ITR 1 Filing Form

The Income Tax Department has categorized the taxpayers into the group to ease the tax compliances this categorization is done based on the income and the sources of the income. ITR 1 Return filing in India is for people with an income of up to Rs.50 lakh.

This article is a comprehensive guide to understand the ITR 1 Sahaj Form. Each category of the taxpayer has to compute the taxable income as it is laid down in the Income Tax Act,1961. Post computation it is necessary for the taxpayer to file the Income Tax Returns.

Who can file ITR 1 Sahaj Form?

ITR 1 Sahaj Form is for individuals that have income up to Rs.50 lakh lakhs. The individuals earning income from the following sources can file ITR 1 Sahaj Form:

1. Salaried person- Salary refers to the remuneration or consideration that a person receives for the services he or she has to render under the contract of employment. The Income Tax Act,1961 includes the following under the salary income
2. Wages
3. Pension
4. Annuity
5. Advance salary paid
6. Leave Encashment
7. Fee, prerequisites, commission, profits besides or in lieu id the salary or wages
8. Transferred balance in recognized provident fund
9. Annual accretion to the recognized provident fund
10. Central Government contribution or an employer contribution to Pension account as mentioned in Section 80 CCD of the Income Tax Act.
11. One house property: If the taxpayer is the owner of a property from which he or she is earning rent, the rent proceeds become taxable.
12. However, if the taxpayer is using the owner of a property from which he or she is earning rent, the rent proceeds become taxable. However, if the taxpayer is using the property for running some business or profession the same would be taxable under the heading “Income from business or profession”.
13. Other sources (does not include income earned from winning lottery or racehorses)
14. Agricultural income (Upto to Rs. 5000)

Who cannot file ITR 1 Sahaj Form?

ITR 1 Sahaj Form cannot be filed by the following:

An individual with an income of more than Rs.50 lakh cannot use this ITR 1 Sahaj 1 Form.

An individual who is a Director of a Company and has held unlisted equity shares during the financial years cannot use this form.

Residents who are not ordinary residents and non-residents also cannot file ITR 1 Sahaj Form.

Individuals who earned income through the following sources cannot file ITR 1 :

• House property more than one
• Lottery, Racehorses, Legal Gambling, etc.
• Taxable capital gains ( Both short term and long term)
• Agricultural Income when it exceeds Rs. 5,000
• An individual who is a resident of India and has assets outside India or the signing authority in any account based out of India
• Individuals claiming relief of foreign tax paid or double taxation relief under Section 90/90A/91.

Documents required to file ITR 1 Sahaj Form

What documents are required to file ITR 1 Sahaj Form?

• Form 16
• Salary slips
• Interest Certificates from the Post offices and Banks
• Form 16A/16B/16C
• Form 26AS
• Tax saving investment proof
• Deduction under the Section 80 D to 80 U
• Home Loan statement from the NBFC or the Bank
• Capital Gains.

The income Tax rate under the Existing Tax Regime and the New Tax Regime ( For TDS return Filing)

The taxpayers now have an option to choose between the old and the new tax regimes. The decision of opting for a tax regime has to be taken at the beginning of the financial year.

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