One of the simplest forms for filing income tax returns (ITR) is ITR 1 Form (also called Sahaj) because it applies to the most of the salaried employees and pension holders. However, it does not apply to all categories of salaried employees.
In this article we will talk about ITR 1, eligibility for filing, non-eligibility to file ITR 1, structure, key terms related to it, and major changes made in the ITR 1 Form for A.Y. 2017-18.
31st July 2017 is the due date of submission of this ITR 1 Form.
Eligibility to File ITR 1
ITR 1 is a one-page form for those individuals having income up to Rs. 50 lakhs through the following means:
- Income from Pension /Salary
- Income from One House Property (excluding cases where loss is brought forward from previous years)
- Income from Other Sources
Moreover, if in case the income of some other person like spouse, minor child etc. is being clubbed with the income tax payer, this form can still be used.
Not Eligible to file ITR 1
ITR 1 Return cannot be filed by the persons who were having income of 50 Lakhs or above or in case they have
- Income from more than one Property
- Income from taxable Capital Gains (Short term and Long term)
- Income from agricultural above Rs.5000
- Income from Business or Profession
- A person who is a resident of India and has assets outside India or has the authority of any account situated outside India.
- Income from Lottery, Legal Gambling, Race Horses etc.
- If Loss under the head ‘Income from other sources’ is claimed.
- If a person is claiming relief under Double Taxation Scheme.
Structure of the ITR 1 Form
ITR 1 is divided into following parts:
- Part A: Personal Details
- Part B: Gross Total Income
- Part C: Taxable Total Income and Deductions
- Part D: Status and Computations of Tax
- Schedule IT: Statement of Advance Tax and Self Assessment Tax Payments
- Schedule TDS1: Statement of Tax Deducted at Source and Tax Collected at Source.
- Schedule TDS2: TDS details of Income other than Salary (As per Form 16A, issued by Deductor(s))
- Supplementary Schedules TDS1, TDS2 and IT
Modes to file ITR 1 Form
Individuals have to submit their ITR Form 1 from the AY 2017-18, all taxpayers earning income above Rs. 5 lakhs shall furnish their Income Tax Returns by offline or online mode. After submitting the return, the Income Tax Department provides an acknowledgment in Form ITR V. You have to download it manually directly from the income tax website and to sign and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing. Now, there is another option of e-verification of filed ITR.
Filing the ITR 1 Form
Documents that should be prepared before filling out your ITR 1 form are:
- If you have salary income, you will need Form 16 (Part B) issued by your employer to enter salary details for the given Financial Year.
- Form 26AS to verify that the Tax Deducted at Source (TDS)mentioned in Part A of Form 16 matches the TDS of your Form 26AS.
- If you unable to present evidence of certain exemptions or deductions (such as HRA allowance or Section 80C or 80D deductions) to your employer timely, maintain these receipts neatly to claim them directly on your income tax return.
- PAN card
- Interest from bank account details – bank passbook or FD certificate
Revised Return: If an individual filed his income tax return but then later he realized that he has made an error in it, then he can re-file. This is known as Revised Return. For the Financial Year 2016-17, you can file your Revised Return until March 31, 2018.
Notice Number: If you are filing your return in a reply to a notice from the Income Tax Department, you should fill this.
Advance Tax: Tax Deduction at source (TDS) is generally takes care of advance tax payments for salaried individuals.We have other incomes also such as rental income, interest on savings bank accounts, fixed deposits, bonds or capital gains. If a tax on income exceeds Rs. 10,000 per year, it is necessary to calculate your income and pay Advance Tax. This shall be paid in quarterly installments in September, December and March.
Self-Assessment Tax Payments: This is the variation between tax payable and tax paid and it is required to be paid before you file your return. So, first fill the Advance Tax details carefully, if paid. Figure your income and if after computing, you discover that tax is still payable then pay it and then fill in the details in this section.
Important changes made in ITR 1(AY 2017-18)
It is mandatory for everyone to quote Aadhaar number in the return of income. If any person does not possess the Aadhaar Number but he had applied for the Aadhaar card then he can quote Enrollment ID of Aadhaar Application Form in the ITR.
Disclosure of cash deposits during demonetization
To report cash deposited by taxpayers in their bank accounts a new column has been introduced in all ITR Forms during the demonetization period, i.e., from November 9, 2016, to December 30, 2016.
It is necessary to fill this column if the taxpayer has deposited Rs 2 lakh or more during the demonetization period.
Disclosure of all Bank Accounts
The details of all the savings and current accounts held at any time during the previous year must be provided and it is not mandatory to provide the details of dormant accounts. The account number should be as per Core Banking Solution (CBS) system of the bank.
Simplified one-page ITR Form for Salaried class taxpayers (ITR 1 Sahaj)
The Government has notified one-page form for those individuals having income up to Rs 50 lakhs from salary, pension, one house property and income from other sources. It has removed columns which are not frequently used by the taxpayers.
For any help on ITR Filing feel free to consult the tax experts at LegalRaasta. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business Return, Bulk Return or Revised Return Filing.