In India, Income Tax Return (ITR) refers to the form in which taxpayers declare their taxable income, deductions, and taxes paid to the Income Tax Department of India.
Every year, individuals, businesses, and other entities whose income exceeds the minimum threshold set by the government are required to file their income tax returns. The due date for filing returns depends on the type of taxpayer and the nature of their income.
After filing the income tax return, the IT Department verifies the details provided by the taxpayer and assesses the amount of tax owed. If the taxpayer has paid more taxes than what is owed, they are entitled to a refund, while if they have paid less, they will need to pay the balance amount.
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There are seven ITR forms which are used by different taxpayers according to the income and type of individuals. ITR 1 or Sahaj is one such form which is widely used to file the returns.
Who Can File ITR 1 Sahaj?
According to the IT department, ITR-1 can be filed by a resident individual whose:
- Total income does not exceed Rs 50 lakh during the FY
- Income is from salary, one house property, family pension income, agricultural income (up to Rs 5000), and other sources, which 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
- Income of Spouse (other than those covered under Portuguese Civil Code) or Minor is clubbed (only if the source of income is within the specified limits as mentioned above).
Who Is Not Eligible To File ITR-1?
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 Rs 50 lakh
- Has agricultural income exceeding Rs 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
What Are The Types Of Income That Are Not Part Of ITR 1 Form?
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:-
(1) Winnings from lottery
(2) Activity of owning and maintaining race horses
(3) Income taxable at special rates under section 115BBDA or section 115BBE
(e) Income to be apportioned in accordance with provisions of section 5A
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What Documents Do You Need To File ITR-1?
You would need Form 16, house rent receipt (if applicable), investment payment premium receipts (if applicable). However, ITRs are annexure-less forms, so you are not required to attach any document (like proof of investment, TDS certificates) along with your return (whether filed manually or electronically). However, you need to keep these documents for situations where they need to be produced before tax authorities such as assessment, inquiry, etc..
How To File ITR 1 Online?
The pre-filling and filing of ITR-1 service is available to registered users on the e-Filing portal. This service enables individual taxpayers to file ITR-1 either online through the e-Filing portal, or by accessing the offline utility. This user manual covers the process for filing ITR-1 through online mode.
ITR-1 has five sections that you need to fill before submitting it and one summary section where you are required to review your tax computation. The sections are as follows:
- Personal Information
- Gross Total Income
- Total Deductions
- Tax Paid
- Total Tax Liability
