The ITR- 1 Form is particularly designed for salaried employees to file income tax returns. The form is also known as Sahaj Form which is used by many salaried employees to file their tax returns. Apart from ITR-1 Form, there are other forms such as Form 2 and newer ITR Form 1 which may be used by salaried employees as per their requirements. ITR Form 1 is the most simple form to file taxes, without any complications.
Individuals who are Eligible to File their Income Tax with ITR-1 Form:
- Any individual who is earning an income from pension.
- If an individual owns one house, and is currently earning an income from that house, he/she can use the ITR Form 1. However, if there is a loss from this property in the financial year or carried forward from the previous year, then He or she will not be eligible to use the ITR Form 1.
- Any additional income earned from any other sources such as Interest Income etc. If any income earned by another person like a spouse, minor child is clubbed together with the income of the income tax assessees, the ITR-1 Form can be used.
Who can not Use this Form?
Any individuals who has an income from any of the below mentioned sources will not be eligible to file their income tax returns using ITR Form 1:
- Any individual who has an income arising from a business or profession.
- Individuals who have income from agriculture, wherein the amount exceeds Rs. 5,000.
- If an individual owns more that one house from which he/she earns an income.
- Income received from winnings of a lottery.
- If the individual receives any income under capital gains.
- Any losses incurred can not be filed under this form.
- Any individual paying foreign tax under section 90, 90A, or 91, and claiming relief for this tax paid cannot use this form.
- Any resident Indian who owns any assets outside the country.
How do you File your ITR using the Form 1?
There are many ways of filing income tax returns by using Form 1 which includes:
- An individual taxpayer can furnish his/her IT returns by filling up the physical form and submitting all necessary documents.
- You can submit a bar coded return form which is available at the Income Tax website.
- The return can be submitted electronically with the help of digital signature.
- You can also transmit the data electronically after submitting the verification Form - ITR-V.
Things to be Filled in ITR- 1 Form:
The ITR Form 1 is divided into various sections. Each section contains different information as to how fill it.
Part A : This is the first section on the form. The row numbers A1 to A28 of this sections will contain your personal details such as first name, last name, and middle name if any; PAN information as mentioned on your PAN card; age; gender and date of birth as per PAN.The details pertaining to your ward and the assessing officer’s details ( if known), address for communication, contact number, city, state, date of filing, aadhaar details - all these details can be added.
Part B: The section B contains information about your gross total income. Income from salary, property and other sources needs to be specified here.
Part C: This section of the form contains the details of deductions and taxable income. The row numbers C1 - C20 of this section includes deductions as per sections 80C, 80D, 80U, and 80G.
Part D: The row numbers ( D1 - D19) will contain information about tax computation and status, any rebates offered, taxes after rebates, and TDS claimed etc. You need to fill all these aforesaid information in these rows. The row D20 will contain details of your bank account including account number, name of the bank, IFSC code and the type of account held. You will also have to specify whether you want any refund to be credited in that account or not.
The declaration of all information provided should be authentic with proper signature of the taxpayer in the verification section.
When do you File ITR with Form 1?
Taxpayers who are going to file their ITR with Form 1 need to file their income tax returns by the 31st of July of the next financial year. For example, income tax return has to be filed by 31st July 2016 for the coming financial year 2016-17.