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Income Tax Return (ITR) 1 Filing Form

The Income Tax Act, 1961 states that any person falling under the purview of the tax act has to pay tax on the income earned in a particular financial year. The assessee could be an individual, partnership, Hindu Undivided Family, or any other business entity.

The taxpayers have been categorized to ease the compliances. Each category of the taxpayer has to compute the taxable income in the manner as it is laid down in the Income Tax Act,1961. Post computation the Income-tax returns are filed on the for applicable to the taxpayer.

This article is a comprehensive guide to understand the ITR Sahaj Form 1. As the income tax department has categorized the taxpayers into many groups based on the income and the sources the returns need to be filed accordingly.

ITR-1 is for people with an income of up to Rs. 50 lakhs.

ITR-1 Form Filling

How can Form ITR-1 be filed?

Form ITR 1 can be filed both online and offline

Online Mode: The taxpayer can log in to the Income-tax portal and submit the return online by clicking on the "prepare and submit online" option. The other option of online submission of income tax returns is uploading XML.

Offline mode: Involves submission of ITR-1 in paper form via post to the CPC Department, Bangalore.

Super senior citizens (80 years and above) are exempted from online filing of the Income-tax return.

The verification regarding completion of the filing of Income Tax Return can be made in either of the two ways:

  • While filing the form online, fill in the details and e-verify the return by using EVC via Bank Account/Demat Account/Aadhar OTP/Net Banking; or
  • Upon completing the online submission of Form ITR-1, you will receive the receipt in your registered e-mail ID. Download this acknowledgment and post the print-out to the CPC office, Bangalore within 120 days of e-filing.

Form 16 A

It is a certificate via which the employer gives certification of employee's salary and the tax deducted at source (TDS) from the salary during a financial year. Form 16 is issued once a year, on or before May 31st of the Assessment Year in which the salary income becomes subject to tax. It has two parts:

  • This consists of general information like the name of the employer, employee, address, period of employment, TAN, TDS deducted, and paid to the government.
  • It consists of information like the salary paid, deductions allowed, other incomes, the total tax payable, etc.

Form 26 AS

This is a consolidated tax credit statement that is issued to the taxpayer as per Section 203AA of the Income Tax, 1961. It contains details of the Income Tax that has been deposited by the taxpayer to the government. Via this form, the taxpayer can check all the details that have been uploaded on the Form and make corrections if any mistake is found.

Who is Eligible to File ITR 1 for Fy 2020-21?

Who can file Form ITR-1?

ITR-1 Sahaj is to be filed by individuals whose income is not more than Rs. 50 Lakh from the following sources in a financial year:

Salaried person- Salary refers to the remuneration or consideration that a person receives for the services he or she has to render under the contract of employment. The Income Tax Act,1961 includes the following under the salary income

  • Wages
  • Pension
  • Annuity
  • Advance salary paid
  • Leave Encashment
  • Fee, prerequisites, commission, profits besides or in lieu id the salary or wages
  • Transferred balance in recognized provident fund
  • Annual accretion to the recognized provident fund
  • Central Government contribution or an employer contribution to Pension account as mentioned in Section 80 CCD of the Income Tax Act.
  • One house property: If the taxpayer is the owner of a property from which he or she is earning rent, the rent proceeds become taxable.
    However, if the taxpayer is using the owner of a property from which he or she is earning rent, the rent proceeds become taxable. However, if the taxpayer is using the property for running some business or profession the same would be taxable under the heading “Income from business or profession”.
  • Other sources (does not include income earned from winning lottery or racehorses)
  • Agricultural income (Upto to Rs. 5000)

Documents required for ITR - 1 Sahaj form

What documents are required to file ITR -1 Sahaj form?

  • Form 16
  • Salary slips
  • Interest Certificates from the Post offices and Banks
  • Form 16A/16B/16C
  • Form 26AS
  • Tax-savings investment proof
  • Deductions under the Section 80 D to 80 U
  • Home Loan statement from the NBFC/ Bank
  • Capital Gains

The income tax rate under the Existing and New tax regime

The taxpayers can now choose between the old and new tax regimes. The decision is however to be taken at the beginning of the financial year.

Income tax rates according to the old tax regime

For Individuals up to the age of 60 years

Taxable Income Income Tax Rate
Up to INR 2,50,000 Nil
INR 2,50,000 - INR5,00,000 5%
INR 5,00,000 – INR 10,00,000 20%
Above INR 10,00,000 30%

For Individual aged between 60-80 years (Senior Citizen)

Taxable Income Income Tax Rate
Up to INR 3,00,000 Nil
INR 3,00,000 - INR5,00,000 5%
INR 5,00,000 – INR 10,00,000 20%
Above INR 10,00,000 30%

For Individual above the age of 80 years

Taxable Income Income Tax Rate
Up to INR 5,00,000 Nil
INR 5,00,000 – INR 10,00,000 20%
Above INR 10,00,000 30%

According to the new tax regime, the taxpayer has an option to choose either to pay taxes at a lower interest rate as per the New Tax regime on the condition that they forgo certain permissible exemptions and deductions that are available under the Income-tax

or

To continue paying taxes under the existing tax rates. The assessee can avail of rebates and exemptions by staying in the old regime and pay taxes at the existing higher rate.

The income tax rates under the new regime applicable for all individuals and HUF are as follows:

Income Slab New regime tax slab rate
(Applicable for all individuals and HUF)
Up to INR 2,50,000 NIL
INR 2,50,000 - 3,00,000 5% (Tax rebate u/s 87 a is available)
INR 3,00,000 - 5,00,000
INR 5,00,000 - 7,50,000 10%
INR 7,50,000 - 10,00,000 15%
INR 10,00,000 - 12,50,000 20%
INR 12,50,000 - 15,00,000 25%
More than INR 15,00,000 30%

Note:

The tax rates in the New Tax regime are the same for all categories of individuals. Hence, there is no increased basic exemption limit benefit that will be available to the senior and the super senior citizens in the New Tax regime.

Individuals with Net Taxable income less than or equal to Rs. 5 lakh will be eligible for tax rebate u/s 87 A the tax liability will be Nil for such individuals in both- New and old existing tax regimes.

The exemption Limit for NRIs is Rs. 2.5 Lakh irrespective of age.

Additional health and education cess at the rate of 4% will be added to the income tax liability in all cases ( Increased from 3% since FY 2018-19)

An applicable surcharge as per tax rates below in all categories mentioned above:

  • 10% of the income tax if total income > Rs.50 Lakh
  • 15% of the income tax if total income > Rs.1 crore
  • 25% of the income tax if total income > Rs. 2 crore
  • 37% of the income tax is the total income > Rs. 5 Crore.

Conditions or opting New regime

The taxpayer opting for concessional rates in the new tax regimes will have to forgo exemptions and deductions available in the existing old tax regime. In total there are 70 deduction and exemptions that are not allowed out of which the most commonly used are listed below:

List of common exemptions and deductions not allowed under the new tax regime.

  • Leave Travel Allowance (LTA)
  • House Rent Allowance (HRA)
  • Conveyance allowance
  • Daily expenses in the course of employment
  • Relocation allowance
  • Helper allowance
  • Children education allowance
  • Other special allowances [Section 10(14)]
  • Standard deduction on salary
  • Professional tax
  • Interest on housing loan (Section 24)

Deduction under Chapter VI-A deduction (80C,80D, 80E, and so on) (Except Section 80CCD(2))

List of common deductions allowed under the New Tax Regime

  • Transport allowance for specially-abled people
  • Conveyance allowance for expenditure incurred for traveling to work
  • Investment in Notified Pension Scheme under section 80CCD(2)
  • Deduction for the employment of new employees under section 80JJAA
  • Depreciation u/s 32 of the Income-tax act except for additional depreciation.
  • Any allowance for traveling for employment or on transfer.

Pay as you go grow pricing

All Inclusive Pricing - No Hidden Fee

Basic

199

all inclusive fees

Income tax return filing for an individual with salary income of less than Rs.5 lakhs.

Premium

2899

all inclusive fees

Income tax return filing for an individual with salary income of more than Rs.10 lakhs.

Frequently Asked Questions

What all documents are required while filing Income Tax Return?

The Income Tax Return forms do not require any particular documents to be attached. However, it is advisable to keep certain documents handy like Form 16, Profit & Loss Accounts, Balance sheet, investment evidence, etc. Such details are to be entered in the ITR forms.

In case of exempt agricultural income, can Form ITR-1 be filed?

Yes, as long as agricultural income does not exceed INR 5,000, Form ITR-1 can be filed.

If I have a House Loan, can I file Form ITR-1?

Yes, Form ITR-1 can be filed if you have a house loan.

What is ITR-XML file?

XML is a type of file format. Income details entered in XML file get easily auto-entered in the online Form ITR-1.

How to download Income Tax Return Forms? ?

The following are the steps to downloading the Income Tax Return forms:

  1. Income that exceeds Rs. 50 Lakhs
  2. Assessee has Taxable Capital Gains
  3. Assessee has any of the below sources of income :
    • Go to the website of the income tax department.
    • There is a Forms/Downloads option on the homepage. Click on that.
    • From the drop-down menu, choose the option of “Income Tax Returns.”
    • After being redirected to the Income Tax Returns page, choose the particular ITR form as per your income.

Are there any specific documents that have to be attached with Form ITR-1?

There is no requirement of attaching documents with Form ITR-1. However, the taxpayer should always retain the documents on the basis of which he/she fills the return. The tax authorities can ask for the taxpayer to present these documents to them at any time.

Last updated: Apr 03, 2021

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