All About Income Tax Return Form 1

To make tax compliance easier, the taxation department has categorized taxpayers into many groups of supported income and its source. So, you’d like better to file your returns accordingly. ITR-1, also called Sahaj Form, is for somebody with an income of up to Rs.50 lakh.

Aadhaar Card is Mandatory for taxation Return Filing

The tax department has made it mandatory for all taxpayers to link their Aadhaar card with PAN on the tax department website.

Who Is Eligible to File ITR-1 for AY 2021-22?

ITR-1 Form is additionally a simplified one-page form for people having income up to Rs 50 lakh from the subsequent sources: 

  • Income from Salary/Pension
  • Property Income from a Single House (excluding cases where loss is brought forward from previous years) 
  • Other sources of income (excluding lottery winnings and racehorse earnings)

In the case of clubbed Tax Returns, where a spouse or a minor is included, this might be done as long as their income is proscribed to the above specifications.

Who is unable to file an ITR-1 for the fiscal year 2020-21? 

  • This form is not available to anyone with an annual income of more than Rs 50 lakh. 
  • This form cannot be used by anyone who is a director of a firm or who has ever held unlisted equity shares during the financial year.
  • Non-residents and residents not ordinarily resident (RNOR) are unable to file returns using ITR-1. 
  • Individuals who received income in the following ways are also unable to file Form ITR-1:

Lottery for more than one house, racehorses, legal gambling, and so on. Capital gains that are taxable (Short term and Long term). Agricultural income of more than Rs. 5,000 in the business and professions. A person who is a resident of India who has assets (including financial interests in any entity) or signing authority in an account outside of India. Sections 90/90A/91 apply to anyone who wants to avoid double taxation or get overseas tax relief.

What is the ITR-1 Form’s structure?

All About Income Tax Return Form 1

Part A – General Information

Part B – Total Gross Income

Part C – Taxable total income and deductions

Part D – Calculation of Taxes Due Other Information

Part E – Bank account details

  •  Make IT a priority (Details of advance tax and self-assessment tax payments)
  •  TDS-Schedule (information on TDS/TCS)
  •  Verification

What is the procedure for submitting my ITR-1 Form?

You have the option of submitting your ITR-1 Form online or offline.

Offline 

Only the people listed below have the option of filing the return on paper. 

  • A person who was 80 years old or older at any point in the preceding year 
  • A person or a HUF with an annual income of less than Rs 5 lakhs and no refund claim on their tax return 

The return is provided in tangible paper form for offline returns. When you submit your physical paper return to the IRS, you will receive an acknowledgement from them.

 Online/Electronically

  • By sending the data electronically and then submitting the return’s verification in the form of an ITR-V to the CPC in Bengaluru.
  • By e-verifying the ITR-V through net banking/aadhaar OTP/EVC and filing the return online. 

The acknowledgement will be sent to your registered email address if you submit your ITR-1 form electronically. You can also choose to directly download it from the IRS website. Within 120 days of e-filing, you must sign it and transmit it to the Income Tax Department’s CPC headquarters in Bangalore. You can also e-verify your tax return.

Changes to the ITR-1 for AY 2021-22 that are significant 

The ITR form has been updated to include the following changes:

  • If TDS is deducted under section 194N, the taxpayer is unable to file an ITR-1. If non-filers of the income tax return withdraw cash in excess of Rs.20 lakh, tax would be deducted at source under section 194N. In other circumstances, when cash withdrawals exceed Rs.1 crore in a financial year, tax must be deducted. 
  • Under section 194N, there is no opportunity to carry forward TDS. TDS credit under section 194N is only available for the year in which TDS was deducted. 
  • Individuals or HUFs can choose between the old and new tax regimes. If a taxpayer chooses a new tax regime under section 115BAC, he must first file Form 10IE before filing Form 139 (1). 
  • New schedule DI has been added to the ITR forms for the assessment year 2020-21. It permitted taxpayers to deduct expenses incurred during the extended time in the fiscal year 2020-21. In AY 2021-22, the schedule DI is eliminated.

What is the procedure for completing the ITR-1?

Before filling out your ITR-1 form, make sure you have the following documents:

  • Form 16: This is a document issued by all of your employers for the current fiscal year.
  • Form 26AS: Make sure the TDS listed on Form 16 is the same as the TDS listed on Part A of your Form 26AS.
  • Receipts: If you haven’t been able to provide documentation of certain exemptions or deductions (such as HRA allowance or Section 80C or 80D deductions) to your employer in a timely manner, keep these receipts on hand so you can claim them directly on your income tax return.
  • PAN card
  • Bank investment certificates: Interest from bank account details – bank passbook or FD certificate.