Skip to main content

How to file ITR with salary income and home loan

Best SIP Funds to Invest Online 


Unless extended by the government, July 31 is the last date to complete the income tax return (ITR) process every year. Depending on the nature of one's income, one has to choose the most appropriate ITR form out of the several such forms made available by the income tax department.

This story will tell you how to fill ITR in case one has a salary income and is servicing a home loan for a self-occupied property. A self-occupied property is one that is occupied throughout the year by the taxpayer for his residence.

Such individuals have to file 'Form ITR-1 SAHAJ' which is to be used "For individuals being a resident other than not ordinarily resident having Income from Salaries, one house property, other sources (Interest etc.) and having total income up to Rs 50 lakh," ITR 1 form states.

How to file ITR1
ITR1 has five parts – A,B,C,D, and E.

Part A – Personal details like name, address, Aadhaar number (it is compulsory).

Part B – Salary income and amount of home loan interest paid

Part C Various deductions you have availed under section 80C and so on

Part D – Here you will have to calculate total income, i.e., income minus deductions, and total tax payable on that amount

Part E – Bank account details

Read about how to fill up Part A
here and Part E
here

Here is how you can fill up the remaining parts of ITR1.

Part B

Step 1: Enter the "Income chargeable under the head Salaries" at the appropriate place. (B1) – Take the help of Form 16 that you would have received from your employer to enter this figure.

Step 2: As you have a self-occupied property, tick on the relevant box.

Step 3: Enter the amount of 'interest payable on borrowed capital' in the relevant box – If you do not have it, ask your lender to send you the statement with the break-up of principal and interest paid during the previous year. Annual value of self-occupied house is nil and the value therefore is shown as negative. (B2)

Step 4: Thereafter, enter the amount of "Income from Other Sources" – This includes interest earned on fixed deposits and other taxable investments. (B3)

Step 5: Gross Total Income (GTI) = B1+B2+B3 = B4

Part C

Step 6: In Part C, enter amount of deductions you had availed like sections 80C, 80D etc., and total them up. (C1)

Step 7: Arrive at the total income, i.e., GTI (B4) minus C1 = C2

Part D

Step 8: Based on the amount of C2, taxes will be calculated in Part D.

The illustration below shows an example with assumed figures.

It has been assumed that:

Salary income: Rs 9 lakh

Income from other sources: Rs 1 lakh

Interest paid on home loan during the year: Rs 2.4 lakh

Deductions: Rs 2 lakh (u/s 80C: Rs 1.30 lakh; u/s 80D: Rs 20,000; u/s 80CCD (1B): Rs 50,000)



Be mindful of these
In the case of self-occupied property, deduction under section 24(b) cannot exceed Rs 2 lakh provided the loan is taken on or after April 1, 1999 and it is for the purpose of acquisition or construction and not for repair or reconstruction. In case of a self-occupied property, the amount over and above Rs 2 lakh is not allowed to be carried forward i.e. the tax benefit on it lapses.

Further, to avail deduction under section 24 (b), the acquisition or construction of the house has to be completed within 5 years from the end of the financial year in which the capital was borrowed. Therefore, the maximum negative value that can be shown in Step 3 is Rs 2 lakh. If any of the above conditions is not satisfied, then the limit of Rs 2 lakh will be reduced to Rs 30,000.




SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now