Taxation in India is an important source of revenue generation for the government and is done in many different ways. Sales tax, service tax, entertainment tax, tax at source, professional tax and many others are different tax structures levied on purchases made and services or privileges availed by the citizens of India. Income tax is a primary source of taxation that takes into account taxation of income from salaried or self employed individuals or entities. Income tax in India can be filed using any of the applicable four Income Tax Return Forms from the Income Tax Department of India. Out of those four, ITR Form 1, ITR-1 or simply known Sahaj, is the Income Tax Return Form 1.
What is Income Tax Return Form 1 (ITR 1) or Sahaj?
Income tax calculation differs in many ways for different individuals, entities and sources of income as per the regulations put forth by the Income Tax Department of India. Sahaj or ITR-1 is aptly named so, because it is the simplest of the forms available for filing tax returns. This form is to be used by an individual only whose income source is from either one of among -
- Salary or pension
- Income from house property (exclusive of case where loss is brought forward from previous year)
- Other sources (not including winnings from lottery and income from horse races)
It is worthwhile to note that income from business or profession or capital gains can’t make use of ITR-1 and have to resort to another applicable form.
Form Fields for ITR-1 or Sahaj:
This Income Tax Return document has different sections pertaining to the information that needs to be submitted for a successful filing of income tax return.
The sections can be described as below -
- Part A - Personal Details (general details like name, date of birth, email address and the like)
- Part B - Gross Total Income (income from salary as furnished by Form 16 and Form 12BA)
- Part C - Deductions and Taxable Total Income (deductions as mentioned under Form 16, could be under any of the applicable sections of the Income Tax Act)
- Part D - Tax Computation and Tax Status (deals with actual computation of tax taking into account the prevailing tax laws)
- Bank Account Details (details of active bank account of the individual, IFSC code, branch name, bank name and the like)
- Schedule IT - Deals with details of advance tax and self assessment tax payments
- Schedule TDS1 - Deals with details of Tax Deducted at Source from Salary (through Form 16)
- Schedule TDS2 - Deals with details of Tax Deducted at Source from income other than Salary (through Form 16A)
- Supplementary Schedule TDS1 and TDS2
Filing Income Tax Returns through Income Tax Return Form 1 or ITR-1 (Sahaj):
After duly filling up the different fields as applicable, the form can be e-filed through the portal of the Income Tax Department of India. The last date for filing income tax returns is mostly the last working day of August of a financial year.
Post the filing of ITR-1, an ITR-V form will be received by the assessee and the same needs to be sent to the local branch office of the Income Tax Department through post within 120 days.