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Form ITR 1


Income Tax Return filing is done by way of submitting the income tax form to the income tax department. Different ITR forms are notified by the tax department, depending on the source of income. ITR 1 form, commonly known as Sahaj, is one of the such forms. It is one of the most used forms in India. It is a simple form used for Income Tax Return filing & submitting income, deductions, and tax details to the income tax department.


ITR-1 can be filed by a Resident Individual whose:

  • Total income does not exceed ₹ 50 lakh during the FY
  • Income is from salary, one house property, family pension income, agricultural income (up to ₹5000/-), and other sources, which include:
  1. Interest from Savings Accounts
  2. Interest from Deposits (Bank / Post Office / Cooperative Society)
  3. Interest from Income Tax Refund
  4. Interest received on Enhanced Compensation
  5. Any other Interest Income
  6. Family Pension
  • Income of Spouse or Minor is clubbed (only if the source of income is within the specified limits as mentioned above).

 

ITR-1 cannot be filed by any individual who:

  • is a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI)
  • has total income exceeding ₹ 50 lakh
  • has agricultural income exceeding ₹ 5000/-
  • has income from lottery, racehorses, legal gambling etc.
  • has taxable capital gains (short term and long term)
  • has invested in unlisted equity shares
  • has income from business or profession
  • is a Director in a company
  • has tax deduction under section 194N of Income Tax Act
  • has deferred income tax on ESOP received from employer being an eligible start-up
  • owns and has income from more than one house property
  • is not covered under the eligibility conditions for ITR-1

 

Following are the types of income that shall not form part of ITR 1 form:  

(a) Profits and gains from business and professions;     

(b) Capital gains;     

(c) Income from more than one house property;     

(d) Income under the head other sources which is of following nature:

  • winnings from lottery;
  • Activity of owning and maintaining race horses;
  • Income taxable at special rates under section 115BBDA or section 115BBE;     

(e) Income to be apportioned in accordance with provisions of section 5A    


What documents are required for an assessee to file ITR-1? 

  • Download AIS and keep copies of Form 16, house rent receipt (if applicable), investment payment premium receipts (if applicable). 
  • However, ​​ITRs are annexure-less forms, so an assessee is not required to attach any document (like proof of investment, TDS certificates) along with return (whether filed manually or electronically). 
  • However, an assessee need to keep these documents for situations where they need to be produced before tax authorities such as assessment, inquiry, etc.

Is it necessary to link Aadhaar with PAN to file ITR?

  • Linking of Aadhaar and PAN is important. 
  • However, an assessee would still be able to file their ITR if PAN is not linked with Aadhaar, but they will have limited access on the portal. 
  • It is therefore advisable to link PAN with Aadhaar.

What precautions should an assessee take while filing the return of income?

  • Download AIS and Form 26AS and check the actual TDS / TCS / tax paid. If any discrepancy is seen, assessee should reconcile it with the Employer / Tax Deductor / Bank.
  • Compile and carefully study the documents to be referred to when filing ITR, like bank statement / passbook, interest certificates, receipts to claim exemptions or deductions, Form 16, Form 26AS (Annual Information Statement), investment proofs, etc.
  • Ensure details like PAN, permanent address, contact details, bank account details, etc. are correct in the pre-filled data.
  • No documents are to be attached along with ITR-1.
  • e-File the return of income on or before the due date. The consequences of delay in filing returns include late filing fees, losses not getting carried forward, deductions and exemptions not being available.
  • After e-Filing the return, e-Verify it. If an assessee want to manually verify return, send the signed physical copy of ITR-V Acknowledgement (by speed post) within appropriate timelines of filing the return to Centralized Processing Center, Income Tax Department, Bengaluru 560500 (Karnataka).

Structure of the ITR-1 Form

  • Part A – General Information
  • Part B – Gross total Income
  • Part C – Deductions and taxable total income
  • Part D – Computation of tax payable
  • Part E – Other information (Bank account details)
  • Schedule IT (Details of advance tax and self-assessment tax payments)
  • Schedule-TDS (TDS/TCS details)
  • Verification

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