ITR-1 (For Individual)
What is ITR 1 Sahaj Form?
This return is applicable for a Resident (other than Not Ordinarily Resident) Individual having Total Income from Salary / Pension / One House Property / Other sources (Interest, Family Pension, Dividend etc.) / Agricultural Income up to ₹ 5,000 and Total Income up to ₹ 50 lakh.
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.
Limit for Senior Citizens is INR 3 lakhs and for Super Senior Citizens INR 5 lakhs.
Who cannot use ITR 1 Sahaj Form?
An individual who;
- is a director in a company
- has held any unlisted equity shares at any time during the previous year
- has any asset (including financial interest in any entity) located outside India
- has signing authority in any account located outside India
- has income from any source outside India
- is a person in whose case tax has been deducted u/s 194N
- is a person in whose case payment or deduction of tax has been deferred on ESOP
- who has any brought forward loss or loss to be carried forward under any head of income
Late Fee and Penalty for late Filing of ITR-1
Late filing of income tax returns can result in various penalties, depending on your total income.
- Late fee of Rs. 5000 will be levied on Individuals with a total income exceeding Rs. 5 lakhs, while those with income below this threshold will incur a reduced late fee of Rs. 1,000. However, Individuals having total income up to Rs. 2.5 lakhs are not required to pay any late fee for late filing of the return. For Senior Citizens, this limit is Rs. 3 lakhs and for Super Senior Citizens Rs. 5 lakhs.
- Additionally, if you owe taxes and fail to file the return by the due date, you will be liable for additional interest at a rate of 1% per month until you submit the return.
- In more severe cases, penalties can be imposed for underreporting or misreporting of income. Underreporting may lead to penalties of up to 50% of the tax underreported, while misreporting can result in penalties of up to 200% of the misreported tax amount.
- Furthermore, repeated failure to file tax returns despite reminders from tax authorities may lead to prosecution procedures. This could result in imprisonment ranging from three months to seven years, depending on the outstanding tax liabilities.
It is crucial to file your tax returns promptly and accurately to avoid these legal and financial consequences.
How we can assist you?
We provide valuable assistance in filing your ITR-1 (Sahaj) return. We start by helping you select the appropriate form based on your income sources, ensuring accuracy in filing.
We meticulously calculate your tax liability, perform error checks, and prioritize timely filing to reduce the risk of penalties or tax notices. If eligible, we assist in processing your income tax refund efficiently.
FAQs
What is ITR-1 (Sahaj)?
ITR-1 (Sahaj) is an income tax return form designed for individuals having income from salaries, one house property, other sources (excluding winning from lottery and income from racehorses), and having total income up to ₹50 lakh.
Can ITR-1 be filed by individuals having income from business or profession?
No, ITR-1 (Sahaj) is not suitable for individuals with income from business or profession. It is specifically designed for salaried individuals, income from one house property, and other sources such as interest income.
How to download ITR-1 form?
The ITR-1 form can be downloaded from the official Income Tax Department website (https://www.incometaxindiaefiling.gov.in/).
What documents are required for filing ITR-1?
Common documents include Form 16 (for salary income), bank statements, details of other income, and Aadhaar/PAN.
What is the due date for filing ITR-1?
The due date for filing ITR-1 varies each year. It is usually July 31st, but it's advisable to check the current financial year's due date.
Is it mandatory to e-file ITR-1?
Yes, e-filing is mandatory for individuals with income exceeding ₹5 lakhs. However, it is recommended for everyone for faster processing.
What are the penalties for late filing of ITR-1?
Late filing can attract penalties. The penalty for filing after the due date but before December 31 is ₹5,000, and after December 31 is ₹10,000.
Can I revise my ITR-1 after filing?
Yes, you can revise your ITR-1 within the prescribed time limit if you discover any errors or omissions.
How to check the status of ITR-1 filing?
You can check the status on the official website under the 'ITR-V Receipt Status' after e-filing. An acknowledgment receipt (ITR-V) is generated upon successful filing.
Can I claim deductions for investments made outside India in ITR-1?
No, ITR-1 deductions are typically for investments within India. Check with a tax professional for specifics, and consider international tax treaties for foreign investments.
Do I need to include income from freelance work in ITR-1?
If your total income, which includes earnings from freelancing, is more than 5 lakh, you should include it in your ITR-1 filing. If your total income is below 5 lakh, it's not necessary to file ITR-1 for freelance income.
Are there any changes to ITR-1 every financial year?
Yes, the Income Tax Department may introduce changes to the ITR forms periodically. It's crucial to use the latest version of the form available on the official e-filing portal to ensure compliance with the current requirements.
What is the significance of providing accurate bank details in ITR-1?
Accurate bank details are essential for receiving any tax refunds directly to your bank account. It's important to double-check and provide the correct bank account number and IFSC code to avoid any issues in receiving refunds.
What should be done if there is a mistake in the e-filed ITR-1?
If errors are identified after filing ITR-1, the return can be revised within the stipulated time. The revised return will replace the original one, and it's important to ensure that all corrections are accurately made.
Are there any restrictions on the number of house properties in ITR-1?
Yes, ITR-1 can be used only if you have income from one house property. If you have income from more than one property, you should use ITR-2 or the relevant form for reporting multiple house properties.
