How to file ITR online if you are a salaried employee

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Updated: Jun 23, 2020 20:58 IST

If your primary source of income is salary, you need to file an income tax return or ITR-1 form, which is also known as SAHAJ, for the assessment year 2019-20 for income earned during financial year 2018-19.

Eligibility to file ITR-1 form

All resident individuals whose primary source of income is salary are supposed to file ITR-1 form. This form is also meant to be used for those who have earned money through pension, one house property or income from other sources such as lottery and horse race during the financial year.

The total income during the assessment year 2019-20, however, should not be more than Rs 50 lakh.

However, if you are the director of a company, have held unlisted shares during the previous year, or have income/asset outside India, ITR-1 form is not for you.

“Now this form (ITR1) cannot be used by a resident individual who is either a director in a company or having investments in unlisted equity shares of a company even if she has income below Rs 50 lakh. This is because the CBDT (Central Board of Direct Taxes) requires additional details,” said Gopal Bohra, partner, NA Shah Associates LLP.

How to fill ITR-1 form

Go to the income tax department’s ITR filing website and log in with user ID and password.

Go to “E-File” and select the ITR form and assessment year.

Fill in the details of the income from Form 16 like salary break-up details, tax payments, deductions, etc.

Re-check all the details and upload the form.

You need to verify it as filing the ITR is not enough. Else, your return will not get processed. You can do the verification either offline or online. There are online options like e-verifying return through net banking and generating a one-time password through Aadhaar.

Watch | Common mistakes to avoid while filing ITR

Pre-filled details

A lot of information that you are required to fill in 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 have to provide a more detailed break-up of your salary. You need to mention details of perquisites and allowances exempt under Section 10.

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

Salary 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 in lieu of salary, exempt allowances and also deductions for entertainment allowance and professional tax.

House income

From this fiscal year, you can consider two properties as self-occupied. Until now, if you had more than one self-occupied house, you could only consider one as self-occupied, while all others were considered as “deemed to be let out” and you needed to pay tax on the potential rent of such property.

There is an option to select “deemed let out”.

Capital gains

Income-tax rules say that a property buyer has to deduct TDS at the rate of 1% if the value of the property exceeds Rs 50 lakh. An amendment has been made in the ITR form to disclose such information by the seller.

If tax is deducted or PAN is quoted by the buyer in documents, disclosure of the buyer’s information is mandatory. These disclosures include the name and PAN of the buyer, the percentage share, the amount and the property address.

Other income sources

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

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

Residential status

If you travel out of the country frequently, 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, or 60 days or more in an FY and 365 days or more during the preceding four FYs.

Foreign assets

You need to give details of your foreign depository accounts apart from foreign bank accounts. Details of foreign custodial accounts, foreign equity and debt held and foreign cash value insurance contract details also have to be reported separately in the tax return forms.

Fill all the details required as non-disclosure or inadequate disclosure of such information can land you in trouble.

Other changes

You will have to disclose donations made in cash and other modes separately if you have made any donation to charitable institutions. Senior citizens with interest income and claiming deduction under Section 80TTB have to report it in the space provided.

Those with agriculture income above Rs 5 lakh need to mention details such as district name with PIN code, measurement of the land, whether the land is owned or leased and whether it is irrigated or rain-fed, etc.

Contact details

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