ITR-1 (SAHAJ) Filing for FY 2023-24 (AY 2024-25)
Updated: 6 days ago
Are you ready to file your Income Tax Return for FY 2023-24 (AY 2024-25)? If your sources of income include: salary, one house property, and other sources like interest, then filing through ITR-1 may just be the hassle-free way of doing it. ITR-1 is meant for salaried individuals and is an easy yet effective way if one has financial portfolios of a simpler nature. This article will guide you through the entire process of filing ITR-1 online so that you can manage your tax obligations easily.
In this detailed article, we will consider who is eligible for ITR-1, what documents you will need to collate before commencing, and a step-by-step process to access the e-filing portal of Income Tax.
Table of Content
What is ITR-1?
ITR-1 refers to the income tax return form that applies to salaried individuals. With a total income of up to INR 50 lakhs. It's also known as Sahaj Form.
Latest Updates on ITR-1
The Central Board of Direct Taxes has announced the release of the ITR-1 and ITR-4 forms for the Financial Year 2023-24, which will be used for filing income tax returns for the assessment year 2024-25. Taxpayers should note that the deadline for submission is set for July 31, 2024, unless an extension is provided.
Below are some of the updates available:
Default Tax Regime: The new tax regime is now the default option for taxpayers. If you prefer the old regime, you’ll need to opt out by submitting Form-10IEA.
New Deduction Column: A new column has been introduced for claiming deductions under section 80CCH, making it easier to track and claim eligible deductions.
ITR-4 Updates: The ITR-4 form now includes a "Receipts in Cash" column, which allows taxpayers to claim an enhanced turnover limit.
ITR-1 Details: The ITR-1 form continues to cater to individuals with an income of up to INR 50 lakhs.
Who Should File ITR-1?
ITR-1, also called SAHAJ, is tailored for individuals who have relatively simple tax situations. This reporting form categorically eases the filing process for those taxpayers who fall within the criteria based on their nature and amount of income received by them.
Eligibility Criteria for Filing ITR-1
ITR-1 can be filed by an individual who meets the following conditions:
Residency: It can be filed only by Resident Indians.
Income Sources:
Salary or Pension: If the income is received in the form of salaries or pensions.
Income from one house property: Only in such a case where a person has income from one house property. This does not include the brought forward loss from the previous year.
Other Sources: Includes other sources of interest from savings bank accounts, fixed deposits, family pension income, etc. Winnings from lotteries and income from racehorses are not included.
Agricultural Income: Agricultural income up to INR 5,000 can be declared.
Income Limit: The total income from the above sources should not exceed INR 50 lakhs during the fiscal year.
Rebates and Deductions: In such cases where an individual is eligible for claiming a rebate on tax under the provisions of Section 87A, this form may also be utilized.
Who Cannot File ITR-1 Form?
Some specific exclusions must be kept in mind while selecting ITR-1 form:
Non-Resident Indian (NRI) and the Resident but Not Ordinarily Resident (RNOR): They must opt for any other most applicable ITR form, depending on their residential status and types of income.
Income from Business or Profession: Any individual who earns income generated from business or profession shall not use ITR-1. They are generally required to file ITR 3 or ITR 4 depending upon the given conditions.
Multiple House Properties: In case a person owns more than one house property, then he cannot file his return in ITR 1 and will have to use ITR 2 or other forms as applicable.
Capital Gains: A person having income from capital gains, that is, selling a property or an investment, cannot file through ITR-1. He, being designed, has to file ITR 2 or ITR 3 because these forms capture capital gains.
Speculative Incomes: Income from lotteries, betting, or horse races turns him ineligible for filing ITR-1.
Agricultural Income over INR 5,000: Those whose agricultural income is more than INR 5,000 have to file ITR 2.
Foreign Assets or Foreign Income: Any person who possesses foreign assets or foreign income is not allowed to use the form of ITR-1 and has to choose the mode of ITR 2.
Directorship: The individual holding the designation of director in any company, be it a listed or unlisted company, cannot file his ITR in the ITR-1 form.
Investments in Unlisted Equity Shares: Any person possessing investments in unlisted equity shares is not suitable to file ITR-1.
Documents Required to File ITR-1
Following is the comprehensive list of documents required for filing ITR-1 and a brief explanation of why each document is necessary:
PAN Card (Permanent Account Number): A PAN is your individual and unique taxpayer identification number, important in all dealings with taxes in India. It connects all your activities concerning income tax paid and tracking.
Aadhaar Card: The requirement for linking Aadhaar with PAN is there for filing tax returns in India. An Aadhaar OTP is used to e-verify the return filed, simplifying the verification process.
Form 16: Issued by your employer, Form 16 mentions clearly the amount of salary paid to you and how much taxes have been deducted throughout a financial year. This form is important while reporting your salary income along with any tax credit to be given due to TDS applied on your income.
Form 26AS: This statement can be accessed through your e-filing account on the website of the Income Tax Department. A summary of all TDS, TCS and advance tax paid, tagged against your PAN, is viewed here. The uses are to verify that all the taxes which have been deducted or collected on your behalf are correctly taken into account in your tax return.
Bank Account Details: State your bank account details to receive any eligible refund duly in your bank account. Full particulars must be given to avoid delay or complication in money transfer for refunds.
Benefits of Filing ITR-1 Online
The benefits of filing your ITR online are more related to the ITR-1 form, due to which it becomes the most preferred choice of filing for eligible taxpayers. Some of the key advantages associated with filing ITR 1 online are as follows:
Convenience: Online filing of ITR-1 is extremely convenient as it can be done from the comfort of your home or office. There's no need to physically visit a tax office or send documents by post. All that you require is a good internet connection and access to the e-filing portal of the Income Tax Department.
Saves Time: It is faster as compared to the paper-based traditional process. Online filing information can be filled in and submitted in a pretty short period of time, and the submission is instant. Besides, it reduces the time consumption and chances of errors, as the pre-fill feature on the e-filing portal populates several fields.
Immediate Acknowledgment: Once you submit your ITR-1 form online, you get an electronic acknowledgement instantly. Such acknowledgement, which is called ITR V, can be downloaded from the website. This downloaded acknowledgement will be proof of filing your return.
Faster Refunds: Returns filed through the e-filing process are processed faster. Hence, the refunds if any due from the additional taxes paid are generally issued quicker than the paper-processed returns. Direct deposit of refund into bank accounts ensures that taxpayers get their refunds without having to wait for postal delays and follow-ups.
More Accuracy: Online filing software reduces errors because most of the data you input is validated, and some drop-downs reduce input errors. Automatic calculations reduce errors in manual calculations. In case of discrepancies, like mismatching with Form 26AS or missing compulsory fields, the system will raise an alert, and you will be able to make your corrections before submitting it.
24/7 Access: The ITR-1 filing system runs online 24/7 during the filing season. This permits taxpayers to work on and submit their returns at their convenience and without feeling restricted by office hours.
Easy Access to Past Records: All your past tax returns get stored and are easily retrievable from your account on the e-filing portal for easy reference to data from previous years in the future, thereby efficiently managing your records.
Security: Online filing is secure, with tough encryption that protects the privacy and confidentiality of your financial information. This is an important feature, considering the sensitivity of the data being dealt with.
Help and Support: Through the online portal, guidelines, user manuals, and FAQs are provided to help any taxpayer while filing returns. Help desk support is also available over the phone or by email to resolve any income tax filing problems.
Environmental Friendly: By opting for e-filing, you save paperwork, thereby helping to save trees.
ITR-1 Structure: Format and Key Components
ITR-1 form, more popularly known as SAHAJ, is structured to facilitate easy tax filing for persons who derive their income from salaries, one house property, and other sources like interest. The structure and format of the ITR-1 form can be broken down as follows:
Part A: General Information
Personal Information: The information that has to be filled therein are the basic details, inclusive of PAN, Aadhaar number, name, date of birth, contact information, etc.
Status of Filing: Here, the required information includes the relevant year of assessment, original or revised return, and residential status: Resident, Non-Resident, Resident but Not Ordinarily Resident.
Part B: Gross Total Income
B1. Salary/Pension: Information about income from salary or pension to tally with figures in Form 16 issued by the employer.
B2. House Property: Information regarding income from one house property, detailing rent and interest paid on borrowed capital if the property is mortgaged.
B3. Other sources: Income from other sources, mainly interest in savings accounts, fixed deposits, family pension, and so on, has to be reported.
Part C: Deductions and Taxable Total Income
Information about the deduction claimed under various sections of the Income Tax Act, like 80C (EPF, PPF, life insurance premiums, and so on), 80D (medical insurance), 80TTA (savings account interest), and so on. Once composition of the total taxable income can be computed from this section after deductions.
Part D: Computation of Tax Payable
Tax Computation on Total Income: The tax payable will be computed with the total income inclusive of current tax slabs.
Rebates and Relief: Any rebate claimed under Section 87A or relief under Section 89(if you have received arrears of salary).
Health and Education Cess: As above said, it is now pegged at 4% on the tax payable.
Section D6: Total Tax Liability: Aggregate of tax after cess and relief/rebate, if any.
Part E: Other Information
Details of all bank accounts held in India at any time during the previous year. The taxpayer is required to mention the account number in which he wants the refund, if any.
Schedule IT: Details of Advance Tax and Self-Assessment Tax Payments
Details of any advance tax and self-assessment tax paid during the year; BSR code, date of deposit, challan number of the bank branch and the amount.
Schedule TDS: Details of TDS/TCS
TDS1: Particulars of tax deducted at source from salary as per Form 16.
TDS2: The details about income other than salary like interest income of tax deducted at source as per Form 16A.
Tax Payments and Verification
Total tax payments are summarized, and the final tax liability or refund due is calculated.
Verification section: Where the taxpayer declares that the information furnished therein is true and correct to the best of their knowledge and information.
How to File ITR-1 (SAHAJ) Online for FY 2023-24 (AY 2024-25)? Step-by-Step Guide to Filing ITR-1 Online
Online filing of ITR-1, SAHAJ, for FY 2023-24 (AY 2024-25) is quite a streamlined process and is envisioned to be within the reach of every individual taxpayer who has income from salaries, one house property, and other sources such as interest. Herein is a detailed, step-by-step guide on how to file ITR-1 online and some important changes introduced by CBDT through its circular for this assessment year.
Step-by-Step Guide for Filing ITR-1 Online
Step 1: Keep all your Documents Ready
Before you begin filing online, ensure that you have the following documents at hand:
PAN and Aadhaar Card
Form 16 sent to you by your employer
Form 26AS generated from the TRACES website or your e-filing account
Bank account information
Proof of investments for deduction claimed against sections 80C, 80D, 80G, 80E and so on.
Details of income from one house property
Step 2: Log in to e-filing portal
Open the Income Tax e-Filing portal at https://www.incometax.gov.in/iec/foportal/.
If you are a new user, 'Register Yourself.' If you are an existing user, click on 'Login Here'.
Follow whatever instructions come up to complete registration or login.
Step 3: Fill out the ITR-1 Form
After logging in, select the 'e-File' menu and then click on the 'Income Tax Return' link.
Choose the Assessment Year as 2024-25 and select the relevant form as ITR-1 from the list.
Select the 'Prepare and Submit Online' option.
Before you start filling up the form, select the pre-fill option to auto-fill certain details from your previous year's return and Form 26AS.
Step 4: Enter Your Details
Fill or verify the prefilled personal details.
Enter the details of income as per your Form 16 and other documents.
Avail deductions under Sec 80C, 80D, and so on.
Declare exempt income if any under Section 10 in the relevant column.
Step 5: Tax Computation
Click the 'Calculate Tax' tab for computing your tax liability or refund.
Pay any tax due through the tab 'e-Pay Tax' and enter Challan details in the tax return.
Step 6: Verification and Submission of ITR-1 Form
First, verify all the entered information.
Then, submit the form ITR-1.
Finally, e-verify your return within 30 days of submission through options emerging from Aadhaar OTP, EVC through your bank account, or by sending a signed physical copy of ITR V to CPC, Bengaluru.
FAQ
Q1. Who can file ITR-1 SAHAJ?
ITR-1 can be filed by resident individuals whose total income includes salaries, one house property, other sources, interest, and so on, and whose total income is up to INR 50 lakhs.
Q2. Can I file ITR-1 if I have foreign assets?
No, a person having foreign assets or income cannot file ITR-1. He has to opt for ITR-2 or any other form as applicable in his case.
Q3. How to access the ITR-1 form online?
The ITR-1 form is available and, in turn, can also be filed online on the website of the Income Tax e-Filing at https://www.incometax.gov.in/iec/foportal/.
Q4. What documents are required for filing ITR-1 online?
Documents required include PAN, Aadhaar, Form 16, Form 26AS, bank account details, and proof of any eligible deductions or income from other sources.
Q5. How is the tax calculated in ITR-1?
Income tax shall be computed about current income tax slabs after considering all deductions, rebates, and cess as may be applicable.
Q6. What can be the last date of filing ITR-1?
The last date for filing ITR-1 is normally 31st July of the assessment year. However, it may be extended based on government notifications.
Q7. Can I revise my ITR-1 after submitting it?
Yes, ITR-1 can be revised at any time before the end of the assessment year or before the completion of the assessment, whichever is earlier.
Q8. How can I e-verify my submission of ITR-1?
ITR-1 can be e-verified using Aadhaar OTP, EVC generated through the registered bank account, or by sending a signed print of ITR-V to CPC in Bengaluru.
Q9. Are there any penalties for late filing of ITR-1?
Yes, filing ITR-1 after its prescribed deadline could lead to late filing fees up to INR 10,000, depending on the date of filing and level of income.
Q10. Can income tax refund be claimed from ITR-1?
Yes, in case you have paid excess tax than the actual tax liability by way of TDS/ advance tax, you can claim its refund through ITR-1.
Q11. Can I file an ITR-1 with exempt agricultural income?
Yes, you can file ITR-1 in agricultural income. The income should be not beyond INR 5,000.
Q12. How to report bank accounts in ITR-1?
The details of all the savings and current bank accounts need to be provided. However, it is not necessary to find the details of the dormant accounts that have not been operational for more than 3 years. Bank accounts should be mentioned in the form of the core banking solution. It is to be filled in the ITR form.
Q13. How can I e-verify my ITR?
ITR can be e-verified using Aadhar, OTP, Net banking through your bank account.
Q14. Is it mandatory to specify the nature of employment in the ITR?
Yes, it is necessary to mention the nature of employment in ITR. The nature of employment should be disclosed by central government employees, state government employees, public sector enterprise employees, pensioners, private sector concerned employees etc.
Q15. What is the salary limit under ITR1?
Individuals having a total income of less than INR 50 Lakhs are eligible for filing ITR-1. When the total income exceeds INR 50 Lakhs, ITR-2 must be filed.
Q16. Where to show dividend income in itr-1?
The dividends are reported under income from other sources. Taxpayers need to claim a deduction of up to 20% of gross dividend income towards the interest expense incurred to earn such dividend income.
Q17 Where to show mutual fund investment in ITR-1?
Long-term capital gains that arise from the equity mutual funds should be reported under schedule 112A in ITR-1 and short-term capital gains reported under schedule CG of ITR-1.
Q18. What does SG pensioners mean in income tax?
SG pensioners are state government pensioners who receive a pension after retirement from state government service in India. For income tax purposes, pensions received by these people are considered income from salary and taxable under the Income Tax Act 1961.
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