ITR-1 (Sahaj) Filing

ITR, or Income Tax Return, is a crucial document in which taxpayers report their income and applicable taxes to the income tax department. The Income Tax Act of 1961 outlines all the ITR forms and their procedures. Among these forms, ITR-1, often referred to as Sahaj, holds particular significance. ITR-1 (Sahaj) is designed for individuals with an income of up to ₹50 lakhs, making it applicable to most salaried individuals.

Mantra and Co. offers a seamless and efficient solution for filing Income Tax Returns using the ITR-1 form in India. Our team of experts guides you through the entire process, ensuring you meet your tax compliance obligations effortlessly. With Mantra and Co.’s ITR-1 filing services, you can navigate the complexities of tax submission with ease, allowing you to focus on what matters most while we handle your tax return needs. Get started today!

What is ITR?

An Income Tax Return (ITR) is a document used by taxpayers to report details about their income earned and the corresponding tax liability to the income tax department. It serves as a formal declaration of an individual or entity’s financial information, ensuring transparency and compliance with tax regulations.

Types of ITR Forms

The ITR landscape includes seven different forms: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7.

• The choice of ITR form depends on factors such as the sources of income, the amount of income earned, and the taxpayer’s category.
• Categories can include individuals, HUFs (Hindu Undivided Families), companies, and more.
• Each taxpayer is required to file their ITR on or before the specified due date.

What is the ITR-1 Sahaj Form?

The ITR-1 Sahaj Form is a simplified means for individual taxpayers to file their income tax returns. This form is tailored for resident individuals in India whose total income falls below ₹50 lakhs and originates from the following sources:

Eligible Sources of Income:

• Income from Salary or Pension
• Income from a Single House Property
• Income from Other Sources

The ITR-1 Form simplifies the procedure for eligible individuals to disclose their income tax information, offering a convenient and effective approach to fulfilling their tax obligations.

Who Can File ITR-1?

The ITR-1 is applicable to resident individuals who meet the following criteria:

Income Threshold

The individual’s total income for the financial year must not exceed ₹50 lakh.

Permissible Income Sources

• Income from Salary
• Income from a single-house property
• Family pension income
• Agricultural income (up to ₹5,000)
• Other sources, including:
  • Interest from Savings Accounts
  • Interest from Deposits (Bank/Post Office/Cooperative Society)
  • Interest from Income Tax Refund
  • Interest received on Enhanced Compensation
  • Any other interest income
  • Family pension

Clubbing of Income

Combining income with a spouse’s or a minor’s income is allowed only if the source of income falls within the specified limits mentioned above.

Note: Filing your Income Tax Return (ITR) is mandatory if your total income exceeds the basic exemption limit before claiming deductions under Sections 80C to 80U, as per Section 139 of the Income Tax Act.

Even if your income is below the exemption limit, filing is necessary if you meet specific criteria, such as high deposits, significant expenditures, or substantial business/professional income. Ensure to file before 31st December 2024 to avoid penalties.

Who Cannot File ITR-1?

The following categories of individuals are not eligible to file ITR-1:

• Resident Not Ordinarily Resident (RNOR) and Non-Resident Indian (NRI) individuals.
• Those with a total income exceeding ₹50 lakh.
• Individuals with agricultural income surpassing ₹5,000.
• Individuals earning from activities such as lottery, racehorses, or legal gambling.
• Those with taxable capital gains, both short-term and long-term.
• Individuals with income derived from business or profession.
• Individuals owning and generating income from more than one house property.
• Directors in a company or those with investments in unlisted equity shares.
• Individuals availing tax deductions under Section 194N.
• Employees deferring income tax on ESOPs from eligible start-ups.

Due Date for ITR-1 Filing

The due date for ITR-1 filing is typically July 31st of each assessment year. Filing on time ensures compliance with tax regulations and avoids penalties.

Structure of the ITR-1 Form

ITR-1 (Sahaj) is organized into five parts and two schedules:

Parts of ITR-1

1. Part A: General Information

   • Personal details such as name, PAN, age, gender, date of birth.
   • Communication address, contact number, city, and state.
   • Aadhaar details.

2. Part B: Gross Total Income

   • Information on earnings from salary, property, and other sources.

3. Part C: Deductions and Total Taxable Income

   • Details on deductions under Sections 80C, 80D, 80U, and 80G.

4. Part D: Computation of Tax Payable

   • Tax computation, TDS claims, rebates, and bank account details.

5. Part E: Other Information

   • Additional details required by the tax authorities.

Schedules

• Schedule IT: Details of advance tax or self-assessment tax payments.
• Schedule TDS & TCS: Tax deducted at source details.

Documents Required for Filing ITR-1

Though ITR-1 forms are attachment-less, you should retain the following:

1. Form 16: Provided by all your employers for the relevant financial year.
2. Form 26AS: Ensure TDS details match those in Form 16.
3. Receipts: For exemptions or deductions claimed directly in the ITR.
4. PAN Card: For identification.
5. Bank Investment Certificates: Details of interest earned from bank accounts.

How Can Mantra and Co. Help in Filing ITR-1 (Sahaj)?

Mantra and Co. provides expert assistance in filing your ITR-1 (Sahaj).

Our Services Include:

1. Accurate Form Selection: Based on your income sources.
2. Meticulous Tax Calculation: Ensuring accuracy and compliance.
3. Error-Free Filing: Minimizing penalties and tax notices.
4. Efficient Refund Processing: If applicable.
5. Expert Guidance: Throughout the entire process.
6. Data Security: Safeguarding your financial information.

Mantra and Co. keeps you updated on tax law changes and deadlines, making tax filing stress-free.

Start your journey to hassle-free tax compliance today!