How to File Income Tax Return if You Have Salary And One House Property; All You Need to Know About ITR-1

If you have salary income and one house property then ITR-1 (also known as Sahaj) will be applicable to you. It is a one-page form and can be filled easily without much fuss.

You should have got Form 16 and must be ready to file income tax return (ITR) for the financial year 2017-18 (Assessment Year 2018-19). If you have salary income and one house property then ITR-1 will be applicable to you. It is a one-page form and can be filled easily without much fuss. Here is a complete guide on how to file the Sahaj form.

Who can file ITR-1?

The form is applicable only to resident individuals whose total income is less than Rs 50 lakh falling under the following heads.

• Salary income
• Income from one house property
• Income from other sources (excluding race horses)
• If there is an income from another person such as spouse or minor child, then the income can be clubbed only if their income falls into the above income categories.

Steps to File ITR-1 (Sahaj)

Part A of ITR-1

In Part A you need to fill general information about yourself including your Permanent Account Number (PAN), 12 digit Aadhaar Number. If you don’t have Aadhaar then furnish 28 digits Aadhaar Enrolment Id. You also need to provide your mobile number, email address and communication address, among other things.

Part B of ITR-1

Part B is about the computation of total income

Salary Income

• From this year onwards you need to give a detailed break-up of your salary including allowances not exempt, perquisites and profit in lieu of salary, as given in Form 16 issued by the employer.
• If there is more than one employer then you can provide details in respect of aggregate amount under different heads from various employers.

Income from House Property

• Tick the box whether the house property is ‘Self Occupied’ or ‘Let Out’. Annual value of the self-occupied house is nil and the value, therefore, is shown as negative.
• Fill in the details of gross rent receipts, municipal taxes paid and interest paid on borrowed capital.
• If the income under House Property is a loss figure, mark the negative sign within the brackets at left.
• Deduction under section 24(b) cannot exceed Rs 2 lakh provided the loan is taken on or after April 1, 1999 and is for the purpose of acquisition or construction of the house

Income From Other Sources

If you have income from other sources such as interest from fixed deposit fill details in the form. In case of loss the form is not applicable to you.

Part C of ITR-1

• Claim the deduction of upto Rs 1.5 lakh under section 80C.
• If you have a health insurance family, you can claim deduction upto Rs 25,000 as a deduction for you and your family. For parents, the deduction limit is Rs30,000.
• You can also claim deduction under 80G (donations to certain funds, charitable institutions) and 80TTA (Deduction in respect of interest on savings account upto Rs 10,000)

Compute Tax Payable

After tax computation, do not forget about a deduction of Rs 2,500, which is provided to those whose total income does not exceed Rs 3,50,000. Afterwards, you need to calculate the education cess including secondary and higher education cess at the rate of three per cent. In case of any difference (between tax payable and tax paid) pay the remaining amount. Last but not the least do not forget to e-verify your income tax return form.