ITR (Income Tax Return) is a vital document where taxpayers report their income and applicable taxes to the Income Tax Department. The Income Tax Act of 1961 defines all the ITR forms and their procedures. Among these, ITR-1, also known as Sahaj, is particularly significant. It is designed for individuals earning up to Rs. 50 lakhs, making it applicable to most salaried individuals.

Tax MSME offers an efficient solution for filing Income Tax Returns using the ITR-1 form. Our team of experts will guide you through the entire process, ensuring that you stay compliant with tax regulations. With Tax MSME's ITR-1 Filing Services, you can easily navigate tax submissions, allowing you to focus on your business while we handle your tax return needs. Start today with our seamless service!

What is ITR?

An Income Tax Return (ITR) is a document filed by taxpayers to report their income earned and corresponding tax liabilities to the income tax authorities. It serves as a formal declaration of an individual or entity's financial information, ensuring transparency and adherence to tax regulations.

There are seven ITR forms: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. Taxpayers must file their ITR by the due date. The form chosen depends on the source of income, amount earned, and the taxpayer's category (individuals, HUFs, companies, etc.).

What is the ITR-1 (Sahaj) Form?

The ITR-1 (Sahaj) form is a simplified tax filing option for individual taxpayers. It is designed for residents of India whose total income is below Rs. 50 lakhs and comes from the following sources:

• Income from Salary or Pension

• Income from a Single House Property

• Income from Other Sources

This form streamlines the process for eligible individuals to report their income tax details, offering a user-friendly approach to fulfilling tax obligations.

Who Can File ITR-1?

ITR-1 is applicable to Resident Individuals who meet the following conditions:

• Income Threshold: Total income for the financial year should not exceed Rs. 50 lakh.

• Eligible Income Sources:

  • Salary

  • Income from one house property

  • Family pension

  • Agricultural income (up to Rs. 5,000)

  • Other sources, including:

    • Interest from savings accounts, bank deposits, or post office

    • Income tax refunds

    • Interest on enhanced compensation

Note: Filing your Income Tax Return is mandatory if your total income exceeds the basic exemption limit. Ensure you file your return before the due date to avoid penalties and notices from the Income Tax Department.

Who Cannot File ITR-1?

Certain categories of individuals are not eligible to file ITR-1, including:

• Non-Resident Indians (NRIs) or Resident but Not Ordinarily Resident (RNOR)

• Individuals with income exceeding Rs. 50 lakh

• Those with agricultural income exceeding Rs. 5,000

• Individuals with income from lottery, racehorses, gambling, etc.

• Those with taxable capital gains (short-term or long-term)

• Individuals who invest in unlisted equity shares

• Those with business or professional income

• Directors of a company

• Individuals receiving tax deductions under Section 194N

• Those with income from more than one house property

ITR-1 Due Date

The due date for filing ITR-1 typically falls on July 31st of each assessment year. Meeting this deadline is crucial to avoid late filing penalties and ensure compliance with tax regulations.

Structure of ITR-1 Form

The ITR-1 (Sahaj) form is structured into five main parts and two schedules for clarity:

• Part A: General Information (Personal details, PAN number, filing date, etc.)

• Part B: Gross Total Income (Includes salary, property income, and other sources)

• Part C: Deductions and Taxable Income (Deductions under sections 80C, 80D, 80U, etc.)

• Part D: Computation of Tax Payable (Tax calculation, TDS claims, bank details for refund)

• Part E: Other Information (Additional details required by tax authorities)

Additionally, the form includes two schedules:

• Schedule IT: Information on tax payments

• Schedule TDS & TCS: Tax Deducted at Source and Tax Collected at Source details

The final step involves verifying the information submitted.

Documents Required for Filing ITR-1

ITR-1 is an attachment-less form, so you do not need to attach any documents. However, keep the following documents for your reference:

• Form 16: Issued by your employer

• Form 26AS: Cross-check TDS details with Form 16

• Receipts for deductions/exemptions: E.g., HRA allowance, Section 80C/80D deductions

• PAN Card: Permanent Account Number for identification

• Bank Investment Certificates: Passbook or FD certificates showing interest earned

Types of Income Excluded from ITR-1

Certain types of income cannot be reported using ITR-1, such as:

• Profits from Business or Profession

• Income from multiple house properties

• Capital Gains (Short-term or Long-term)

• Specific Other Sources like winnings from lotteries or income from racehorses

Penalty for Late Filing of ITR-1

If you file your ITR late, you may face penalties:

• For total income over Rs. 5 lakh: A penalty of Rs. 5,000

• For total income under Rs. 5 lakh: A reduced penalty of Rs. 1,000

• Additional interest charges for delayed payments: 1% per month

More severe penalties may apply if you underreport or misreport income, with fines up to 200% of the underreported tax amount.

How Can Tax MSME Help with ITR-1 Filing?

Tax MSME offers expert guidance throughout the ITR-1 filing process. We help you:

• Choose the correct form based on your income

• Calculate tax liability accurately

• Ensure timely filing to avoid penalties

• Assist in processing your income tax refund

Our experts are available to answer your questions and ensure you stay up to date with the latest tax regulations. Trust Tax MSME to handle your ITR-1 filing securely and efficiently.