ITR-1 is for those Individuals who are Indian Resident not being Not Ordinarily Resident and having their total Income for the Financial Year 2019-20 up to Rs.50 Lakhs, having Income from Salaries (It also including employment from more than one employer), Income from One house property which is owned by the taxpayer, Income from Other sources such as Interest from Fixed Deposits, etc. and having Agricultural Income up to Rs.5,000/- (Five thousand).
Individuals who are either Director in any company or has invested in Unlisted equity shares are not eligible to file ITR-1 for AY 2020-21, they can fill other ITR form for AY 2020-21 as applicable to them.
For using Excel utility, the taxpayer is required to click on the link PR3 as shown in the image. The selected file will get download in Zip format. The taxpayer is required to unzip the said folder in which they can find 2 files namely ITR-2020-PR3.xls and Read Me.txt File.
The taxpayer is required to Unzip the file by right click on the utility file downloaded from the e-filing portal. They need to click on Extract All, then select the destination folder where they want to save the said file and Click on the Extract option.
The taxpayer is now ready to use the extracted file for preparing their Income Tax Return ITR-1 for AY 2020-21.
Read Me.txt file contains the detail regarding how to enable macros in excel.
After clicking on the Macros Enable, the taxpayer will see the Message text popup as shown in the image below. These are basic instructions that need to be followed in order to successfully generate the XML File.
Red labels field is Mandatory in nature and never to be kept blank and there is the instruction given on not to use Cut or Paste shortcut keys while entering the data.
ITR-1 AY 2020-21 Excel file is subdivided into 8 worksheet(s) namely Income Details, TDS, TCS, Taxes Paid and Verification, DI, 80D, 80G, 80GGA, and Help.
Every worksheet in this excel needs to be separately validated in order to successfully generate the XML file.
Work Sheet No.1 Income Details
The Taxpayer can Import from the previous year XML to prefill the data in this year’s ITR Form.
This sheet gives the taxpayer option to Import from excel utility of the same year i.e. if the taxpayer has already started preparing the ITR-1 for AY 2020-21 and previously drafted excel utility (Previous version or Old version of the said form) is available with the taxpayer, in that case, they can import that old version excel into the latest version.
An alert message will be displayed upon selecting the import from excel utility of the same year: “Please use this functionality only to Import from the previous version of current assessment year”
In case of Import from XML, Alert message will get displayed which says “Import personal/ tax details from downloaded pre-filled XML or Import from already generated XML of the current assessment Year”
Importing Procedure ITR-1 AY 2020-21
In the case of Import Personal and Tax details from prefilled XML, the user can import by following the below-mentioned steps:
- Login in to the e-filing portal using valid login credentials.
- Go to the “Downloads” menu and click the “Download prefilled XML” link. Select the “Assessment Year” and download the requisite prefilled XML in the desired location.
- Open the Excel utility in which you want to import and click on the “Import personal/tax details from XML” button.
Make sure to re-check and update the personal details in case of import.
Changes in Income Details from Last Year
Are you filing return of income under 7th proviso to Section 139(1) but otherwise not required to furnish return of Income?
The taxpayer is required to select “Yes” only if the taxpayer is not required to furnish ROI u/s 139(1) but they are supposed to file ROI on fulfilling the conditions mentioned under the 7th Proviso to Section 139(1).
If yes is selected by the Taxpayer, then there is certain information that needs to be filled out by the assessee.
- Have you deposited any amount or aggregate of the amount that exceeds Rs. 1 crore in one or more current accounts during the previous year i.e. FY 2019-20.
[Deposit includes Cash deposit and Non-cash deposit].
- Have you incurred expenditure on foreign travel that exceeds Rs.2 Lakhs, the purpose of the visit may be either for yourself or on behalf of such other person?
[For eg. If you paid to your travel agent for a family vacation in Dubai in excess of Rs.2 lakh then the amount of such expenditure should be mentioned here for say you have spent Rs.3.5 Lakh, then you must mention Rs.3.5 Lakh in the respective column]
- Have you incurred expenditure of amount or aggregate of the amount exceeding Rs. 1 Lakh on the consumption of electricity during the previous year i.e. FY 2019-20.
[Amount of Electricity consumption includes both units i.e. for residential purpose and for a commercial purpose]
The taxpayer is required to mention the section under which they are going to file their Income Tax Return for AY 2020-21 i.e. whether the ITR is filed u/s 139(1), U/s 139(4) belated return, 139(5) revise, u/s 119(2)(b) i.e. after condonation of delay or they are filing ITR in response to notice u/s 139(9), 142(1), 148, 153A, 153C.
In case the assessee is filing a revised return for AY 2020-21, in that case, receipt number and date of filing the original return is required to be mention.
The taxpayer can feed the required fields as per the details mention in Form 16. In the case of multiple employment, they can consolidate the amount under different heads. However, in the case of the standard deduction, and deduction under Chapter VI-A they have to consider the amount as per the threshold limit.
For say if there is employment from more than one employer in that case standard deduction that is allowable to an assessee is Rs.50,000/- for full FY. So, in any case, the consolidated amount under standard deduction cannot exceed Rs.50,000/-.
The taxpayer can choose the relevant section for claiming Exemption u/s 10 from the drop-down menu, such as Leave travel concession/assistance under section 10(5), commuted value of pension received as per section 10(10A), etc.
Details of Income from house property is to be entered here such as Gross rent received/ receivable or lettable value during the year, any taxes paid to local authorities, any interest payable on borrowed capital, or any arrears/unrealized rent received during the previous year i.e FY 2019-20 which pertains to any previous period.
Note: Maximum loss that the taxpayer can set-off from loss of House property is Rs.2 Lakh. However, if the taxpayer wished to avail the benefit of carry forward and set-off of loss, they can use ITR-2 instead of ITR-1.
Income from other source
Under IFOS, the taxpayer can select the relevant other income detail from the drop-down menu such as interest from the savings account, interest form deposits, interest from Income Tax refund, family pension, or any other income.
One of the key points here is to mention the Interest from Income tax refund which taxpayers often forget to mention in their respective ITR Form. Whenever, the taxpayer received intimation u/s 143(1) or in any other order after processing of their previous year ITR, in the said Intimation/ order if there is a refund of tax for the said assessee and assessee has been granted interest on such amount, that interest component needs to be included in this year ITR form which they have received in the previous year i.e. FY 2019-20 pertaining to the period FY 2018-19.
Deductions ITR-1 AY 2020-21
Changes in deductions:
For AY 2020-21, during the pandemic situation Government of India has given various relief to the taxpayer. One of the reliefs given to the taxpayer is to avail the benefit of Chapter VI-A deduction till the 31st of July 2020. That means if any taxpayer has invested in any scheme which is eligible for Chapter VI-A deduction till 31st July 2020, they can avail such amount in their ITR Form for deduction purpose.
If they select Yes for availing the claim for the period 1st April 2020 to 31st July 2020, in this scenario they need to fill Schedule DI for AY 2020-21.
After entering all the relevant figure(s) in the respective fields, click on the calculate Tax button which is available on the top right-hand side.
Work Sheet No.2: TDS Schedule
In the TDS Schedule taxpayer is requested to verify the TAN details and the amount of credit available to them as per their Form 16 and Form 26AS and Tax payment details as available in their Form 26AS.
Where hardcopy of Form 16/16A is available and the details of the respective party have not reflected in your Form 26AS, you can claim such TDS on the basis of your TDS Certificate.
In the said TDS Schedule, the taxpayer can see details of TDS from Salary as per the Form 16 issued by Employer(s), details of TDS from Income other than salary as per Form 16A issued by deductor(s), details of TDS as per Form 16C furnished by the payer(s), and details of Advance tax and self-assessment tax payments.
Work Sheet No.3: TCS Schedule
Details pertaining to Tax collected at the source as per the Form 27D issued by the collector(s) will reflect here. In case details are not there and you are in possession of Form 27D, you can manually enter such details on the basis of Form 27D.
Work Sheet No.4: Taxes Paid and Verification
Under this schedule calculated fields in white are picked up from other Schedules and are not to be entered.
In case of a refund, at least one bank account is required to be selected for refund purposes. In case of refund if multiple accounts is selected by the taxpayer for refund credit in such a scenario the refund will be credited to one of the bank accounts decided by CPC after processing of such return.
All the active account details are required to be entered here.
ITR Form can be verified either by the taxpayer or through their representative.
If such is filed through any TRP (Tax Return Preparer) do not forget to mention his/her TRP ID, Name of TRP, and recheck the amount of Claim that TRP has mentioned while filing your Income Tax Return for reimbursement purpose.
Work Sheet No.5: Schedule DI (Details of Investments)
Schedule DI is introduced for AY 2020-21 in which investment/ deposit/ payments details related to the purpose of claiming deduction under Chapter VI-A is to be incorporated and from such total deduction claim, the taxpayer is required to mention separately the details for the period starting from 1st April 2020 to 31st July 2020.
From the Eligible amount of deduction during FY 2019-20 that has come out from the Part C deduction and taxable total income, we have to segregate the amount which we have spent during the period 1st April 2020 to 31st July 2020.
Work Sheet No.6: Schedule 80D
Schedule 80D is about claiming your medical insurance premium where details regarding the premium and medical expenditure are to be entered in a case where the taxpayer or any of the taxpayer family members is a senior citizen excluding parents or where any of the parents are a senior citizen.
Work Sheet No.7: Schedule 80G
Schedule 80G consists of details of donations that are entitled to 100% deduction without qualifying limit, 50% deduction without qualifying limit, 100% deduction subject to qualifying limit, and donation entitled for 50% deduction subject to qualifying limit.
The taxpayer will get all the relevant details from the donation slips. If in case, PAN or any other detail is not mentioned on the receipt, the taxpayer can approach the organization to get the desired details.
Note: In case Donee is any Government organization and PAN is not available then the taxpayer can use “GGGGG0000G” as PAN in the desired field.
Work Sheet No.8: Schedule 80GGA
Schedule 80GGA is about details of donations for scientific research or rural development such as 80GGA(2)(a) sum paid to research association or university, college, or other institution for scientific research, 80GGA(2)(a) sum paid to research association or university, college or other institution for scientific research, etc.
Details such as Name of Donee, address, City, State code, Pin code, PAN of done, Amount of donation (Including donation made in cash and donation made other than in cash).