How to file ITR-1 with salary income, home loan, other incomes for FY 2020-21 – Economic Times

The first step in filing one's Income-tax Return (ITR) is selecting the right tax return form. The applicable tax return form depends on the residential status of an individual and total income earned from various sources during the Financial Year (FY) 2020-21.

Who can use ITR-1 formMany salaried individuals have to use ITR-1 form to file their tax returns. A resident individual having total income up to Rs 50 lakh from salary, one house property and income from other sources can file his return of income using Form ITR-1. It can't be used by any taxpayer who is either a non-resident or has capital gains or profits/gains from business or profession.

Choosing tax regime in ITR 1Do keep in mind that an option to choose the concessional tax regime (under section 115BAC of the Income-tax Act, 1961) has been introduced in ITR-1 form, which allows a taxpayer to change the tax regime vis--vis the one they would have already declared to their employer at the time of deduction of tax at source on salary payment or adopted while computing advance tax payable during the course of FY 2020-21.

ITR filing modeA taxpayer may choose to fill the Form ITR-1 in either online mode or offline mode. In the offline mode, one needs to use the JSON utility to fill the details before uploading the same on the income tax website to complete the filing process.

Pre-filled informationForm ITR-1 comes with certain pre-filled information such as personal details of the taxpayer along with details of salary income, dividend income, interest income, capital gains, etc., and the form can be downloaded from either the government's income tax e-filing portal or from other tax filing websites. However, with glitches in the new income tax portal, individuals should re-verify the same (pre-filled information in the ITR form) before proceeding to submit it to the tax authorities.

Documents/papers needed to file ITRIt would be prudent for the taxpayer to have all documents pertaining to his/her income/specified investment, expenditure/pre-paid taxes etc. handy. These include Form 16 and 16As, investment proofs not submitted to employer, rent receipts for property given on rent, interest on housing loan certificate, bank interest details, other interest details Form no. 26AS etc.

Step by Step guide to filing ITR-1Go to http://www.incometax.gov.in and login with your credentials.1. Go to E-File > Income Tax Returns -> 'File Income Tax Return' to be selected from the menu.

Once return of income is filed, an SMS/e-mail intimation confirming the filing is sent by the tax department to the taxpayer. Post successful submission, the acknowledgement (ITR-V) is sent to taxpayer's registered email id. One can also choose to retrieve it manually from the income tax website.

9. Verification After successful validation, taxpayer may proceed to verification of tax return either electronically through net banking, Aadhaar OTP etc. or can sign it manually and send it to the CPC, Income Tax Department, Bengaluru within 120 days of e-filing of the return of income.

In summary, while many parts of the ITR-1 form are pre-filled it is important to carefully verify every aspect and modify the same as necessary before the tax return is uploaded on the income tax website.

(The writer is Partner and Head, Global Mobility Services - Tax, KPMG in India.)

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How to file ITR-1 with salary income, home loan, other incomes for FY 2020-21 - Economic Times