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ITR 1 Sahaj Form – File ITR-1 Online

A comprehensive guide to understanding the ITR-1 Sahaj Form

Updated on :  

08 min read.

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.

Who is Eligible to File ITR-1 for AY 2022-23?

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

  • Income from salary/pension
  • Income from one house property (excluding cases where loss is brought forward from previous years)
  • 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.

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.

Who cannot file ITR-1 for AY 2022-23

  • An individual with an income above Rs 50 lakh.
  • 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 not ordinarily resident (RNOR) and 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)
    • Agricultural income exceeding Rs. 5,000
    • Business and profession
    • A Resident that has assets (including financial interest in any entity) outside India or is a 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

How do I file my ITR-1 on ClearTax?

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.

Significant Changes made in the ITR-1 Form for AY 2022-23

Some changes have been incorporated into the ITR-1 form:

  • Under the schedule ‘Salary’, you can disclose income from retirement benefit accounts maintained in the notified country under Section 89A, and claim relief for the same.
  • Pensioners must now select the ‘Nature of employment’ (Central government, state government, public sector unit and others).
  • You can now claim relief for the taxes paid on the income from the retirement benefit account maintained in a notified country at the time of withdrawal or redemption, as prescribed under Section 89A

Documents to be kept handy while filing ITR

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

  • Form 16: Issued by all your employers for the given Financial Year
  • Form 26AS: Remember to verify that the TDS mentioned in Form 16 matches the TDS in Part A of your Form 26AS
  • 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.
  • PAN card
  • Bank investment certificates: Interest from bank account details – bank passbook or FD certificate

Frequently Asked Questions

I’m filing ITR as an individual, and my annual income is over Rs 50 lakh. Which ITR form should I file this year?

  • If you have income above Rs 50 lakh, you must file ITR-2, ITR-3, or ITR-4 (Sugam), depending upon your source of income. 
  • If you are a salaried individual with an income above Rs 50 lakh, you should file ITR-2. 
  • If you receive an income from a  business or profession, you should file ITR-3. 
  • If you are following presumptive income u/s 44AD /44AE, then you should file ITR-4 (sugam).

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:

  • Agricultural income
  • LIC  maturity amount as per section 10 (10D)
  • Gratuity, leave encashment, and pension

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?

  • 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 (Bank account details)
  • Schedule IT (Details of advance tax and self-assessment tax payments)
  • Schedule-TDS (TDS/TCS details)
  • Verification

Not sure which ITR form to use? Click here

Major changes in the ITR-1 Form for the AY 2021-22

The following changes have been incorporated into the ITR form:

  • The taxpayer cannot file ITR-1 if TDS is deducted under section 194N. As per section 194N, tax shall be deducted at the source if non-filers of Income Tax Return withdraw cash exceeding Rs. 20 lakh. In other cases, tax shall be deducted when the cash withdrawals exceed Rs. 1 crore in a financial year.
  • There is no option to carry forward TDS under section 194N. The credit of TDS under section 194N shall be allowed only during the year in which TDS was deducted.
  • Individuals or HUFs are given the option to select an old or new tax regime. If the taxpayer selects a new tax regime under section 115BAC, he must file Form 10IE before filing ITR under section 139(1).
  • The ITR forms for the assessment year 2020-21 had a new schedule DI. It allowed taxpayers to avail the deduction made during the extended period for the AY 2020-21. The schedule DI is removed from AY 2021-22.

Major changes in the ITR-1 Form for the AY 2020-21

  • Individual taxpayers who meet the criteria of (a) making cash deposits above Rs. 1 crore with a bank or (b) incurring expenses above Rs. 2 lakh on foreign travel, or (c) expenditure above Rs. 1 lakh on electricity should also file ITR-1. The taxpayer should indicate the amount of the deposit or expenditure.
  • Resident individuals who own a single property in joint ownership can also file ITR-1, where the total income is up to Rs. 50 lakh.
  • Taxpayers should separately disclose the amount of the investment or deposits or payments towards tax-saving made from 1 April 2020 until 30 June 2020.

Major changes  in the ITR-1 Form for the AY 2019-20

  1. ITR-1 Form for FY 2018-19 does not apply to an individual who is either a director of a company or has invested in unlisted equity shares.
  2. Under Part A, the ‘Pensioners’ checkbox has been introduced under the ‘Nature of employment’ section.
  3. Return filed under section 139(9) 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 head  ‘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 is now available under ‘Income from house property’.
  8. Section 80TTB column is included for senior citizens.

Major changes in the ITR-1 for the AY 2018-19

  1. Earlier ITR-1 was applicable for residents, Residents Not Ordinarily Resident (RNOR), and also non-residents. Now, this form applies only to resident individuals.
  2. Under the schedule on TDS, there is an additional field for furnishing details of TDS as per Form 26QC for TDS made on rent. Also, a provision for quoting PAN of Tenant for such rent cases has also been provided.
  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


Major changes in the ITR-1 Form for the AY 2017-18:

  1. Quoting of Aadhar number is mandatory – If any person does not possess the Aadhaar number, but has applied for the Aadhaar card, they can quote the Enrolment ID of Aadhaar application form in the ITR.
  2. Disclosure of cash deposits during demonetisation – A new column has been introduced in all ITR Forms to report on cash deposited by taxpayers in their bank accounts during the demonetisation period, i.e., from November 9, 2016, to December 30, 2016. However, taxpayers are required to fill this column only if they have deposited Rs. 2 lakh or more during the 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 three years. The account number should be as per the 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 lakh 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:
    1. New ‘ITR-1 Sahaj’ has retained those deductions which are most frequently used by the taxpayers under Section 80C, 80D, 80G and 80TTA. If any taxpayer wants to claim deductions under any other provision of chapter VI-A he can specify the relevant Section in the column titled ‘Any other’.
    2. Schedules of TDS and TCS have merged into one to make ITR-1 shorter and simpler.
    3. 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 lakh or more, even though their taxable income may be below Rs. 2.5 lakh.


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