A Comprehensive Guide to Filing ITR-1 for AY 2023–24

The deadline for filing Income Tax Returns (ITR) for Assessment Year (AY) 2023–24 is fast approaching. It is crucial to file your returns on time to avoid penalties and interest on late filing. In this article, we will discuss the different variations available to file ITR-1 and how to file them.

ITR-1 Overview

ITR-1 is a form that salaried individuals earning up to Rs. 50 lakhs per annum can use to file their income tax returns. It is also known as the Sahaj form. Here are some of the details that you need to know about ITR-1:

— It is a one-page form that is easy to fill.

— It can be used by individuals who receive a salary, pension, or interest income.

— It cannot be used by individuals who have income from more than one house property, income from business or profession, or capital gains.

Basic requirements/Checklist to file ITR-1

— Aadhaar-PAN linking: Ensure that your PAN is linked to your Aadhaar number.

—?Personal details: Keep your PAN (Permanent Account Number), Aadhaar number, and contact details (phone number and email ID) handy.

—?Form 16: If you are a salaried individual, you need to obtain Form 16 from your employer. It contains information regarding your salary, tax deducted, and other deductions.

—?Bank account details: Keep your bank account number and IFSC code ready, as it is required to receive any refund due.

—?Investment details: Make a list of your investments such as fixed deposits, savings account interest, dividends, etc., as you need to disclose all income earned during the financial year.

—?TDS certificates: Collect TDS certificates from all sources of income such as salary, interest, rent, etc.

—?Form 26AS: Obtain your Form 26AS, which is a consolidated statement of tax deducted, from the Income Tax Department website or from your bank.

—?Documents for deductions: If you have made any investments or expenses that are eligible for deductions, keep the supporting documents ready. Examples include investments in Public Provident Fund (PPF), National Savings Certificate (NSC), medical insurance premiums, etc.

It is important to note that this checklist?may not be exhaustive?and may vary depending on individual circumstances. It is advisable to consult a tax expert for any specific queries or clarifications

Variations Available to File ITR-1

Here are the different variations available to file ITR-1 for AY 2023–24:

Case 1: Salaried Individuals with No Other Income

If you are a salaried individual with no other sources of income, you can file ITR-1 by following these steps:

— Visit the Income Tax Department’s e-filing website —?https://www.incometaxindiaefiling.gov.in/home

— Register yourself on the website using your PAN.

— Download the ITR-1 form from the website.

— Fill in all the necessary details such as your personal information, salary income, deductions, and tax payments.

— Verify your details and submit the form.

Case 2: Salaried Individuals with Income from Other Sources

If you are a salaried individual with income from other sources such as interest on savings accounts or fixed deposits, you can still file ITR-1. You need to follow these additional steps:

— Calculate the total income earned from all sources.

— Include the income earned from other sources in the relevant section of the ITR-1 form.

— Calculate the tax payable based on the income earned from all sources.

— Include details of the tax paid in the relevant section of the ITR-1 form.

— Verify your details and submit the form.

Case 3: Salaried Individuals with House Property Income

If you are a salaried individual with income from one house property, you can still file ITR-1. You need to follow these additional steps:

— Calculate the total income earned from all sources including the income earned from the house property.

— Include the income earned from the house property in the relevant section of the ITR-1 form.

— Deduct the interest paid on a home loan from the income earned from the house property.

— Calculate the tax payable based on the total income earned from all sources.

— Include details of the tax paid in the relevant section of the ITR-1 form.

— Verify your details and submit the form.

Few other points to be considered

—?Income from other sources

In case you have earned income from other sources such as lottery, interest, rental income, or capital gains, you cannot file ITR-1. You need to file ITR-2 in such cases.

—?Multiple employers

If you have worked with multiple employers during the financial year, you need to report the income and TDS (Tax Deducted at Source) details from all employers in your ITR-1.

—?Changes in salary structure

If there have been any changes in your salary structure during the financial year, you need to provide a break-up of your salary, i.e., basic salary, HRA (House Rent Allowance), LTA (Leave Travel Allowance), and any other allowances, in your ITR-1.

— Foreign income and assets

If you have any foreign income or assets, including bank accounts, you cannot file ITR-1. You need to file ITR-2 in such cases.

—?Clubbing of income

If you have clubbed the income of your spouse, minor child, or any other person with your own income, you cannot file ITR-1. You need to file ITR-2 in such cases.

—?Exempt income

If you have earned exempt income during the financial year, such as dividends from shares or income from tax-free bonds, you need to report the same in your ITR-1.

Deductions Available in ITR-1

Here are the deductions available to individuals filing ITR-1 for AY 2023–24:

— Section 16: Standard deduction of up to Rs. 50,000 for salaried individuals

— Section 80C: Deduction up to Rs. 1.5 lakhs can be claimed for investments made in specified schemes such as PPF, NSC, ELSS, etc.

— Section 80D: Deduction up to Rs. 25,000 can be claimed for medical insurance premiums paid for self, spouse, (Rs. 50,000 for senior citizens)

— Section 80TTA: Deduction for interest earned on savings bank account up to Rs. 10,000

— Section 80TTB: Deduction for interest earned on deposits held by senior citizens up to Rs. 50,000

— Section 80G: Deduction for donations made to charitable institutions etc.,

Penalty for late filing

It is crucial to file your ITR on time to avoid any penalties. The due date for filing ITR-1 for AY 2023–24 is July 31, 2023. If you miss the deadline, you can still file a belated return till December 31, 2023. However, depending on the delay, you will have to pay a penalty of up to Rs. 5,000.

In conclusion, filing an ITR can seem daunting, but with the right knowledge, it can be a straightforward process. Make sure to understand your income sources, deductions, and other factors before filing your ITR-1 for AY 2023–24, and file it before the due date to avoid any penalties.