Monday, June 5, 2017

How to file Income tax return - ITR1 for FY 2016-17

If you are salaried then you should have got your Form 16 and need to file ITR. For salaried people it is easy to file ITR. Here, I will tell you how to fill ITR from Form-16.

Step1

Go to income tax filling portal using link  https://incometaxindiaefiling.gov.in/ and click "ITR Forms -AY 2017-18" under download section (marked in red circle).


Step2

Download excel utility of  ITR 1 form. You will get the zip folder "ITR-1_2017". Extract the contents from this folder. You will get two files - "2017_ITR1_PR2.xls" and "Read Me.txt".

Step3

Open excel sheet 2017_ITR1_PR2 and enable editing. There are four sheets to be filled:-
  • Income Details
  • TDS
  • TCS
  • Taxes Paid and Verification
  • 80G

Step4

Open Form-16 and note down the figure under section "Income Chargeable under Head Salary". IT may look like this. Here, in this example, this figure is Rs 5,49,774.00


Step5

If you have a Home loan and want to get the rebate from it then you must note down this figure also. Get this figure from Form-16. In this example, this figure is Rs -110168 (It has to be negative).


Step6

Go to "Income Details" sheet and fill the details from Step 4 and Step 5 along with personal information. Example is shown below :-

Step7

Now you need to get the details of the rebate under Section 80C and other sections. Your EPF deducted will also come under this section and will be part of your Form-16. 
Maximum limit under Section 80C is Rs 1,50,000.
NPS contribution comes under Section 80 CCD (1) with a cap of Rs 50,000.
Check Form 16 for these details as shown below.


Step8

Again go back to "Income Details" sheet and fill the rebate under different IT sections as shown below. You may click "Validate" to check of anything is missing.

Interest from saving account can be shown under Section 80 TTA which is exempt from tax upto a limit of Rs 10,000. In this example i have not considered that.


Step9

Now got to "TDS" sheet and fill  the details of tax deducted by the employer. You can get TAN no of employer and other details from Form-16 as well as Form 26AS. I prefer the later option. "Form 26AS" can be fetched from "https://incometaxindiaefiling.gov.in/" after login. I have filled details for you in below example.


Step10

If you have income from FD or RD or any other source for which tax is collected at source, it can be shown in "TCS" sheet. Details for this section can be found only in "Form 26AS". Form-16 doesn't have details for this section. 
In below example i have shown interest from FD which is Rs 10480 and tax deducted by SBI bank. These details are available in "Form 26AS"


Step11

Fill the Bank details in "Taxes Paid and Verification" sheet. If you have deposited more than Rs 2 lakh in your account during demonetization period then you need to declare that also. Validate sheet after filling it.


Step12

If you have some donations to show then you can show them in "80G" sheet, which is the last sheet of workspace.
  

Step13

Validate individual sheets and click "Calculate Tax" button in "Income Details" sheet. All the details will be filled automatically. 
"Tax Payable on Income" will be filled automatically in first sheet. If there is a refund then it can be checked in "Taxes Paid and Verification" sheet.

Step14

Click on "Generate XML" button in first sheet. You will get a xml file which needs to be uploaded to Income tax filling portal (https://incometaxindiaefiling.gov.in/) after login.



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