ITR-1

Income Tax Return - 1

Based on income and its source, the Income Tax Department has classified taxpayers into a sort of groups to make tax compliance more manageable. In this case, your income tax return needs to be filed accordingly!

?ITR-1, also known as the “Sahaj Form,” is for a person with an income of up to Rs. 50 lakhs.

?Update in 2022 Budget:

?Taxpayers who have paid additional tax can file an "update return" to correct any errors or omissions in their Income Tax Returns.

?Who is eligible for filing ITR-1?

?For individuals receiving income up to 50 lakhs from the following sources, ITR-1 is a simplified one-page form.

?●???????Income from salary/pension

●???????Income from one house property (excluding cases where loss is brought forward from the previous year)

●???????Income from other sources (excluding winning from lottery and income from horse races)

●???????In the case of clubbed Income Tax Returns, where a spouse and a minor are included, this can be done only if their income is limited.

?Aadhar Card is mandatory for Income Tax Filing: Aadhar cards are mandatory to be linked to PAN cards on the Income Tax Department website, a requirement that was implemented earlier this year.

?Who is not eligible for filing ITR -1?

?●???????A person whose income exceeds 50 lakhs.

●???????An individual who is either a director of a company or has held any unlisted equity shares at any time during the financial year.

●???????Residents are not ordinarily residents (RNOR) or non-residents.

●???????Individuals who have earned income through the following means:

? ??????More than one house property

??????Lottery, racehorses, legal gambling, etc.

???????Taxable capital gains (short-term and long-term)

??????Agriculture income exceeding Rs. 5000

??????Business and Profession

??????A resident that has assets (including financial interest in any entity) outside India or has signing authority in any account located outside India.

??????Individuals claiming relief of foreign tax paid or double taxation relief under section 90/90A/91.

??????Deferred income tax on ESOP received from an eligible start-up.

?Noteworthy changes made in the ITR-1 form for AY 2022-23

?●???????According to section 89A, you can disclose retirement benefit income from accounts in a notified country and claim relief under the schedule 'salary'.

●???????It is now necessary for pensioners to select the "Nature of Employment" (Central Government, State Government, Public Sector Unit, or Others).

●???????As prescribed under Section 89A, you can now claim relief for taxes paid on retirement benefits account income when it is withdrawn or redeemed.

?Documents which you need to file the ITR-1 form are:

?●???????Form 16: A document issued by all employers at the end of the fiscal year.

●???????Form 26AS: Verify that the TDS described in Form 16 matches the TDS in Part A.

●???????Receipts: Keep receipts for deduction exemptions you were able to submit on time to your employer (such as HRA allowances or Section 80C or Section 80D deductions) so you can file your Income Tax Return with these deductions directly.

●???????PAN Card

●???????Certificates of the bank investment: Interest is calculated based on the details of the bank account - either the bank passbook or the FD certificate.