The ITR-1 Sahaj Form, as the name suggests, provides a simplified method for individual taxpayers to file their income tax returns. This form is specifically developed for resident individuals in India whose total income falls below Rs. 50 lakhs level and comes from the sources listed below:
Income from Salary or Pension
Income from a Single House Property
Income from Other Sources
The ITR-1 Form simplifies the means for eligible persons to report their income tax information, providing a reasonable and effective method of meeting their tax obligations.
Steps to File ITR-1 (Sahaj) for Salary Income
Click on 'File Income Tax Return'
Choose the option 'Online'
Choose the 'ITR-1' form by clicking on it.
Personal Information: PAN, Aadhaar number, contact details
Income details: Fill in the details from Form 16: pay, allowances, and deductions.
Tax Information: Verify TDS information from Form 26AS and enter it.
Deduction Details: Fill in deductions under Chapter VI-A (Sections 80C, 80D, etc.).
Following submission, your return must be e-verified.
You can e-verify by sending a signed ITR-V to CPC, Bangalore, using Aadhaar OTP, EVC (Electronic Verification Code), or another method.
Key Points to Remember
Documents Required for Filing ITR 1
ITR Sahaj Forms are attachment-less forms. This means that taxpayers do not have to attach any documentation.
Taxpayers should save the following documents for their records and be prepared to present them to tax authorities whenever requested, especially in situations such as assessments or inquiries.
Form 16: Provided by all of your employers for the applicable financial year.
Form 26AS: Make sure the TDS details in Form 16 match those in Part A of Form 26AS.
Receipts: To claim exemptions or deductions (like an HRA allowance or Section 80C/80D deductions) directly on your income tax return, save your receipts for those that were not timely filed to your employer.
PAN Card: The Permanent Account Number (PAN) card is required for identification.
Bank Investment Certificates: Information on interest earned on bank accounts, such as bank passbooks or fixed deposit certificates.
Required Details in ITR 1 Form
The ITR1 form is divided into sections, each of which requires certain information to be completed accurately.
Part A: This portion collects personal information such as the PAN number, age, gender, address, and communication data.
Part B contains information on gross total income, including earnings from salary, property, and other sources.
Part C: Details on deductions under sections 80C, 80D, 80U, and 80G.
Part D covers tax computation, status, rebates, post-rebate taxes, TDS claims, and bank account information.
Types of Income Excluded from ITR-1 Form
The ITR-1 form eliminates various types of income, including:
Profits and Gains in Business or Profession
Income from Multiple House Properties
Capital Gains (Short or Long Term)
Specific Other Sources of Income:
Income from owning and keeping racehorses
Winnings from lottery
Special rates apply to income under Sections 115BBDA and 115BBE.
Income is expected to be dispersed according to the provisions of Section 5A.
Penalty for late ITR-1 filing
Late filing of income tax returns can result in a variety of penalties based on your overall income.
Individuals having a total income of more than Rs 5 lakh may face a Rs 5,000 penalty, while those with a lower income may face a reduced penalty of Rs 1000.
additionally, if you owe taxes and do not file your return by the due date, you will be liable for additional interest at a rate of 1% per month until you do.
In the most severe cases, penalties can be imposed for underreporting or misreporting income. Penalties for underreporting may reach 50% of the tax underreported, while penalties for misreporting may reach 200% of the tax amount misreported.