ITR Documents : Income from other sources

Income from other source (IFOS) includes any income which is not taxed under the following Income heads:

  1. Salary Income
  2. Business and Profession income
  3. Capital gain Income
  4. House property Income

The Income From Other Source includes Bank Interests, Investment Interests, Dividend Income, Family Pension, Gifts, Royalty, etc.

ITR for Income from Other Sources (IFOS)
CA Assisted Income Tax Return filing for individuals having interest, provident fund and other income covered under the head IFOS.
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ITR for Income from Other Sources (IFOS)
CA Assisted Income Tax Return filing for individuals having interest, provident fund and other income covered under the head IFOS.
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Document Checklist for Income From Other Source

PAN

Income Tax Department (ITD) issues Permanent Account Number (PAN). It is an alphanumeric ID of a taxpayer who is liable to pay taxes. PAN enables the department to link all transactions of the “Person” with his “Income”. Hence it is the most essential document while filing ITR.

Aadhaar

Aadhaar (Aadhaar Card) a 12 digit unique identification number issued by the UIDAI (Unique Identification Authority of India). It is mandatory for Resident Individuals to provide details of Aadhaar while filing ITR.

Form 26AS

Form 26AS is a consolidated Tax Credit Statement. It has the following details:

  • ​Details of TDS from the taxpayer’s income.
  • ​Details of TCS from taxpayer’s payments.
  • Advance Tax, Self Assessment Tax paid by the taxpayers.
  • Details of the Refund received during the year.
  • Details of any high-value transactions (for eg. Shares, Mutual Funds, etc.).

It is very important to check Form 26AS before e-filing the ITR. Since it has details of TDS deducted on Interest and Other Income by deductors.

31st July
ITR filing Due Date for taxpayers having Income From Other Source.
31st July
ITR filing Due Date for taxpayers having Income From Other Source.

Investment proofs

A taxpayer can claim the deduction of certain Investments and expenses while filing ITR. Investments proofs, Donation Receipts, Fixed Deposit Statement, etc are required to claim Chapter VI-A deductions. These investments reduce the net taxable income of a taxpayer.

Bank Statements

Bank Statement with IFOS transactions is an essential document to prepare ITR. It is important to look at bank statements to derive total income earned in the form of Interest, Dividend, Gift, etc.

FAQs

What is Income from other sources?

Income from other sources is a residual income that cannot be taxed under other heads. It includes income from a savings bank account, Fixed deposits, Post office savings, Family pension, etc. It also includes any monetary/non-monetary gifts received by an individual.

What is the tax treatment of dividends received from a foreign company?

Dividend received from an Indian company is exempt from tax. However, Dividend received from a foreign company is taxable as “Income from other sources”. And you need to pay taxes at rates based on the income slab you fall under.

I have won a lottery of Rs 2 lakhs. Is this taxable?

Yes. When any individual receives any kind of lottery or price money it is taxable. It is converted under IFOS.

I have received Rs. 1,00,000 in cash from my father as a wedding gift. Is it taxable?

No. Gifts received on a wedding occasion is exempt from tax. Hence Rs, 1,00,000 will be exempted from tax. However, you should report the same while filing ITR.

What are the documents required to file ITR?

Following are the documents required to file ITR:
-PAN
-Aadhaar
-Form 26AS
-Bank Account Details
-Tax Payment Challan
-Original Return (if filed)

How can taxpayers Track their High-Value Transactions?

You can use your Form 26AS to see if you have any transactions flagged as “High-Value Transactions”. Entities such as Banks and other Financial Institutes are responsible to furnish certain transaction details through Form 61A (Annual Information Return). With an aim to curb black money and to track high-value transactions, the government has implemented new reporting guidelines. Therefore, “High-value transactions” of Individuals and Businesses are monitored u/s 285BA of The Income Tax Act.

Form 26AS as an 'Annual Information Statement' from 1st June 2020 will include Property and Share Transaction details
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Form 26AS as an 'Annual Information Statement' from 1st June 2020 will include Property and Share Transaction details

Steps to track High Value Transactions

  1. Log in to the Income Tax e-Filing Portal

    Visit the Income Tax e-Filing portal and login using valid credentials.

  2. Click on “My accounts

    Select View Form 26AS (Tax credit) Option

  3. View Tax Credit Statement

    Click on the option to proceed which will redirect you to the TRACES portal.

  4. Agree usage and acceptance of form 16

    Click on the checkbox and then proceed.

  5. Option to view the form

    Now you can click on the option to view the annual information statement.

  6. Enter the required details

    Enter the assessment year and choose the type of file you wish to download. The downloaded file will be password protected and the password is your Birth date.

  7. Lastly, you can look at Part E

    It has the details of AIR Transaction in the downloaded file.

FAQs

What is File Validation Utility (FVU)?

FVU created by NSDL is a program to verify the format of AIR submitted by filers and to measure its accuracy. FVU will accept AIR submissions only if it is error-free. If there are any errors in the details an error code and error description and details about the error will be displayed. You can resubmit your form after correcting the errors. If there remains no error in filing AIR then the “File Validation Successful” message pops up.

How does the Income Tax Department (ITD) come to know about my “High valued Transactions”?

Well, If any Individual/Business makes a Financial Transaction which can be considered as “High valued Transactions”. Then the Bank and other Financial Institutes have to report the transaction with the registered PAN of that Person. Hence, ITD can come to know about your “High valued Transactions”

What are the Forms required for AIR?

AIR can be furnished through Form 61A (Part B) in a digitized form in a CD/Floppy. While Form 61A (Part A) in a paper format duly signed.

Form 26AS : Annual Information Statement

Form 26AS is a consolidated tax credit statement. Taxpayers can download it from their Income Tax e-filing account. From 1st June 2020 onward, Form 26AS will also include high-value transactions such as property & share transactions.

What is Form 26AS?

Form 26AS is a consolidated Tax Credit Statement which provides the following details to a taxpayer.

It is a very important document to have while filing ITR. However, you would not want to miss out on tax credits while filing ITR. You can download Form 26AS from the Income-tax e-filing website. The file that the user downloads is password protected. Form 26AS password is the D.o.B (Date of Birth) of the deductee.

CBDT Announcement Regarding New Form 26AS – Annual Information Statement

The Ministry of Finance has released a new avatar of Form 26AS applicable from 1st June 2020. The notification states that the Form 26AS will be divided into two parts; Part A and Part B. Part A of the Annual Information Statement will contain the details of the Aadhaar number, D.o.B, contact details as well. This helps the taxpayers file their ITR with all the basic details available in the Form 26AS. Part A of the statement is as follows:

Permanent Account Number   Aadhaar Number  
Name  
Date of Birth/Incorporation  
Mobile Number  
e-Mail Address  
Address  

Furthermore, the Annual Information Statement aims to incorporate all the information related to the different income sources. Part B will include details of:

  • Property & Share Transaction Details
  • Status of Proceeding with ITD
  • Status of IT Refund/Demand

Given below is the format of Part B for your reference:

Sl. No. Nature of Information
1. Information relating to tax deducted or collected at source 
2. Information relating to specified financial transactions
3. Information relating to payment of taxes
4. Information relating to demand and refund
5. Information relating to pending proceedings
6. Information relating to completed proceedings
7. Any other information in relation to sub-rule (2) of rule 114-I

 

Sample Tax Credit Statement Form

Components of Form 26AS Tax Credit Statement

  • Part A
    • Contains the details regarding Tax Deducted at source including Name and TAN of Deductor, Total Amount Paid, Tax Deducted, and Deposited.
  • Part A1
    • Contains the details regarding Tax Deducted at Source in case Form 15G / 15H has been submitted by the deductee.
  • Part A2
    • Contains the details regarding Tax Deducted at Source on Sale of Immovable Property u/s 194IA (For the seller of Property).
  • Part B
    • It has the details regarding Tax Collected at Source
  • Part C
    • Contains the details of any Taxes paid other than TDS/TCS, i.e., Advance Tax, Self-assessment Tax.
  • Status of Booking
    • ‘U’-Unmatched:
      • As the name suggests, the status-U means that there was a discrepancy in your Form-26AS. Either your deductor has not deposited your taxes or the particulars are incorrect or unfinished. It will be changed only when the details of the bank match with the details of the deposit in the TDS/ TCS statement.
    • ‘P’-Provisional:
      • This Tax credit is applicable to the TDS/TCS statements that are filled by government deductors. It will change to ‘F’-Final only when the Pay and Accounts Officer (PAO) submits the verification of payment details.
    • ‘F’-Final:
      • This initiative is seen when the TDS/TCS details are verified and there are no errors.

In case of non-government deductors, it means that the payment details mentioned in TDS/TCS filed by the deductor match with the payment details of the same deposited in Bank.

In the case of government deductors, it means that that payment details of TDS/TCS match with the same submitted by Pay and Accounts Officer (PAO).

How to Download Form 26AS?

Follow the steps given below to download Form 26AS

  1. Login to the Income Tax e-Filing portal

    You will land on the dashboard of the new income tax portal.

  2. Navigate to eFile

    Click on eFile and then click on income tax returns from the dropdown.

  3. View Form 26AS

    Now, click on View Form 26AS from the dropdown.

  4. Disclaimer

    Click on confirm.

  5. Navigate to TRACES

    Once you are redirected to TRACES, you will have to click on proceed to the disclaimer that appears on the screen.

  6. View Form 26AS option

    Click on the option to View Tax Credit (Form 26AS).

  7. Download Form 26AS

    Select the appropriate assessment year and “Text” under the view as option and click on the option to export the document as a PDF.

How to View Form 26AS?

Individuals have the option to view Form 26AS from the TRACES portal and can also download it as shown in the previous section. The Income Tax Form 26AS is linked with the PAN. Taxpayers can view Form 26AS from using net banking from the FY 2008-2009. They can view the Tax Credit Statement only if the PAN is linked to the particular account. This facility is available for free.

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Actual TDS and TDS Credit in Form 26AS Does not Match

Every person deducting tax at source has to furnish the details of tax deducted by them to the IT Department. On the basis of the details of TDS provided by the deductor, the Income Tax Department will update Form 26AS of the deductee.

Often the actual amount of TDS and TDS credit as appearing in Form 26AS may differ and it may happen that the TDS credit appearing in Form 26AS may be less as compared to actual TDS, this may happen due to reasons like non-furnishing of TDS details to the IT Department by the deductor, deducting the tax in incorrect PAN, etc. ​If a discrepancy is due to the deductor, then they may file the TDS/TCS correction statement and correct the same.

The Income Tax Department updates the TDS details in Form 26AS on basis of details provided by the person deducting the tax (i.e., the deductor), hence, if there is any default on the part of deductor like non -furnishing of TDS details (i.e., TDS return) to the ITD, deducting the tax in incorrect PAN, etc. then Form 26AS will not reflect the actual TDS. The taxpayers are advised to confirm the tax credit appearing in Form 26AS and should reconcile the difference, if any. 

Steps to Convert Tax Credit Statement Text File to Excel Format

  • After downloading the file from the TRACES portal, extract the files and use the Date of Birth (D.o.B) of the deductee as the password to open the file.
  • Hence, copy the entire data from the text file.
  • Paste the data into the MS Excel Worksheet. Furthermore, choose the “Data” option from the excel dashboard.
  • Select the “Text to Columns” option from the dashboard options. Hence, click on the “Delimited” check-box and go to the next step.
  • Under the “Delimiters” section, choose the “Other” option and enter the ‘^’ symbol in the empty space. Furthermore, click on the “Next” option.
  • Select the “MDY” option “Column Data Format” drop-down list and hence, click on the “Finish” option.
  • Therefore, we can see the form in the excel sheet format:

FAQs

Can I claim TDS in my return without Form 16?

Yes, the TDS credit in your case will be reflected in your Form 26AS, and, hence you can claim the same while filing ITR. However, the claim of TDS to be made in your return of income should be strict as per the TDS credit being reflected in Form 26AS.

What to do if the TDS credit is not reflected in Form 26AS?

Non-reflection of TDS credit in Form 26AS can be due to several reasons like the non-filing of the TDS statement by the payer, quoting incorrect PAN of the deductee in the TDS statement filed by the payer. Thus, in case of a non-reflection of TDS credit, the payee has to contact the payer for ascertaining the correct reasons for the non-reflection of the TDS credit.

How to resolve unmatched entries in Form 26AS?

There can be one or more of the following reasons for ‘U’-unmatched status.
Deductor/Collector did not file TDS/TCS Return.
​Deductor/Collector has not/incorrectly quoted your PAN in the TDS/TCS Return.
​You have not provided your PAN or your provided PAN is incorrect.
Take the following steps in such cases:
​Cross-check the TDS information with Form-16 &/or Form-16A.
​Ask your deductor to revise the TDS return.
​Once they do it and it’s submitted to the department, ask them to update your TDS details.

When will the new Form 26AS be in effect?

Form 26AS will be in affect from the 1st of June 2020.

ITR Forms, TDS Certificate, Tax Credit Statement and Filing

The Income Tax Department has prescribed different ITR Forms for various income situations. The taxpayer is required to prepare and file the ITR Form applicable to them for that particular financial year.

Index

ITR Forms Types

The Income Tax Department has prescribed 7 different ITR Forms. The ITR Form type should vary based on the income situation.

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ITR 1

ITR-1 (SAHAJ) for Resident Salaried Individuals. Individuals earning income from the following sources can file ITR 1:

  • Salary
  • Pension
  • One House Property
  • Other Sources: Savings Interest, Fixed Deposit, etc
  • Agricultural Income less than INR 5,000
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ITR 3

ITR 3 is for individuals and HUFs having income from business or profession. ITR 3 can be filed by a taxpayer having:

  • Partner Income from a partnership firm or LLP
  • Businesses with income more than INR 1 crore not covered under presumptive taxation scheme.
  • Professionals under presumptive taxation scheme with income more than INR 50 Lakhs
  • Capital Gains
  • House Property
  • Salary
  • Other Sources

Any other entity except Individuals and HUFs cannot file ITR 3. Entities like LLPs, Partnership Firm, Companies, Charitable Trusts, Local Authorities, etc. cannot file ITR 3.

List of Documents Required to file the ITR 3

  • Business & Professional income: Bank account Statement/ Passbook
  • Capital Gains: land/building Sales and Purchase Deed, Stock Ledgers, Trading Statement, expenses on a transfer of the capital asset, etc.
  • House Property Income: Rent Agreement, co-owner details, Loan repayment certificate/statements.
  • Salary: Form 16, Salary Slips, Pension Statement/Passbook
  • Other Sources: Dividend warrants, interest certificates, other receipts

Methods to file ITR 3

ITR 3 can be submitted online or physically. However, if the income is more than INR 5 Lakhs, it is mandatory to file ITR 3 electronically.

  • Physical Submission:
    • paper form or
    • bar-code return form
  • Online/ Electronic Submission:
    • After adding Digital Signature
    • Sending the signed copy for verification to CPC Bangalore
    • e-Verification of ITR
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Taxpayers having income from capital gains, speculative business, foreign sources of income cannot file ITR 4.

List of documents required to file ITR 4

  • Business/ Professions: Profit & Loss Statement, Balance Sheet, Supporting documents for expenses, Cash Register, etc.
  • Salary Income: Form 16, Salary Slips, Passbook, Pension Statement
  • House Property: Rent Agreement, co-owner details, Loan repayment certificate/statements
  • Other Sources: Dividend warrants, interest certificates, other receipts

Methods to file ITR 4

  • Physical Submission:
    • paper form or
    • bar-code return form
  • Online/ Electronic Submission:
    • After adding Digital Signature
    • Sending the signed copy for verification to CPC Bangalore
    • e-Verification of ITR

However, it is mandatory to file ITR-4 online for taxpayers who have:

  • income more than INR 5 Lakh
  • any assets outside of India, including financial interest in any entity; or signing authority in any account outside of India
  • claiming relief u/s 90/90A/91 to whom Schedule FSI and Schedule TR to apply
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ITR Documents

Form 16

Form 16 is a TDS certificate on Salary. It contains details of income earned and taxes deducted on it. The employer issues Form 16 to its employee after the end of a financial year. The due date to issue Form 16 for FY 2018-19 is 15th June 2019. Form 16 is divided into 2 Parts:

  • Part A: contains employer, employee details and TDS deducted by the employer
  • Part B: is an annexure of income chargeable under the head of ‘Salary’. It contains a detailed breakdown of salary components.

Sample Form 16 Part A

Sample Form 16 Part B

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You may have multiple Form 16 if you had multiple employers or changed jobs during the Financial Year.

Form 16A

Form 16A is a certificate on TDS income other than Salary, like commission, interest, professional fees, rent. Form 16A is issued by the deductor(Payer) to the deductee(Payee) within 15 days of from the date of filing the TDS return.

Form 26AS

Form 26AS is a consolidated Tax Credit Statement. It contains the following details:

  • Tax Deducted from the taxpayer’s income
  • Tax Collected from taxpayer’s payments
  • Taxes paid during the financial year: Advance Tax, Self-Assessment Tax, Regular Assessment Taxes paid by the taxpayer
  • Details of Tax Refund received during the financial year
  • Details of any high-value transactions

You can set off the tax credit against your net taxable liability while filing the ITR.

You can view and download your Form 26AS from your account on the income tax e-filing website.

Form 12BB

Form 12BB is an investment declaration form submitted by an employee to its employer. The employer uses this Form 12BB for accurate TDS deduction on the employee’s salary, and avoid excessive TDS deduction.

What are the details required to file Form 12BB?

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Form 10BA

Form 10BA is for taxpayers to claim deduction u/s 80GG i.e. for rent paid on house property. Form 10BA contains details of the taxpayer, property, rent paid and the landlord.

How to submit Form 10BA?

You can submit Form10BA for a financial year using the Income Tax Department website.

  • Go to Income Tax Forms under e-file on the Income Tax Website
  • Select Form 10BA from the drop-down
  • Choose the submission mode- Prepare and Submit online
  • Enter the relevant details,
  • Preview and Submit the Form 10BA

Form 15G & Form 15H

Form 15G & Form 15H is to avoid TDS deduction on the taxpayer’s income. It is usually submitted to banks to avoid TDS being deducted on the interest income. Form 15G & Form 15H is required to be at the beginning of the financial year.

Form 15H is for taxpayer above the age of 60 years i.e. senior citizens. Whereas, non-senior citizens use Form 15G.

When to submit Form 15G/15H?

Form 15G/15H can be submitted to avoid tax deduction in the following income sources:

  • TDS on EPF withdrawal
  • TDS on Rent
  • TDS on the interest income from Fixed Deposits with bank/ post office
  • TDS on Corporate Bonds
  • TDS on Insurance Commission

Details required to file Form 15G or Form 15H

  • PAN
  • Residential Status
  • Address Details
  • Contact Information
  • Estimated Income Details
  • Previously Filed Form 15G/ 15H details

Methods file Form 15G & Form 15H

If the tax liability for the financial year is zero, you can file Form 15G & Form 15H with the deductor.

  • Physical Submission
    • Download Form 15G/H from the income tax website,
    • Prepare and Submit it with the deductor
  • Online Submission
    • Go to the Deductor’s website (Bank website)
    • Log in to your account
    • Fill in and submit Form 15G/ 15H

Form 16A: TDS on Income other than Salary

What is Form 16A?

Form 16A is a certificate of TDS on Income other than Salary. When TDS is deducted from the payments like a commission, contract, professional fees, rent, interest, etc., Form 16A is issued.

It is issued by the deductor to the deductee. Deductor (Payer) is a person who makes a payment and deducts TDS. And Deductee (Payee) is a person whose TDS is deducted. Deductor is responsible to issue Form 16A to the deductee within 15 days from the date of filing the TDS Return.

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Form 16A is different from Form 16. Form 16A is for TDS on income other than salary, unlike the latter which is for TDS on salary.

Details in Form 16A

  • Name, address, PAN & TAN of the Deductor.
  • Name, Address & PAN of the Deductee.
  • Nature of the Payment, Amount Paid, and the Date of Payment.
  • TDS challan details.

It is the deductor’s responsibility to provide the Form 16A to deductee as a proof of tax deduction. If you have not received the Form, you can check your Form 26AS for TDS credit. The deductor can download Form 16A from his account on TRACES.

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FAQs

What if a person deducts TDS from my income and doesn’t provide me with Form 16A?

If a person doesn’t provide you with Form 16A, no need to worry. You can always download Form 26AS (Tax credit statement) from your the income tax e-Filing account. And check credit of TDS deducted by a payer.

Is there a way to download Form 16A online?

Deductor can download Form 16A from his account on TRACES. However, a payee can not download Form 16A from TRACES.

Do I have to keep all the Form 16A on record?

It is always a good practice keeping all TDS Certificates with you. However, Form 26AS contains the same details so even if you have not received all Form 16A, you need not worry.

Tax consequences of switching Jobs during the year

People change jobs for higher salaries, better prospects, better exposure, etc. It’s common for people to move jobs during the financial year going after better pay or better work. But this results in various tax consequences of switching jobs mid-year. Communicating your last drawn salary and deductions claimed can solve half of your problems.

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Tax Consequences of Switching Jobs

Higher tax bracket due to switching jobs

Always check if the new job is putting you in a higher tax bracket. Let’s say if you are currently earning a Taxable Salary Income of INR 7,50,000 in the 20% tax bracket. And after switching jobs, your Taxable Salary Income is INR 10,65,000 which will take you into the 30% tax bracket. This could mean a substantially higher tax outgo. Which you need to communicate with your employer and ask them to deduct your TDS accordingly.

Furnishing Form 12BB with the previous salary details

Once you join the new employer, he/she will ask you to submit Form 12BB. Which includes the details of salary paid by previous employer and TDS deduction. One needs to be careful while filling Form 12BB as it will be the basis on which your employer will deduct TDS in the remaining month of the financial year.

You can also submit Taxable Salary of Previous Employer from your Form 26AS.
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You can also submit Taxable Salary of Previous Employer from your Form 26AS.

Take a copy of Form 16 from the previous employer

Don’t forget to take a copy of Form 16 from your previous employer. Even though Form 16 is available after the end of the financial year, you will receive an interim Form 16 from your previous employer including details of salary paid, TDS deducted on your salary. This will help you to fill up Form 12BB which you need to submit to your new employer.

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Avoid claiming Deductions twice

Only claim tax-saving deductions and exemptions once. You can avoid this situation by submitting Form 12BB to your new employer. Just make sure that you claim only those deductions which you did not claim during earlier employment.

If you were unable to submit Form 12BB then you may have to check whether you are liable to pay any Advance Tax or Self-Assessment Tax. If your new employer has not taken into account your old employer’s TDS and deductions claimed, you might end up owing tax along with some interest penalty. In that case, you will end up with tax dues even after the deduction of TDS by both the employer.

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Example

Dinesh switched jobs during FY 2018-19. The following are his salary and TDS details.

Particulars Income from
ABC ltd (in INR)
Income from
XYZ ltd (in INR)
Actual tax liability (in INR)
Income from Salary 5,00,000 (April-September) 7,00,000 (October-March) 12,00,000
Less:
Basic Exemption Limit
(2,50,000) (2,50,000) (2,50,000)
Taxable Income 2,50,000 4,50,000 6,50,000
Tax Liability 0 10,400 44,200
Monthly TDS deducted by the employer 0 1733 for six months  
Total TDS deposited by the employer 0 10,400 10,400
Tax liability at the year-end     44,200
TDS shortfall     33,800

 

Conclusion

  • Higher Tax Bracket: When total salary income from both the employer is considered, Dinesh’s income falls under a 20% tax bracket.
  • Double Deductions: Both the employers considered the basic exemption limit of INR. 2,50,000 before deducting TDS. Hence there is a shortfall of INR. 33,800 which Dinesh will have to pay with interest penalty before he files his ITR.

You can avoid a shortfall in taxes by communicating your previous employment details (salary, allowance, deductions claimed, etc) accurately to your new employer. You can do it by submitting Form 12BB / Interim Form 16 to your new employer. Which will enable your new employer to calculate TDS accurately.

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FAQs

What to do if TDS is not properly deducted by an employer?

You need to ask your current employer to rectify the error and deduct the correct TDS on your total salary income. The other option is to pay the Advance Tax or Self Assessment Tax by yourself.

Can I file ITR-1 if I have switched jobs during the year?

Yes. You can file ITR-1. Further, make sure to consolidate the salary from both the employers before filing ITR.

Yes. You can file ITR-1. Make sure to consolidate the salary from both the employers before filing ITR.

Yes, you should declare your income from previous employment to the current employer. This will help the current employer to calculate tax on your total income for the year and deduct TDS accordingly. If you dont show the income the same will not get taxed, but you are violating the laws



AY 2021-22 ITR 1 SAHAJ Form – Salaried Individuals

What is ITR 1?

ITR 1 is the simplest one-page Income Tax Return Form for individuals having income from Salary / Pension, One House Property, and income from other sources. It is the basic ITR Form.

ITR 1 Form for AY 2021-22
Download the latest ITR 1 form for AY 2021-22
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ITR 1 Form for AY 2021-22
Download the latest ITR 1 form for AY 2021-22
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Up to FY 2018-19 (AY 2019-20), it was not mandatory to file Income Tax Return if the total income was less than the basic exemption limit. However, Budget 2019 inserted the seventh proviso to Section 139(1). As per this new provision, if a taxpayer has entered into high-value transactions, it is mandatory to file the ITR even if the total income does not exceed the basic exemption limit. The high-value transactions can be either of the following:

  1. If the taxpayer has deposited more than INR 1 Cr in a current account
  2. If the taxpayer has incurred foreign travel expense of more than INR 2 lacs
  3. Or, if the taxpayer has incurred electricity expense of more than INR 1 lac
Upload Form 16
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Who can file ITR 1 Form?

Any individual whose total income does not exceed INR 50 lakh and includes:

  • Salary / Pension Income.
  • Income from one House Property (If there is a brought forward loss from previous years, ITR-1 cannot be filed).
  • Income from Other Sources (excluding winning from Lottery and Income from racehorses).

In case the income of a spouse or minor child is clubbed with the taxpayer’s income then they can file it only if their clubbed incomes include the above categories.

Earned Salary Income during the year?
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Who can not file ITR 1 Form?

It should not be used by Non-Resident of India (NRI) and the individuals whose total income includes:

  • Income from multiple House Property
  • Income from winnings from lottery or income from racehorses
  • Capital Gains Income (short term and long term Capital Gains from the sale of house, plot, shares, etc.)
  • Agricultural income exceeding INR 5000/-
  • Income from Business and Profession
  • Resident individual having
    • Any asset (including financial interest in any entity) located outside India or
    • Signing authority in any account located outside India
  • Individuals claiming relief of Foreign Tax paid or Double Taxation Relief under section 90/90A/91.
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List of Documents Required to File ITR 1

Before you start working on your ITR, you should have the following documents handy:

Essential documents

Additional Documents

  • Salary Income
    • Form-16 or Salary slips received from your employer and
    • Pension statement/passbook.
  • House/Property Income
    • Address of the property,
    • Co­owner details in case the property is co­owned,
    • In case of house/property loan Interest certificates/repayment certificate from a bank,
    • In case of let out property ­Rent agreement
  • Other sources
    • Savings/current account statements/Passbook
    • Interest certificates for deposits/bonds/NSC
    • PPF account statement/Passbook
    • Dividend warrants/counterfoils
    • Rent agreement in case of let out machinery
    • Details about receipts of any other incomes

Income Tax Return Form – ITR 1

Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
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Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
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Major Changes in ITR 1 for AY 2021-22

  • Taxpayers are given the option to choose between the old tax regime and the new tax regime
  • Dividend Income has to be added with a quarterly breakdown for accurate calculation of Interest under Section 234C

Major Changes in ITR 1 for AY 2020-21

  • The individual taxpayers who meet the following criteria:
    • Make cash deposits above INR 1 Crore with a bank,
    • Incur expenses above INR 2 Lakh on foreign travel or,
    • Spend above INR 1 Lakh on electricity should also file ITR 1
  • Condition of the individual having income from salaries, one house property, other income, and having total income up to INR 50 Lakh continues
  • Resident individuals owning a single property in joint ownership can also file ITR 1 where the total income is up to INR 50 Lakh
  • Taxpayers should separately disclose the amount of the investment or deposits or payments towards tax saving made from 1 April 2020 until 30th June 2020
Income Tax Calendar
Don't miss another Income Tax due date. Check out this amazing tax calendar for 2020 by Quicko.
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Income Tax Calendar
Don't miss another Income Tax due date. Check out this amazing tax calendar for 2020 by Quicko.
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Major Changes in ITR 1 for AY 2019-20

  1. The Income Tax Return form for FY 2018-19 is not applicable to an individual who is either a director of a company or has invested in unlisted equity shares
  2. Under Part A, there is an introduction of ‘Pensioners’ checkbox under the ‘Nature of employment’ section.
  3. The Return filed under section has been segregated between normal filing and filed in response to notices.
  4. Segregation of Deductions under salary will into standard deduction, entertainment allowance, and professional tax.
  5. The taxpayers will have to provide income-wise detailed information under the ‘Income from other sources’.
  6. Introduction of a separate column under ‘Income from other sources’ for deduction u/s 57(iia) – in case of family pension income.
  7. Deemed to be let out property’ option now available under ‘Income from house property
  8. Inclusion of Section 80TTB column for senior citizens.

FAQs

Can Non-Resident of India (NRI) file ITR 1?

No. NRI can file any other ITR form depending upon the source of income earned by them in India. ITR 1 can only be filed by an Ordinary Resident of India.

Do I need to submit supporting documents along with ITR 1?

It is an annexure less form. Hence no need to send any supporting documents to the IT Department.

Can I file ITR 1 if I have multiple Form 16?

Yes. Any resident individual who has earned income from salary during the financial year can file ITR 1. Change in employment does not affect the ITR form type.

Can I file ITR 1 without Form 16?

Yes. A taxpayer can file ITR 1 without Form 16. However, he needs to calculate his taxable salary income for a financial year while filing ITR.

Is it mandatory to provide bank account details in Income Tax Return?

Yes. It is mandatory to provide active bank account details. You are also required to select one account as your primary account. Since your refund will be directly issued to your Bank Account vis ECS.

Can I file a return after the Due Date?

Yes. You can file a ‘Belated Return’ after the due date. You can file a belated return before the end of Assessment Year or before the completion of the assessment whichever is earlier. Late filing fees as per section 234F will also be levied.

Can I file exempt income in ITR-1?

Yes, you can file exempt income in ITR 1. However, if agriculture income exceeds INR 5000 then you will have to file ITR 2.

Do we have to report exempt LTCG in ITR 1?

Yes, you need to report exempt LTCG in ITR 1 provided it is exempt u/s 10(38). In case you have any taxable LTCG, you can use the other income tax return forms that are applicable. Additionally, it is necessary to e file tax returns if LTCG exceeds INR 2.5L even if your income is below taxable limit.

Is it necessary to add dividend income from mutual funds?

Yes. Dividend income from mutual funds is exempt u/s 10(35). It is shown in the Part D under the head Exempt Income (others).

I have no due refund. Do I still have to enter my account details in the return?

Yes, it is mandatory to fill in your bank account details, whether you have refund due or not. This is because it has been noticed that many taxpayers end up paying more than their required tax liability. In such cases, it is important for the Income Tax Department to send refunds within a certain amount of time.

How many returns can I file using the same mobile number and e-Mail address?

You can only file 10 returns using the same e-Mail ID and mobile number.