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A comprehensive guide to understanding the ITR-1 Sahaj Form
To make tax compliance easier, the Income Tax Department has categorised taxpayers into many groups based on income and its source. So, you need to file your returns accordingly. ITR-1, also known as Sahaj Form, is for a person with an income of up to Rs.50 lakh.
Budget 2022 update
The government has proposed ‘Updated return’ that the taxpayers can file for any mistake or omission made in filing an income tax return on payment of additional tax.
ITR-1 is a simplified one-page form for individuals receiving income of up to Rs 50 lakh from the following sources :
Aadhaar Card is Mandatory for Income Tax Return Filing:The Income Tax Department has made it mandatory for all taxpayers to link their Aadhaar card with PAN on the Income Tax Department website.
Login
Step 1: Login to your ClearTax account (www.cleartax.in). You can file your ITR in a few simple steps. To begin ITR filing, click on the ‘Start Filing’ link.
Link Your PAN
Step 2: ClearTax allows you to access data from the income tax department and pre-fill information for preparing an income tax return. Link your PAN by entering ‘PAN Card Number’ and ‘Date of Birth’.
Step 3: Enter the OTP to complete the linking process.
Pre-fill personal and salary information
Step 4: Save yourself the hassle of manual entries. We will pre-fill all your personal and salary details. To have all these details pre-filled, proceed to verify OTP.
Step 5: You will see a screen as shown below with all your personal details. Please review them to ensure they are correct.
Edit and Review Personal Information
Step 6: You can also verify the pre-filled information in the ‘Personal Information’ tab. You can modify any information if required.
Enter Your Income Details
Step 7: In the income sources tab, you can fill in all your income details. Your salary details are also pre-filled by us here but if you want to upload your Form -16, you can do the same by clicking on the button ‘Upload form 16’.
Step 3: Next, enter income from house property or other income sources, if any.
Enter your Tax Saving Investment Details
Step 8: Now go to the ‘Deductions’ tab and enter investment details for claiming deductions (e.g. LIC, PPF, etc.,) and claim other tax benefits here.
Tip: Do you have kids? Claim benefits on their tuition fees under Section 80C
Enter the Details of Taxes Paid
Step 9: On the next tab, enter the details of taxes paid.
If you have any non-salary income, say, interest income, then add details of tax deducted for such income. You can also add these details by uploading Form 26AS. In the case of uploading Form 26AS, only the TDS details get auto-populated and not the income. Hence you will have to enter the income details in the respective place.
View Summary, Compare and Switch Tax Regimes
Step 10: On the next page, scroll down, and you can go through all the details filled in by you in each section and edit any of these if required. You can also view the computation of your income tax. The ClearTax portal allows you to switch the tax regime at this stage. You can compare your tax as per both regimes.
Pay Taxes and ITR Submitted Successfully
Step 11: Pay Taxes- You can view your tax due status in the computation. If any tax is due to be paid, you can make the payment for it along with the fee for filing services and proceed to e-file.
If the ITR is successfully submitted to the Income Tax Department, you can see the success message as shown below.
e-Verify
Step 12: Once your return is filed, e-verify your Income Tax Return.
You can even file returns on your mobile phones via Black App by Clear.
Some changes have been incorporated into the ITR-1 form:
Documents which you need to file ITR-1 form are:
I’m filing ITR as an individual, and my annual income is over Rs 50 lakh. Which ITR form should I file this year?
To know more about which ITR to file, Click here
Can I file ITR-1 with exempt agricultural income?
Yes, you can file ITR-1 if the agricultural income does not exceed Rs 5,000. If the agricultural income exceeds Rs 5,000, you should file ITR 2.
How to report bank accounts in ITR-1?
You must provide details of all the savings and current accounts held at any time during the previous year. However, it is not mandatory to provide details of dormant accounts that haven’t been operational for more than three years. The account number should be as per the Core Banking Solution (CBS) system of the bank. It is to be provided in Part E – other information of the ITR form.
Do I need to include dividend income from mutual funds?
Yes, dividend income from mutual funds is now taxable in the hands of investors. It is to be shown in ‘Other Income’.
What do the following terms mean?
Revised Return: If you have already filed your income tax return, but you later discover that you have made a mistake in it, you can refile. This is called a revised return. You can file your revised return for the financial year 2021-22 until December 31 2022.
Notice Number: A notice number is mentioned in any notice you receive from the Income Tax Department. While responding to such notices, you must mention this notice number.
Advance Tax: TDS eliminates the need for Advance Tax payments for salaried individuals. However, you might have other forms of income – like interest on savings bank accounts, fixed deposits, rental income, bonds, or capital gains. If the tax on income is more than Rs 10,000 per year, you are required to estimate your income and pay Advance Tax. This has to be paid in quarterly instalments in June, September, December, and March.
Self Assessment Tax Payments: This is the difference between tax payable and tax paid. It needs to be paid before you file your return. When you fill out the form for the first time, you won’t know whether Self Assessment Tax has to be paid or not. So, fill out the form first along with the Advance Tax details, if paid. Compute your income. And if there is still tax to be paid, pay it and then fill in the details in the self-assessment tax paid section.
Annexure-less Return: The ITR-1 Form is an annexure-less return. You do not have to attach any documents (such as Form 16/Form 26AS) with the ITR-1 Form.
How do you file ITR-1 when you earn Rental Income?
You can use ITR-1 only if you own one house property. Read more about how to compute taxes on your rental income here.
How do you send your ITR-V to the CPC Office?
We have a guide to help you print and send your ITR-V to the CPC office. Read our Guide.
I am supposed to file ITR-2 and not ITR-1 if my maximum exempt income exceeds Rs. 5,000. What qualifies as exempt income?
You should file ITR-2 if your total exempted income exceeds Rs. 5,000. Certain incomes are exempt under Section 10 of the Income Tax Act. Following are the examples of exempt income:
I have a House Property loan. Can I file ITR-1? I have a House Property loan. Can I file ITR-1?
Yes, you can. Scroll through our guide to see the process.
I have Rental Income. Can I file ITR-1?
Yes. Our guide takes you through the process step-by-step.
While filing ITR-1 should Interest Income be shown in ‘Income from Other Sources’ if TDS has already been deducted?
Yes, you should always include Interest Income under ‘Income from Other Sources’, even if the bank has deducted tax.
I have only claimed medical expenses worth Rs. 6,000 during the year out of the Rs. 15,000 medical reimbursement allowed by my company. How much tax will be deducted if I don’t submit medical proof for the remaining amount?
The concept of medical reimbursement has been done away with in Budget 2018 and has been replaced by a standard deduction of Rs. 50,000.
There is no refund due to me. Do I still have to fill in my bank account details while filing my Income Tax Return?
Yes, it is mandatory to fill in your bank account details, whether you have a refund due or not. Sometimes, many taxpayers end up paying more than their required tax liability. In such cases, the Income Tax Department refunds the excess amount within a specified time. The refund process could be delayed if you do not fill in your bank account details.
Is there any restriction on the number of returns I can file using one email id and mobile number?
Yes, you can only file ten returns using the same email id and mobile number.
What is the structure of the ITR-1 Form?
Not sure which ITR form to use? Click here
The following changes have been incorporated into the ITR form:
Salary and House property changes can be noted from the below screenshot