ITR-1 (Sahaj) Filing

The Income Tax Return, or ITR, is an essential document that people submit to the income tax department detailing their income and any necessary taxes. All of the ITR forms and associated processes are outlined in the Income Tax Act of 1961. ITR-1, also known as Sahaj, is one of these types that is especially important. ITR1 (Sahaj) is applicable to the majority of salaried individuals and is intended for those with incomes up to Rs. 50 lakhs.

A simple and effective way to file income tax returns in India utilising the ITR1 form is provided by Taxhint Advisors. Our team of professionals helps you every step of the way, making sure you easily fulfil your tax compliance requirements. With the help of Taxhint Advisors' ITR 1 filing services, you can easily manage the tax submission process and concentrate on your priorities while we take care of your tax return demands. Start now!

What is ITR?

The Income Tax Return (ITR) is a document that taxpayers use to provide the income tax department with information about their earned income and the associated tax liability. It ensures transparency and adherence to tax laws by acting as a formal declaration of a person's or entity's financial information.

There are seven forms that make up the ITR landscape: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. It is mandatory for every taxpayer to submit their ITR by the designated deadline. The choice of ITR form is determined by a number of variables, including the taxpayer's category—which might include individuals, HUFs (Hindu Undivided Families), corporations, and more—as well as the sources and quantity of income generated.

What is ITR 1 Sahaj Form?

As its name suggests, the ITR-1 Sahaj Form provides individual taxpayers with a more straightforward way to file their income tax returns. This form is intended exclusively for Indian residents whose combined income is less than Rs. 50 lakhs and comes from the following sources:

• Income from Salary or Pension
• Income from a Single House Property
• Income from Other Sources

The ITR-1 Form offers a practical and efficient way for qualified persons to satisfy their tax obligations by streamlining the process of disclosing their income tax information.

Who Can File ITR1

ITR1 is applicable to residents who satisfy the subsequent requirements:

• Income Threshold: The person's total annual income cannot be more than Rs. 50 lakh for the financial year.
• Permissible Income Sources: The following sources of income are acceptable for filing an ITR-1:
• Salary
• revenue from a single-family home
• Family pension income
• Agricultural income (up to Rs. 5,000)
• Additional resources consist of:
• Interest from Savings Accounts
• Interest received on bank, post office, and cooperative society deposits
• Interest from Income Tax Refund
• Interest obtained from the Increased Remuneration
• Any additional income from interest
• Family Pension

Who Cannot File ITR1

The people who fall within the following categories are not allowed to file an ITR1:

• ✔ Individuals who identify as Non-Resident Indian (NRI) and Residents Not Ordinarily Resident (RNOR)
• ✔ Individuals whose total income is above ₹ 50 lakh
• ✔ People whose earnings from agriculture exceed ₹ 5,000
• ✔ Those who make their living from legal gambling, horse racing, lotteries, etc.
• ✔ Those who have long-term and short-term taxable capital gains
• ✔ People who have purchased equity shares that are not listed
• ✔ People whose source of income is their company or profession
• ✔ People who work as directors for a company
• ✔ People who are eligible for a tax reduction under Income Tax Act section 194N
• ✔ People who obtained a qualified start-up employer's Employee Stock Ownership Plan (ESOP) with deferred income tax
• ✔ People who own multiple properties and earn a living from them
• ✔ Those who don't fit the requirements for filing an ITR-1 eligibility chart

ITR-1 Due Date

Usually, the deadline for filing ITR 1 is July 31st of the assessment year. In order to guarantee that your income tax return is submitted on time and in accordance with tax laws, it is imperative that you fulfil this deadline.

ITR Form 1 Structure: A Detailed Overview

ITR Form 1 may appear simple, but filling it out correctly calls for close attention. To maintain clarity, ITR Sahaj is divided into two schedules and five separate sections. Among these segments are:

Part A: General Information

• ✔ Personal details such as name, PAN number, age, gender, and date of birth.
• ✔ Ward and assessing officer details (if known).
• ✔ Address for correspondence, phone number, state, and city.
• ✔ Filing date and Aadhaar details.

Part B: Gross Total Income

• ✔ details about the overall gross income, which includes earnings from real estate, salaries, and other sources.

Part C: Deductions and Total Taxable Income

• ✔ information on the deductions allowed by sections 80C, 80D, 80U, and 80G.

Part D: Computation of Tax Payable

• ✔ rows pertaining to TDS claims, rebates, post-rebate taxes, tax computation, status, etc.
• ✔ D20 for bank account information, which includes the account number, bank name, IFSC code, and account type. If appropriate, you can also choose which account will receive a refund.

Part E: Other Information

• ✔ different further information as needed by the tax authorities.

Additionally, the form comprises two schedules:

• ✔ Schedule IT
• ✔ Schedule TDS & TCS
• ✔ Verifying the information submitted is the last stage in the procedure.

Documents Needed to File Form ITR 1

The ITR Sahaj forms do not require any attachments. It follows that taxpayers are not needed to affix any paperwork.

On the other hand, taxpayers should hold onto the following records for their files and be ready to present them to tax authorities upon request, especially in cases involving assessments or enquiries.

• ✔ Form 16: Given to you by each of your employers for the pertinent fiscal year.
• ✔ Form 26AS: Verify that the TDS data in Part A of Form 26AS correspond to those in Form 16.
• ✔ Receipts: To claim exemptions or deductions (such as HRA allowances or Section 80C/80D deductions) directly on your income tax return, keep the receipts for those that you did not submit to your employer on time.
• ✔ PAN Card: For identification purposes, your Permanent Account Number (PAN) card is necessary.
• ✔ Bank Investment Certificates: Information obtained from bank passbooks or certificates of fixed deposit that detail interest earned on bank accounts.

Required Details in ITR1 Form

The ITR1 form has multiple sections, each of which needs to be filled out accurately with specified information.

• ✔ Part A: PAN numbers, addresses, genders, ages, and phone numbers are among the personal data collected in this portion.
• ✔ Part B: Details on total gross income, which includes revenues from real estate, salaries, and other sources.
• ✔ Part C: Information about the deductions allowed by sections 80C, 80D, 80U, and 80G.
• ✔ Part D: Bank account information, post-rebate taxes, rebates, tax computation, status, and TDS claims.

Income Types Not Included on the ITR-1 Form

The ITR-1 form excludes certain categories of income, including:

• ✔ Profits and Gains from Business or Profession
• ✔ Income from More than One House Property
• ✔ Capital Gains (Short-term or Long-term)

Specific Other Sources of Income:

• ✔ revenue from keeping and owning racehorses
• ✔ Winnings from lotteries
• ✔ Income subject to Section 115BBDA or Section 115BBE special rates
• ✔ Distribution of income is intended to occur in accordance with section 5A regulations.

Penalty for late ITR 1 Filing

Depending on your total income, there may be different penalties for filing income tax returns after the deadline.

• ✔ If an individual's total income is more than Rs 5 lakh, they may be subject to a penalty of Rs 5,000; if their income is less than this, they may be subject to a lesser penalty of Rs 1,000.
• ✔ In addition, you will be subject to interest at the rate of 1% per month until you file the return if you owe taxes and neglect to file the return by the deadline.
• ✔ Penalties may be applied in more serious situations for underreporting or misreporting income. Penalties for underreporting can reach 50% of the tax underreported, while penalties for misreporting can reach 200% of the tax amount misreported.
• ✔ Prosecution procedures may also follow persistent non-filing of tax returns in spite of tax authorities' reminders. This might lead to a sentence of three months to seven years in prison, based upon the amount of unpaid taxes.

How can advisors from Taxhint help with ITR-1 (Sahaj)?

Taxhint Advisors offers invaluable support when it comes to preparing your income tax return, ITR-1 (Sahaj). First, we assist you in choosing the right form according to your income sources so that your filing is accurate.

To lower the possibility of penalties or tax notices, we carefully determine your tax liability, do mistake checks, and place a high priority on timely filing. We help expedite the processing of your income tax refund, if you qualify.

Throughout the procedure, our team of tax experts is here to answer your questions and offer assistance. Taxhint Advisors also keeps you updated on tax law changes and deadlines, ensuring your compliance with the latest regulations. You can rely on us to protect your financial information and streamline the ITR-1 filing process with our secure platform.

Make tax filing simpler than before by getting started right away!