ITR-1 Form: Income Tax Return for Salaried Individuals

Filing taxes might seem like a daunting task! If you are an individual with a steady income from salaries, pensions, or other sources (except winning the lottery or horse racing), and your agricultural earnings are less than INR 5,000, then ITR-1 form, also known as Sahaj, is your go-to form for a smooth tax filing experience. ITR-1 is one out of the seven different types of Income Tax Return forms.

What is ITR-1 Form?

ITR-1 form, also known as Sahaj, is designed for simplicity, catering to those with uncomplicated financial situations. If your income sources fall within the specified categories, filing your income tax return becomes a breeze. Let’s break down the key aspects: 

  • Income Inclusion: 
    • Salaries and Pensions: Report your earnings from your job or pension accurately. 
    • Other Incomes: Include additional earnings except for lottery winnings or income from horse racing. 
    • Agricultural Income: If you have agricultural earnings below INR 5,000, ITR-1 is the form for you. 
  • Exclusions: 
    • Lottery or Horse Racing: Keep in mind that income from these sources is not considered under ITR-1. 

Why choose Income Tax Return-1?

ITR-1 form is perfect for those who want a hassle-free tax filing experience without the complexity of other forms. Here’s why it might be the ideal choice for you: 

  • Simplicity:
    • ITR-1 is straightforward and easy to comprehend, making it suitable for individuals with uncomplicated financial scenarios. 
  • Time-Efficient:
    • Filling out ITR-1 won’t take up much of your time. Its simplicity ensures a quick and efficient filing process. 
  • Limited Documentation:
    • You won’t need an extensive set of documents to fill out ITR-1. Keep your salary and income details handy, and you’re good to go. 

What are the steps to file ITR-1 form?

  • Go to the Income Tax e-filing portal.
  • Register or log in to your account.
  • Select “e-file” > “Income Tax Returns” > “File Income Tax Return”.
  • Choose the Assessment Year as 2023-24 and mode of filing as ‘Online’.
  • Click on ‘Start New Filing’.
  • Select your applicable status.
  • Choose ITR-1 as the form type.
  • Click on ‘Let’s Get Started’.
  • Select the appropriate reason and ‘continue’.
  • Fill up 5 sections: 
    • Personal Information: Name, PAN (Permanent Account Number), Aadhar, contact info, and bank details.
    • Gross Total Income: Verify income from all sources.
    • Total Deductions: Claim deductions under different sections (Eg. 80C, 80D).
    • Tax Paid: Provide details of tax payments (Tax Deducted at Source (TDS), Tax Collected at Source (TCS), Advance Tax, Self-Assessment Tax).
    • Total Tax Liability: Check computed tax liability based on previous sections.
  • Double-check the summary of tax computation.
  • Rectify errors, if any, and complete validation.
  • E-Verify the ITR.

Who is eligible for ITR-1?

ITR-1 form is designed for individuals with straightforward income sources. You are eligible to file ITR-1 if you fall into the following categories: 

  • Earners of Salaries and Pensions: 
    • If your income primarily comes from salaries or pensions, ITR-1 is the right form for you.

  • Other Income (excluding lottery or horse racing): 
    • Individuals with additional income, excluding earnings from winning the lottery or horse racing, can opt for ITR-1.

  • Agricultural Earnings: 
    • If your agricultural income is below INR 5,000, you can use ITR-1.

  • Payments for a Single-Family Home: 
    • ITR-1 is applicable if you have received payments for a single-family home, with specific exceptions. 

Who cannot file ITR-1 form?

While ITR-1 is suitable for many, there are certain scenarios where this form is not applicable. You cannot file ITR-1 if: 

  • Your total income exceeds INR 50 lakhs. 
  • You have income from foreign assets. 
  • Your agricultural income is above INR 5,000. 

What are the documents needed for filing ITR-1?

To complete a successful filing, ensure the following documents: 

  • PAN Card
  • Aadhaar Card 
  • Bank Statements: Include statements reflecting your income, expenses, and any interest earned.
  • Form 16: This document from your employer outlines your salary details, TDS deductions, and other relevant information.
  • TDS Certificates: Collect certificates for TDS deductions on interest, salary, or any other income.

What is the structure of ITR-1 form?

 The structure of the ITR-1 form consists of several sections: 

  • Part A: Personal Information – Fill in your personal details like name, address, and PAN. 
  • Part B: Gross Total Income – Specify your income sources such as salary, house property, and other income. 
  • Part C: Deductions – Declare eligible deductions under sections like 80C, 80D, etc. 
  • Part D: Tax Computation – Calculate your tax liability and TDS deductions. 
  • Part E: Other Information – Provide additional details as required. 

What are the major changes in ITR-1 for FY2023-24 (AY2024-25)?

  • Expanded Scope:
    • ITR-1 now includes individuals with higher agricultural earnings, extending the eligibility threshold to INR 5,000.

  • Digital Verification:
    • The process of digital verification has been enhanced for easier and secure online filing.

  • Updated Deductions:
    • Stay updated on changes in deduction limits or new deductions introduced for the assessment year.

Conclusion

In income tax returns, ITR-1 form emerges as an uncomplicated task for individuals with straightforward financial situations. As you embark on your tax-filing journey, armed with the simplicity of ITR-1, rest assured that the process can be both stress-free and efficient. By following these simplified steps and staying informed about the changes in ITR-1 for AY 2024-25, you can ensure a smooth and accurate filing process.

For hassle free ITR-1 filing, reach out to 24efiling. We provide expert assistance and guidance to ensure a smooth and accurate submission of your Income Tax Return.

FAQs
1. Who is eligible to file ITR-1 form? 

Individuals with a total income of till Rs. 50 lakhs, derive income from salary, one house property, and other sources (like interest income), and do not have any capital gains or business income are eligible to file ITR-1. 

2. What documents are required to file ITR-1? 

You will need documents such as Form 16 from your employer, details of income from other sources, bank statements, and proof of investments like LIC policies, PPF, etc. Keep records of deductions claimed under sections like 80C, 80D, and other relevant documents. 

3. Can I file an ITR-1 if I have income from multiple employers during the financial year? 

Yes, you can file ITR-1 if you have income from multiple employers. However, you should ensure that you report income from all sources accurately and provide details of each employer, including income, tax deducted, and other necessary information. 

4. How can I e-verify my ITR-1 filing? 

You can e-verify your ITR-1 using various methods, such as Aadhar OTP, net banking, or by generating an Electronic Verification Code (EVC). E-verification is essential to complete the filing process and confirm the authenticity of the return. 

5. Is it mandatory to file ITR-1 online, or can I submit a physical copy? 

Filing ITR-1 online is mandatory for individuals below the age of 80 years with an income of more than Rs. 5 lakhs. However, individuals over 80 can file ITR-1 in paper form if they are not claiming a refund and their income is below the taxable limit. 

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