In our earlier article Fill Excel ITR form : Personal Information,Filing Status we had discussed about how to fill Income Tax Return Form in excel for Personal Information and Filing Status. Filling income tax returns means filling information about
- Income (Income from Salary, Income from House Property, Income for Other Sources, Capital Gains),
- Tax saving Deductions under various sections like 80C, 80D etc.
- Tax Deducted (TDS) and Tax paid (Advance Tax)
In this article we will focus on filling Income Tax Return, ITR1 in Excel for Income from Salary, Income from House Property, Income for Other Sources,Deductions, TDS details and Advance and Self Assessment Tax.
Filling Income from Salary
To fill Income Tax details for Salary, one needs Form 16, issued by the employer . Our article Understanding Form 16: Tax on income, Understanding Perquisites, Understanding Form 12BA explains it in detail. For field Income chargeable under the Head Salary/Pension , on your Form 16 fill information in point 6, as shown in image below. If there are more than one employer during the year, please furnish total salaries from all employers in this field.
Income From House Property
Any residential or commercial property that you own will be taxed, even if it is not let out, it will be considered earning rental income and you will need to pay tax on it. It comes under the head Income from House Property. Income from House Property is taxed subject to some exemptions for example on Home Loan. Our article Tax : Income From House Property gives an overview of income from House property, while Tax and Income From One Self Occupied property , Tax and Income from Let out House Property explains the specific cases. Computation of Income from House Property is shown in picture below.
In other ITRs there is section called Schedule-HP (HP for House Property) where one needs to fill in the details about percentage of co-owned property, loan, Annual Value,deductions etc. To fill it you must take care of following:
- The information relating to the percentage of share of the assessee in the co-owned property is mandatory.
- In case the property is co-owned then the assessee needs to furnish the name of the co-owner, PAN(optional) and percentage of share of the other co-owner (s) in the property.
- If property is not co-owned one can fill Is the property co-owned as NO, Your percentage of share in the property as 100.
- Annual letable value means the amount for which the house property may reasonably be expected to let from year to year, on a notional basis: Deduction for taxes paid to local authority shall be available only if the property is in the occupation of a tenant, and such taxes are borne by the assessee and not by the tenant and have actually been paid during the year.
- In case of self-occupied property Annual value is nil and interest payable on borrowed capital is limited to Rs. 1,50,000.
- If there are two or more than two house properties, the details of all properties need to be filled. The results of all the properties have to be filled in last row of this Schedule. Following points also need to
In ITR1, For Income from one House Property.
- You have only one self-occupied house
- Select Self-Occupied or Let out.
- Enter the value Income from one House Property.
- If you have reported income from House Property to your employer, it will be in Form 16. If you have taken a home loan, you have loss from property or negative income as explained in Tax and Income From One Self Occupied property. Fill in the -ve sign.
- In ITR1 there is no other section or schedule that needs to be filled.
Income from Other Sources
The incomes, which are neither covered under the heads of salary, house property, business income, or capital gain, are covered in the head of income from other sources. Its time to enter your tax-saving deductions details. This head of income is a residual head because it tries to cover all other incomes which are uncovered and which are not exempt from tax. Examples of Income from Other Sources
- Dividend received from any entity other than domestic company such as cooperative bank or dividend received from a foreign company
- Any pension received by the legal heirs of an employee.
- Interest on securities if not chargeable under the head business or profession.
- Wining from lotteries, crossword puzzles, races including horse races,card games and any other sort of games or gambling or betting of any form.
- Interest on bank deposits, loans or company deposits,
- Income from machine, plant or furniture let on hire.
Computation of income From Other Sources are:
You can save tax by investing for long term as in EPF,PPF or buying Life insurance or Health Insurance polices. These tax saving options are categorized under different sections, which if you inform to your employer are available in your Form 16. Just enter the same information in the corresponding cells. You may need to consolidate contributions under particular sections such as 80C which has a limit of 1 lakh, as shown below.If you did not declare your tax saving options, or did not submit proof within due time(usually by mid Feb) and still made some tax saving investments then you can still claim it while filing returns. Our article How to Claim Deductions Not Accounted by the Employer discusses it in detail.
TDS or Tax Deducted at Source
Click on the TDS Tab by clicking on bottom of excel ITR or Clicking Next on Income Details Tab. All the tax deductions at source made in the current financial year should be reported in the TDS tab. Details of each TDS certificate are to be filled separately in the rows.
- You need to fill in information about TDS (Tax Deducted at Source) from Salary as per Form 16 given by the employer, and/or on
- Income from Other sources on Form16A issued by the deductor such as bank if bank has TDS details on interest in Fixed Deposit.
Note: Please enter the details of TDS at appropriate row. TDS on Salary should go to row 22 in ITR1, while TDS on Income from other sources should go to Row 23 in ITR1. In other ITRs also PLEASE keep them separate.
Please verify that TDS you are reporting from Form 16 and Form 16A matches with the TDS in Form 26AS. Income Tax Department facilitates a PAN holder to view his Tax Credit Statement , called as Form 26AS, online. Our article Viewing Form 26AS on TRACES shows how to view Form 26AS.
Filling in ITR, TDS as reported in Form 16 for Salary
Filling in ITR, TDS as reported by deductor in Form 16A
- Unique TDS Certificate Number : This is a six digit number which appears on the right hand top corner of those TDS certificates which have been generated by the deductor through the Tax Information Network (TIN) Central System.
- Deducted Year -mention the financial year in this column.
- Total Tax deducted Enter details from Form 16A. Round off to nearest Rupee.
- Amount out of (6) claimed for this year. Usually this will be the same as tax deducted. This value cannot exceed tax deducted. Round off to nearest Rupee.
Details of Advance Tax and Self Assessment Tax
Advance Tax: For salaried persons tax deduction at source (TDS), takes care of the tax payments for salary. But there can be other kind of income like interest on saving bank account, fixed deposits deposits, bonds, rental income or capital gains. If tax on income is more than 10,000 Rs in a financial year, Income Tax Department expects you to estimate your income and pay Advance Tax. Advance tax has to be paid in instalments in September, December and March. If If advance tax is due to you and you don’t pay then You need to pay interest(under section 234A, 234B, 234C) while filing returns. Details of Advance Tax are covered in our article Advance Tax:Details-What, How, Why
Self Assessment Tax: While filing income tax returns, an assessee does a computation of income and taxes to be filed in the returns. At times,due to incorrect calculation or laziness or ignorance, the tax paid either as Advance tax or in TDS is less than actual tax payable. The difference between tax payable and tax paid is called the Self assessment tax. This needs to be paid before Income Tax Returns are filed.
Our article Paying Income Tax : Challan 280 explains how to pay Advance Tax, Self Assessment tax in detail.
Note: When you fill in the form for the first Time, you will not know if Self Assessment Tax has to be paid or not. So fill in the Advance Tax details,if paid. Compute the income as explained later in the article. If after computation you find that tax is payable, this would be Self Assessment Tax. Pay it and then enter the details about it in this section.
- Fill Excel ITR form : Personal Information,Filing Status
- Income Tax for Beginner, Income Tax For Beginner – Part II
- E-Filing of Income Tax Return
- Understanding Form 16: Tax on income,
In this article we have covered filling Income Tax Return, ITR1 in Excel for Income from Salary, Income from House Property, Income for Other Sources,Deductions, TDS details and Advance and Self Assessment Tax. In our next article we will cover Computation of Income Tax, Self Assessment Tax, Generation of XML in detail.