Filing of the ITR-1 form, otherwise known as SAHAJ, is a must for most salaried individuals in India. Here’s a look at everything you need to know about ITR-1 and how to file it.
The Indian Income Tax Act, 1961 is an important piece of legislature that lays down all the rules regarding the payment of income tax in India. Failure to comply with the rules and regulations mentioned in this act can lead to hefty penalties being levied on the offender. Therefore, people who have a job and fall within the taxable bracket have to ensure they are paying their taxes on time.
While filing your income tax returns, choosing the right form is crucial, as if you submit the wrong form your filing will be reflected under the defective list, which implies that re-filing is necessary. If you need help determining which ITR form you need to file, get in touch with our tax specialists without further ado.
An Overview on ITR-1
ITR-1 must be filled out by residents whose total income is not more than ₹50 lakhs. The source of such income can be from:
- Salary or pension
- One house property or
- Other sources.
Hence, ITR-1 is the return filed by most salaried professionals in India. However, if you have secured capital gains or own more than one property in India, you will not be eligible to file ITR-1. Also, if the income of your spouse or minor child is clubbed with yours, you are eligible to file ITR-1 only if the clubbed income falls under ₹50 Lakhs. Care must also be taken to ensure that ITR-1 is filed without any attachments. No document, not even a TDS certificate must be attached to this form. Further, the assessee must file only one copy of the form. If the form was filed physically, then ITR-V must also be duly filled.
Who Is Not Eligible to File ITR-1?
The ITR-1 form cannot be used by any person who is:
- A director in any company, corporation, or firm
- Has unlisted equity shares in the previous fiscal year
- Further, has any asset or financial interest in any property outside India
- Has the authority to sign in any account outside India
Additionally, this form cannot be filed by any individual who has a source of income included in the below-mentioned list:
- Profits from business and professions
- Capital gains
- Income arising from a second property
- Income from lottery or racehorses
- Additionally, Income taxable as per rules laid down in Section 115BBDA and 115BBE
- Income that falls under Section 5A
- Any income from agricultural activities that exceed ₹5,000.
Further, ITR-1 shall not be filed by individuals who seek to claim the following deductions or tax relief:
- Loss under income from house property
- Loss under income from other sources
- Relief under Section 90 or Section 91
- Claims made under Section 57, excluding clause (iia)
- TDS credit in the hands of another individual.
Structure of ITR-1
ITR-1 contains the following parts:
General information like PAN, Name, DOB, Contact number, Email Address, etc.
Gross total income details like salary, deductions, standard deductions, entertainment allowance, income from house property and other sources
Deductions like Government pension schemes, health insurance, medical treatment, educational loans, donations made to charitable trusts, etc.
Computation of tax payable
Other information like details of the assessee’s bank account.
How to File ITR-1
You can file ITR-1 either online or offline. Here’s a look at how you can do so:
The e-filing option available on the IT Department’s web portal can be used to file ITR-1 online. After filing the form, verification may be done by:
- Attaching a DSC to the verification form
- The electronic verification code method
- Sending signed Form ITR-V to the following address within 120 days from filing the return – Post Bag No. 1, Electronic City Office, Bengaluru— 560500, Karnataka.
For filing ITR-1 offline, the taxpayer must submit a hard copy of the form to the appropriate office of the IT Dept along with Form-V as a sign of acknowledgement. This form of filing is only allowed for super-senior citizens, citizens who are above 80 years of age.
ITR-1 Form: Online Filing Procedure
Log in to the official portal of the IT Department using your credentials
Then go to E-File >>Income Tax Return
Ensure that your PAN number is auto-populated correctly. Next, select the assessment year and select the ‘ITR Form Name’ as 1 and click on Continue
The Instructions tab must be read by the assessee before filing the form
The General Information tab which includes your personal details needs to be verified
The Computation of Tax tab contains all the details regarding salary income, income from property, interest on income and deductions claimed. The tax payable is auto-calculated by the portal, and the taxpayer must cross-check and verify this amount before proceeding further.
Details regarding the property owned by the taxpayer will be pre-filled from last year’s forms, but the assessee must take care and go through all the information auto-populated before moving forward.
The Tax details tab contains details regarding TDS, TCS deductions, advance, and self-assessment tax paid by the taxpayer. While a major part of this form is pre-filled from information provided on Form 26AS, taxpayers must go through this page carefully and cross-check all the values
The Taxes paid tab contains details regarding the tax payable after making the necessary deductions as per the details provided in the TAX Details tab of the form. It also takes into account all deductions possible under Sections 80G and 80GGA
If tax is found due, then the taxpayer must first file a self-assessment tax before proceeding. After doing so, the challan details received after paying the self-assessment tax must be duly filled into the Tax Details tab
Here, taxpayers must also provide details of the bank accounts they hold. Details of dormant accounts which have not been operational for a period of more than 3 years may be omitted. All mentioned such accounts must be linked to the taxpayer’s PAN and should have been pre-validated before filing the form.
The Donations-80G tab includes all details pertaining to donations made by the taxpayer to funds, charities and other institutions which fall under Section 80G. The taxpayer must specify the amount paid, whether in cash or via other modes. Those donations made via cash that exceed Rs 2,000 will not be considered for deductions
The Donations-80GGA tab includes all details regarding donations made to scientific institutions and research centres as listed under Section 80GGA. Such deductions may be claimed by all individuals other than the ones who earn income via business. The taxpayer must verify these details as well
Once the submission is complete, you may download a copy for preview. If you find any errors, you can make corrections, by clicking on the Edit button. If everything looks good, click on Proceed for final submission.
After doing so, on receiving the application, once the above-mentioned steps are completed, you must verify it either through a digital signature certificate, Aadhaar OTP, or the electronic verification code. You will be prompted to enter the verification mode details at the beginning.
The taxpayer will then be notified by an SMS to their registered mobile number, or through an email to their registered email ID.