Form-ITR-1

Form ITR 1 (Sahaj) for AY 2020-21

Form ITR 1 (Sahaj) for AY 2020-21

Income Tax Return 1 (ITR 1) is a form for ITR filling which should be used by individuals having a salary, pension, family pension, rental income and other sources of income. ITR 1 requires only the submission of basic details about the assessee and the taxable income. Generally, assessees filing ITR 1 do not need to undergo an audit. It is mandatory to file ITR 1 using the electronic mode. However, for assessees who are aged above eighty years, the return can be filed using a physical copy of ITR 1.

On 3rd January 2020, the Central Board of Direct Taxes (CBDT) issued Notification G.S.R.9(E). The notification has introduced additional restrictions regarding the filing of ITR 1. The notification specifies that assessees who fall under the mentioned circumstances should not opt for ITR 1. The mentioned circumstances are jointly owning house property, depositing more than one crore rupees in current accounts, spending more than two lakh rupees on foreign travel, and spending more than one lakh rupees on electricity consumption. The impact of the notification is that assessees who fall under the mentioned circumstances are not allowed to use ITR 1. The notification covers Assessment Years commencing from 2020-21.

Applicability

Form ITR 1 (Sahaj) should be filed only when the following conditions are satisfied:

  • The assessee is an individual
  • The assessee falls under the category of an ordinary resident as per Section 6(6) of the Income Tax Act

Incomes Reportable Under ITR 1

ITR 1 is used to report the following incomes:

  • Salary- Salary should be included under ITR 1 even if the employer has not yet made the payment.
  • Family pension- Family pension should be included under ITR 1 only if the following conditions are satisfied:
    • The pension is payable every month
    • The pension is paid to a family member of a deceased employee
    • The family member has a right to receive the pension regularly as per the terms of the agreement between the employer and the employee
  • Income from house property- House property income should be included under ITR 1 only if the following conditions are satisfied:
    • The assessee does not have more than one house property
    • The assessee does not claim any loss under the house property head
  • Income from other sources- The assessee may be having income from lottery and income from racing horses. ITR 1 should not be used to report such incomes.

Restriction of ITR 1

ITR 1 should not be used in the following circumstances:

  • When the assessee owns a house property in joint-ownership
  • When the assessee has deposited more than one crore rupees in current accounts
  • When the assessee has spent more than two lakh rupees for undertaking travel to a foreign country (The travel can be made either by the assessee or by another person.)
  • When the assessee has spent more than one lakh rupees towards the consumption of electricity
  • When the assessee is the owner of assets located abroad
  • When the assessee is the beneficial owner of any business enterprise or charitable organisation located abroad
  • When the assessee is employed as a director in a company
  • When the assessee was holding unlisted shares during the financial year
  • When the assessee has appointed a signing authority abroad
  • When the assessee is obtaining income from outside India
  • When the assessee is from Goa, Dadra and Nagar Haveli or Daman and Diu, and is having income which should be allocated between family members as per Section 5A
  • When the assessee has claimed a deduction under Section 57 (However, ITR 1 can be used when the assessee is claiming a deduction under Section 57 exclusively for family pension.)
  • When TDS should be deducted on the income of the assessee, but the deduction was made for another person
  • When the assessee has made a claim for relief under Sections 90, 90A or 91 for avoiding double taxation
  • When the agricultural income is more than five thousand rupees
  • When the taxable income of the assessee is more than fifty lakh rupees
  • When the taxable income of the assessee includes any income exceeding ten lakh rupees by way of dividends from a domestic company
  • When the assessee has taxable income which is covered by Section 115BBE

Out of the above, the first four restrictions were additionally introduced by the notification with effect from 3rd January 2020. The notification is given below for reference, together with the format for ITR 1:

CBDT-Notification-regarding-ITR-1-and-ITR-4

Amnesty Scheme

As per latest notification on 10th January 2020, the due date is extended for those who has not submitted ITR-1 from September 2017 to November 2019. The revised due date is 17th January 2020. The relevant notification can be accessed below:

Revised-due-date-for-GSTR-1

 

Changes in ITR 1

Compared to the ITR-1 form of previous Assessment Year (AY), the Government of India (GoI) has introduced the following additional fields:

  • Details of the employer in case the assessee is showing salary income
  • Details of unrealised rent in case the assessee is showing house property income
  • Details of deduction claimed under Section 57(iv), if any
  • Details of Passport

To know more about the ITR 1 filing facility offered by IndiaFilings, click here.

Post by Athreya

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.