Income Tax efiling in India for FY 2023-24 (AY 2024-25)
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File ITR Now Hire eCA NowITR 1 Sahaj Form – File ITR 1 Online
A comprehensive guide to understanding the ITR-1 Sahaj Form To facilitate tax compliance, the tax department has divided taxpayers into groups based on income and their source. Therefore, you need to upload your files properly. ITR-1, also known as the Sahaj form, belongs to a person earning up to Rs. 50 lakhs.
Aadhaar Card is Mandatory for Income Tax Return Filing
The Tax Department has made it mandatory for all taxpayers to link the Aadhaar card and PAN on the Department of Taxation website.
Latest Update
CBDT notifies Form 12BBA, the declaration form, that it has been submitted by eligible citizens to designated banks in order to facilitate the filing of ITR files.
Union Budget 2021 Outcome:
It has been suggested that exempt senior citizens from filing income tax returns if pension and interest income are their only annual income. Section 194P has been newly inserted to enforce that banks deduct tax on senior citizens of more than 75 years of age who have a pension and interest income from the bank.
Who is Eligible to File ITR 1 for AY 2021-22?
ITR -1 Form is a simplified one-page form for individuals having income up to Rs 50 lakh from the following sources :
- Income from Salary/Pension
- Income from One House Property (excluding cases where loss is brought forward from previous years)
- Income from Other Sources (excluding winning from Lottery and Income from Race Horses)
In the case of Clubbed Income Tax Returns, where your spouse or minor is included, this can only be done if their income is limited to the above.
Who cannot file ITR 1 for AY 2020-21
- An individual having income above Rs 50 lakh cannot use this form.
- An individual who is either a director in a company and has held any unlisted equity shares at any time during the financial year cannot use this form.
- Residents not ordinarily resident (RNOR) and non-residents cannot file returns using ITR -1
- Also, individuals who have earned income through the following means are not eligible to file form ITR 1 :
- More than one House Property
- Lottery, Racehorses, Legal Gambling etc.
- Taxable capital gains (Short term and Long term).
- Agricultural income exceeding Rs. 5,000.
- Business and Profession.
- Individual who is a Resident and has assets (including financial interest in any entity) outside India or signing authority in any account located outside India.
- Individual claiming relief of foreign tax paid or double taxation relief under section 90/90A/91.
What is the structure of ITR 1 Form?
| Part A – General Information |
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| Part B – Gross total Income |
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| Part C – Deductions and taxable total income |
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Part D – Computation of Tax Payable Part E – Other Information (Bank account details) |
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Schedule IT (Details of advance tax and self assessment tax payments) Schedule-TDS (TDS/TCS details) |
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| Verification |
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How do I file my ITR-1 Form?
You can submit your ITR-1 Form either online or offline.
Offline
Only the following people have the option to file a return in paper form
- A person who is 80 years or older at any time during the past year
- A person or HUF whose income does not exceed Rs 5 lakhs and who did not claim a refund on the refund
For offline, the return is furnished in physical paper form. The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.
Online/Electronically
- By transmitting the data electronically and then submitting the verification of the return in the form of ITR-V to CPC, Bengaluru.
- By filing the return online and e-verifying the ITR-V through net banking/Aadhaar OTP/EVC.
If you submit your ITR-1 Form electronically, a letter of acceptance will be sent to your registered e-mail address. You can also choose to download it manually from the Income Tax website. You must then sign and send it to the CPC office of the Income Tax Department in Bangalore within 120 days of e-filing. Alternatively, you can confirm your return by e-verification.
The Major Changes which are made in the ITR 1 for the AY 2021-22
The following changes have been incorporated in the ITR form:
- A taxpayer cannot file ITR-1 if the TDS is deducted under section 194N. According to each section of 194N, the tax will be deducted from the source of those who do not submit tax returns deduct an amount exceeding Rs.20 lakh. In some cases, tax will be deducted when disbursements exceed Rs.1 crore during the financial year.
- No option is offered to promote TDS under section 194N. TDS credit under section 194N will only be approved for the year in which TDS is deducted.
- Individuals or HUFs are given the opportunity to choose the old or new tax regime. If a taxpayer chooses a new tax regime under section 115BAC, you need to file form 10IE before submitting an ITR under section 139 (1).
- ITR forms for the 2020-21 test year are being prepared with the introduction of a new DI system. It allows taxpayers to receive deductions made during the extended period of AY 2020-21. The DI plan is removed from AY 2021-22.
The Major Changes which were made in the ITR 1 for the AY 2020-21
- Each taxpayer who meets the procedure (a) to make more than Rs crores by the bank or (b) costs more than Rs 2 lakh in foreign travel or (c) costs more than Rs 1 lakh in electricity must also apply ITR- 1. The taxpayer must indicate the amount of the deposit or expense.
- We continue the situation of a person earning income from salaries, one household property, another income, and having an income of up to Rs 50 lakhs.
- Individual owners who own joint ventures can apply ITR-1 where the total amount is up to Rs 50 lakh.
- Taxpayers must separately disclose the amount of investment or deposit or payments in respect of tax savings made from 1 April 2020 to 30 June 2020
The Major Changes which are made in the ITR 1 for the AY 2019-20 are:
- Form ITR 1 for FY 2018-19 does not apply to a person who is a company director or who has invested in unlisted financial shares.
- Under Part A, the 'pensioners' checkbox is presented under the 'Employment' section.
- The return entered under the category is separated between the standard filling and the entered with notices.
- Deductions under salary will be deducted from standard deductions, entertainment allowance and professional tax.
- Taxpayers will be required to provide detailed income information under ‘income from other sources’.
- A separate column is introduced under ‘sources from other sources’ to deduct / s 57 (iia) - in the case of family pension income.
- The 'Assigned Assets' option is now available under 'Household Income'.
- Section 80TTB column included for adults.
The Major Changes which were made in the ITR 1 for the AY 2018-19 are:
- Previously ITR-1 was applicable to both residents, non-residents (RNOR), and non-residents. Now, this form is only for people who live on it.
- We continue the situation of a person earning income from salaries, one household property, another income, and having an income of up to Rs 50 lakhs.
- Under the Schedule to TDS, there is an additional field to provide TDS details in terms of Form 26QC of TDS for hire. Also, provision has been made to cite Employer PAN for such employment cases.
- There is a need to provide for the separation of wages. Until now, this information would only appear on Form 16 and the requirement for disclosure of the refund had never arisen.
- There is also a need to provide for the separation of Income under House Property that was previously mandatory in ITR -2 and other forms.
Salary and House property changes can be noted from the below screenshot
The Major Changes which were made in the ITR 1 for the AY 2017-18 are:
- Quoting of Aadhar Number is mandator- Everyone in their power is required to quote Aadhaar's number on the refund. If anyone does not have an Aadhaar Number but has applied for an Aadhaar card then they can quote the registration ID of the Aadhaar Application Form to ITR.
- Disclosure of cash deposits during demonetization- A new column has been introduced in all ITR forms to report taxpayers depositing money into their bank accounts during the demonstration, i.e., from November 9, 2016, to December 30, 2016. However, taxpayers are required to complete this column only if they lodge Rs 2 lakh or more at the time of demon possession.
- Disclosure of all Bank Accounts- Details of all savings and accounts should be provided at any time during the past year. However, you do not have to provide details of dormant accounts for more than 3 years. The account number must be in the Core Banking Solution (CBS) banking system.
- Simplified one page ITR Form for Salaried class taxpayers (ITR 1 Sahaj)- Now Govt. introduce a simplified one-page form 'ITR-1 Sahaj' for people earning up to Rs 50 lakhs from salary, pension, single household goods and income from other sources. It has removed columns that are frequently used by taxpayers such as:
- The new 'ITR-1 Sahaj' has retained those deductions that are widely used by taxpayers as under Section 80C, 80D, 80G and 80TTA. The appropriate section in the column entitled 'Anybody else'.
- TDS and TCS schedules have been merged to make ITR 1 shorter and simpler.
- New columns have been added to report share income and long-term gains released under Section 10 (34) and Section 10 (38) respectively. It is compulsory to file tax returns for those with a long-term income of Rs 2.5 lakhs or more, or their tax-free income may be less than 2.5 lakhs.
How do I fill out the ITR-1 Form?
Documents which you should keep in hand before filling out your ITR-1 form are:
- Form 16: Issued by all your employers in the current financial year
- Form 26AS: Remember to confirm that the TDS mentioned on Form 16 is similar to TDS in part A of your Form 26AS
- Receipts: If you have not been able to bring proof of certain exemptions or deductions (such as an HRA grant or a Section 80C or 80D discount) to your employer on time, keep these relevant receipts to claim directly from your tax return.
- PAN card
- Investment certificates: Interest from bank account details - bank pass letter or FD certificate
Frequently asked questions
I earn income over Rs 50 lakhs. Which ITR form should I file this year ?
- If you have income above Rs 50 lakhs , you can file ITR 2 ,ITR 3 or ITR 4 (Sugam) depending upon your source of income.
- If you are salaried individual having income above Rs 50 lakhs, you should file ITR 2.
- And if you are having income from business or profession, then you should file ITR 3.
- In case you are following presumptive income u/s 44AD /44AE, then you should file ITR 4 (sugam).
Can I file ITR-1 with exempt agricultural income?
How to report bank accounts in ITR-1?
Do I need to include dividend income from Mutual Funds?
What do the following terms mean?
Revised Return:
Once you have filed your income tax return but later found out you made a mistake on it, you can work again. This is called a revised return. For the 2020-21 financial year you can file your updated return by March 31, 2022.
Notice Number:
This should only be completed if you submit your return form in response to a notice from the Tax Department.
Advance Tax:
For earners, TDS mainly prepares tax payments in advance. However, you may have other ways to earn money - such as interest on savings bank accounts, fixed income, rental income, bonds, or capital gains. If your income tax exceeds Rs 10,000 a year, you need to balance your income and pay Advance Tax. This should be paid in quarterly installments in June, September, December, and March.
Self Assessment Tax Payments:
This is the difference between the tax paid and the tax payable and needs to be paid before you can submit your form. If you complete the form for the first time, you will not know whether the Self-Assessment Tax is payable. Therefore, fill out the form first with the Advance Tax details, if paid. Calculate your income and if after using the computer, you find that the tax will still be paid, pay and fill out the details in the taxable self-assessment section.
Annexure-less Return:
The ITR-1 form is a refund under the Appendix. This means that you do not need to attach any documents (such as Form 16 / Form 26AS) and Form ITR-1.
How do you file ITR-1 when you earn Rental Income?
How do I file my ITR-1 Form?
- By furnishing a return in a physical paper form.
- The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.
- By transferring information electronically and sending the ITR-V compensation confirmation to the CPC, Bengaluru.
- By completing online returns and validating ITR-V via net banking / adhaar OTP / EVC. If you submit your ITR-1 form electronically, a letter of acceptance will be sent to your registered e-mail address.
- You can also choose to download it manually from the Income Tax website. You must then sign and send it to the CPC office of the Income Tax Department in Bangalore within 120 days of e-filing.
You can submit your ITR-1 Form either online or offline. From the Financial Year 2013-14, all taxpayers earning more than Rs. 5 lakhs must furnish their Income Tax Returns electronically.
Offline:
Electronic or online transmission
How do you send your ITR-V to the CPC Office?
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