ITR 1 Filing: Guide to File Income Tax Returns Online
ITR 1 Filing: Guide to File Income Tax Returns Online
As you know, filing an Income Tax Return involves submitting the corresponding income tax form to the relevant tax department. The selection of the appropriate form depends on the nature of your income sources. Among these, the ITR 1 form, more commonly called Sahaj, holds significance. Widely utilized across India, this form is one of the most prevalent. As a straightforward avenue for filing Income Tax Returns, the ITR 1 form facilitates the submission of essential details, including income, deductions, and tax-related information, to the concerned income tax authorities. This article will look at the ITR 1 Sahaj Form in detail.Get Started!
ITR 1 Sahaj Form
The Sahaj Form (ITR-1 Form), as its name suggests, is designed as the most straightforward method for submitting income tax returns and is specifically aimed at individual taxpayers. Resident individuals in India can use this form to declare their income tax if their total income is within the threshold of Rs. 50 Lakhs and is obtained from the subsequent sources:
- Income from Salary or Pension
- Income from a Single House Property
- Income from Other Sources
The ITR-1 Form streamlines the process for eligible individuals to report their income tax details, providing a convenient and efficient approach to tax compliance.
Who is Eligible to File ITR-1?
ITR-1 is applicable for filing by Resident Individuals who meet the following criteria:
- Resident individuals seeking to file their Income Tax Return (ITR) using Form ITR-1 should meet the
- Income Threshold: The individual’s total income for the financial year must not exceed Rs.50 lakh.
- Permissible Income Sources: ITR-1 applies to individuals whose income is derived from the following sources:
- Income from one-house property
- Family pension income
- Agricultural income (up to Rs.5000)
Other sources include:
- Interest from Savings Accounts
- Interest from Deposits (Bank / Post Office / Cooperative Society)
- Interest from Income Tax Refund
- Interest received on Enhanced Compensation
- Any other Interest Income
- Family Pension
- Clubbing of Income
In cases where the spouse’s income (excluding those governed by the Portuguese Civil Code) or the income of a minor is to be combined, it is allowed only if the source of income falls within the specified limits mentioned above.
Who cannot file ITR-1?
The following categories of individuals are not eligible to file ITR-1 :
- Resident Not Ordinarily Resident (RNOR) and Non-Resident Indian (NRI) individuals
- Those with a total income exceeding ₹50 lakh
- Individuals with agricultural income surpassing ₹5,000
- Individuals with income derived from activities like lottery, racehorses, legal gambling, etc.
- Those with taxable capital gains, both short-term and long-term
- Individuals who have invested in unlisted equity shares
- Individuals with income sourced from business or profession
- Individuals serving as Directors in a company
- Individuals availing tax deduction under section 194N of the Income Tax Act
- Individuals with deferred income tax on Employee Stock Ownership Plan (ESOP) received from an eligible start-up employer
- Individuals who own and generate income from more than one house property
- Individuals who do not meet the eligibility criteria outlined for ITR-1 filing
Distinguishing Between ITR 1 and ITR 2: Key Contrasts
Here’s a comparison highlighting the critical distinctions between ITR 1 and ITR 2:
|Particulars||ITR 1||ITR 2|
|Applicant type||Individual (resident or non-resident)||Individuals (resident or non-resident) and HUFs|
|Income from salary/pension||Up to Rs 50 lakh||More than Rs 50 lakh|
|Income from Other Sources||Excluding activities like horse racing, gambling, lotteries, etc.||Including activities like lotteries, gambling, horse racing, card games, etc.|
|Exempt Income||Up to Rs 5,000||More than Rs 5,000|
|Income from Property||Up to 1 house||More than 1 house|
Due Date for Filing ITR 1
The due date for filing ITR 1 typically falls on July 31st of each assessment year. It’s essential to adhere to this deadline to ensure timely and compliant submission of your income tax return.
Structure of ITR Form 1: A Comprehensive Breakdown
Although ITR Form 1 may appear straightforward, it requires careful attention during the filling process. ITR Form 1 is organized into five distinct parts and two schedules to facilitate comprehensibility. These segments include:
- Part A: General Information
- Part B: Gross Total Income
- Part C: Deductions and Total Taxable Income
- Part D: Computation of Tax Payable
- Part E: Other Information
Additionally, the form comprises two schedules:
- Schedule IT and
- Schedule TDS & TCS
- The final step involves the verification process.
Documents Required for Filing ITR
To successfully fill out the ITR-1 form, you will need the following documents:
- Form 16: Provided by all your employers for the relevant financial year.
- Form 26AS: Ensure the TDS details in Form 16 match those in Part A of Form 26AS.
- Receipts: If you could not submit proof for certain exemptions or deductions (like HRA allowance or Section 80C/80D deductions) to your employer on time, retain these receipts to claim them directly on your income tax return.
- PAN Card: Your Permanent Account Number (PAN) card is a vital identification document.
- Bank Investment Certificates: Details of interest earned from bank accounts, such as bank passbooks or fixed deposit certificates.
Required Details in ITR1 Form
The ITR1 form comprises several sections, each requiring specific information for accurate completion.
- Part A: This initial section captures personal information. Row numbers A1 to A28 encompass details such as:
- First name, last name, and middle name (if applicable)
- PAN Number
- Gender and date of birth in alignment with PAN card records
- Ward details and, if known, the assessing officer’s details
- Communication address
- Contact number
- City and State
- Filing date
- Aadhaar details
- Part B: In this section, labeled Part B, you’ll enter data regarding your gross total income, encompassing earnings from salary, property, and other sources.
- Part C: Part C mandates details related to deductions and taxable income. Rows C1 to C20 encompass deductions under sections 80C, 80D, 80U, and 80G.
- Part D: Rows D1 to D19 in this segment encompass tax computation, status, rebates, post-rebate taxes, TDS claims, etc. Fill in these rows meticulously. D20 is reserved for bank account details, including account number, bank name, IFSC code, and account type. Also, specify if you want any refund directed to this account.
Types of Income Excluded from ITR-1 Form
The ITR-1 form excludes certain categories of income. The following types of income are not included in the ITR-1 form:
Profits and Gains from Business or Profession
Any income derived from businesses or professional activities falls outside the scope of ITR-1.
Income from More than One House Property
If you have income from more than one house property, it does not account for in ITR-1.
Any earnings from capital gains, short-term or long-term, are not considered in ITR-1.
Specific Other Sources of Income
- Income from owning and maintaining racehorses.
- Winnings from lotteries.
- Income is subject to special rates under Section 115BBDA or Section 115BBE.
- Income is meant to be distributed as per the regulations of section 5A.
How to File ITR-1 (SAHAJ) Online on the Income Tax Portal
Filing your ITR-1 (SAHAJ) form online on the Income Tax portal is straightforward. Follow these steps to ensure accurate and efficient filing:
Step 1: Visit the Income Tax e-filing portal.
Step 2: Register or log in to your account.
Step 3: Navigate to ‘e-file’ > ‘Income Tax Returns’ > ‘File Income Tax Return.’
Step 4: Select the Assessment Year as 2023-24 and choose the mode of filing as ‘Online’.
Step 5: Click on ‘Start New Filing’.
Step 6: Select your applicable status.
Step 7: Choose ITR-1 as the form type.
Step 8: Click on ‘Let’s Get Started’.
Step 9: Select the appropriate reason and click ‘Continue’.
Step 10: Now, proceed to complete the five sections as follows:
Filing your Income Tax Return (ITR) 1 online involves a systematic approach across its seven sections:
Part A – General Information:
This section captures crucial personal details, including:
- Full Name (First, Middle, Last)
- Date of Birth
- Aadhar Number
- Mobile Number
- Email Address
- Filed under sections 139(1), 139(4), 139(5), 119(2)(b)
- Response to notice under sections 139(9), 142(1), 148, and 153(C)
- Nature of Employment
Part B1 – Salary/Pension:
- Employer Details (TAN, Name, Nature & Address)
- Salary particulars
- Exempt allowances
- Perquisites’ value
- Net Salary
- Deductions under section 16
- Income under ‘salaries’
Part B2 – House Property:
- Gross Rent Received
- Local Tax Paid
- Annual Value
- 30% of Annual Value
- Interest on Borrowed Capital
- Unrealized Rent (<30%)
- Income under ‘house property
Part B3 – Income from Other Sources:
- Deductions under section 57 (iia)
- Income for relief under section 89A
Part B4 – Gross Total Income:
- Sum of B1, B2, and B3
Part C – Deductions and Taxable Total Income:
- This section accommodates all deductions and taxable income, adhering to provisions under the Income Tax Act, including:
- Deductions under sections 80C, 80CCC, 80CCD(1), 80CCD(1B), 80CCD(2), 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80GG, 80GGC, 80U
- Total Deduction Value
- Total Income (B4 – Deductions)
Part D – Computation of Tax Payable:
- Tax on Total Income (D1)
- Rebate under section 87A (D2)
- Tax after Rebate (D3)
- Cess on Tax after Rebate (D4)
- Total Tax and Cess (D5)
- Relief under section 89(1) (D6)
- Interest under sections 234A, 234B, 234C (D7, D8, D9)
- Fee under section 234F (D10)
- Total Tax, Fee, and Interest (D11)
- Total Tax Paid (D12)
- Amount Payable/Refundable (D13, D14)
Part E – Other Information:
- Banking Details
- IFSC Code
- Bank Name
- Account Number
- Refund Amount
- Schedule-IT: Advance Tax and Self-Assessment Tax Payments:
- BSR Code
- Date of Deposit
- Challan Serial Number
- Tax Paid
- Schedule-TDS: TDS/TCS Details:
- TAN/PAN of Deductor/Tenant
- Deductor’s Name
- Gross Payment
- Year of Tax Deduction
- Tax Deducted
- TDS/TCS Credit
Step 11: Double-check the summary of tax computation for accuracy.
Step 12: Rectify any errors, if present, and complete the validation.
Step 13: E-verify the ITR to finalize the submission.
At the final step, the taxpayer self-attests the form by signing the verification content. This entails entering personal details like the parent’s name and PAN details.
By meticulously navigating through these sections and accurately entering the required details, you can seamlessly complete your ITR 1 filing, ensuring adherence to tax regulations and facilitating a smooth online filing experience.
By following these steps meticulously, you can successfully file your ITR-1 (SAHAJ) form online through the Income Tax portal, ensuring compliance with tax regulations.
Simplify Your ITR-1 Filing with IndiaFilings
IndiaFilings offers expert guidance for accurate ITR-1 filing, ensuring error-free submissions and optimized deductions. Our user-friendly platform and dedicated support streamline the process, providing peace of mind and compliance. Let us simplify your tax filing experience today.Get Started!