Description
ITR-1 Filing Form
The Income Tax Act, 1961 states that any person falling under the purview of the tax act has to pay tax on the income earned in a particular financial year. The assessee could be an individual, partnership, Hindu Undivided Family, or any other business entity.
The taxpayers have been categorized to ease the compliances. Each category of the taxpayer has to compute the taxable income in the manner as it is laid down in the Income Tax Act,1961. Post computation the Income-tax returns are filed on the for applicable to the taxpayer.
This article is a complete guide to understand the ITR Sahaj Form 1. As the income tax department has categorized the taxpayers into many groups based on the income and the sources the returns need to be filed accordingly.
ITR-1 is for people with an income of up to Rs. 50 lakhs.
How can Form ITR-1 be filed?
Form ITR 1 can be filed both online and offline
We help taxpayers file their returns online as only super senior citizens (above 80) are exempt from
Filing their return online
Online Mode: The taxpayer can log in to the Income-tax portal and submit the return online by clicking on the “prepare and submit online” option. The other option of online submission of income tax returns is uploading XML
The verification can be done in two ways
1- online: while filing the return online the assessee can select anyone of the options from Bank account/ Aadharotp/ demat account/ net banking to e verify the return
After completing the online submission of Form ITR-1, you will receive the acknowledgement in your registered e-mail ID. Download this acknowledgment and post the print-out to the CPC office, Bangalore.
Both the ways of verification can be done within 120 days of filing the return.
Documents required for ITR - 1 Sahaj form
What documents are required to file ITR -1 Sahaj form?
- Form 16
- Salary slips
- Interest Certificates from the Post offices and Banks
- Form 16A/16B/16C
- Form 26AS
- Tax-savings investment proof
- Deductions under the Section 80 D to 80 U
- Home Loan statement from the NBFC/ Bank
- Capital Gains
Who can file Form ITR-1?
- Wages
- Pension
- Annuity
- Advance salary paid
- Leave Encashment
- Fee, prerequisites, commission, profits besides or in lieu id the salary or wages
- Transferred balance in recognized provident fund
- Annual accretion to the recognized provident fund
- Central Government contribution or an employer contribution to Pension account as mentioned in Section 80 CCD of the Income Tax Act
The income Tax rate under the Existing Tax Regime and the New Tax Regime ( For TDS return Filing)
The taxpayers now have an option to choose between the old and the new tax regimes. The decision of opting for a tax regime has to be taken at the beginning of the financial year.
A new tax regime has been announced where the individuals can pay taxes as per the new slab rates subject to certain conditions from FY2020-2021 onwards.
| Income Range | Tax rate |
|---|---|
| 0 – 2,50,000 | NIL |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 7,50,000 | 10% |
| 7,50,001 – 10,00,000 | 15% |
| 10,00,001 – 12,50,000 | 20% |
| 12,50,001 – 15,00,000 | 25% |
| 15,00,000 and above | 30% |
The tax rates in the New Tax regime are the same for all categories of individuals. Hence, there is no increased basic exemption limit benefit that will be available to the senior and the super senior citizens in the New Tax Regime.
Individuals with Net Taxable Income less than or equal to Rs 5 lakh will be eligible for the tax rebate u/s 87 A the tax liability will be Nil for such individuals in both New and Old existing tax regimes.
The exemption limit for NRIs is Rs. 2.5 lakh irrespective of age.
Additional health and education cess at the rate of 4% will be added to the Income-tax liability in all cases ( Increased from 3% since FY 2018-19)
An applicable surcharge as per tax rates below in all categories mentioned above:
- 10% of the income tax if total income >Rs. 50 lakh.
- 15% of the income tax if the total income > Rs.1 crore
- 25% of the income tax if the total income > Rs.2 crore.
- 37% of the income tax is the total income > Rs.5 crore.
What are the conditions to opt for a new tax regime?
- Leave travel Allowance
- House Rent Allowance
- Conveyance Allowance
- Daily expenses in the course of employment
- Relocation Allowance
- Helper Allowance
- Children Education Allowance
- Other Special Allowances [Section 10(4)]
- Standard deduction on salary
- Professional tax
- Interest on housing loan (Section 24)
- Deductions under Chapter VI A deduction (80C, 80D, 80E and so on) (Except Section 80CCD (2))
List of common deductions allowed the Old Tax Regime
- Transport allowance for specially-abled people
- Conveyance allowance for expenditure incurred for traveling to work.
- Investment in Notified Pension Scheme under Section 80 CCD(2)
- Deduction for the employment of new employees under Section 80JJAA
- Depreciation u/s 32 of the Income Tax Act except for additional depreciation.
- Any allowance for traveling for employment or on transfer.
Tax rates as per old regime
For individuals up to the age of 60 years
| Income Range | Tax rate |
|---|---|
| 0 – 2,50,000 | NIL |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| 15,00,000 and above | 30% |
For individuals up to the age of 60-80 years
| Income Range | Tax rate |
|---|---|
| 0 – 3,00,000 | NIL |
| 3,00,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| 15,00,000 and above | 30% |
For individuals above the age of 80 years
| Income Range | Tax rate |
|---|---|
| 0 – 5,00,000 | NIL |
| 5,00,001 – 10,00,000 | 20% |
| 15,00,000 and above | 30% |
The new tax regime is where the taxpayer has an option to choose either to pay taxes at a lower interest rate as per the new tax regime on the condition that they forgo certain permissible exemptions and deductions that are available the income tax.
or
The taxpayer can continue paying taxes under the existing tax rates. The assessee can avail of the rebates and the exemption by staying in the old regime and pay taxes at the existing high rates.
ITR-1 Plans
All Inclusive Pricing – No Hidden Fee
Income Tax return filing for an Individual with salary income of less than 5 Lakhs.
Income Tax return filing for an Individual with salary income of less than 10 Lakhs.
Income Tax return filing for an Individual with salary income of above than 10 Lakhs.
General questions
No, if income exceeds 50 lakhs then ITR-1 cannot be filed
Yes, but agriculture income upto ₹5,000 then ITR-1 has to be filed
ITR-1 XML is the file generated from the income tax preparation utility for filing return online
Due date to file non tax audit return of income is 31st July as per section 139(1) of the income tax act
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