Calcutta University
Year 3: Semester VI (BCOM)
SEC6.1Chg
E-Filing of Tax Returns
What is income tax return ?
Income Tax Return (ITR) is a form that an individual submits to the Income Tax Department of
India to file information about his income and taxes payable during that year. Information filed
in an ITR should be applicable for a particular financial year between 1st April to 31st March of
the next year. The department has notified 7 forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 &
ITR-7 to date. Every taxpayer should file his ITR on or before .The department has notified 7
forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7 to date. Every taxpayer should file his
ITR on or before the specified due date. The applicability of ITR forms varies depending on the
sources of income of the taxpayer, the amount of the income earned and the category of the
taxpayer like individuals, HUF, company, etc.
What is a NIL Return?
A “NIL return” refers to a type of tax return that is filed when an individual or entity has no
income or financial activity to report for a particular period. In other words, it means that there
is no taxable income or tax liability during that period.
Who are all not required to file income tax return?
As per the Income Tax Act, it is not mandatory for individuals earning less than the basic
exemption limit to file an ITR. Thus, individuals filing nil returns file it in their interest.
When is it mandatory to file income tax returns (ITR) in India?
Age group Basic Exemption Limit
For individuas below 60 years Rs. 2.5 lakh
For individuas above 60 years but below 80 years Rs. 3 lakh
For individuas above 80 years Rs. 5 lakh
If your gross total income is more than the basic exemption limit-
If your income is below the basic exemption limit, you will still be required to file your tax
return if you meet any of these conditions:
1. Deposited more than Rs 1 crore in 'current' bank account: You have to mandatorily file a
tax return if you have deposited a total of Rs. 1 crore or more in one or more current
accounts with a bank. However, no such requirement has been specified for deposits
made in the post office current account; or
2. Deposited more than Rs 50 lakh in 'savings' bank account: You have to mandatorily file a
tax return if you have deposited a total amount of Rs 50 lakh or more in one or more of
your savings bank accounts.
3. Spent more than Rs 2 lakh on foreign travel: You have to mandatorily file a tax return if
you have incurred a total expenditure of more than Rs 2 lakh on foreign travel whether
for yourself or any other person; or
4. Electricity expenditure is more than Rs 1 lakh: You have to mandatorily file a tax return if
you have incurred more than Rs.1 lakh towards electricity consumption during the
previous year; or
5. TDS or TCS is more than Rs 25,000: If the tax deducted at source (TDS)/ tax collected at
source (TCS) exceeds Rs 25,000 in the previous year. In the case of a senior citizen (above
60 years), this limit is Rs 50,000.
6. Business turnover is more than Rs 60 lakh: In case you are a businessman and your total
sales, turnover, or gross receipt is more than Rs 60 lakh during the previous year, then
you have to mandatorily file a tax return
7. Professional income is more than Rs 10 lakh: You have to mandatorily file a tax return if
you are engaged in a profession and your gross receipts are more than Rs 10 lakh during
the previous year.
Documents which you need to file the ITR-1 form are:
Form 16: Issued by all your employers for the given financial year
Form 26AS: Remember to verify that the TDS mentioned in Form 16 matches the TDS in
Part A of your Form 26AS
Receipts: If you have not been able to submit proof of certain exemptions or deductions
(such as HRA allowance or Section 80C or 80D deductions) to your employer on time,
keep these receipts handy to claim them on your income tax return directly.
PAN card
Bank investment certificates: Interest from bank account details – bank passbook or FD
certificate.
Who are eligible to file ITR-1 ?
This Return Form is for a resident individual whose total income for the AY 2024-25 includes:
Income from Salary/ Pension; or
Income from One House Property (excluding cases where loss is brought forward from
previous years); or
Income from Other Sources (excluding Winning from Lottery and Income from Race
Horses)
Agricultural income up to Rs 5000.
Who cannot use ITR-1 Form?
Total income exceeding Rs 50 lakh
Agricultural income exceeding Rs 5000
If you have taxable capital gains
If you have income from business or profession
Having income from more than one house property
If you are a Director in a company
If you have had investments in unlisted equity shares at any time during the financial year
Owning assets (including financial interest in any entity) outside India, including signing
authority in any account located outside India
If you are a resident not ordinarily resident (RNOR) and non-resident
Having any foreign income
If in case payment or deduction of tax has been deferred on ESOP
If you have any brought forward loss or loss needs to be carried forward under any
income head
Still, do you have any doubts about ITR-1 in your mind?
Read our comprehensive guide on ITR-1 to get answers to all your questions.
What is the Structure of the ITR-1 Form?
Part A – General Information
Part B – Gross total Income
Part C – Deductions and taxable total income
Part D – Computation of tax payable
Part E – Other information (Bank account details)
Schedule IT (Details of advance tax and self-assessment tax payments)
Schedule-TDS (TDS/TCS details)
How to File ITR-1 (SAHAJ) Online on Income Tax Portal?
Step 1 - Visit the Income Tax e-filing portal
Step 2 - Register or Log in to your account
Step 4 - Select e-file > Income Tax Returns > File Income Tax Return
Step 5 - Select the Assessment Year as 2024-25 and the mode of filing as ‘Online’
Step 6 - Click on ‘Start New Filing’
Step 7 - Select the applicable status
Step 8 - Select ITR-1 as the form type
Step 9 - Click on ‘Let’s Get Started’
Step 10 - Select the appropriate reason and ‘continue’
Step 11 - Now you will have to fill up 5 sections here
Personal Information - This section requires you to provide basic details such as your full
name, PAN and Aadhar number, contact information, and bank account details.
Gross Total Income -
Total Deductions - The Income Tax Act 1961 allows for various deductions under
different sections, which you should claim accordingly. Commonly known sections for
deductions include 80C, 80D, 80TTA, 80TTB, and others.
Tax Paid - This section displays your tax payments from all sources, including TDS, TCS,
Advance Tax, and Self-Assessment Tax.
Total Tax Liability - In this section, you will find the computed tax liability based on the
information provided in the previous sections. To clarify, the tax payable on the Total
Income is calculated as (Income - deductions claimed - Tax paid till date). If the resulting
amount is negative, it can be claimed as a refund. If it is positive, it needs to be paid as
tax.
Step 12 - Double-check to ensure the summary of tax computation is correct
Step 13 - Rectify the errors, if any and complete the validation
Step 14 - E-verify the IT
