I talked about common items in the Income Tax Return forms, and now here’s how to fill the rest of the form.
Note that the total amount of all the above allowable for deduction is limited to 1 lakh.
Note that I have not provided complete details – I am not a chartered accountant, and you may need to use such an accountant to help you with more details.
The next section involves computing your actual tax.
Field 8: The tax payable is calculated in slabs. For the first Rs. 100,000 of your income you pay no tax. This limit is Rs. 135,000 for women and Rs. 185,000 for senior citizens.
For the amount from 100,000 to 150,000 you pay 10% of whatever is greater than 100,000. (Lower limit is 135,000 for women and for senior citizens this section does not apply)
From 150,000 to 250,000 you pay 20% of whatever is above 150,000. For senior citizens, the lower limit is Rs. 185,000.
You pay 30% of whatever is above 250,000.
For a salary of Rs. 125,000 (male):
Upto 100,000: No tax
Slab 1: 100,000 to 125,000: 10% tax on (125,000-100,000)=Rs. 2,500.
For a salary of Rs. 240,000 (woman):
Upto Rs. 135,000: No tax
135,000 to 150,000: 10% of 15,000 = Rs. 1,500
150,000 to 240,000: 20% of 90,000 = Rs. 4,500
Total Tax: Rs. 6,000
For a salary of Rs. 400,000 (senior citizen):
Upto Rs. 185,000: No tax
185,000 to 250,000: 20% of 65,000 = 13,000
250,000 to 400,000: 30% of 150,000 = 45,000
Total Tax: 58,000
Field 8b: Mention your agricultural income here, if any.
Field 9b: If you have an taxable income of more than Rs. 10,00,000 (10 lakhs), you must pay 10% of the tax as a surcharge. (Actually you need to have a taxable income of Rs. 10,25,773 for this surcharge to apply)
Field 9c: 2% of your tax (plus surcharge) is additionally payable – put the amount here.
Field 10 and 11: There are specific deductions available for salary paid in arrears or as an advance in a year under section 89. Section 90/91 refers to double taxation agreements with other countries, which allows you to claim tax relief for taxes paid abroad on income earned abroad.
I shall have to continue the rest in another post since this is getting too long. Please post me your comments.
Download the ITR-1 Excel file here.
Note: the sheet is “protected” in Excel, so you can only select fields which I believe you should use to enter data. If you really need to change other cells, use Tools menu | Protection | Unprotect sheet and make your changes.