A comprehensive guide to understanding the ITR-1 Sahaj Form

To make tax compliance easier, the income tax department has categorized taxpayers into many groups based on income and its source. So, you need to file your returns accordingly. ITR-1, also known as or Sahaj Form, is for people with an income up to Rs. 50 lakhs. In this article, we will discuss who should file ITR-1 and other criteria related to it.

AADHAAR CARD MANDATORY FOR TAX FILING

The Income Tax Department has made it mandatory for all taxpayers to link the Aadhaar card with PAN on the Income Tax Department website.

Who is Eligible to File ITR 1  for AY 2019-20?

ITR -1  Form is a simplified one-page form for individuals having income up to Rs 50 lakh from the following sources :

1. Income from Salary/Pension
2. Income from One House Property (excluding cases where loss is brought forward from previous years)
3. Income from Other Sources (excluding winning from Lottery and Income from Race Horses)

In the case of clubbed Income Tax Returns, where a spouse or a minor is included, this can be done only if their income is limited to the above specifications.

Who cannot file ITR 1 for AY 2019-20

1. An individual having income above Rs 50 lakh cannot use this form.
2. An individual who is either a director in a company and has held any unlisted equity shares at any time during the financial year cannot use this form.
3. Residents not ordinarily resident (RNOR) and non-residents cannot file returns using ITR -1
4. Also, individuals  who have earned income through the following means are not eligible to file form ITR 1 :

a. More than one House Property

b. Lottery, Racehorses, Legal Gambling etc.

c. Taxable capital gains (Short term and Long term)

d. Agricultural income exceeding Rs. 5,000

f. Business and Profession

g. Individual who is a Resident and has assets (including financial interest in any entity) outside India or signing authority in any account located outside India.

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

What is the structure of ITR 1 Form ?

Part A – General Information

Part B – Gross total Income

Part C – Deductions and taxable total income

Part D – Computation of Tax Payable

Part E  – Other Information

Schedule IT – Detail of Advance Tax and Self Assessment Tax payments

Schedule TDS – Detail of TDS/TCS

Verification

How do I file my ITR-1 Form?

You can submit your ITR-1 Form either online or offline.

Offline:

Only the following persons have the option to file the return in paper form

1. An individual at the age of 80 years or more at any time during the previous year
2. An individual or HUF whose income does not exceed Rs 5 lakhs and who has not claimed any refund in the return of income

For offline, the return is furnished in a physical paper form. The Income Tax Department will issue you an acknowledgement at the time of submission of your physical paper return.

Online/Electronically:

1. By transmitting the data electronically and then submitting the verification of the return in the form of ITR-V to CPC, Bengaluru.
2. By filing the return online and e-verifying the ITR-V through net banking/aadhaar OTP/EVC.

If you submit your ITR-1 Form electronically, the acknowledgement will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing. Alternatively, you can e-verify your return.

The Major Changes which are made in the ITR 1 for the AY 2019-20 are:

1. ITR 1 form for FY 2018-19 is not applicable to an individual who is either a director of a company or has invested in unlisted equity shares.
2. Under Part A, ‘Pensioners’ checkbox has been introduced under the ‘Nature of employment’ section.
3. Return filed under section has been segregated between normal filing and filed in response to notices.
4. Deductions under salary will be bifurcated into standard deduction, entertainment allowance and professional tax.
5. The taxpayers will be required to provide income wise detailed information under the ‘Income from other sources’.
6. A separate column is introduced under ‘Income from other sources’ for deduction u/s 57(iia) – in case of family pension income.
7. ‘Deemed to be let out property’ option now available under ‘Income from house property’.
8. Section 80TTB column has been included for senior citizens.

The Major Changes which were made in the ITR 1 for the AY 2018-19 are:

1. Earlier ITR-1 was applicable for both Residents, Residents Not ordinarily resident (RNOR) and also Non-residents. Now, this form has been made applicable only for resident individuals.
2. The condition of the individual having income from salaries, one house property, other income and having total income up to Rs 50 lakhs continues
3. There is a requirement to furnish a break-up of salary. Until now, these details would appear only in Form 16 and the requirement to disclose them in the return had never arisen.
4. There is also a requirement to furnish a break up of Income under House Property which was earlier mandatory only for ITR -2 and other forms

Salary and House property changes can be noted from the below screenshot

• Under the Schedule on TDS, there is also an additional field for furnishing details of TDS as per Form 26QC for TDS made on rent. Also, provision for quoting of PAN of Tenant for such rent cases has also been made.

The Major Changes which were made in the ITR 1 for the AY 2017-18 are:

1. Quoting of Aadhar Number is mandatory

Every person is mandatorily required to quote Aadhaar number in the return of income. If any person does not possess the Aadhaar Number but he had applied for the Aadhaar card then he can quote Enrolment ID of Aadhaar application Form in the ITR.

2. Disclosure of cash deposits during demonetization

A new column has been introduced in all ITR Forms to report on cash deposited by taxpayers in their bank accounts during the demonetization period, i.e., from November 9, 2016 to December 30, 2016. However, taxpayer are required to fill up this column only if they have deposited Rs 2 lakh or more during the demonetization period

3. Disclosure of all Bank Accounts

The details of all the savings and current accounts held at any time during the previous year must be provided. However, it is not mandatory to provide details of dormant accounts which are not operational for more than 3 years. The account number should be as per Core Banking Solution (CBS) system of the bank.

4. Simplified one page ITR Form for Salaried class taxpayers (ITR 1 Sahaj)

Now the Govt. has notified simplified one page form ‘ITR-1 Sahaj’ for individuals having income up to Rs 50 lakhs  from salary, pension, one house property and income from other sources. It has removed columns which are not frequently used by the taxpayers such as:

a. New ‘ITR-1 Sahaj’ has retained those deductions which are most frequently used by the taxpayers such as  under Section 80C, 80D, 80G and 80TTA.If any taxpayer wants to claim deduction under any other provision of chapter VI-A he can specify the relevant Section in column titled as ‘Any other’.

b. Schedules of TDS and TCS have been merged into one in order to make ITR 1 shorter and simpler.

c. New columns have been inserted to report dividend income and long-term capital gains exempt under Section 10(34) and Section 10(38) respectively. It is mandatory to e file tax returns for those with long term capital of Rs 2.5 lakhs or more ,even though their taxable income may be below 2.5 lakhs.

FAQs

I earn income over Rs 50 lakhs. Which ITR form should I file this year ?

If you have income above Rs 50 lakhs , you can file ITR 2 ,ITR 3 or ITR 4 (Sugam) depending upon your source of income. If you are salaried individual having income above Rs 50 lakhs, you should file ITR 2. And if you are having income from  business or profession, then you should file ITR 3. In case you are following presumptive income u/s 44AD /44AE, then you should file ITR 4 (sugam).

To know more Which ITR to file Click here

1. Do I need to report exempt LTCG in ITR-1?

You  need to report exempt LTCG in ITR 1 provided it is exempt under Section 10(38). If you have taxable LTCG, you may use the other forms as applicable. Also it is mandatory to e file tax returns for those whose LTCG exceeds Rs 2.5 lakhs even if your income is below taxable limit.

2. Can I file ITR-1 with exempt agricultural income?

Yes .you can if the agricultural income does not exceed Rs 5000.And If the agricultural income is more than Rs 5000, then you should file ITR 2.

3. How to report bank accounts in ITR-1?

The details of all the savings and current accounts held at any time during the previous year must be provided. However, it is not mandatory to provide details of dormant accounts which are not operational for more than 3 years. The account number should be as per Core Banking Solution (CBS) system of the bank. It is to be provided in the Part E – other information of the ITR form.

4. Do I need to include dividend income from Mutual Funds?

Yes.Dividend income from mutual funds is exempt under sec 10(35).It is to shown in Part D  under the head Exempt Income(others)

If you are looking to file income tax return for fy 2015-16, then continue reading below

 All About The ITR 1 Form For AY 2016-17 is as  follows :

What is the ITR-1 Form for AY 2016-17?

The ITR-1 Form, also called Sahaj (meaning easy in Hindi), is the Income Tax Return Form for salaried individuals (i.e. salary/pension/family pension and interest income).

E-File your Income Tax Return Now

To download latest ITR-1 click here.
For downloading instructions to fill ITR-1 click here

ClearTax automatically selects the right ITR Form for you

Not sure what ITR form to pick? Upload your Form 16 and file with us in just 7 minutes!

Upload your Form-16 to E-File ITR

Who is eligible to file the ITR-1 Form for AY 2016-17?

ITR -1 should be filed for an assessment year when Total Income of an Individual includes:

1. Income from Salary/Pension
2. Income from One House Property (excluding cases where loss is brought forward from previous years)
3. Income from Other Sources (excluding winning from Lottery and Income from Race Horses)

In case of clubbed Income Tax Returns, where a spouse or a minor is included, this can be done only if their income too is limited to the above specifications.

Who is not eligible to file the ITR-1 Return for AY 2016-17?

Individuals who are not eligible to fill the ITR-1 SAHAJ form are those who have earned Income through the following means:

1. more than one House Property
2. Lottery, Racehorses, Legal Gambling etc.
3. taxable capital gains (Short term and Long term)
4. agricultural income exceeding Rs. 5,000
5. Business and Profession
6. Individual who is a Resident and has
   • assets (including financial interest in any entity) outside India or
   • signing authority in any account located outside India.
7. Individual claiming relief of foreign tax paid or double taxation relief under section 90/90A/91.

Not sure which ITR form you need to use? Read our guide for help.

What is the structure of the ITR-1 Form?

ITR-1 is divided into:

Part A: Personal Details

Part B: Gross Total Income

Part C: Deductions and Taxable Total Income

Part D: Tax Computation and Tax Status

Schedule IT: Details of Advance Tax and Self Assessment Tax Payments

Schedule TDS: Details of Tax Deducted at Source

The ITR-1 Form cannot be used if you are claiming double taxation relief under Section 90/90A/91.

How do I fill out the ITR-1 Form?

Documents which you should keep in hand before filling out your ITR-1 form are:

1. Form 16s: Issued by all your employers for the given Financial Year
2. Form 26AS: Remember to verify that the TDS mentioned in Form 16 matches the TDS in Part A of your Form 26AS
3. Receipts: If you have not been able to submit proof of certain exemptions or deductions (such as HRA allowance or Section 80C or 80D deductions) to your employer on time, keep these receipts handy to claim them on your income tax return directly.
4. PAN card
5. Bank investment certificates: Interest from bank account details – bank passbook or FD certificate

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 re-file. This is called a Revised Return. For the Financial Year 2017-18, you can file your Revised Return till March 31, 2019.

Notice Number: You should fill this in only if you are filing your return in response to a notice from the Income Tax Department.

Advance Tax: For salaried individuals, TDS mostly takes care of advance tax payments. However you might have other forms of income – like interest on savings bank accounts, fixed deposits, rental income, bonds or capital gains. If 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 installments in June, September, December and March.

Self Assessment Tax Payments: This is the difference between tax payable and tax paid and 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 after computing, you find that tax is still payable, pay it and then fill in the details in self-assessment tax paid section in the return.

Annexure-less Return: ITR-1 Form is an Annexure-less return. This means that 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?

Aditya rents out his apartment. Since he owns just one property, he files ITR-1.

How much should he pay in taxes?

How do I file my ITR-1 Form?

You can submit your ITR-1 Form either online or offline. From the Financial Year 2013-14, all taxpayers earning more than Rs. 5 lakhs must furnish their Income Tax Returns electronically.

Offline:

• By furnishing a return in a physical paper form

The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.

Electronic or online transmission

By transmitting the data electronically and then submitting the verification of the return in the form of ITR-V to CPC, Bengaluru.

By filing the return online and e-verifying the ITR-V through net banking/adhaar OTP/EVC. https://cleartax.in/Guide/how-to-e-verify-your-income-tax-return-using-evc

If you submit your ITR-1 Form electronically, the acknowledgment will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing. Alternatively, you can e-verify your return.

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.

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Read our Guide

Frequently Asked Questions

1. Income from One House Property (excluding cases where loss is brought forward from previous years)
2. Income from Other Sources (excluding winning from Lottery and Income from Race Horses)
3. Exempt income less than or equal to Rs. 5,000.

I am supposed to file ITR-2 and not ITR-1, if my maximum exempt income exceeds Rs. 5,000. What qualifies as exempted 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:

1. Agricultural income
2. LIC Maturity amount as per section 10 (10D)
3. Long term capital gain on listed shares and securities as per section 10(38)

Gratuity, leave encashment and pension may be exempt under Section 10 of the Act.

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?

Once again, the answer is 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 tax has been deducted by the bank.

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 proofs for the remaining amount?

The I-T Department allows medical reimbursement of up to Rs. 15,000. You must, however, furnish the necessary bills to your employer to claim this. The remaining unclaimed amount of the Rs. 15,000 is added to your taxable salary. And your taxable salary is taxed at the slab rate you belong to. The bills must be between April last year to March this year.

The concept of medical reimbursement has been done away with in Budget 2018 and has been replaced by a standard deduction of Rs 40,000 effective 1 April 2018.

There is no refund due to me. Do I still have to fill in my Bank Account details in the Income Tax Return?

Yes, it is mandatory to fill in your bank account details, whether you have refund due or not. This is because it has been noticed that many taxpayers end up paying more than their required tax liability. In such cases, it is important for the Income Tax Department to send refunds within a certain amount of time. If you do not fill in your bank account details, the process would be considerably delayed.

Is there any restrictions on the number of returns I can file using one email id and mobile number?

Yes, you can only file 10 returns using the same email id and mobile number.