ITR-1 Return Filing

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ITR-1 Return Filing

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Documents required For ITR-1 Return Filing

Form 16
Bank Statement
Details of Other Income

ITR-1 Return Filing Details

ITR 1, also known as Sahaj Form, is an income tax return form that is used by individual taxpayers to file their income tax returns with the Income Tax Department of India. It is the most basic form of income tax return and is applicable for individuals who have income up to Rs. 50 lakhs.

To file ITR 1 Sahaj Form, the individual must have income from the following sources:

  1. Salary income – Wages, Pension, Annuity, Advance salary paid, Leave Encashment, Fee, prerequisites, commission, profits besides or in lieu of the salary or wages, Transferred balance in recognized provident fund, Annual accretion to the recognized provident fund, Central Government contribution or an employer contribution to Pension account as mentioned in Section 80 CCD of the Income Tax Act.

  2. Income from one house property – If the taxpayer is the owner of a property from which he or she is earning rent, the rent proceeds become taxable. However, if the taxpayer is using the property for running some business or profession the same would be taxable under the heading “Income from business or profession”.

  3. Other sources (does not include income earned from winning lottery or racehorses) – This includes sources like interest income from savings account, fixed deposits, etc., and income from family pension.

However, there are certain individuals who cannot file ITR 1 Sahaj Form. These include:

  1. Individuals with an income of more than Rs. 50 lakhs.

  2. Directors of a company who have held unlisted equity shares during the financial year.

  3. Non-residents and residents who are not ordinary residents.

  4. Individuals who earned income through sources such as more than one house property, taxable capital gains, winning lottery or racehorses, and agricultural income when it exceeds Rs. 5,000.

  5. Residents of India who have assets outside India or are the signing authority in any account based out of India.

  6. Individuals claiming relief of foreign tax paid or double taxation relief under Section 90/90A/91.

To file ITR 1 Sahaj Form, the individual can either file it online through the Income Tax Department’s e-filing portal or manually by submitting a physical copy of the form at the Income Tax Department’s office. The due date for filing ITR 1 Sahaj Form for the assessment year 2022-23 is September 30, 2023.

What documents are required to file ITR 1 Sahaj Form?

The following documents are generally required to file ITR 1 Sahaj Form:

  1. PAN (Permanent Account Number) card
  2. Aadhaar card
  3. Bank account details including account number, IFSC code, and name of the bank
  4. Form 16/16A: This is a certificate issued by the employer that shows the salary paid to an employee and the taxes deducted during the financial year.
  5. Form 26AS: This is a statement that shows the details of tax deducted at source (TDS) on various incomes earned by the taxpayer. It also shows the details of any tax paid by the taxpayer.
  6. Rent receipts (if applicable): If the taxpayer has rented out a property during the financial year, then he/she will need to provide rent receipts to show the rental income earned.
  7. Details of any other income earned during the financial year such as interest income from savings bank account, fixed deposits, etc.
  8. Details of deductions claimed such as under Section 80C, 80D, etc.
INCOME TAX RATE

Income tax rates in India depend on the income level of the taxpayer and the category they fall into. For the financial year 2022-23 (Assessment Year 2023-24), the income tax rates are as follows:

For Individuals below 60 years of age:

  • Income up to Rs. 2.5 lakh: No tax
  • Income from Rs. 2.5 lakh to Rs. 5 lakh: 5% tax
  • Income from Rs. 5 lakh to Rs. 10 lakh: 20% tax
  • Income above Rs. 10 lakh: 30% tax

For Senior Citizens (60 years and above but below 80 years):

  • Income up to Rs. 3 lakh: No tax
  • Income from Rs. 3 lakh to Rs. 5 lakh: 5% tax
  • Income from Rs. 5 lakh to Rs. 10 lakh: 20% tax
  • Income above Rs. 10 lakh: 30% tax

For Super Senior Citizens (80 years and above):

  • Income up to Rs. 5 lakh: No tax
  • Income from Rs. 5 lakh to Rs. 10 lakh: 20% tax
  • Income above Rs. 10 lakh: 30% tax

Note that these rates do not include applicable surcharge and cess. Also, individuals with income up to Rs. 5 lakh are eligible for a rebate of up to Rs. 12,500 under Section 87A of the Income Tax Act, 1961.

NEW TAX REGIME MEANS

The new tax regime, also known as the concessional tax regime, is an optional tax regime introduced in the Union Budget 2020. Under this regime, taxpayers can opt to pay income tax at lower rates, provided they forego certain exemptions and deductions available under the old tax regime. The new tax regime offers lower tax rates for most taxpayers, particularly those in the lower and middle-income groups. Taxpayers can choose to switch to the new tax regime at the time of filing their income tax return. It is important to note that the new tax regime is optional, and taxpayers can choose to continue with the old tax regime if it is more beneficial for them.

The income tax rates under the new tax regimes

The income tax rates under the new tax regime announced in Budget 2020 are as follows:

For individuals:

  • Up to Rs. 2.5 lakh: Nil
  • From Rs. 2.5 lakh to Rs. 5 lakh: 5%
  • From Rs. 5 lakh to Rs. 7.5 lakh: 10%
  • From Rs. 7.5 lakh to Rs. 10 lakh: 15%
  • From Rs. 10 lakh to Rs. 12.5 lakh: 20%
  • From Rs. 12.5 lakh to Rs. 15 lakh: 25%
  • Above Rs. 15 lakh: 30%

Note that these rates are applicable only if the taxpayer is willing to forgo certain deductions and exemptions under the Income Tax Act.

What are the conditions to opt for a new tax regime?

The following conditions must be met to opt for the new tax regime:

  1. The taxpayer must be an individual or HUF.

  2. The taxpayer cannot have any business income. The new tax regime is only applicable to those taxpayers who earn income under the head “Salary,” “House Property,” “Capital Gains,” “Other Sources,” or a combination of these heads.

  3. The taxpayer must forego certain exemptions and deductions available under the Income Tax Act, such as standard deduction, leave travel concession, house rent allowance, deductions under chapter VI-A, and so on.

  4. The option to choose the new tax regime is available on a yearly basis. Therefore, taxpayers have the option to switch back and forth between the old and new tax regimes every year, depending on which regime is more beneficial to them

    deductions allowed the New Tax Regime

    Under the new tax regime, taxpayers cannot claim several deductions and exemptions that were available under the old tax regime. Here are some deductions that are not allowed under the new tax regime:

    1. Standard Deduction: The standard deduction of Rs. 50,000 available to salaried individuals is not allowed under the new tax regime.

    2. Leave Travel Allowance (LTA): LTA received from the employer is not allowed as a deduction under the new tax regime.

    3. House Rent Allowance (HRA): HRA received from the employer is not allowed as a deduction under the new tax regime.

    4. Deduction under Chapter VI-A: Taxpayers cannot claim deductions under various sections of Chapter VI-A, including:

    • Section 80C: Investments in Provident Fund, Public Provident Fund, Equity Linked Savings Scheme, National Savings Certificate, etc.
    • Section 80D: Medical insurance premiums paid for self, spouse, children, and parents
    • Section 80E: Interest paid on education loans
    • Section 80G: Donations to charitable institutions
    1. Other Deductions: Taxpayers cannot claim deductions under other sections of the Income Tax Act, such as Section 24 for home loan interest, Section 80TTA for interest on savings bank accounts, and Section 80U for individuals with disabilities.

ITR-1 Return Filing FAQ’s

  1. Who is eligible to file ITR 1? ITR 1 can be filed by individuals who are residents of India for tax purposes and have income only under any or all three heads of income, including Salaries, Income from House Property, and Income from other sources.

  2. What are the ways to file ITR 1? ITR 1 can be filed both online and offline.

  3. Do you need to show interest income from other sources in ITR 1 if TDS is already deducted? Yes, it is necessary to include interest income from other sources even if tax is deducted by the bank.

  4. How can you file ITR 1 returns offline? ITR 1 returns can be filed offline by furnishing a return in physical paper form, after which an acknowledgment is issued at the time of submission of the physical paper return.

  5. How can you file ITR 1 returns online? ITR 1 returns can be filed online by transmitting the data electronically and then submitting the verification of the return in Form ITR V to the CPC Bengaluru. You can also e-verify ITR 1 through net banking/Aadhar OTP/EVC. The acknowledgment will be sent to the registered email. Additionally, it can be downloaded from the income tax website, signed, and sent to the income tax department’s CPC office in Bangalore within 120 days of e-filing.

  6. Is ITR 1 an annexure-less form? Yes, ITR 1 is an annexure-less return, and there is no need to attach any documents, such as Form 16 or Form 26 AS, with the ITR 1 form.