[Music] welcome everyone as we venture into this learning experience I'm confident that you have grabs the importance of income tax compliance now let's start channel that understanding as we delve into the steps of filing an ITR and that also itar 1 so let's dive in together roll up our sleeves and master the process by the end of our session you'll feel empowered to file your income tax return with lot of ease let's begin so let's begin first by exploring the components which are involved in filing an income tax written which is we are looking at ITR 1 so before diving into the platform it's essential to understand several key areas this includes defining what an it1 is and also examining the slab rats that are applicable to individuals and also understanding different heads of income as well as exemptions and deductions under Section 10 and chapter 6A of income tax act respectively so now first understand that what is an itr1 so ITR 1's alternate name is also sahaj so it is important to understand who is eligible to file this uh ITR 1 form so first of all let's understand what is the applicability of itr1 you can also note it down so first is this id1 can be filed only by a salaried resident salaried resident individuals which with a total annual income which is not more than 50 lakhs are only eligible to file id1 now eligible income when I say eligible income eligible income means income that has been received from salary or income that has been received from house property but only one house property second is other sources of income which are also allowed such as like fixed deposit interest or saving interest but the incomes that are not allowed in it1 are activities such as like horse racing or gambling or Lottery like any winnings which has been received from uh uh these type of income will not be uh considered in filing id1 they will have to fall some uh they will have to file some another idea next is the individual should also not possess any property outside India that is also very important if any person has a property outside India then they are not eligible to file it1 then there should not be any foreign income for that person and also if there is any agriculture income it should not be more than 5,000 so these are the criterias that are applicable for a salaried resident individual who can file an id1 now let's discuss different labates that are applicable for individuals and HS particularly in India now in cabat we are going to understand that there are three types of uh individuals first is people or individual who are less than 60 years of age second are people who are between 60 to 80 years of age which we call as senior citizen and third is like individuals and HF which are 80 years above which we also called as super senior citizens so first let's start with normal slates which are applicable for individuals whose age is less than 60 years so first is like up to 2.5 lakh rupees that means if a person or individual is earning 250,000 in a total year then they have to pay zero tax to government second slab would be 250,000 to 5 lakh if any person is earning between 250,000 to 5 lakh they have to pay 5% of their income to government third is from 5 lakh to 10 lakh if you're earning income in your total year then you have to pay 20% to the government fourth would be if you're earning more than 10 lakh Rupees which is like a dream income for everyone right so if you're earning more than 10 lakh Rupees in a total year then you have to pay 30% of your tax to the government correct so this was the normal slab rates now let's understand what are the slab rates that are applicable to a senior citizen so senior citizens are those individuals whose age is between 60 to 80 years so for them up to 3 lakh rupees they have to pay zero tax like for normal cbate it was 250,000 but for senior citizens it is three lakh so up to three lakh they have to pay zero tax so next Lab for them is like three lakhs to 5 lakh if any person is earning from three lakh to 5 lakh they have to pay 5% to the government then if a person is earning from 5 lakh to 10 lakh then they have to pay 20% of their income to the government and same with senior citizens if they are earning more than 10 lakh Rupees they have to also pay 30% of their income to the government I hope this is clear now third slab which is applicable to super senior citizens to all our grandfathers and grandmothers okay so if they are earning 5 lakh rupees in the total year they have to pay zero tax to the government the same if they're earning from 5 lakh to 10 lakh Rupees then they have to pay 20% of their tax to the government third slab rate for super senior citizens would be if they earning more than 10 lakh Rupees then the rate would be same that they have to pay 30% of their income to the government I hope all this is all about slab of individuals and HF I hope this was very easy to graas I also hope that you have noted uh this down now let's understand the next step or like next part to understand for filing of itr1 so next step would be that will understand what are the different heads of income different heads of income means there are different sources of income from where we can we generate the income and they would be put into heads of income so that it is easier to file our it1 so for every single written there would be like five heads of income this also you can note it down if you want first is salary income second is house property income third is pgbp which means profit and gains from business or profession fourth is capital gain and fifth is income from other sources any income that does not fall within salary house property or profit and gains from business or profession or capital gain will be given given in the will be considered in income from other sources which is our fifth head of income okay so let's understand this head of income like one by one first we let's start with salary now in context of a employer employee relationship the services that are rendered by the employee are compensated by the employer what does this mean is like there's a relationship between two people that is one is employer one is employee and there are certain services that are given by employee to the employer for which the employer pays the amount which means the employer pays uh employer is compensating the employee now this compensation that is given by any employer is considered as salary in Income Tax Act I hope this is clear now let's understand what does salary include now salary whenever we get any salary Sal salary is divided into three categories first is basic salary second is allowances and third is perquisites now first basic salary and allowances are on monetary basis that means any basic salary or allowances that are given to the employee are in monetary terms which means you can count the amount so they are added up and shown as a single field while filing a return return now you will understand this more more when we'll do the Practical uh um for filing it now whereas those benefits which are non-monetary in nature non-monetary as in which are given in kind or which you cannot count in money those are non-monetary in nature like for example your employer has gifted you uh uh something like a few uh gifts are given like a table or chair or something like that has been given by it is considered as non-monetary nature now these are received by an employee from the employer these are called as perquisites like if any allowance you have received from your employer which cannot be counted in money terms that amount we are called we will call it as perquisite now we'll all all We'll add all this which means basic salary allowances and perquisites so that we'll get the toal total income under our salary head which we will call as gross salary now from gross salary will deduct three deductions under section 16 so out of deduction first deduction would be under section 16 I a which is section 16 subsection I a which is also called as standard deduction now standard deduction or gross salary whichever is low low up which means like we will deduct the standard deduction which is amount of 50,000 from every salary if you're earning above 50,000 able to understand if you're earning in the total year less than 50,000 then that amount will be deducted from your gross salary amount now this is a first deduction this is received by every single individual maximum of 50,000 second deduction is of entertainment allowance now entertainment allowance refers to the extra expenses that salaried individuals receive as part of their income now it also covers expenses related to drinks hotel stays meals movies and other entertainment activities now for government employees entertainment allowance is eligible for certain exemptions based on specific conditions however for employees working in private companies or other authorities entertainment allowances entirely taxable the maximum deduction available under the enter entertainment allowance would be rupees 5,000 and then comes section 16 subsection 3 which is called as professional tax professional tax also known as employment tax now this is lied by some state governments on individuals which are engaged in various professions trades or any employment now the amount a taxpayer pays as professional tax is also allowed as deduction from their gross salary income because it is a tax that has been paid therefore this deduction is available for the year in which the taxes actually paid by the employee now the maximum eligible deduction under professional tax would be rupees 2500 which you can note it down now I hope you have understand everything in regard to salary now let's move to our second head of income which is house property now in the realm of residential or commercial property leasing the revenue obtained through the reception of rent is formally denoted Ed as house property income now rent received for a property is calculated based on factors like Municipal valuation Fair rent or standard rent so there are three parts also applicable in house property which are municipal valuation Fair rent and standard Rent Now depending on whichever is higher from all these three it is considered as income from house property now if the property is self occupied then the annual value is considered as zero for the self occupied property which means those property where you personally or your own family lives now this is also called as gross annual value now but if a property is self-occupied the gross annual value would be considered as zero now from this Municipal Taxes on the property on which rent is computed may be paid now there thus needed to be deducted to derive a net annual value I hope you have understood that that is a gross annual value which is considered to be Municipal valuation Fair rent or standard rent whichever is higher from all three and then if uh it is a self-occupied property then it would be a gross annual would be zero and then out of the gross annual value we'll deduct the Municipal Taxes that are applicable on our property now this deduction is also allowed only if taxes have been B by the owner and paid during the financial year now obviously you will get a deduction only if you have incurred the expense correct so next then we'll have to deduct now there would be also few deductions that are applicable in house property also the same way that we saw in salary where the standard deduction and entertainment allowance and Prof professional allowance was considered as deduction in house property the deduction would be in regard to section 24 which includes firstly section 24 subsection a which is 30% of the net annual value now 30% of your net annual value will be given as a deduction uh by government second deduction would be 24 uh section 24 subsection B which is the interest on housing loan now if you have taken any property uh even though you are living at that property and you are paying uh uh any uh you have taken loan for that property and then you are paying interest to the bank then that interest will be allowed as a DED deduction under section 24 subsection B now whatever will be the last amount that will arrive to will be called as taxable house property income correct now you will be able to understand this better when we'll do the Practical now let's move to a third head of income which is pgbp which is also called as profit and gains from business or profession now this pgbp pertains to the earnings that are derived by any individual or entity through their business or profession uh their business or professional Enders now this encompasses income arising in from diverse sources including business profits professional fees and comparable sources of revenue correct I hope pgbp is clear next head of income is capital gain now capital gain means the income arising from the transfer of a capital asset such as land or building which will be resulting in profit will be referred as capital gain for example if you have any land or building which will called as capital asset and you try to sell this asset and if you receive profit from selling that uh asset then that will be considered as your capital gain income our last head of income which is income from other sources now any income which does not fall within the categories of salary house property business or profession or capital gains will be categorized under income from other sources now as per it 1 only the heads of salary house property and income from other sources have relevance because if you remember uh uh what is itr1 or their applicability we saw that salary income like salaried individual there should also be income from other sources is allowed income from house property is allowed but only from one house property and if you have like any other income then you cannot file it1 I hope you have understood this now next there is one concept called as set off that we are going to learn now set off in income tax refers to the process of adjusting losses okay adjusting losses against income or profits within a specific tax year able to understand like set off in income tax refers to the process of adjust losses against income or profits within a specific taxi now any losses not offset against income can be carried forward to Future years for deduction against income this offsetting can occur either within the same category of income which is also called as intad or across different categories called as interhead what does this mean like for example house property if you are living in a self-occupied house property then your grass gross annual value will be zero but then still you will be having a deduction in regard to interest that you're paying now when you pay the interest 0 minus any amount will give you a minus figure correct so this figure for example this loss of house property can be setted off with other income head okay okay that's what is called as that's what uh we will call as interhead set of now I'll give you one more example when you own a self occupied property that is a house you live in the annual value of that property will be considered as nil for income tax purposes correct so however if you have to take a home loan for this self-occupied property and you are paying interest on it now that interest amount can be treated as a loss from house property as I mentioned like minus figure now this loss can be set off against other sources of income which you might have now such as salary or income from other sources now this negative amount is then adjusted against your other heads of income effectively reducing your gross income subject to tax by that extent I hope this example is like you have understood this uh example very uh very nicely following the computation of incomes from each distinct head The Next Step involves aggregating this heads of income from this total we subtract a general deduction known as chapter 6A deduction so the next question arises what is chapter 6A deduction chapter 6A of the income tax act in India provides taxpayers with a way to claim deductions from their gross total income based on specific Investments expenses and contributions made during the financial year now this deductions serve as a significant tax saving opportunity helping reducing the overall tax liability for tax payers let's now learn about deductions so first deduction is section 8C this allows taxpayers to gain deduction for various specified Investments and expenses this includes life insurance premium National savings certificate senior citizen savings scheme Suk Sami yogena public Provident fund and principal sum for home loar and so on our next section is at CCC this is deduction for contribution to certain Pension funds offered by public as well as private sector Insurance third is section 80ccd subsection 1 so this deduction is in regard to contribution to pension Plans offered by the central government such as National pension scheme and atal pension yoga now in this there are certain criteria criteria for salaried employees is limit of 10% of the salary or his or her contribution whichever is lower and for other individuals like for example is self-employed or professional it is 20% of the gross total income of he or contribution whichever is lower next section next section is at ccd1 B now this is additional deduction for National pension schemes contributions over and above the limit of 150,000 our next section is at CCD subsection 2 this is in regard to deduction for employer contributions to the pension scheme of the central government next section this is a very important section which is known as section 80d now this is in regard to deduction for medical insurance premium this is the limits over here are 25,000 if you have taken medical insurance for self spouse and children and deduction would be same to 25,000 if you have also taken for parents which are below 60 years and 50,000 if you have taken for parents as well but their AG is above 60 years I hope this is clear so next section section 80 DD now this section is in regard to maintenance and medical treatment of handicap dependents for them like persons with certain disability they have 75,000 as deduction but the persons who have severe disability they have 1 lakh 125,000 as deduction now the term disability means as per the act as per the income tax act if a person is more than 80% disabled then he or she is considered to be severely disabled and if the disability is less than 80% then he or she is considered to be a normal disabled person now our next section next section is atdb now this section is in regard to deduction for medical treatment expenses for specified diseases now 40,000 would be given as a deduction for the taxpayers whose ages below 60 years and they have gone through any medical treatment in the for specified diseases in the uh current year second is actual amount paid if you are a senior citizen that is above 60 years of age then you will get actual amount paid or one L whichever is lower and this would be the actual expenses made next section it is section 80e now deduction for interest on loans taken for higher education no maximum limit has been given but available for maximum 8 years now next section next section is also a very important section which is 80 TDA now this section allows a deduction up to rupees 10,000 on the interest earned from the saving band account this is a person getting interest income from saving bank account can deduct under 0a interest received or 10,000 rupees whichever is lower next section is in regard to ATB now this section allows a deduction of up to rupes 50,000 on the interest earn on the saving bank's account and term deposit only if the person is a senior citizen that means if the person's age is above 60 years of age now the person is eligible to deduct interest received or 50,000 Rupees whichever is lower next section next section is ATB now this section provides a tax deduction for interest paid on loans specifically taken to purchase an electric vehicle here are the key features in regard to such deduction eligibility is only individual taxpayers can claim this deduction then deduction amount will be you can claim up to rupes 150,000 on interest payments under Section 80b now this section only comes when you have taken loan to purchase an electric vehicle now the next section is section U now this section provides a reduction for persons with disabilities now the the deduction amount is 75,000 for persons with disability and 1 L 125,000 for persons with severe disability now the term disability same as that we learned in Section 8 DD now our next section next section is atg now this is also a very important section under this section donations made to certain funds or charitable institutions are considered as deduction now the amount of deduction varies based on the type of dedu uh type of donation now next section 0 ggaa now this section allows a deduction for donations made to scientific research or rural development our next section is section 80 GC in this individual taxpayers can claim a deduction for the amount donated to political parties so these were the different categories within the General deductions provided by the chapter 6 next we're going to discuss what is an exemption under Section 10 of the income tax act now section 10 of the income tax act outlines several types of income that are exempt from taxation in India this provision identifies incomes that are not subject to tax for individuals or entities even though these incomes arise in a year it is ex Exempted from paying tax as per the provisions of section 10 of the income tax act 1961 now various examples of section 10 income would be agriculture income income gifts received from relatives income from scholarships or income from religious or charitable activities or gratuity for government employees or income from specific saving schemes now let us see how we can file id1 in our simulated platform so as you can see on screen this is our energy viya platform where we are going to learn how to file our ITR under old regim now see if you can see uh there's a question available with us we are going to read the question and understand what information has been provided to us now this question mentions Mrs Rupa is a resident resident individual working at ABC private limited Rupa was born on August 25th 1986 and draws a salary of 13 l2548 rupees so as you can see these are the information that will be needed and plus if you can remember the application for it1 is all being getting satisfied because Mrs Rupa is a resident individual then she's working at ABC means she's a salaried person and she was born on 25th August and draws a salary as well now let's get to another information now she also gets few following perquisites and allowances h of 24,000 bonus of 20,000 then car 20,000 newspaper 2,000 professional tax of 2,500 now next is Rupa paid the following expenses such as she has done contribution to PF payment to the LC premium then she has done mutual fund uh she has done tution fee for minor child then housing loan principal amount housing loan interest amount then she has also paid medical insurance for self then she has also donation done to Chief Minister Disaster Relief Fund via any F of 25,000 then these are the information will need if she has done like donation for example pan address where the uh office is there of that party then uh uh the PIN code and state code so when we'll uh practically do this thing you will understand it much better now your let's see the last part in addition to her salary Mrs Rupa owned 32,400 as interest on a fixed deposit and 5,500 as interest on a saving bank account okay next information is employer deducted tax which is like TDS of 1ak 15,000 which this is the information given for the employer like tan of the employer name of the employer plus the address of the employer and also the PIN code next is income chargeable under salaries is 855 and then compute taxable income tax liability and balance tax payable or refund if any for Mrs Rupa for the assessment here now this is the pan login information now let's uh let's solve this question okay so as you can see we came here on the energy with the simulated platform I'll also like to show you the income tax platform which is which is quite similar to our energy withas simulated platform this is the actual website and this is our simulated platform okay so let's start our solving of the question so first we'll go to this login we'll click on login we already have all the information like pan and password so we are just going to copy paste we going to click on continue then we'll click on this please confirm your secure message then we are going to copy paste the password as well we are going to click on continue okay so here you can see the basic details like Ras account we have logged into now all we have to do is click on file now that we'll select the assessment here which is 2122 which is also given in the question 2122 then we'll click on online because we are doing this online filing we'll click on continue okay then we'll click on start new filing okay now we have to select whether the Rupa is individual HF or others so she is an individual so we'll click on individual click on continue we are going to select idea one because that's what we are learning so we'll click on proceed with idea 1 then we'll click on let's get started and over here you can see are you filing the income tax return return for any of the following reason now there are three reasons why you will be filing your income tax return return first is if you are at the age of less than 60 years then if you earning to about 250,000 then you have to file income tax return so tax taxable income is more than basic exemption limit this is the one condition second condition is even though if you're earning less than 250,000 but in the total year you have deposited or aggregate amount exceeding one CR in one or more current accounts during the previous year what does this mean if you are into a business and you have a current account and you have deposited in the total year more than one CR then you have to compulsory pay uh you have to compulsory file income tax return return what is next condition in this if you incurred any expenditure exceeding 2 lakh rupees for travel to foreign country for yourself or any other person then you have to pay uh you have to file income tax written third condition is like in the total year if you have paid 1 lakh or more as your electricity bill then you you are you have to file income tax return return and then the third option is others so we are going to click on taxable income is more than basic exemption limit then we are going to click on continue then we have we are going to click on okay then this is the form that we'll get and then we have to fill one by one uh this form first we'll click on personal information we'll go down we'll check here we have to fill the nature of employment now nature of employment will be others because nothing has been mentioned in regard to whether it is a government job or something like that okay so we are going to click on others we are going to come down okay going to click on confirm then we are going to go to next form now in next form this is in regard to salary so we have going to come down we are going to click on skip the questions and now we are we can see a income from salary all will do is like edit then we'll put the in information in regard to salary now if you remember we learned in salary portion that salary consists of three uh main areas that is basic salary uh allowances and perquisites so what we are going to do is like we are just going to add okay so this is our this is our actual salary here we are going to add the allowances 2 4,000 of h plus bonus okay which comes to 1369 486 we are going to put it over here yes it is correct right and then we are going to put the value of perquisite for the remaining amount which is like 22,000 okay we going to come down and then here you can see the deductions that were available in salary which is 50,000 correct and then we have Al we also have professional tax of 2500 okay we are going to click on Save okay we came here next we have income from house property okay we are going to click on ADD details then we are going to click on type of house property now in this obviously we uh there is nothing mentioned in regard to rent so that's why we uh it is not let out so it's always uh it's always self occupied okay we are going to click on that then we are going to write the interest payable on borrowed Capital we have given that information which is housing loan principle is this much but we are going to only take the interest amount just one 1 lakh 35,000 we are going to put that amount over here then it will show in minus which means like this is a house property loss if you remember about set off now this amount will get set off with any income from other heads okay so we are going to click on ADD then we can come down then we can see income from other sources then we are going to click on this now do we have interest income yes we do have which is which is of 5,500 as Saving Bank uh interest so we are going to write your 5,500 then do we have interest from deposits in Bank yes how much is the interest amount see they have given to us 32,400 as interest on fixed deposit so we are going to write here 32400 correct then we are going to come down we are going to we do not have anything else family pension income tax refund any other or dividend income nothing so we are going to click on confirm okay so this is our total income that we have earned in the total year can come down and then we do not have any information in regard to exempt income also correct so we are going to click on confirm we come on next form which is in regard to Total deductions so let's file our deductions so we'll come down and we'll click on skip the questions okay we'll click on yes also then in ATC see here they have also given you information that what you have to put here life insurance premium then defer annuity contribution to Provident fund subscription to certain Equity shares or debentures everything and then there is maximum deduction that is available is 150,000 for ATC at CCC and atcc uh D subsection one okay we click on edit and then we'll calculate our deduction amount okay so just a second okay so we'll uh first we have contribution to PF then we have payment to the LC premium then we have mutual t uh mutual fund uh deduction then a tution fee of minor child also we just add everything which is uh and also uh principal uh principal amount which is 160 oh sorry 65,000 so this is 246 750 is our total deduction but how much we are going to get only 150,000 because that is the maximum deduction we click on ADD then we'll go down and we do not have any respective pension fund nothing to pension scheme of central government nothing for higher education nothing for rent paid nothing for loan taken for residential uh house property because amount of interest paid we have already mentioned it in uh house property so we'll go down purchase of electric vehicle no and we have health insurance premium we'll click on edit now here whether you or any family member is a senior citizen so we'll click on no because that is not mentioned and then for self we are claiming health insurance and how much premium we have paid 26,000 for self so we'll 26,000 okay so we'll go down and then we'll click on Save yes so then interest from saving banks yes we do have interest how much it is 5,500 correct let's recheck it it is 5,500 click on ADD then we'll see the next deduction uh interest on Saving Bank is done atdd medical treatment no one is there specified dises no one is there contribution to pension scheme or central government by employer no information is mentioned then ATU there is no information in regard to persons with disability that is uh no deduction to uh political party but there is donation to Chief Minister Disaster Relief Fund correct we'll just copy all this thing then we'll go to next there's nothing correct here you can see donation to certain funds charitable institution which is atg you'll just click on atg the type of uh deduction is donation entitled for 100% deduction eduction because it is a uh because it is a government based chief minister Disaster Relief Fund so that's why we'll get 100% of the deduction pan of the Dy we'll put then we'll also need the address we'll also put the address properly yes uh then we'll put the city town or District which is the uh and then we'll put the state code state code given is 32 and pin code given is 695001 okay now donation in cash it's not mentioned so it's going to be zero and donation in other mode would be 25,000 because they have mentioned that donation has been given through NFP correct so it's an online mode so uh we'll we'll click on uh save right we'll click on ADD and then we'll go down and we can see oured option has come yes here you can see atg and we have got the deduction yes we'll go down now we'll click on confirm so everything is done now we have to click on tax paid correct so here details of TDS which is tax deducted at source do show details then we'll click on add another then we all we have the information in regard to you know the employer correct so we'll put the employer tan number name of the DOR now whenever a company is a corporation or something so they have a tan rather than pan okay so you click on uh we put the name of the deductor and the income chargeable under salaries they have mentioned as the amount 855 right 855 ,000 and the tax deducted is 1h1 15,000 so we'll click on C we'll go down we'll click on confirm then we'll come down and here we can see the total tax liability that is uh calculated okay so this is our gross total income out of which we got the deduction of this much amount and then our total income is 10 lakh 36 now if you are more than 10 lakhs then 30% will will be the tax rate so this is our tax amount then over the 30% that is also 4% compulsory health and education set which is calculated on the tax amount okay so on 123 we have calculated 4% and then we got 128 353 okay so it'll come down and then we can see here are little interest that are also applicable which are which are automatically calculated by the site you do not have to calculate those okay so we'll come down and then we can see this total tax that is applicable to us okay so we'll click on confirm come down then you can see all these are like this forms are confirmed confirm confirm right so now we can only click on proceed so we'll come down we can see this is our total income on our total income this was the tax applicable but this is the tax we have already already paid through our salary TDS okay so now we only have to pay this much uh uh tax so what we'll click we'll click on pay now then we'll click over here that I Rupa son or daughter and then in capacity of self then we'll come down we'll click on proceed to preview and this is our actual form uh that will get generated where which you can also download and keep it with your yourself or you can also provide it to your client okay so we can come on the last page and we'll click on proceed to validation and then done we have submitted in the real platform you will only have to click on proceed to validation and then submit these are the only two steps that you will have to do and then your uh income tax return would be completed I hope how to file it 1 is uh you are thoroughly capable of filing itr1 now so in conclusion this session has provided a comprehensive overview of the process involved in filing an it1 now covering essential aspects such as understanding the forms eligibility criteria the computation of various income heads and the utilization of deductions under chapter 6A by following these guidelines individuals can effectively navigate at the tax filing process ensuring compliance with regulatory requirements while optimizing their tax liabilities okay see you in our next session thank you [Music]