“What is Form ITR 1?” And “How to File ITR 1 Sahaj Form Online?”

Introduction

The Income Tax Department has divided people into numerous groups based on their income and the source of their income in order to make tax compliance easier. As a result, you must file your returns appropriately. ITR-1, often referred to as the Sahaj Form, is for individuals with incomes up to INR 50 lakh. In this article we will look into the information on “What is Form ITR 1?”, “How to File ITR 1 Sahaj Form Online?”, Eligibility Criteria for Filing Form ITR 1 and Documents required for Income Tax Filing Form ITR1.

What is Form ITR 1?

ITR 1 Form is filed by taxpayers and persons who are residents (other than non-ordinary residents) and have a total income of up to INR 50 lakhs, with income from salaries, one house property, other sources (interest, etc.), and agricultural income of up to INR 5,000. (Not for an individual who owns unlisted equity shares or who serves as a director of a firm.) Also to be noted, the tax department has stated that it is now compulsory for taxpayers to provide PAN and Aadhaar card details on the Income Tax Department’s official website.

In order to establish a straightforward structure for tax compliance, the income tax department has informed taxpayers of ITR (Income Tax Return) forms based on their source of income. As a result, you must submit your return according to the source of your income.

Amendments made in the Filling of Form ITR 1

The ITR-1 form has undergone the following modifications:

• You can declare and receive relief for income from retirement benefit accounts kept in the notified country in accordance with Section 89A under the schedule titled “Salary.”
• The “Nature of employment” option is now required for pensioners (Central government, state government, public sector unit and others).
• At the time of withdrawal or redemption, as required by Section 89A, you may now seek relief for the taxes paid on the income from the retirement benefit account kept in a notified nation.

Documents required for Income Tax Filing Form ITR 1

• Form 16
• Form 26AS.
• Keep all the receipts on hand in case you need to claim specific exemptions or deductions directly on your income tax return (for example, an HRA or Section 80C or 80D deductions).
• PAN (Permanent Account Number) Information
• Certificates of Deposit at Banks: Information about interest from a bank account—a bank passbook or an FD certificate

Eligibility Criteria for Filing Form ITR (Income Tax Return) 1

• If a pension or salary is the primary source of income.
• If only one property (a house) provides the income (the case where losses of previous years are carried forward are not included in this ITR).
• If there are other sources of income.
• If the minor’s or wife’s combined income is disclosed in that condition only taxpayer is eligible to file Form ITR 1.

Conditions where taxpayer are not eligible to file an ITR 1 Sahaj Form

• A person making more than Rs 50 lakh annually.
• Person who has ever held any unlisted equity shares during the fiscal year or who is a director of a firm.
• Non-residents and residents who do not typically reside (RNOR).
• People who have made money using the following methods:
  • several homes and properties.
  • Lottery, racing, authorized gambling, etc.
  • capital gains subject to tax (Short-term and Long-term).
  • greater than INR 5,000 in agricultural revenue.
  • enterprise and profession.
  • A resident who possesses property (including financial stakes in entities) outside of India or who has signatory authority over any accounts there.
  • People who are requesting exemption from double taxation or reimbursement from foreign taxes paid under Section 90/90A/91.
  • ESOP (Employee Stock Ownership Plan) received from a qualified start-up with deferred income tax.

How to File ITR 1 Sahaj Form Online?

• Login to the Income Tax E filing Portal through User ID and Password.
• Click on E file form there Click on Income Tax Return and from there go to File Income Tax Return option.
• Select the appropriate Assessment year for the filing of ITR and then click on Continue.
• Once the above step completed, Select mode of filing from there click on Online and proceed.

Important Note: Note: If your income tax return has already been completed and is waiting to be sent, select Resume Filing. Click Start New Filing if you want to start over and delete the previously saved return.

• To continue, select Status if it applies to you and click Continue.
• To choose the kind of income tax return, you have two choices:
  • Select Help me pick which ITR Form to fill if you are unsure which ITR to submit, then click Proceed. You can proceed with filing your ITR after the system assists you in determining the correct ITR.
  • Choose I know which ITR Form I need to fill if you are certain which ITR you should submit. Click Proceed with ITR after selecting the appropriate Income Tax Return from the selection.

Important Note: Your responses to a series of questions will help determine which ITR or schedules are appropriate for you in the event that you are unsure, as well as the specifics of your income and deductions, and will assist you in correctly and error-free submitting your ITR. You can skip these questions if you are familiar with the ITR, the schedules that apply to you, or the specifics of your income and deductions.

• After choosing the ITR that applies to you, take note of the list of required documents and click Let’s Get Started.
• Click Continue after checking the relevant boxes.
• Review your pre-filled information and make any required changes. Type in any additional or supplementary data (if required). At the conclusion of each section, click Confirm.
• In the appropriate section, enter your income and deduction information. Click Proceed once you have finished and verified all of the form’s sections.
• If there is a tax liability, you will be presented with a summary of your tax computation based on the information you provided. You have the option to Pay Now or Pay Later at the bottom of the page if the computation indicates that tax is due and owing.
• If you are entitled to a refund or there is no tax owed, Click Preview Return once the tax has been paid. You will be sent to the Preview and Submit Your Return page if there is no tax liability due or if there is a refund based on tax computation.
• Enter Place, check the declaration box, and click Proceed to Validation on the Preview and Submit Your Return screen.
• Click Proceed to Verification on your Preview and Submit Your Return page after it has been approved.
• Choose your preferred option and press the Continue button to Complete your Verification process.
• A success notice, together with the Transaction ID and Acknowledgement Number, is presented when you e-Verify your return. A confirmation message will also be sent to the email address and mobile number you entered with the e-Filing platform.

Conclusion

For various taxpayer categories, the Income Tax Department has established seven forms. Out of all these types, ITR 1 is renowned as being the easiest. It is the ITR form that is used the most frequently and is designed for small taxpayers who have salary and other sources of income.