Expert Assistance

ITR-1 (Sahaj) is the simplest income tax return form, designed for individual resident taxpayers with a total income up to ₹50 lakh from specific sources. Here is a detailed, step-by-step process for filing ITR-1.

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Who is eligible to file ITR-1?

ITR-1 is specifically for individuals who are a resident of India (other than a not-ordinarily resident) with a total income of up to ₹50 lakh. The income can be from the following sources:

• Salary or Pension: Income from one or multiple employers.

• One House Property: Income from a single house property, excluding cases where a loss is carried forward from a previous year.

• Other Sources: This includes interest income from savings accounts and fixed deposits, family pension, etc. It does not include winnings from lottery, horse races, or income taxable at special rates.

• Agricultural Income: A limited amount of agricultural income, up to ₹5,000, can be reported in this form.

Who cannot file ITR-1?

It's equally important to know who is not eligible for this form. You cannot file ITR-1 if you are an individual:

• Who is a Non-resident or Not-Ordinarily Resident.

• Whose total income exceeds ₹50 lakh.

• Who has income from more than one house property.

• Who has capital gains (short-term or long-term), with the exception of limited long-term capital gains under Section 112A.

• Who has business or professional income.

• Who is a Director in a company or has held unlisted equity shares.

• Who has foreign assets or signing authority in an account outside India.

• Who wants to claim tax relief under Sections 90/90A/91.

Key Aspects of ITR-1 Filing

• Pre-filled Data: The online portal pre-fills a lot of your information from sources like your employer's TDS filings (Form 16) and your bank's interest statements (Form 26AS/AIS). You must review this data carefully and make any necessary corrections.

• Old vs. New Tax Regime: Since the New Tax Regime is the default, you must explicitly opt for the Old Tax Regime in the ITR-1 form if you want to claim deductions and exemptions like those under Sections 80C, 80D, etc. The ITR-1 form has a specific section for this choice.

• Verification (e-Verification): Filing the return is a two-step process: submitting the form and then verifying it. The most common and recommended method is e-Verification using an Aadhaar OTP. Your return is not considered filed until it is successfully verified.

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Step 1: Gather Required Documents

As per our previous discussion, you need to collect all the necessary documents. The key ones for ITR-1 filing include:

• PAN Card and Aadhaar Card

• Form 16 (from your employer)

• Form 26AS / Annual Information Statement (AIS) for a comprehensive view of your tax credits

• Bank statements to verify interest income

• Proofs for any deductions you want to claim (e.g., life insurance premium, PPF contribution, etc.)

Step 2: Log in to the Income Tax e-Filing Portal

• Visit the official Income Tax India e-Filing portal.

• Log in using your PAN as the User ID and your password.

Step 3: Start the ITR Filing Process

• On your dashboard, click on e-File > Income Tax Returns > File Income Tax Return.

• Select the relevant Assessment Year (e.g., AY 2024-25 for income earned in FY 2023-24).

• Choose the Mode of Filing as 'Online'.

• Select the Status as 'Individual'.

• Select the ITR Form as 'ITR-1'.

Step 4: Fill and Validate Your Details

The online ITR form is divided into several sections. The e-Filing portal pre-fills much of the data from sources like your employer (via Form 16) and your bank. You must carefully review and validate this pre-filled information.

• Personal Information: This section will be mostly pre-filled. Verify your name, PAN, Aadhaar, contact details, and bank account information.

• Gross Total Income: This is a crucial section.

  • Salary/Pension: The data is usually pre-filled from your Form 16. Verify that it matches your document.

  • Income from House Property: Enter details for one house property.

  • Income from Other Sources: Manually enter any other income, such as interest from savings accounts, fixed deposits, or family pension.

• Total Deductions: In this section, you can claim tax deductions. Enter the amounts for eligible investments and expenses under Chapter VI-A (e.g., Section 80C, 80D, 80E, etc.). The system will calculate your total deductible amount.

• Tax Paid: Verify the details of the tax already paid by you. This includes:

  • TDS (Tax Deducted at Source) from salary, interest, etc. (Check this against your Form 26AS/AIS).

  • Advance Tax and Self-Assessment Tax (if any).

• Total Tax Liability: The system will automatically compute your final tax liability based on the income, deductions, and tax paid details you have entered. It will show you if you have a balance tax to pay or if you are due a refund.

Step 5: Preview and Submit

• After filling all sections, click on 'Preview Return'.

• Review the entire form carefully for any errors. Make sure all income sources and deductions are correctly declared.

• If a tax balance is due, pay the tax and enter the challan details. If you are due a refund, ensure your bank account details are correct.

• Click on 'Proceed to Validation'. The system will check for errors.

• Once validated, click 'Proceed to Verification'.

Step 6: Verify Your ITR

This is the final and most important step. Without verification, your ITR filing is incomplete. You have 30 days from the date of submission to verify your return. The most common methods are:

• Aadhaar OTP: The most popular method. An OTP is sent to your mobile number linked to Aadhaar.

• EVC through Bank Account/Demat Account: A code is generated and sent to your registered mobile number.

• Net Banking: You can verify through your bank's net banking portal.

• Sending a signed ITR-V to CPC: This is the physical, paper-based method. You must print and sign the ITR-V form and send it via speed post to the CPC in Bengaluru. This method is not recommended due to potential delays.