The Indian Income Tax Act, 1961 is a vital piece of general assembly that lays down all the foundations concerning the payment of Income Tax in India. Failure to go with the foundations and rules mentioned in this act will cause hefty penalties being levied on the offender. Therefore, those who have employment and fall in the nonexempt bracket are compelled to guarantee they are paying their taxes on time. ITR-1 filing in Tambaram, Chennai can be catered by our well trained Tax Consultant in Chennai.
While filing your Income Tax returns, selecting the proper form is crucial, if you submit the incorrect form your filing is going to be mirrored below the defective list, which means that re-filing is essential. If you wish to determine the ITR form you wish to file, get in touch with our Tax Consultant in Chennai.
An Overview on ITR-1 filing in Chennai
ITR-1 should be filled out by residents whose total financial gain isn’t more than Rs. 50 lakhs. The source of such financial gain can be from:
- Salary or pension
- One house property or
- Other sources.
Most salaried professionals in India file the ITR-1 return. However, if you have got secured capital gains or own quite one property in India, you may not be eligible to file ITR-1. You are eligible to file ITR-1 as long as the clubbed (if the financial gain of your partner or minor kid is clubbed with yours) financial gain falls below Rs. 50 Lakhs. Care should even be taken to make sure that ITR-1 is filed with no attachments. No document, not even a TDS certificate should be connected to the present form. Further, the assessee should file only one copy of the form. If the form was filed physically, then ITR-V should even be punctually filled, says a Tax Consultant in Chennai.
The form applies to:
1. Those that earn a constant monthly financial gain (salary);
2. Pension holders;
3. Family pension holders;
4. Those that earn interest from savings (the interest attained is taken into account a remuneration and, therefore, ITR-1 applies);
5. Financial gain from one house property, except the losses brought forward from previous years;
6. Financial gain from alternative sources (but excluding earnings from the lottery and alternative game winnings).
Every year, a maturity for filling in ITR-1 is proclaimed by the Income Tax department, and it’s typically July 31.
Who isn’t Eligible to File ITR-1?
The ITR-1 form can not be employed by any individual who is:
- A director in any company or corporation or firm
- Has unlisted equity shares in the previous financial year
- Further, has any quality or monetary interest in any property outside India
- On any account outside India has the authority to sign
- Earns from the other supply outside India.
Additionally, this form can not be filed by someone who features a supply of financial gain enclosed within the below-mentioned list:
- Profits from business and professions
- Capital gains
- Income arising from a second property
- Income from lottery or racehorses
- Additionally, financial gain nonexempt as per rules set down in Section 115BBDA and 115BBE
- Income that falls below Section 5A
- Any financial gain from agricultural activities that exceed ₹5,000.
Further, ITR-1 shall not be filed by people who get to say the subsequent deductions or tax relief:
- Loss below financial gain from house property
- Loss below financial gain from alternative sources
- Relief below Section 90 or Section 91
- Claims created below Section fifty seven, excluding clause (iia)
- TDS credit within the hands of another individual.
Structure of ITR-1
ITR-1 contains the subsequent parts:
General data like PAN, Name, DOB, Contact number, Email Address, etc.
Gross total financial gain details like remuneration, deductions, customary deductions, recreation allowance, financial gain from house property and alternative sources
Deductions like Government pension schemes, insurance, medical treatment, academic loans, donations created to charitable trusts, etc.
Computation of tax owed
Other data like details of the assesses checking account.
How to File ITR-1
You can file ITR-1 either on-line or offline. Here’s a glance at how you will be able to do so:
The IT Department’s web portal has an e-filing option to file ITR-1 filing in Tambaram, Chennai. Once filing the form, verification is also done by:
- Attaching a DSC to the verification form
- The electronic verification code technique
- Sending a signed form ITR-V to the subsequent address at an interval 120 days from filing the return – Post Bag No. 1, Electronic town workplace, Bengaluru— 560500, Karnataka.
For filing ITR-1 offline, the remunerator should submit a hard copy of the form to the acceptable workplace of the IT Dept in conjunction with Form-V as a symbol of acknowledgement. This form of filing is barely allowed for super-senior voters, voters who are over eighty years elderly.
ITR-1 Form: on-line Filing Procedure
Log in to the official portal of the IT Department by entering your credentials
Then click E-File >>Income income tax return
Ensure that your PAN number is auto-populated properly. Next, choose the assessment year and choose the ‘ITR form Name’ as one and click on Continue
The directions tab should be thoroughly read by the assessee before filing the form
The General data tab which incorporates your personal details must be verified
The Computation of Tax tab contains all the main points concerning remuneration financial gain, financial gain from property, interest on financial gain and deductions claimed. The tax owed is auto-calculated by the portal, and also the remunerator should see to it and verify this quantity before continuing more.
Details concerning the property in hand by the remunerator are going to be pre-filled from last year’s forms, however the assessee should pay attention and undergo all the knowledge auto-populated before moving forward.
The Tax details tab contains details concerning TDS, TCS deductions, advance, and self-assessment tax paid by the remunerator. Whereas a serious part of this form is pre-filled from data provided on form 26AS, taxpayers should undergo this page cautiously and see to it all the values.
The Taxes paid tab contains details concerning the tax owed once creating the required deductions as per the main points provided within the TAX Details tab of the form. It additionally takes into consideration all deductions doable below Sections 80G and 80GGA
If tax is found due, then the remunerator should first file a self-assessment tax before continuing. Once doing this, the challan details received when paying the self-assessment tax should be punctually stuffed into the Tax Details tab. Here, taxpayers should additionally offer details of the bank accounts they hold. Details of dormant accounts that haven’t been operational for a amount of quite three years are also omitted. All mentioned such accounts should be joined to the taxpayer’s PAN. it will be checked before filing the form.
The Donations-80G tab includes all details owing to donations created by the remunerator to funds, charities and alternative establishments that represent Section 80G. The remunerator should specify the number paid, whether or not in money or via alternative modes. Those donations created via money that exceed Rs. 2,000 won’t be thought of for deductions
The Donations-80GGA tab includes all details concerning donations created to scientific establishments and analysis centres as listed below Section 80GGA. Such deductions are also claimed by all people aside from those who earn financial gain via business. The remunerator should verify these details further.
Once the submission is complete, you can download a duplicate for preview. If you discover any errors, you can do corrections, by clicking on the Edit button. If everything appears smart, click on Proceed for final submission. You must verify it either through
i) a digital signature certificate,
ii) Aadhaar OTP,
iii) the electronic verification code, after receiving the application, once the above-named steps are completed. You may be prompted to enter the verification mode details at the start. The remunerator can then be notified by a SMS to their registered mobile number, or through an email to their registered email ID.
Salient features of ITR-1
ITR-1 or Sahaj (easy) could be a form that caters to the salaried remunerator. Because the name implies, ITR-1 is the simplest of forms to be stuffed on-line. However, it’s essential to grasp the eligibility criteria for filling the ITR-1 form.
Exceptions to ITR-1
While salaried people are eligible to fill the Sahej form, there are bound exceptions to ITR-1 eligibility.
1. Those with financial gain from quite one house property;
2. Those with winnings from lottery, race horse and alternative gambling;
3. Those with earnings from capital gains, like short capital gains through merchandising of shares that aren’t exempt from tax;
4. Those with agricultural financial gain extraordinary Rs. 5,000;
5. Those earnings earned from a profession or business;
6. Residents who have property outside India and any financial gain from that property or could be a linguistic communication authority for accounts in foreign countries;
7. Losses from alternative resources;
8. Persons claiming double taxation relief below Section 90/90A or ninety one and people who claim relief from tax paid in a very foreign country.
Procedure for Filing ITR-1 in Tambaram, Chennai
The ITR-1 is kind of straightforward and easy. It doesn’t need to be abundant in terms of documentation, since salaried people need not prepare accounts or have their documents audited. The ITR-1 form itself is split into individual columns. It needs you to fill in your personal details, gross financial gain, nonexempt financial gain with deductions, computation of tax and tax standing, and alternative details concerning TDS-1 and TDS-2.
Any individual remunerator desperate to file tax will either:
1. Transfer and taking the output signal to submit the physical form (if financial gain is below Rs. 5 lakhs per annum)
2. Fill out the excel sheet once downloading it, and computing the tax manually
3. Using a JAVA to fill within the form directly
While filling up the ITR form, you must have documents handy, since the Income Tax department demands them for verification and prospering filing of returns.
The documents needed are:
a. A soft-copy (or a hard copy for physical submission) of a Form-16 provided by the leader.
b. Form-26AS downloaded from the location once registration (compute the Form- 16 and Form-26AS to visualize if the deductions match up with every other)
c. Proof of investments below Section 80C and 80D (if any, and if not appointed to the leader at the start of this monetary year)
d. Details of financial gain from interest like bank bankbook or the other relevant documents
Once you’ve got all the essential documents and have filled up the ITR- 1, you’ll be able to submit the IRT-1 (file Income Tax returns) in any of the subsequent ways in which.
If your financial gain falls below the bracket of Rs. 5,00,000 a year, you’ll be able to fill the ITR form in PDF format or simply transfer it and fill it up with relevant details, attach the documents demanded and submit it in person in the nearest Income Tax workplace.
One may also fill in the details directly in the excel sheet, by downloading it and filling within the details or through JAVA utility and submit it electronically, with or without digital signature. Those submitting on-line must, however, take printouts of the submitted ITR-1 with the acknowledgement provided and send it to the Income Tax Department at intervals the required amount of one hundred twenty days. The documents/acknowledgement got to be signed in person before submitting.
As per revised rules underneath section 234F of IT act from 1st April, 2017 notifies that a person is susceptible to pay at most Rs. 10,000 penalty when missing the 31st July deadline of ITR filing. Whereas just in case a personal total financial gain doesn’t exceed five lakhs then a penalty of Rs.1,000 is applicable.
Benefits of filing an ITR – 1
- As an individual, if anyone has invested in fixed deposits, TDS is paid interest financial gain at a rate of 10 percent notwithstanding whether or not the person is responsible or to not pay any tax. One may conjointly get a refund of TDS subtracted by filing a tax return if the financial gain is underneath the subject cap.
- Numerous banks ask for a replica of the applicant’s tax returns for a minimum of 3 years to approve the loan. Filing IT returns is useful if one would love to require a loan in the future.
- Employees earning monthly salaries should submit Form 16 as proof of their financial gain; however entrepreneurs, contractors, and consumer members won’t acquire form 16. ITR receipts so become a good additional relevant record for them, given their yearly earnings meet the minimum Rs 2.50 lakh exemption cap. ITR receipts are the sole proof of financial gain and tax payment to the freelancer for every kind of monetary transaction.
- If you’re moving overseas, foreign embassies can request you to produce ITR receipts from the last number of years. Several consulates could request ITR receipts of 3 previous years and a few could request for the recent certificate additionally.
- If you are looking to start out a company and choose to fill out a government application, you’ll need to submit your past years’ tax returns. It is to point out your monetary position, and whether or not you may afford the payment obligation.
- If somebody has incurred losses in a year, he/she shall carry over that loss for subsequent eight years by filing tax reports and pay off a similar amount from future profits. This can considerably cut back tax burdens in the years to come.
- If any individual who is entitled to file tax returns doesn’t file a return within the due date of the month, they’re susceptible to pay a penalty for the delay.
- Life insurance suppliers are presently posing for ITR receipts once they arrange to acquire a term policy for an insured amount of Rs 50,00,000 lakhs or above.
- If you do not file ITR, the late return may result in monthly magnified interest on the remaining tax you pay.
For Income Tax return in Tambaram contact us