Filing your Income Tax Return (ITR) is a crucial financial responsibility for every Indian citizen. It not only helps you remain compliant with the law but also ensures that you can enjoy the benefits of tax refunds, if applicable. ITR-1, also known as Sahaj, is one of the simplest and most commonly used forms for filing income tax returns in India. In this comprehensive guide, we will walk you through the key aspects of ITR-1, how to file it, and everything you need to know to make the process smooth and hassle-free.
ITR-1, or Sahaj, is a one-page form used for filing income tax returns in India. It is meant for individuals who have income from salary, one house property, and other sources like interest income and do not have income exceeding Rs. 50 lakhs. It is the preferred choice for salaried individuals and pensioners.Who Can File ITR-1?
ITR-1 is specifically designed for individuals with the following income sources:
Begin by visiting the official Income Tax e-filing portal.Step 2 - Account Access:
Log in to your existing account if you're a returning user. If you're new to the platform, you'll need to register to create an account.Step 3 - Navigate to ITR Filing:
Once you're logged in, proceed to the next step by selecting the 'e-file' option, then click on 'Income Tax Returns,' and finally, choose 'File Income Tax Return.'Step 4 - Choose Assessment Year and Filing Mode:
In this step, you'll need to set the Assessment Year to 2023-24 and specify the filing mode as 'Online.'Step 5 - Start a New Filing:
Click on 'Start New Filing' to initiate the process.Step 6 - Select Your Tax Status:
Here, you'll be prompted to choose your tax status, such as individual, Hindu Undivided Family (HUF), etc.Step 7 - Choose ITR-1 Form:
Select the ITR-1 form type, also known as SAHAJ, as it's the appropriate option for most salaried individuals and pensioners.Step 8 - Get Started:
Click on 'Let’s Get Started' to begin the actual filing process.Step 9 - Specify the Reason and Continue:
You'll be asked to indicate the reason for filing your ITR-1. Choose the appropriate reason and then click 'continue' to proceed.Step 10:
Now, you'll need to provide information in 5 key sections:
Personal Information: In this section, provide your basic details including your full name, PAN and Aadhar number, contact information, and bank account details.
Gross Total Income: Enter and verify income from all sources such as salary, pension, house property, and other sources (e.g., interest income, family pension). Don't forget to detail any exempt income if applicable.
Total Deductions: Take advantage of deductions allowed under the Income Tax Act 1961 by claiming them in this section. Commonly used sections for deductions include 80C, 80D, 80TTA, 80TTB, and others.
Tax Paid: This section displays the tax payments made from all sources, including TDS, TCS, Advance Tax, and Self-Assessment Tax.
Total Tax Liability: Here, the computed tax liability is presented based on the information provided in the previous sections. To clarify, the tax payable on the Total Income is calculated as (Income - deductions claimed - Tax paid till date). If the resulting amount is negative, it can be claimed as a refund. If it is positive, it needs to be paid as tax.Step 11:
Double-check to ensure the summary of tax computation is correct.Step 12:
If any errors are identified, rectify them and complete the validation process.Step 13:
E-verify the ITR;
Income Tax Return (ITR) Form 1, commonly known as ITR-1 or Sahaj, is designed for relatively simple tax situations. However, there are specific scenarios in which individuals are not eligible to file ITR-1:
If your total income exceeds Rs. 50 lakhs, you are not eligible to file ITR-1.
Individuals with income from a business or profession should not use ITR-1. Other ITR forms are more suitable for reporting such income.
ITR-1 is for individuals with income from one house property. If you have income from more than one house property, a different ITR form should be used.
If you have earned income from capital gains, such as the sale of property or investments, ITR-1 is not the appropriate form. Consider ITR-2 or other relevant forms.
If you have foreign income or assets, ITR-1 may not be suitable. Depending on your specific circumstances, ITR-2 or ITR-3 may be more appropriate.
If your agricultural income exceeds Rs. 5,000, ITR-1 is not suitable for your needs. Agricultural income has its own reporting requirements.
If you have incurred a loss from a business or profession, ITR-1 should not be used. Forms that allow for the reporting of losses, such as ITR-3, are more appropriate.
If you qualify as a Resident but Not Ordinarily Resident (RNOR) under the Income Tax Act, ITR-1 may not be the correct form for your tax filing. Use the appropriate ITR form based on your residential status and income sources.
It's crucial to carefully assess your individual financial situation and choose the appropriate ITR form when filing your income tax return. Using the correct form ensures accurate reporting of income and deductions, as well as compliance with tax regulations. If you have a more complex tax situation or are uncertain about the suitable ITR form, consider seeking guidance from a tax professional or chartered accountant.