ITR 1 Sahaj Form: Eligibility, Documents & How to File?

With the idea of making tax compliance easy, the Income Tax Department has sectioned its taxpayers based on their incomes and sources. In this post, we will specifically be targeting ITR-1 and understand it in depth.

What is ITR-1?

ITR-1 form is also known as ITR-1 Sahaj form and is specified for people who have an income of up to ₹50 lakhs. This implies most salaried individuals are supposed to file the ITR-1. Apart from ITR-1 meaning, one must also know what it looks like.

What does an ITR form look like?

A Sahaj form has 7 different parts. Here is a look at the ITR-1 structure.

Part A - General information

Part B - Gross total income

Part C - Deductions and total taxable income

Part D- Computation of tax payable

Part E- TDS details

Part F - Self-assessment tax payment, advance tax verification

Part G - Details of investment made between 1st April and 31st July

Who is ITR-1 for?

ITR-1 is a one-page comparatively simpler form for individuals who do not have an income above ₹50 lakhs.

If you are wondering who is eligible for ITR-1, know that the income should be from the following sources:

Income from salary or pension
Income from one house property
Income from other sources

If filing for clubbed income tax returns, where a spouse or a minor is included, it can be taken forward if only the above-mentioned eligibility for ITR-1 is met.

Who is excluded from Filing ITR-1?

Before proceeding to know how to file ITR-1, learn who is disqualified from it.

An individual with an income above ₹50 lakhs
An individual who is either a director of a company and also has any unlisted equity shares at any point of the AY
Residents not ordinarily residents and non-residents
Individuals who have income through-
- More than one house property
- Legal gamble, lottery, horse race, etc.
- Long and short-term taxable capital gains
- Agricultural income above ₹5,000
- Business and profession
- A resident who has assets outside India or is a signing authority in any account outside India
- Individual who claims relief of foreign tax paid or relief under 90/90A/91

How to File my ITR-1?

Submission of the ITR-1 form is possible both online and offline.

How to file ITR-1 offline

Only the below mentioned individuals can file their form offline-

An individual who was at the age of 80 or above at any time during the previous year.
An individual or a HUF whose income does not exceed ₹5 lakhs and who has also not claimed for a refund in the return of income.

The return is submitted in a physical paper form, and the IT Dept. issues an acknowledgement at the time of submission of these papers. Make sure to keep the documents required for ITR-1 filing handy.

How to file ITR-1 online

E-filing of ITR-1 involves the following-

Transmitting data electronically, downloading the acknowledgement, and sending it signed to CPC Bengaluru.
By filing returns online and then e-verifying the ITR-1 through the Aadhaar card, bank account, net banking, or Demat account.

If you have taken the first means, an acknowledgement will be sent in a couple of days to your registered email ID. You can also download it, and then you will need to send the acknowledgement to CPC Bengaluru within 120 days.

Alternatively, you can also e-verify. This concludes how to submit ITR-1 forms online.

Major changes in the ITR-1 in 20-21

Individual taxpayers who meet the criteria of-

Making a cash deposit of ₹1 crore at the bank.
Incurring an expense of ₹2 lakhs or above on foreign travel.
Expenses of ₹1 lakh or above.

Such individuals should file ITR-1. The taxpayer also needs to indicate the amount of deposit or expenditure.

The individuals who have income from salaries, one house property, or other income totaling to ₹50 lakhs are to file the way they used to in the past.

Resident individuals who own a single property in joint ownership can also file the ITR-1 Sahaj if the total income amounts to ₹50 lakhs.

Taxpayers need to separately disclose their amount of the investment or deposit or payment towards tax savings made from 1st April to 30th June.

The ITR-1 Sahaj, as it is named, implies it has been made easy to be filed so the filing of taxes can become easier for salary earners. With this form, they can file their taxes at the comfort of their homes and offices without assistance saving them from compliance charges.

Frequently Asked Questions

✓ My income in the assessment year was more than ₹50 lakhs. Which form should I file this year?

If you have an income above ₹50 lakhs, then you need to file either ITR-2, ITR-3, or ITR-4 based on your source of income. If you are a salaried individual and have an income above₹50 lakhs, then you should file for ITR-2.

✓ Can I file ITR-1 with agricultural income exemption?

Yes! You can file only if your agricultural income does not exceed ₹5000. If it is more than that, then you will need to file ITR-2.

✓ How do I report my bank accounts in ITR-1?

Details of all current and saving accounts need to be mentioned. However, if your account is dormant for more than 3 years, you don’t need to mention it.