ITR-1 SAHAJ is a return form of income tax return for filling the compliances with the Income tax department in case of income from Salary, Income from one house property, and Income from other sources includes interest income or pension income.
It is used by an individual who qualify “ordinary resident” during the tax year.
Who is eligible to use this return form?
- Ordinary resident
- Total income <= 50 lakh for the financial year 2019-20.
- Income under the following head-
- Salary/pension
- House property income only from One house
- Interest income or Family pension under other sources
Ordinary resident-
- Stay in India for a year is 182 days or more or
- Stay in India for immediately preceding 4 year is 365 days or more and 60 days or more in relevant financial year.
Note– An individual who is a citizen of India or person of Indian origin leave India for employment during the FY, qualify resident if he stay in India for 182 days or more.
Who is not eligible to use this return form?
Individual-
- Director in a company
- Held unlisted equity shares during PY
- Has any asset (including financial interest in any entity) located o/s India.
- Has signing authority in any account located o/s India.
- Has income from other sources outside India.
Individual has income from following head-
- Profit and gain from business and profession.
- Capital gains.
- Income from more than one house property.
- Income under the head other sources from below category-
- Winning from lottery
- Activity of owning and maintaining races horse
- Income taxable at specified rates u/s 115BBDA OR U/S 115BBE
- Agriculture income in excess of Rs. 5000.
Manner of filling and verification of this return form?
- Digitally signed
- Aadhaar OTP
- Sending signed paper by post at CPC- Bengaluru
- Electronically on the e filling website of income tax department.
Obligation to file return?
Every individual whose total income before allowing deduction under chapter VI-A or capital gain exceeds the threshold limit is obligate to furnish return.
Compulsory cases of return filling?
If a person whose total income before filling deduction under chapter vi-a of income tax act or deduction from capital gain or exempt long term capital gain does not exceed the maximum amount which is not chargeable to income tax but fulfills the one or more conditions mentioned below is obligate to furnish return of income-
- Deposit of amount or aggregate of an amount exceeding 1 cr. or in one or more current account.
- Incurred expenses of amount or aggregate of amount exceed 2 lakh or more for travel to a foreign country for yourself or other person.
- Incurred expenses of amount or aggregate of amount exceed1 lakh on consumption of electricity.
Major changes made in ITR-1 for AY 2024-21?
- Taxpayer should separately disclose the amount of investment or deposits toward the tax saving scheme from 1st April to 31st July.
- A resident individual who owns a single property in joint ownership can also file ITR 1 where total income is up to Rs. 50 lakh.
- An individual who make the criteria of:
- Making a cash deposit of Rs. 1 cr. with bank
- Expenditure of Rs. 2 lakh on foreign travel
- Expenditure above Rs. 1 lakh on electricity.
Offline return filling case of ITR-1?
Only the following person has an option to file ITR-1 offline-
- An Individual at the age of 80 year or more during the previous year.
- An individual or HUF whose total income does not exceed Rs. 5 lakh and who has not claimed any refund in the return.
Structure of ITR-1?
Itr-1 contain the following part-
- PART A: General information like pan, name, DOB, Contact Number, email address, etc.
- PART B: Gross total income details like salary, deductions, standard deductions, entertainment allowance, income from house property, and other sources.
- PART C: Deduction like govt. pension scheme, health insurance, medical insurance, education loans, donation, etc.
- PART D: Computation of tax payable
- PART E: Other information like details of Bank account
Steps in filling the form online?
- STEP 1: Log in to the official portal of the IT Department using your credentials. https://www.incometaxindiaefiling.gov.in/home
- STEP 2: Then go to E-file-Income tax return.
- STEP 3: Your PAN will be auto- populated. Select the assessment year the file the return file online through ITR-1.
- STEP 4: Instructions which must be read by assesse before filling the form
- STEP 5: General information which include personal details.
- STEP 6: Computation of tax- This section contains details regarding salary income, income from property, interest income, and deduction claimed. The taxpayer must cross verify the amount before paying. Details regarding the property owned by taxpayer will be pre-filled from last year but assesse have to take care.
- STEP 7: Tax details- This include details regarding TDS, TCS deduction and advance and self-assessment tax paid by taxpayer.
- STEP 8: Taxes paid-This table contain details regarding the tax payable after making deduction u/s 80G to 80 GGA. If tax is found due then taxpayer must file that self-assessment tax before proceedings.
- STEP 9: Donation 80G- This section contain details of deduction made by taxpayer to fund under section 80G. Cash donation Rs. 2000 will not be considered.
- STEP 10: Once this submission is complete download a copy for preview. You can rectify if found error. If everything look good click on proceed for final submission to complete filling the form.
- Once the above-mentioned steps are complete verify it through digital signature certificate, aadhaar OTP or electronic verification mode
- After doing so on receiving the application, the taxpayer will be notifying via SMS to their registered mobile number or through am Email.
Penalty if miss the Income tax return filling deadline?
As per revised rule u/s 234f of the IT act, an individual is liable to pay a max 10,000 after missing the deadline of 31st December. While in case of an individual penalty will be of RS. 1000 IF TOTAL INCOME does not exceed Rs. 5 Lakh.
Important terms to understand in ITR-1 SAHAJ FORM
Notice Number– Notice number is required to be mentioned when the taxpayer furnishes the return in answer issued by the Income Tax Department.
Revised Return– If you have made certain mistakes you can rectify then again through revised return.
Advance Tax– If the tax on other income is Rs. 10,000 in a year the required to calculate and deposit the advance tax. This advance tax is to be paid on quarterly basis such on June, December, September and March.
Annexure-less Return- It means it does not require to affix any document with ITR-1 FORM.
Author: CA Rupali Agarwal
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