When I joined my first company as a fresher for the 1st year I didn’t knew much about this Income Tax thing. I was least bothered to know about it, but at the Financial Year (FY) end my half of the salary got deducted as Tax, then I understood what big thing I was ignoring for so long. I checked with my friends, some of them mocked and rest of them were in same boat like me. I talked to my dad and he was also surprised that I didn’t knew anything about Tax, Investments, 80C etc and have done nothing till now. Gradually I learnt about it, did some investments to save tax and at the next FY end with the help of my dad filed my first Tax Return.
Still after so may years I see many experienced people struggling to file a simple Income Tax, and seek help form CA or other experts. These experts also mint lot of money by ting-up with many companies.
But filing your Income Tax is very easy if you are just salaried and don’t have multiple sources of income and other complexities. So before coming to that let’s understand few terms associated with it:
– ITR: Income Tax Return, this needs to be filed after every Financial Year end.
– FY: Financial Year, were you earned your income (For example, April’2016 -to- March’2017)
– AY: Assessment Year, here your income will be accessed (For example, April’2017 -to- March’2018)
– TDS: Tax Deducted at Source, is a type of tax that is deducted from an individual’s income on a periodical or occasional basis.
– TCS: Tax Collected at Source, is income tax collected by seller in India from payer on sale of certain items.
To file Income Tax and check your details you can check the e-filing site i.e. http://incometaxindiaefiling.gov.in/.
1. First Time Registration: If you are filing for the first time then you need to register on the e-filing site and you will need your PAN & ADHAAR number handy.
On the Registration Form “Select User Type” section, select “Individual” and click Continue.
– Step 1: Enter Basic Details (like: PAN, Name, DOB)
– Step 2: Registration Form (Password, Recover questions, Personal Details like Phone/Email, Address)
– Step 3: Registration Successful (Confirmation page, with email sent to your registered ID with activation link)
You need to check your Email ID and click on the Activation Link, which will open the e-filing site and will ask for Mobile Pin sent to your mobile. Finally click on Submit and you are registered.
If you are already registered then go to the login page provide your credentials, User ID, Password, DOB and CAPTCHA code.
2. Checking Form 26AS: Before proceeding to file Tax Return, you need to check your Form 26AS on the site. This contains the Consolidated Tax Statement prepared by the Income Tax department by getting details from your employer, by you or other sources.
Form 26AS contains details of:
– Taxes paid by you and tax refunds (TDS)
– Tax collected by collectors (TCS)
– Any High-value Transactions in respect of shares, mutual fund etc.
– Any refund received by you during the financial year
To view Form 26AS on the main menu you can click on “My Account” –> View Form 26AS (Tax Credit). This will redirect you to the TDS-CPC website. On the new window (www.services.tdscpc.gov.in) agree with the agreement, and click on “View Tax Credit (Form 26AS)” link , select the Assessment Year, enter CAPTCHA and check your details.
Here match the amount showing under “Total TDS Deposited” which is deposited by your employer, must match with the Tax-Deducted mentioned in your Form-16.
3. Start filing ITR: On main menu click on “e-File” –> “Prepare and Submit Online ITR”, you will get few options like:
– Assessment Year (choose the first option, as I’ve described FY & AY above)
– ITR Form Name (Now as you are simply salaried individual and don’t have any other source of income (except income from 1-house, max 5k agriculture) so you need to file ITR-1 form)
a. Instructions: Please read the instructions, this will help you in filling the form in 6 different tabs while navigating.
b. Part A General Information: On 2nd tab provide all your personal details (First/Middle Name, ADHAAR no, email, mobile, address)
In below section:
– Employer Category (Govt, PSU, OTH, N/A)
– Residential Status (RES, NRI, NOR)
– Return filed (multiple options, choose 11 if filing within period, if now then choose 12)
– Are you governed by Portuguese Civil Code (No, Yes)
c. Income Details On the 3rd Tab you need to provide income from all your sources. But if you just have income from salary, you just need to fill 2 fields below.
– Check your Form-16 and get the figure in “6. Income Chargeable Under The Head ‘Salaries'”, and fill it against “B1. Income from Salary / Pension” text box.
– Again on Form-16 add the “Provident Fund” & “Life Insurance Premium” amount you’ve invested coming under 80C on “9. Deduction under chapter VI-A”, fill it against “B4. 80C” text box.
– B2: If you’ve income from rent of 1 house provide. For loss provide the rent amount in negative figure.
– B3: Other income like interest from saving ac, FD (if >10k), or side business, etc.
– B4: If you’ve any more investments under 80 category, provide them under respective B4 sub-items.
d. Tax Details: Click on Refresh button so that all your entries are reflected on this Tab. Check the Tax Deducted in different sections.
e. Taxes Paid and Verification: Provide following mandatory information:
– All Bank account details (IFSC, name, AC no, cash deposit >= 2Lac during demonetization)
– Verification (Your name, son/daughter of, Place)
Verify all Tabs again and click After on “Preview & Submit”, and you will taken to another page to finally review the SAHAJ form and Submit your ITR.
4. ITR-1 SAHAJ Individual Income Tax Return
– Download the Preview PDF for your record and review
– Finally clicking on Submit button will e-file your ITR.
–> e-Verify Return: You can verify your ITR by authenticating by your ADHAAR card. Select the 3rd option below and follow the instructions:
Finally you will get the confirmation page for successfully e-verifying, with Transaction ID for any followups: