ITR-1 Return

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ITR-1 Return

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  • TDS and Tax Payments
  • Tax Computation
  • E-verification
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ITR-1 Return

Here’s a brief guide on ITR-1 (Income Tax Return Form-1), also known as Sahaj, which is used by individuals for filing income tax returns in India. This summary provides details about its eligibility, components, and filing process.

ITR-1 Sahaj Form Overview

Eligibility to File ITR-1: ITR-1 is meant for individuals who are:

  • Residents (other than not ordinarily resident)
  • Having total income up to ₹50 lakh
  • Having income from:
    • Salary or pension
    • One house property (excluding cases where loss is brought forward)
    • Other sources (like interest income)
    • Agricultural income up to ₹5,000

Who is NOT Eligible to File ITR-1: Individuals:

  • With income exceeding ₹50 lakh
  • With more than one house property
  • Who are directors in a company
  • Holding unlisted equity shares
  • Having income from capital gains
  • Having income from business or profession
  • Having agricultural income exceeding ₹5,000
  • Non-residents or residents with status ‘Resident but not ordinarily resident’

Key Components of ITR-1

Personal Information:

    • Name, PAN, Aadhaar number, address, contact details.
    • Filing status (original return or revised return).
    • Nature of employment (government, PSU, private sector, etc.).

Income Details:

    • Salary income details, including allowances, perquisites, etc.
    • Income from house property (only one house allowed).
    • Income from other sources (interest, dividends, etc.).
    • Agricultural income (up to ₹5,000).

Deductions (Chapter VI-A):

    • Section 80C: Investments in PPF, NSC, life insurance premiums, etc.
    • Section 80D: Medical insurance premiums.
    • Section 80TTA: Interest on savings account (up to ₹10,000).
    • Other deductions (80E, 80G, 80GG, etc.).

Tax Computation:

    • Gross total income.
    • Deductions.
    • Total taxable income.
    • Tax liability computation based on income slab.
    • Rebate under section 87A (if applicable).
    • Tax payable or refund due.

TDS and Tax Payments:

    • Details of TDS from salary, interest, etc.
    • Advance tax and self-assessment tax details.

Filing Process

Preparation of ITR-1:

    • Download pre-filled ITR-1 from the Income Tax e-filing portal.
    • Cross-check personal and income details.

Filing the Form:

    • You can file the ITR online through the Income Tax Department’s e-filing portal.
    • After filing, e-verify using Aadhaar OTP, net banking, or by sending a signed physical copy to CPC Bangalore.

E-verification:

    • Once filed, the return must be verified through the online or offline process.
    • If using offline verification, submit a signed ITR-V form to CPC, Bangalore within 120 days.

Important Dates

Due Date for Filing:

    • Generally July 31st for the relevant financial year.

Penalties for Late Filing:

    • Up to ₹5,000 for filing after the due date but before December 31st.
    • Up to ₹10,000 if filed after December 31st but before March 31st of the following year.

Structure of the ITR-1 Form

A. Personal Information Section:

This section requires you to fill in details such as:

  • Name: As per PAN records.
  • Permanent Account Number (PAN): A unique number allotted by the Income Tax Department.
  • Aadhaar Number: Linking Aadhaar is mandatory for filing returns.
  • Date of Birth: Essential for computing tax slabs (especially for senior citizens).
  • Residential Address: Current address for correspondence.
  • Contact Information: Mobile number and email ID for communication.

You must also mention:

  • Filing status (original or revised return)
  • Whether you have opted for the new tax regime or the old tax regime with deductions.

B. Nature of Employment:

  • Government Employees
  • PSU Employees
  • Private Sector Employees
  • Pensioners

Income Computation in ITR-1

A. Income from Salary/Pension:

The salary income is auto-populated based on Form 16 provided by your employer. The following are the components:

  • Gross Salary: Basic salary, HRA (House Rent Allowance), other allowances.
  • Exemptions (Section 10): Exempt allowances like HRA, leave travel allowance (LTA), etc., are deducted from the gross salary.
  • Perquisites and Profits in Lieu of Salary: These include company-provided car, rent-free accommodation, etc.
  • Net Salary: After accounting for exemptions and perquisites.

B. Income from One House Property:

  • If you own one house property, whether it’s self-occupied or rented, the income from this house is declared.
  • For self-occupied property, interest on housing loan deduction can be claimed up to ₹2 lakh under Section 24(b).
  • For rented property, the rent received is taxable after deducting 30% for repairs and maintenance.

C. Income from Other Sources:

  • Interest Income: Interest earned from savings accounts, fixed deposits, and other sources.
  • Dividend Income: Dividends received from shares and mutual funds.
  • Family Pension: If you receive a family pension, you can claim a deduction of ₹15,000 or one-third of the pension, whichever is lower.

Common Mistakes to Avoid When Filing ITR-1

Mismatch in Personal Information: Ensure the details match those in your PAN card and Aadhaar card.

Wrong Reporting of Income: Verify Form 16, 26AS, and bank statements to avoid under-reporting income.

Claiming Ineligible Deductions: Claim only those deductions that are valid for the financial year.

Skipping the E-Verification Process: Without e-verification, your ITR will remain incomplete.

Incorrect Bank Account Details: Ensure correct bank details for refund processing.

Steps to File ITR-1 Online

  1. Log in to the Income Tax Department’s e-filing portal https://incometaxindiaefiling.gov.in.
  2. Select ITR-1 from the available forms.
  3. Pre-fill the form with data from your PAN, Form 16, and Form 26AS.
  4. Enter additional income details not covered in the pre-filled data.
  5. Review and verify your details.
  6. Submit the return and select your preferred method of verification (e-verification or sending a physical ITR-V form).

Final Points

  • Filing ITR-1 is mandatory for residents with income from salary and other simple sources.
  • Ensure all details are accurate to avoid any scrutiny from the Income Tax Department.
  • E-verification is essential to complete the process. Without verification, the return will be treated as invalid.

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