 5 tabs are: Personal Information, Total Gross Income, Total Deductions, Tax Paid and Total Tax Payable. You must complete and validate these five tabs.
- Personal information tab: This tab contains the taxpayer’s personal information such as profile (name, address, PAN, Aadhaar number, date of birth), contact details (mobile number, address and email address), nature of employment, deposit section and bank details. Profile details and contact details are retrieved from the taxpayer’s e-filing account. Out of these two coordinates are editable. The taxpayer must select the applicable nature of employment from the drop-down menu.
Next, a taxpayer is required to select the filing section in which the tax return is filed and whether he wishes to opt for the new optional tax regime. At the end, the taxpayer is required to confirm the bank accounts held in India during the 21-22 financial year and select the bank account from which he wishes to receive the refund (in case more than one bank account is flagged ) and click confirm. As the bank details are automatically populated from last year’s return, the taxpayer can check and change them accordingly.
- Total gross income: Usually, several of the fields under this tab will be pre-populated. The tab will show your income from various sources (heads of income) such as income from salary, home ownership, interest, etc.
– Salary Income – This data will be pre-filled from the taxpayer’s Form 16 (if the person is an employee); thus, the taxpayer must check that all the tax exemptions on wage income which are applicable to him have been claimed.
In this tab, the taxpayer is required to select wage exemptions other than those on Form 16 (e.g. housing allowance, leave allowance, etc.). If the pre-filled income is correct, confirm it. If it is wrong, change it and correct the information.
– Income from home ownership – Rental income, interest on the mortgage will be pre-filled on the basis of Form 16 (if declared to the employer). However, it is advisable to validate the pre-filled details before proceeding. In case these are not pre-populated, you will need to fill them out if you have income from home ownership.
– Income from other sources – Here income from other sources should be filled in (checked and corrected if pre-filled). Examples of this type of income include: – interest income from savings and term deposit bank accounts, dividend income (to be reported quarterly), accrued interest on provident fund contributions in the to the extent that they are taxable and any other income.
- Total deductions: Chapter VI-A deductions claimed through the employer (which are already part of your Form 16 as well) would be auto-populated here, such as the Section 80C deduction for the provident fund, ‘life insurance, etc., under Section 80D for premium for medical insurance, etc., Also, if such deduction has not been claimed through the employer, it may be claimed directly in the tax return by providing the required details. These details will be automatically filled in from the Form 16, provided that you have opted for the old tax regime with the employer as well as at the time of filing the ITR. If a deduction is missed on Form 16, you can claim it when filing the ITR.
- Tax paid: The details in this tab would be pre-populated from Form 26AS/AIS with TDS, Tax Advance and Self Assessment Tax (SAT), if applicable, paid by the taxpayer.
- Total fiscal responsibility: This tab displays total income, taxes paid, interest payable, late fees (if applicable) and automatically calculates details of tax payable by or refund due to. Click confirm and proceed to the next page.
5. Return Summary: This is the summary of all tabs and the taxpayer should ensure that all tabs are marked as “Confirmed” and select “Skip” to the Tax Summary tab.
6. Tax summary: In this tab, the taxpayer can view the tax summary (nil payable/refund) of the tax return.
7. Declaration tab: Once all the form details have been entered, the taxpayer is required to fill in the required details in the declaration confirming that all the details provided in the declaration are correct and complete and click on “Preview Declaration”.
8. Preview and submit: Taxpayer can check personal information, income details and taxes paid in the preview version. After verification, he/she must click on “Proceed to validation” if the details entered are correct. In case of errors, the taxpayer must click on “Edit” to make the necessary corrections in the relevant tab/section.
Once the tax return has been filed, an SMS/e-mail confirming the filing is sent by the tax authorities to the taxpayer. Upon successful submission, the Acknowledgment Receipt (ITR-V) is sent to the taxpayer’s registered email address. It can also be retrieved manually from the income tax website.
9. Verification: After successful validation, the taxpayer can proceed to verify the tax return either electronically via net banking, Aadhaar OTP, etc. Bangalore within 120 days of electronic filing of tax return.
Note that the signature must be in blue ink and you can only send the ITRV by express mail or regular mail. The ITRV cannot be sent by post or registered mail.
(The author is Partner and Head, Global Mobility Services – Tax, KPMG in India)