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ITR 1 – Sahaj Form
ITR 1 (also called the Sahaj Form) is for taxpayers who earned less than Rs 50 lakh in the previous fiscal year. The IRS divides taxpayers into categories based on their overall income and type of income. As a result, you must determine the applicability before submitting ITR 1. We discussed applicability and non-applicability in this part. Let us discuss how to file Form ITR 1 online and offline.
The Union Budget for 2021 proposes that senior citizens be exempted from filing Form ITR 1. Pension and interest income are the only sources of income for such senior citizen taxpayers.
Who is eligible to submit ITR 1?
First, let’s go over who can use this ITR form, and then we’ll go over who can’t use it even if he is otherwise eligible. For tax purposes, ITR 1 can only be utilised by an individual taxpayer who is a resident of India. As a result, all non-resident and non-ordinary resident individuals are ineligible to utilise this form under tax legislation. Similarly, anyone with taxable income of fewer than fifty lakhs can use ITR 1 if he does not have any income from “Capital gains” or “Profits and gains of company or profession.” So long as you earn money from one of these three sources, i.e. “salaries,” you’re good to go. “You can utilise ITR 1 for “Income From House Property” and “Income From Other Sources.” Even if your income comes from these three sources, you cannot use ITR 1 in the following situations:
To begin with, those of you with salary income cannot use ITR 1 if your tax deduction on the perquisite value of an Employee Stock Option Plan (ESOP) has been deferred due to your employer’s status as a start-up as defined by the IRS. Second, for people with income from a house, see “Income from House Property.” “They can only use ITR 1 if they own only one house property. If you are staying in a rented house or an employer-provided residence, the single property does not have to be self-occupied and can even be rented out. Finally, suppose your source of income under this heading includes income from maintaining racing horses or prize money or income taxed at a flat rate like unexplained investments or unexplained expenditure taxed at 60%. In that case, you cannot use ITR 1.
Even if your income does not include any of the abovementioned income, you cannot use ITR 1 if you are claiming any expenses against it. So, if you earn money by moonlighting, you can only utilise it if you don’t plan to claim any expenses against it. A special provision is granted for people who get family pensions, for whom a standard deduction is permitted up to 1/3 of the pension received, up to a maximum of Rs 15,000/-, and for whom ITR 1 can be used.
Suppose the nature of the income to be clubbed falls under any of the three heads of income stated above and does not fall under any of the exclusions discussed above. This form can be used only if the nature of the income to be clubbed falls under any of the three heads of income enumerated above.
Who is ineligible for ITR 1?
Because ITR 1 can only be used by individuals, it is evident that HUFs cannot utilise it, even if it otherwise meets all other criteria. Individuals who hold a directorship in a company or have stakes in unlisted company shares, regardless of the structure of their income, are not eligible to use ITR 1. Similarly, anyone with an asset outside of India or signing authority over an account outside of India is ineligible to utilise this form. For this purpose, the asset’s value or the balance in the bank account is irrelevant. As a result, anyone who invested in foreign enterprises or foreign mutual funds under the Liberalised Remittance Scheme (LRS) is ineligible to use ITR 1. It is noteworthy that this restriction does not apply to all investors in Indian mutual fund schemes who also invest in overseas companies and mutual fund schemes. If you have any income outside India, you cannot use ITR 1. You are ineligible to utilise this form if your agricultural income exceeds Rs. 5,000/-.
You cannot use ITR 1 if you have brought forward losses or losses during the current year under the House property head of other sources’ authority and desire to carry them forward. Individuals who have had tax deducted by banks or post offices for cash withdrawals over a specific limit are likewise ineligible to use ITR 1.
What is the ITR 1 Form’s Structure?
General Information (Part A)
Name, PAN number, aadhaar number, date of birth, permanent address, e-mail address, mobile number, and so on are all included in this part.
Part-B Total Gross Income
This part includes total gross income from all sources, including salary, house property, capital gain, business/profession, and other sources. The amount minus any deductions and exemptions are the total gross revenue.
Part-C Total Taxable Income and Deductions
All investments, deposits, and payments made to claim a deduction under Chapter VIA must be listed here. You must describe all investments and expenses, such as LIC premiums, PPF contributions, tuition fees, medical insurance, NPS, NSC, education loan interest, etc.
Computation of Taxes Due/Refunds Due (Part-D)
This section comprises exempt income, section 87A rebates, section 89 relief, tax due, and relevant interest.
TDS and Tax Paid in Part E
Part-E contains information on taxes deducted at sources from salaries and other sources of income. Details about advance tax and self-assessment tax payments are also included. The BSR code, date of deposit, challan serial number, and tax paid must all be provided.
Part-F At-Source Collection of Part-F Tax
The tax collected at the source includes account number and collector’s identity, gross payment subject to TCS, tax year, TCS collected, and TCS claim.
Part-G Schedule: DI Details of Investments
Investments, deposits, and payments to claim a deduction under Part B of Chapter VIA are included in Part G.
Part-H explains filing a claim under section 80D for medical insurance and expenditures.
Part I: Details of the claim to be made against donations under section 80G
Part-J explains how a donation for scientific research or rural development can be deducted under section 80GGA.
How to File ITR 1 Form Online for AY 2020-21?
Your income tax return can be ‘Prepared and Submitted Online’ by simply entering your information online and submitting it. Your information will be pre-filled on the ITR, and all you have to do now is double-check the pre-filled information and fill in any gaps.
You only need to follow the processes outlined below for ITR-1 Form preparation and e-filing.
- Create an account on the IRS’s website to file your taxes.
- Enter your PAN and password to log in to your account after a successful registration.
- Select Filing of Income Tax Return from the Dashboard drop-down menu.
- Fill in the following information:
- 2020-21 is the assessment year.
- ITR-1 (Income Tax Return Form)
- Original/Revised Original/Revised Original/Revised Original/Revised Return
- Prepare and Submit Online is the submission mode.
The following information will be pre-populated:
- Address, Aadhaar, Name, Mobile Number, and E-mail ID from your e-filing profile PAN, name, and date of birth from the PAN database
- TDS, advance payment from your Form 26AS
- Form 24Q: Salary income, deductions, and allowances
- From your Form 26AS, you’ll be able to deduct the revenue from your house.
- Interest from term deposits from your Form 26AS
- Interest income from your tax refund from Form 26AS
- Form 24Q provides tax relief under section 89.
Bank information from the previous year’s ITR
- Check the pre-filled information and rectify any errors.
- Check the bank account information and make sure it’s right. You may have to cope with a delay in processing your income tax return if the bank information is incorrect.
- After double-checking everything, you’ll need to choose a verification mode.
- Choose the method you’d want to use to verify your tax return.
- To submit your ITR, click the ‘Submit’ button.
- Following submission, you will be taken to the ITR verification page.
- Check the status of your ITR and verify your income tax return.
Each assessee has two choices. Either fill out the ITR online and submit it or fill out the ITR offline and submit it. Both offer techniques require you to submit the ITR online. The sole difference between the two approaches is whether the ITR is prepared online or offline. You must download the software utility, fill out the form, and upload the utility on choosing this option.
You only need to follow the processes outlined below for ITR-1 preparation and e-filing Form:
- Create an account on the IRS’s website to file your taxes.
- Enter your PAN and password to log in to your account after a successful registration.
- Choose Downloads from the drop-down menu. You’ll be taken to the download page after that.
- From the drop-down option, choose the assessment year.
- You can get the Microsoft Excel file or the JAVA programme.
- The download will be in the form of a zip file.
- Assume you’ve downloaded the Microsoft Excel spreadsheet. Open the file and click the enable content’ button to activate the content.
- The excel document will open. Now, select enable macros; from the drop-down menu.
- Always keep the following in mind.
Data can be entered in the green cells.
Fields in red must be completed.
Do not attempt to copy and paste your information. Use CTRL X and CTRL V instead of cut and paste. Any data can be pasted.
- Previous, compute tax, print, and help are some of the navigation choices on the form.
- Fill in all of the information under each tab and then click verify.
- Click create XML once you’ve input all of the data correctly. This file must be uploaded.
- Log in to your income tax account to upload the XML file.
- Select Filing of Income Tax Return once you’ve logged in. This option will be found in the Dashboard section.
- Fill in the following information:
2020-21 assessment year.
ITR-1 (Income Tax Return Form)
Original/Revised – Original/Revised – Original/Revised – Original/Revised ‘Upload XML’ is the default submission mode.
To confirm your return, choose one of the alternatives listed.
Please upload the file.
Finally, submit the return and double-check it afterwards.
How to File ITR 1 Form Offline for AY 2020-21?
You can fill out and submit an ITR-1 paper form using the information on the ITR-1 paper form. The income tax department will acknowledge receipt of your application. Only the following taxpayers are eligible to file their ITRs offline:
- An assessee was 80 years old or older at any point in the previous year.
- An assessee is a person or a family with a total annual income of less than Rs 5 lakh.
Furthermore, the assessee is not entitled to a tax refund.
Changes to ITR-1 for the Assessment Year 2020-21
- Individual taxpayers who possess a single dwelling in joint ownership in the United States can file Form ITR 1. However, the overall income for the financial year shall not exceed Rs 50 lakh.
- Each assessee must independently disclose all tax-saving investments, costs, or deposits for the period beginning April 1, 2020, and ending June 30, 2020.
- ITR-1 must be filed by all taxpayers who meet the following criteria. He must also fill out Form ITR 1 with the amount.
- Cash deposits of more than Rs 1 crore were made during the financial year.
- Expenses for foreign travel over Rs 2 lakh during the financial year
- During the financial year, electricity costs exceeded Rs 1 lakh.
Terms You Should Be Aware Of
Revised Return
You can re-file your ITR if you uncover a mistake in your income tax return after it has been filed. This is called a revised return, and it allows you to make changes to a previously filed tax return. Remember that you can only alter a return if you have already filed it.
Notice Number
If you are completing your income tax return in response to a notice from the IRS, you must provide this number, and this figure must be included in the tax return itself.
Annexure-Less Return
ITR-1 Sahaj is a return with no annexures, and this means you don’t have to include any documents as an annexure. Attaching any documentation, such as Form 16, TDS certificates, Form 26AS, donation proofs, investment evidence, and so on, is not required by the IRS.
Advance Tax under Income Tax Act, 1961
Typically, the TDS deducted by the employer is adequate for salaried individuals, and they do not need to pay any advance tax. However, advance tax is due if the total income includes other sources such as capital gains, rental income, or interest from deposits. If the tax on total income exceeds Rs 10000 in a financial year, the advance tax becomes applicable. Quarterly payments must be made on or before the due date.
Self-Assessment Tax under Income Tax Act, 1961
A self-assessment tax is a tax paid by a taxpayer who calculates their tax on total income. You may discover that you owe tax after filing your income tax return. First, double-check that you’ve entered all the TDS/TCS and advance tax information correctly. You must pay self-assessment tax and include the challan details in your income tax return. Always be aware of the assessment year you select when making a payment. If your assessment year is erroneous, you will not have paid tax for the appropriate AY and instead have paid for a different AY.
If your total income exceeds Rs 50 lakh, you cannot submit ITR-1 Sahaj. If you are a salaried employee, you must file Form ITR-2. In other circumstances, depending on the source of income, you can file an ITR-3 or ITR-4. If you have income from a business or profession, you must file Form ITR-3. ITR-4 Sugam, on the other hand, is for taxpayers who choose presumptive taxation under section 44AD or 44AE.
If your capital gain income is exempt under section 10 (38) of the Internal Revenue Code, you must report it on Form ITR-1. However, if the LTCG is taxable, you must complete additional forms based on your income and category.
Yes, you can file ITR-1 Sahaj if your total agricultural income for the year is less than Rs 5000. If your total agricultural revenue for the fiscal year exceeds Rs 5000, you must file Form ITR-2.
Yes, dividend income from mutual funds must be reported. Section 10 of the Internal Revenue Code exempts dividend income (35). You must report it in Part D, under the heading exempt Income, on your ITR (others).
The offline utility can be downloaded from the income tax e-filing site at www.incometax.gov.in. 1st step: Select the relevant assessment year under the ‘Download’ section and click the ‘utility’ link under the ‘Common Offline Utility (ITR 1 to ITR 4)’ section.
ITR 1 Form is filed by taxpayers and persons who are residents of India and have a total income of up to INR 50 lakhs from salaries, one house property, other sources (interest, dividends, etc.) and agricultural income of up to INR 5,000.
Once you get into the e-filing site, ‘Downloads -> Offline Utilities -> Income Tax Return Preparation Utilities’ is where you can find the utility. A ZIP file will begin downloading on your PC when you click the link for the utility given against ITR-1 or ITR-4.
Registered users of the e-Filing portal can access the pre-filling and filing of ITR-1 services. Individual taxpayers can use this service to file ITR-1s electronically through the e-Filing site.
If a taxpayer fails to file an ITR by the deadline, penalty interest at 1% per month is imposed on the unpaid tax. Furthermore, if the outstanding tax amount exceeds Rs 1 lakh, section 234A kicks in from the original due date, which in this situation is July 31, 2021.
For AY 2022-23, who is eligible to file an ITR-1? Individuals with income of up to Rs 50 lakh from the following sources can use the ITR-1 form, a streamlined one-page form. Salary and pension income Property Income from a Single House (excluding cases where loss is brought forward from previous years).
