Income Tax Return e-Filing for Pensioners and Salaried persons

One is the pension you get after retirement. And the other is the family pension. There is a difference in both types of pensions. And both have different tax treatment. If you get a family pension, then you show that income from other sources. But if you are getting a pension after retirement, or some people take VRS, then if you are getting a pension after that, monthly pension, then it is treated as a salary.

Under section 192, TDS is deducted. And as a salary, you show it in the ITR. Now, many people ask a question. What is the ITR for pensioners? It is not necessary that pensioners only have to file ITR 1. It depends on where your income is coming from. If you are getting rental income from two house properties, then you will file ITR 2. If you have invested in shares, and you want to show short-term capital gain or loss, or long-term capital gain or loss, along with pension, then you will file ITR 2. If you are trading in shares, then you will file ITR 3. And if along with pension, you are getting some business receipts, and under section 194J or 194H, TDS is deducted, then you can file ITR 4. If under section 194J or 194H, TDS is not deducted. Only business receipts are coming.

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So, you can show it as an income from other sources. There is no problem in ITR 1. In today’s article, we will see the filing of ITR 1. You are getting pension income, along with interest from saving bank, plus interest from FD. Let’s start.  First of all, come to the home page of Income Tax, which is incometax.gov.in. On the right hand side, you will find the login button. Click on it, and give your login password. Then you will come to the dashboard.

The dashboard looks like this. First of all, you have to download your 26AS statement. And second, you have to download your AIS statement.  From AIS statement, you will know which ITR you are eligible to file. If you can see share trading, investment in shares, or business receipts, then accordingly, you have to choose which ITR you are eligible to file. First of all, let’s open AIS.

In AIS and 26AS, the pension amount is almost the same. And we will show it in our ITR as a pension amount. From where you have to take pension? You can take pension from your passbook.  You can apply for a total of 12 months or if you are a government employee, then you get form 16 from your employer. From form 16, you can take your pension amount. And if you don’t have form 16, then you get pension amount in AIS and 26AS.

So, you can take this amount from anywhere. Let’s go to services. Here we get annual information statement.  Click on it. First of all, we will change financial year. Financial year is 22-23.  Here we can see salary, interest of saving bank, and interest of deposits. We have to fill all these things in ITR 1. Let’s go back to dashboard. Click on file now.

Assessment year is 23-24. Online mode. Continue. Start new filing. Individual. Continue.  Select ITR form. ITR 1. Proceed. Let’s get started. Taxable income more than the basic exemption limit. First of all, we get personal information. Here you have to give confirmation.

Open it. Here you have to scroll down and select nature of employment. Here you will get category of pensioners.  You are central government, state government, PSU, or if you are private sector employee, then you can select other pensioners. Are you opting for new tax regime? If you have any deductions, and you want to claim them, then you can stay in old regime. But if you don’t have any deductions, and you want to get benefit of low tax rate, then you can go with new tax regime.  If you want to go with new tax regime, then click on yes. For this, you have to fill form 10 IE. If you opt for new tax regime without this form, then it won’t be considered.

You will be sent with information Where do you get form 10 IE? Go to e-file. Here you get income tax forms. Here you get option of file income tax form.  Open it. Here you will get form 10 IE. We want to stay in old tax regime, so we will click on no.

Scroll down. Here you have to nominate a bank for refund. Here you have to note that it should be validated.  Also, go to your profile and check that your bank should be eligible for refund. In many cases, they are not eligible for refund. This means that they need to update their PAN.

If your case says not eligible for refund, then your refund will be stuck and it will be difficult to get it reissued. Check once. Here you have to go to my profile.  In my profile, go to bank account and check your bank. Then comes gross total income. Here are salary exemptions.

You can give exemptions in form 16. Scroll down. Here are you eligible to claim any other exemptions.  Here you get many exemptions like retirement gratuity, leave encashment, commuted value of pension. If you have received all these after retirement, then you can tick here to give value. This will exempt the money you have received after retirement.

You will have to pay less tax. But keep in mind that in your salary, this amount should be added. You will get deduction only if it is added.  If it is not added in your salary, then you don’t have to take deduction here. In many cases, the money received after retirement is shown in 26AS that we have received so much money after retirement, commuted pension, gratuity, leave encashment. In 26AS, if you can see a good lump sum of 30-40 lakhs, then you have to show it as a salary.

After that, you can claim the deduction. In our case, there are no retirement benefits. We will turn it off.

We will continue. We will click on edit to see the details of our pension. We will click on edit to see the details of our pension.

Our pension amount is auto-populating. But you don’t have to trust it. You have to check your AIS statement and 26AS that all the amounts are reflecting correctly.

If the amount is wrong, then you can edit it. Our amount is reflecting correctly. Our pension is correct.

We will scroll down. Here you can see exempt allowances. If you have shown any exempt allowances in the last sheet, like commuted value of pension, leave travel concession or HRA or retirement benefits, then they will auto-populate here.

If you have shown it in the last sheet. Then automatically your exemptions will be deducted from the salary amount and the salary will come down. After that, you will get standard deduction from the pension amount.

It is a standard deduction of Rs 50,000. Below, the salary will be calculated. Your net salary or net pension will be saved.

After salary, income from house property will be clicked on edit. Here you have to select the type of house property. If it is self-occupied, if you are running a home loan and you want to take the benefit of its interest, then you can take the deduction of the interest portion, which we get up to Rs 2,00,000 maximum.

Here we will put the amount and add it below. Suppose you have given the property on rent. Select let out from here.

First of all, you have to receive gross rent. Whatever value you are receiving, whatever rental income you are getting. Taxes paid to local authorities.

If you pay any taxes related to the house, its deduction is obtained here. 30% standard deduction is obtained here, which will be auto-calculated. If a home loan is running and you want to take the deduction of its interest, then interest will be borrowed capital.

Here you can see the deduction. The deduction is obtained up to Rs 2,00,000. If you simply add it, then it will be added. After this, let’s go back. After house property comes income from other sources. The biggest problem here is that the data in your AIS is not being auto-prefilled.

Last year, from the AIS statement, income from other sources were also prefilled here. But this year it is not being prefilled and you have to fill the interest of your saving bank and FD from your AIS statement. Without this, if you file your ATR, then the ATR will be defective.

Click on add another here. Click on yes on the interest from saving bank account. Here we will give the interest of the saving bank, which we will get from the AIS statement.

After this comes the interest of FD. In FD, only Rs 700 is reflected here. We will edit it and correct it. Income from other sources, we have only this much. We didn’t have any refund from last year. That’s why we don’t have any interest on it.

Along with this, there is no other income here. So, we will confirm it below. There is no family pension. There is nothing in any other. So, we confirm it. At the end, we get the dividend income.

If there is a dividend income in your AIS, then you can fill this column. Here you have to click on yes. After this, you have to give the quarter wise details of the dividend.

If you don’t want to give quarter wise details, then you can simply give the entire amount of the dividend in the first column. In our case, there is no dividend. So, we click on no and confirm it.

After income from other sources, comes the exempt income. If you have an exempt income, you can click on add another and select it. After this, we will confirm it. After this, comes the total deductions. We will open it here. Here you can claim deductions.

For example, there is ATC. If you have invested in LIC or PPF, or Sukanya Samriddhi Yojana, or there are fixed deposits of 5 years. You get the benefit of it here. After this, there is ATD. In ATD, you can show the medical insurance premium. If you click on yes, then you have to fill a schedule. In that, you can show the medical insurance premium. Or for preventive health checkup, you will get Rs. 5000.

After this, there is section 80TTB. If you are a senior citizen, then in your case, this schedule will be highlighted here. If you are not a senior citizen, then you will get section 80TTA here. Click on yes here. Because we have shown the interest of the saving bank and FD. We will get the deduction of that here.

But in the case of section 80TTA, there you get the deduction only on the interest of the saving bank. You don’t get the deduction of FD there. So, for senior citizens, this is a benefit that they get the deduction of both saving interest and FD interest here.

You can claim this deduction up to Rs. 50000. Click on continue below. Now, we have to fill the schedule here. First, we will fill the schedule of ATD. If you are a senior citizen, then you will click on yes here.

And if your parents are also a senior citizen and you are also claiming the deduction then you will get here whether any of your parents is a senior citizen. Click on yes here. Now, we can take the deduction here.

In preventive health checkup, we get a deduction of Rs. 5000. And what do we claim in this? Whatever we have done during the year, blood test or ECG or any x-ray, we get the deduction here.

And one good thing here is if you have paid in cash, then you also get the benefit here. It is not that you have to pay by cheque. You just have to keep their receipts safe.

Then there is medical expenditure. If you are not getting the claim from any health insurance company, then you can claim that deduction here. Then comes the schedule ATTTB interest on deposits.

Here we can claim a deduction of maximum Rs. 50000. Then comes taxes paid. Here, there is no TDS in our case because the income is within the limit. It is below Rs. 500000. If any TDS has been deducted in your case, then it will be reflected here in TDS on salary. If the amount is being misreflected here, then you will click on show details here. Click on add another.

And here all the amount is displayed. Income, chargeable under the head salary and total tax deducted. You can check with your 26AS and edit the amount here. But do not file it wrongly. Whatever is being reflected in your 26AS, the same amount should go here. If you add it, then your TDS schedule will be edited and corrected.

After tax paid comes total tax liability. Here our taxes are calculated. How much is your gross total income? How many total deductions have you claimed? How much is your total income? How much is your tax on this? How much rebate did you get? And at the end, here you get total tax fee and interest which is not being calculated in our case because income is within the limit.

We will confirm it here. After confirming all the columns, click on proceed. You need to make a payment of zero. If any refund is made, then you will see here that you are eligible for a refund. And if your tax payable is being made, then you will also see that you need to make payment of rupees this. So you have to act accordingly.

If your tax payable is being made, then you pay self-assessment tax. And if your refund is being made, then you can simply continue below and submit your ITR. First of all, you have to click on preview return. We will put a tick in the box here. Now here you can see the full ITR preview. You have to check it properly.

If you want to edit anything, then you can go back again. And if it is correct, then you submit it. Scroll below and you will get the submit button. Here you get proceed to validation. Click it. Now here we have three errors.

If you have an error, then you have to click on that error and it will take you directly to the page where the error is coming. So what error has come here is that we have not filled any details in our exempt allowances. Because we don’t have any gratuity or commuted pension. We had left those columns blank. So we have to delete those columns from there because we have left them blank. We will correct it.

We will delete it from there. So our ITR will be validated. Let’s correct it. Let’s click here and show you. We will click here. So wherever this red delete button is visible, we have not deleted it from here. That’s why this error came here. We will delete all of them. And our validation here has been successful.

That means our ITR has been submitted. Now we just have to do verification. That is, we have to do E-Verify. We can do E-Verify within 30 days. And you can do E-Verify immediately. Click on Proceed to Verification.

Click on E-Verification. If you want to do E-Verification immediately from Aadhaar OTP, click on E-Verify Now. And if you want to do E-Verify later, click on E-Verify Later and continue below.

We will continue. And from here we will submit. Our written file is here. You will get a message of written filing. We can download and receive from here. You can download and receive.

So that when you go to E-Verify later, you don’t have to log in again. You can go to the homepage and through this acknowledgement receipt, you can E-Verify your ITR. How is it done? We will tell you in the next article. And if you go to the dashboard from here, you will get your ITR form. You can check the ITR form. So I hope the article was useful for you.

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