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ITR1 SAHAJ FOR FY 2019-20(AY2020-21)

​BUDGET PROPOSALS FOR FY 2020-21 BY FM Ms NIRMALASITHARAMAN ON 02.02.2020   
TO VIEW/HEAR THE SPEECH  ,​CLICK HERE 

                                                             OUR ARTICLE
                                TAX PLANNING FOR FY 2020-21 
                                    HAS ALREADY  BECOME POPULAR 
​                                           HAVE YOU READ ? 

Do you know ?  There are  11 Tax rebates   you can claim while submitting IT Returns , when when you have   not  even made any fresh investments   . 
​
 DO YOU KNOW ? :  Senior citizens can  claim  Tax Rebate    under section 80D  even without   having paid health insurance premium . 

For details of  such rebates  , CLICK HERE 

WHO HAS TO FILE IT RETURNS ?

Every individual or Hindu Undivided Family ( HUF )  is obliged to submit Income Tax returns if they meet following criterion  . 

1. Income exceeding Rs 2,50,000 in case of individuals below 60 years 
2. Income exceeding Rs 3,00,000 in case of individuals  above 60 years and below 80 years 
3. Income exceeding Rs 5,00,000 in case of individuals above 80 years  

Note : Income means  total income in the financial year 2019-20 before allowing deductions under chapter VI -A of Income tax act .   

Further you have to  submit your IT Return   if you   have 

1. expended more than Rs. 2 lakh on foreign travel or
2. paid more than Rs. 1 lakh on electricity consumption in a year 
3. deposited more than Rs. 1 crore  in a current account in a year,  
even if your  income is less than the threshold limit  .   

WHO CAN FILE ITR1 FOR AY 2020-21 ?

  ITR1  SAHAJ Form  is to be used by an individual
a. who is a resident other than not ordinarily resident,
b. whose total income for the Assessment Year 2020-21 does not exceed Rs. 50 lakh and
c. who has income under the following heads:-
(a) Income from Salary/ Pension; or
(b) Income from One House Property; or
(c) Interest income and/ or family pension taxable under Other Sources.

​NOTE: Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories. 

WHO IS NOT ELIGIBLE TO SUBMIT ITR1 ?

A. This Return Form should not be used by an individual who –
(a) is a Director in a company;
(b) has held any unlisted equity shares at any time during the previous year;
(c) has any asset (including financial interest in any entity) located outside India;
(d) has signing authority in any account located outside India; or
(e) has income from any source outside India.

B. This return form also cannot be used by an individual who has any income of the following nature during the previous year:-
(a) Profits and gains from business and professions;
(b) Capital gains;
(c) Income from more than one house property;
(d) Income under the head other sources which is of following nature:-
(i) winnings from lottery;
(ii) activity of owning and maintaining race horses;
(iii) income taxable at special rates under section 115BBDA or section 115BBE;

(e) Income to be apportioned in accordance with provisions of section 5A; or
(f) Agricultural income in excess of ₹5,000.

C. Further, this return form also cannot be used by an individual who has any claims of  loss/deductions/relief/tax credit etc. of the following nature:-
(a) any brought forward loss or loss to be carried forward under the head ‘Income from house property’;
(b) loss under the head ‘Income from other sources’;
(c) any claim of relief under section 90 and/or section 91;
(d) any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or
​(e) any claim of credit of tax deducted at source in the hands of any other person.  

 If you are not eligible to file ITR1  , CLICK HERE to find  which ITR FORM YOU CAN SUBMIT 

FREE PORTALS FOR FILING IT RETURNS

 There are   various   portals  services of which you can use and file  IT Returns without paying any fees  .
1.  https://portal.incometaxindiaefiling.gov.in/   :   ​The first and foremost   website of  income tax department of government of India  . The website is authentic  , official  and absolutely free  of charge     . We have  below  explained how to  submit IT Retirns ITR1, ITR2, ITR3  & ITR4  on-line .  Website also   supplies pre-filled forms  which can be used for  filing the returns 
2.  https://cleartax.in/   : The website  facilitates    submission of ITRs  without  any charges   for its basic usage .  Here  you can upload Form 16 and Form 26AS  and submit ITR1 only . The website   has both  free and paid services  and you may have to use their paid services if you have    other sources of Income other than salary or pension 
​3.  https://www.taxsmile.com/  :     Basic submission  / DIY  is free and assisted services are available on payment of a fee  . Fee starts with Rs 499 + tax  . 

4. https://myitreturn.com/  :  The   assisted services  for  Income tax return filing starts   with of fee rs 175 + tax onward .    The portal also has mobile app which can be downloaded free  and used for  submitting IT Returns . 

5. https://eztax.in/   :     Self service   on the website is free  and assisted services start from Rs  599 + tax 

6 . https://www.taxspanner.com/   :   The fee starts from Rs 99 onward . 

7. https://tax2win.in/   :  Self  filing on the website is free and assisted filing starts with  a  price of Rs 549 + tax 
​
We have not independently verified     the quality ,   efficiency  and data security of such   private websites  . 
​

 VARIOUS   MODES OF SUBMISSION OF IT RETURNS 
​
Tax payers can also utilise the service of  Tax Return  Preparers ( TRPS )  authorised by Income  Tax Department ., if they are  not confident of using the on -line services themselves .TRPS  are trained to help Income Tax payers and certified by the department. The service is available now at around 400 cities across India. .Home visit request  can also be made to get the preparation done at home .To locate the nearest TRP  ,one can call  Toll free Telephone number  1800-10-23738 between Monday to Saturday from 9.00 am to 6.00 pm . Details of the scheme including the nearest TRP can be got on their website   www.trpscheme.com 

TRPs will receive 3 % of the tax paid on the returns prepared & filed for every assessee in the first year  ( subject to a maximum of Rs 1,000 ) , 2 % in the second year and 1 % in the third year and Rs 250 for the returns prepared & filed for the old assessees . 

DOCUMENTS REQUIRED TO FILE ITR1 SAHAJ FOR SALARIED PERSONS / PENSIONERS

NECESSARY DOCUMENTS TO BE OBTAINED BEFORE FILING IT RETURNS 

Due  Date for filing IT Returns for individuals for FY 2019-20 is   now extended  up to 31st , December  2020 .
a. You require following documents before  starting to fill up IT Returns  . As some time is required to collect from the relevant issuers  ,  you may contact them  at the earliest  if you have not obtained so far . If you don't have AADHAR , APPLY NOW AND OBTAIN ENROLLMENT ID OF AADHAR APPLICATION 

1. Your AADHAR NUMBER / CARD 
2.Salary certificate / Form 16 issued by employer  in the new format ,
 3.Interest certificates issued  by your banks for the deposits  / education loans and housing loans   etc 
4. Life Insurance premium certificates , health Insurance premium  paid certificates , 
5. Bank account statements  for housing loans and savings bank accounts etc 
6. TDS Certificates  from employers / Deposit holders 
7. Form 26 AS   which shows the tax  amount already credited to your account
8.  Copy of last year return submitted  .
9. . Your bank name , account number  and IFSC code of the bank branch 
11 . Any other relevant documents if you have any other income 

b. Link your Aadhar number to  income tax e-filing website 

C. Verify  Taxes paid  already   in Form 26AS    and confirm that all tax deducted     for you  by  your employer /  bank as given   in   Form 16 or Salary receipt   is credited to your account with income tax department .   You can view   26 AS   ( Tax  Credit )   in the income tax department's website   by logging in  . 

​ ​d.  Tax returns are made simple now . If you are eligible to file IT Returns  ITR 1  (SAHAJ ) , you can now prepare and submit on line itself on the income tax e-filing website  You may yourself file on line or use or utilise the service of  Tax Return  Preparers ( TRPS )  authorised by Income  Tax Department , if you are  not  confident of using the on -line services .   Otherwise you may use your chartered accounts for the job . 

You  should keep following  details handy  for yourself / your employer and your tenant 

Your Details 
1. Aadhara Number 
2. Mobile Number 
3. E-mail address  
4. Residential Address
5. Passport Number  ( If you have passport )     

Other Details : 
A. Have  you deposited more than Rs 1.00 crore in bank accounts  ? 
B. Have you incurred more than  Rs 2.00 lakhs for Foreign Travel ? 
C. Have you spent more than Rs 1.00 lakh on electricity consumption 
(All the limits  of outgo for the entire year ) For persons with salary income  : 

6.  Details of your  Employer   
​ a. TAN Number of the Employer 
b. Name of the Employer 
c. Nature of Employer 
d. Address of the Employer      

7. Details  of  all bank accounts held any time during the year  
a. IFSC Code of the bank 
b.Name of the bank 
c. Account number 

7. If you have let out a property 
a. Address of the property 
b Details of the tenant 
1.  Name of the Tenant 
2. Tenant's Aadhaar Number 
3.  Tenant's PAN  Number     

The benefits of filing  tax returns early is 
1. You will have sufficient time to collect relevant documents ,  prepare , cross check and then submit . You can reduce errors . 
2. As the income tax servers would be relatively free , last minute slowdown of computers   due to heavy rush for submissions . 
3. Processing of your returns by IT department would be faster and you will get refunds faster . 
4. You will   be avoiding penalties , interest etc levied on belated submission .

So take steps now to  have advantages of filing IT Returns early  

HOW TO FILE ITR1 SAHAJ ON INCOME TAX EFILING SITE ?

HOW TO FILE  ON LINE  ON INCOME TAX E-FILING WEBSITE ?   

1. GO  TO INCOME TAX E-FILING WEBSITE   

2.  LOGIN  USING YOUR PAN NUMBER AND PASSWORD  AND ALSO ENTER CAPTCHA 

3. GO TO DASH BOARD  AND CLICK ON " FILING OF  INCOME TAX RETURN '  

4. In the next screen , select assessment year in the dropdown menu 2020- 21

5 . Then select ITR1  if it is   appropriate for you . 

6 . You can submit either by preparing on on-line or upload XML file . Then  enter submission mode  .  Presently only " UPLOAD XML " Option is only available for  ITR2 & ITR 3 . 

You can either    download pre-filled XML  file   from the menu   of your logged in account or prepare  afresh  XML file using    Income tax Return Utilities    . 
After filling all the details , you may upload XML File ​

Now to download  Prefilled XML File 

Go to MY ACCOUNT and click on Download Prefilled XML 

In the new screen , choose the Assessment year as 2020-21    and choose  appropriate form .
 
You will get the pre-filled XML file which you can download . The screen  will also show the details in the  pre-filled forms are collected  from which sources and what are the additional details you have to fill up . 

You can alter the pre-filled forms with correct figures before uploading again 

 For preparing XML FORMS afresh   , Go to  INCOMETAX RETURN UTILITIES   

A. Select the Assessment Year 2020-21 
B.  Download either excel or Java utility. The utility by default will get downloaded in your system 'download' folder in a compressed mode (ZIP file)  
C. Extract (un-compress) the zip file containing the utilities. The folder will be extracted in the same location where the compressed utility was downloaded. Open the utility and start filling. 
D. System Requirements
Excel Utilities:  Macro enabled MS-Office Excel version 2010/2013/2016 on Microsoft Windows 7 / 8 /10 with .Net Framework (3.5 & above)
Java Utilities :  Microsoft Windows 7/8/10, Linux and Mac OS 10.x with JRE (Java Runtime Environment) Version 8 with latest updates.
JRE can be downloaded from https://java.com/en/download/
 
 After downloading and filling the form , you may upload XML File to continue .

  NO ANNEXURE PLEASE  : No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person  filing the return
 

SOME IMPORTANT POINTS TO BE NOTED WHILE FILLING ITR1  

1.  Name  should  be as per PAN card  
​2.  NATURE OF EMPLOYMENT : 
Please tick the applicable check box-
(a) If you are a Central Government Employee, tick 'Central Govt'
(b) If you are a State Government Employee, tick 'State Govt'
(c) If you are an employee of Public Sector Enterprise (whether Central or State Government), tick 'Public
Sector Undertaking'
(d) If you are drawing pension, tick 'Pensioners'
(e) If you are an employee of Private Sector concern, tick 'Others'
(f) If you have income from Family Pension, etc., tick ‘Not applicable’  

SALARY DETAILS : 
List of types of salary payment :-
1. Basic Salary
2. Dearness Allowance (DA)
3. Conveyance Allowance
4. House Rent Allowance (HRA)
5. Leave Travel Allowance (LTA)
6. Children Education Allowance (CEA)
7.
7. Other Allowance
8. The Contribution made by the employer towards pension
scheme as referred under section 80CCD
9. Amount deemed to be income under rule 6 of Part-A of
Fourth Schedule
10. Amount deemed to be income under rule 11(4) of Part-A of
Fourth Schedule
11. Annuity or pension
12. Commuted Pension
13. Gratuity
14. Fees/ commission
15. Advance of salary
16. Leave Encashment
17. Others (please enter the details in the text box) 
​
 In case of doubt in filling any column , you may take the help  of  clarifications given by the IT Department , 
by CLICKING HERE  

HOW TO E-VERIFY YOUR IT RETURN - CLICK HERE 

MATCHING OF FORM 26AS  WITH YOUR IT RETURNS 

15.06.2020 :   It is important to match the information in Form 26AS with  the information  you provide  in  the Income tax returns  as any mismatch may attract lengthy / unwanted correspondence with the income Tax department later . 

In this context , some of our readers  are pointed out the the 26AS  for  FY  2019-20  is not reflecting all the transactions   in their accounts  like salary payment / pensions  / interest payments especially done in the last quarter  of the year  . Hence they are unable to match  the  returns like ITR1   with their 26AS . 

As  the employers / bankers have time to file  the returns to be submitted by them till 30.06.2020  , many would have not  yet filed them .  Hence   26AS may not yet reflect  all  your transactions  at present . So  one may wait till   the employers /  bankers   file  their returns  till 30th, June 2020 , verify and match and then  file their returns .As  Last  date for filing ITR Returns  is 30.11 2020  , you will have plenty of time to file your returns  .

 HOW TO E-PAY INCOME TAX ? 

Procedure for e-payment of Income Tax    : 

Step-1
To pay taxes online, login to NSDL WEBSITE : 

Step-2
Select the relevant challan i.e. ITNS 280  and proceed 

Step-3
Enter PAN / TAN (as applicable) and other mandatory challan details like accounting head under which payment is made, address of the tax payer and the bank through which payment is to be made etc.

Step-4
On submission of data entered, a confirmation screen will be displayed. If PAN / TAN is valid as per the ITD PAN / TAN master, then the full name of the taxpayer as per the master will be displayed on the confirmation screen.

Step-5
On confirmation of the data so entered, the taxpayer will be directed to the net-banking site of the bank.

Step-6
The taxpayer has to login to the net-banking site with the user id / password provided by the bank for net-banking purpose and enter payment details at the bank site.

Step-7
On successful payment a challange counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.

  DUE DATE FOR FILING RETURNS FOR FY 2019-20 ( AY 2020-21 ) IS   EXTENDED  TO                                             31.12.2020   

FOR TAX PLANNING FOR   FY  2018-19   , CLICK HERE 

To know how to  link your Aadhar with PAN ,CLICK HERE 

Submission of IT Return is not complete without verifying the same .For various ways of verification ,CLICK HERE 

INCOME TAX DEPARTMENT WARNS SALARIED PERSONS AGAINST  WRONG DECLARATIONS WHILE FILING OF IT RETURNS   : 

As per amended  section 270A  of Income Tax act , mis-reporting of income may be fined 50 % of tax payable and it can go up to 200%  if it is judged as concealment of income .   

For 270A  section of IT Act , CLICK HERE   and fill 270A  in section column 

 

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FOR READING ARTICLE  TAX ON RETIREMENT BENEFITS , CLICK HERE 

PRECAUTIONS TO BE TAKEN WHILE INVESTING STOCK MARKETS , CLICK HERE 

FINANCIAL PLANNING FOR YOUNG  , CLICK HERE ​ HOW TO LINK AADHAR WITH PAN ?  CLICK HERE 

IMPORTANCE OF FILING RETURNS  WITHIN DUE  DATE 

The Due date for submission of above returns  fixed  for the  Financial Year 2019-20  is now  31.12.2020 . However ,it is advisable to file as early as possible to avoid last moment scramble to get  relevant  papers / details  for filing the same .  
Delay in filing the return of income may attract certain adverse consequences. Following  are the consequences of delay in filing the return of income:

1 .  Loss (other than loss under the head “Income from house property”) cannot be  carried forward.
2.  Levy of interest under section 234A.
3 . Levy of fee under section 234F*
4.  Exemptions/deductions under sections 10A, 10B, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE are not available. 

​W.e.f. assessment year 2018-19, if assessee failed to furnish return of income within due  date as prescribed in section 139(1) then he is required to pay:-
a) Rs. 5000 if return is furnished on or before 31 December of assessment year.( It is not applicable for  THIS YEAR AS DUE DATE IS EXTENDED  )
b) Rs. 10,000 in any other case.
However, if total income of the person does not exceeds Rs. 5 lakh then fee payable shall   be Rs. 1000.

E-VERIFICATION  OF   RETURNS FILED THROUGH E -FILING

  Submission of IT Return is not complete without verifying the same . For various ways of verification  , CLICK HERE 

FOR READING ARTICLE  TAX ON RETIREMENT BENEFITS , CLICK HERE 

PRECAUTIONS TO BE TAKEN WHILE INVESTING STOCK MARKETS , CLICK HERE 

FINANCIAL PLANNING FOR YOUNG, CLICK HERE 

We  value your opinions , comments  and  suggestions. We shall be happy to your feedback on the contents of the   Article . For  Feedback form , CLICK HERE

THIS ARTICLE CARRIES INFORMATION ON VARIOUS TAX  PROVISIONS  WHICH ARE GENERALLY  USEFUL .YET IT DOES NOT CARRY ALL THE PROVISIONS  AND HENCE YOU ARE  ADVISED TO GO THROUGH INCOME TAX DEPARTMENT WEBSITES  FOR AUTHENTIC COMPLETE INFORMATION . ESPECIALLY  THOSE WHO HAVE GOT MULTIPLE STREAMS OF INCOME OR COMPLEX INVESTMENTS  MAY  CONSULT A QUALIFIED TAX CONSULTANT / CHARTERED  ACCOUNTANT  FOR ANY CLARIFICATION.  READERS ARE ALSO WELCOME TO SEND FEEDBACK  . YOU CAN  DOWNLOAD THE FORM HERE . WE  ARE OPEN FOR CORRECTION  IF  NEEDED 
 . 

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