Income Tax Department has recently introduced the new Income Tax portal to ease the compliance and to make the portal more user-friendly. How can senior citizen compute their total income and tax liability for the assessment year 2021-22 and file their ITR1-Sahaj for AY 2021-22.
Computation of Income and Tax as per Normal Provisions and as per New Tax Regime u/s 115BAC is required to be calculated in order to determine the beneficial tax regime.
Allowable deduction from salary as per section 16 of IT Act
Here in the below illustration, we have calculated Total Income and Tax computation for Senior Citizen as per Normal Provisions (existing tax regime) and as per u/s 115BAC (new tax regime) and how can a senior citizen file their ITR Form – ITR1-Sahaj AY 2021-22.
Illustration:
Mrs. A has earned a pension of Rs.4,03,368/- during the previous year 2020-21. Along with Pension, she has earned interest on Saving Bank Accounts of Rs.4,200/- and Interest on the Fixed Deposits of Rs.1,15,706/-.
She has also purchase a Mediclaim policy of Rs.15,222/- during the previous year.
Determine the Total Income and Income Tax as per Normal Provisions and as per Section 115BAC for the Assessment Year 2021-22.
Filing of ITR under the seventh proviso to section 139(1)
Computation of Total Income [As per Normal Provisions]
| Particulars | Amount (Rs.) | |
| Income from Salary (Chapter IV A) | 353368 | |
| Employer Status: Govt. | ||
| REGIONAL OFFICE NEW DELHI | ||
| Salary | 403368 | |
| Less: Standard Deduction u/s 16(ia) | 50000 | |
| 353368 | ||
| Income from Other Sources (Chapter IV F) | 119906 | |
| Interest From Saving Bank A/c | 4200 | |
| Interest on F.D.R. | 115706 | |
| 119906 | ||
| Gross Total Income | 473274 | |
| Less: Deductions (Chapter VI-A) | ||
| u/s 80TTB (Interest from Saving Bank Account & FDR.) | 50000 | |
| u/s 80D (payment Rs. 15222/-) | 5000 | |
| 55000 | ||
| Total Income | 418274 | |
| Round off u/s 288 A | 418270 |
Adjusted total income (ATI) is not more than Rs. 20 lakhs hence AMT not applicable.
Computation of Tax as per Normal Provisions
| Particulars | Amount (Rs.) |
| Tax Due (Exemption Limit Rs. 300000) | 5914 |
| Tax calculation on Normal income of Rs 418274/- | |
| Exemption Limit :300000 | |
| Tax on (418274-300000) =118274 @5% = 5914 | |
| Total Tax = 5914 | |
| Rebate u/s 87A | 5914 |
| 0 | |
| T.D.S./T.C.S | 8832 |
| -8832 | |
| Refundable (Round off u/s 288B) | 8830 |
All about ITR-1 offline utility AY 2021-22
Computation of Total Income [As per Section 115BAC (New Tax Regime)]
| Particulars | Amount (Rs.) | |
| Income from Salary (Chapter IV A) | 403368 | |
| Employer Status: Govt. | ||
| REGIONAL OFFICE NEW DELHI | ||
| Salary | 403368 | |
| Less: Standard Deduction u/s 16(ia) | NA | |
| 403368 | ||
| Income from Other Sources (Chapter IV F) | 119906 | |
| Interest From Saving Bank A/c | 4200 | |
| Interest on F.D.R. | 115706 | |
| 119906 | ||
| Gross Total Income | 523274 | |
| Less: Deductions (Chapter VI-A) | ||
| u/s 80TTB (Interest from Saving Bank Account & FDR.) | NA | |
| u/s 80D (payment Rs. 15222/-) | NA | |
| NA | ||
| Total Income | 523274 | |
| Round off u/s 288 A | 523270 |
Income Tax Computation Normal Provisions vs New Tax Regime u/s 115BAC
Computation of Tax as per Normal Provisions
| Particulars | Amount (Rs.) |
| Tax Due (Exemption Limit Rs. 250000) | 14827 |
| Tax calculation on Normal income of Rs 523274/- | |
| Exemption Limit :250000 | |
| Tax on (500000 -250000) = 250000 @5% = 12500 | |
| Tax on 500001 to 523274 = 23274 @10% = 2327 | |
| Total Tax = 14827 | |
| Health & Education Cess (HEC) @ 4.00% | 593 |
| Tax | 15420 |
| Rebate u/s 87A | NA |
| T.D.S./T.C.S | 8832 |
| 6588 | |
| Deposit u/s 140A | 6590 |
| Tax Payable | 6590 |
How to check the status of Income Tax – TDS – TCS Challan Paid
Considering the above computation as per Normal Provisions, below is the procedure to file ITR1-Sahaj AY 2021-22.
