What is ITR 1 Sahaj Form

  • Author :
  • TATA AIG Team
  • Published on :
  • 11/12/2023

Taxation is a complicated subject. It entails comprehending many forms, documents and procedures.

One of the most common mistakes people make when filing for taxes is using the incorrect ITR form for filing their taxes, which results in improper filing and penalties. You must know that depending upon your income and residential status, there are different forms for return filing purposes.

Today, we will talk in detail about ITR-1 for salaried employees to assist you in expanding your taxation understanding.

Sahaj ITR Filing Eligibility Criteria

You can proceed with this ITR-1 filing if you meet the following criteria.

You are making income through salary or pension.

You own one house property from where you receive income. This excludes any case where you brought forward the previous year's loss.

You receive income from other sources. However, there are several exclusions, which we will discuss in the next section.

You have filed a clubbed tax return where you have included a minor or a spouse. You can do this only if the income is restricted to the above threshold limit.

Who cannot file the ITR-1 Sahaj Form for AY 2023-24?

You cannot proceed with the e-filing of ITR-1 Sahaj online if you fall under any of the following categories:

You are a Resident Not Ordinarily Resident (RNOR), or a Non-Resident Indian (NRI).

Your total income for the financial year (FY) 2022-23 exceeds ₹50 lakh.

You have an agricultural income exceeding ₹5,000.

You have income from legal gambling, lottery, and racehorses. ITR-1 does not allow reporting income from these sources, which are taxable at special rates under section 115BBDA or section 115BBE of the Income Tax Act.

You have taxable capital gains (short-term or long-term) from selling any asset, such as property.

You have invested in equity shares of unlisted companies at any time during the FY 2022-23.

You have income from business or profession, whether on a regular or presumptive basis.

You are a director in a company or have held any directorship position in the past.

You have any signing authority in any account or asset (including a financial interest in any entity) outside India.

It does not apply to you if you have received any cash withdrawal exceeding ₹20 lakh (or ₹1 crore for certain taxpayers) from one or more bank accounts and have tax deducted at source (TDS) under Section 194N.

You have deferred income tax on the employee stock option plan (ESOP) received from your employer, being an eligible start-up.

You reported any carried-forward losses or losses to be carried forward under any income category. ITR-1 does not allow adjusting or carrying forward any losses, except for loss from one house property.

Steps to Filing Income Tax Sahaj Form

Here are the steps to file the ITR-1 form online through the e-filing portal.

Step 1: Log in to the e-filing portal

To file ITR-1 online, you need to visit the e-filing portal of the Income Tax Department and log in with your PAN or UID and password.

If you are a new user, you need to register yourself first by clicking on the 'Register Yourself' button and following the instructions.

Step 2: Select the assessment year and mode of filing

After logging in, go to e-File > Income Tax Returns > File Income Tax Return from the menu.

Choose the applicable assessment year and mode of filing and click 'Continue' to proceed. Next, select the applicable status and ITR-1 as the form type. Click on 'Let's Get Started.'

Step 3: Validate your personal information

The next step is to validate your personal information, which is pre-filled from your e-filing profile. You need to check the details such as your name, PAN, Aadhaar, address, contact number, email ID, etc., and ensure they are correct.

If you need to edit any of the details, you can do so by going to your e-filing profile. You must also enter or edit your filing type details, such as your return filing status, residential status, and whether the Portuguese Civil Code governs you.

Also, you need to enter or edit your bank account details and nominate one account for any refund.

Step 4: Enter your income details

The next step is to enter your income details from various sources, such as salary, pension, house property, etc.

You must review the pre-filled information and confirm or edit it as per your Form 16 and Form 26AS. You may include information about any tax-exempt income, such as agricultural or dividend income.

Step 5: Claim your deductions

The Total Deductions section of ITR-1 Form Sahaj contains your deduction details under Chapter VI-A of the Income Tax Act. You will have to add, delete, and confirm any deductions applicable to you in this section.

You can claim deductions for various expenses and investments that you have made in the previous year, such as:

Life insurance premium, provident fund contribution, tuition fees, etc., under Section 80C (up to ₹1.5 lakh)

Health insurance policy premium, medical expenditure, preventive health check-ups, etc., under Section 80D (up to ₹25,000 for self and family, and up to ₹50,000 for senior citizens)

Donations to charitable institutions, relief funds, etc., under Section 80G (subject to limits and conditions)

It is worth noting that, per the new rule, you can claim deduction benefits only if you opt for an old tax regime. Under the new regime, deductions under Section 80C, 80D, 80G, 80E, etc., are unavailable.

Also Read:

Income Tax Slabs for FY 2023-24 & FY 2022-23 (Old & New Regimes) | Tata AIG

Tax Deductions and Exemptions under the New Tax Regime

Step 6: Verify your tax-paid details

Verify your tax-paid details, such as TDS, TCS, advance tax, and self-assessment tax. You need to confirm the pre-filled information and edit it if there is any mismatch with your Form 16, Form 16A, Form 26AS, or Challans.

You can also add details of any foreign tax credit or relief you claim under Section 90, 90A, or 91.

Step 7: Review your tax liability or refund

Finally, review your tax liability or refund, computed per the validated sections. You need to check if there is any tax payable or refund due to you.

If there is any tax payable, you need to pay it online through the e-Pay option and enter the payment details in the form. If any refund is due, verify your bank account details and ensure the account is pre-validated.

Step 8: Submit your ITR-1

Once you have completed all the steps, submit your ITR-1 by clicking the 'Preview and Submit' button. You will see a summary of your ITR-1 and download it for your reference.

Verify your ITR-1 by choosing one option available, such as Aadhaar OTP, net banking, bank account, demat account, etc. You will get a confirmation and an acknowledgement number once your ITR-1 is verified.

You can also track the status of your ITR-1 and refund through the e-filing portal.

ITR-1 For — Offline Process

To file an offline Sahaj form, you need to follow these steps:

Download the ITR-1 Sahaj Form from the Income Tax Department website or use third-party software.

Extract the downloaded file and complete the details of your income, deductions, taxes, and bank account.

Save the file and generate an XML file from it.

Visit the e-filing platform and log in with your user ID and password.

Click "Filing of Income Tax Return" and upload the XML file.

Verify your return using Aadhaar OTP, EVC, or digital signature.

Documents for Filing ITR-1

Here are the documents needed to file ITR, depending on your income sources and tax status.

PAN card: Make sure that before proceeding, you mention your PAN in your ITR and link it with your Aadhaar card.

Form 16: Your employer issues this certificate, including your gross salary, TDS, and other deductions. You can use Form 16 to fill your income from salary and claim tax relief under Section 89.

Form 26AS: This summarises taxes deducted and paid on your behalf by various deductors, such as your employer, bank, or tenant. You can download Form 26AS from the income tax e-filing portal and cross-check it with your TDS certificates to ensure no mismatch or excess deduction.

Bank statements: You need to provide your bank account number, IFSC code, and branch name in your ITR. You must also report the interest income earned from your savings and fixed deposit accounts, which is taxable under the head ' income from other sources'. You can get a deduction of up to Rs. 10,000 on interest income from savings accounts under Section 80TTA.

Investment proofs: If you have made any investments or payments eligible for deductions under Chapter VI-A, such as life insurance premium, provident fund contribution, tuition fees, or home loan repayment, keep the relevant proofs in the form of receipts, certificates, or statements.

Loan statement: If you have taken a housing or education loan, you need to provide the loan statement from your lender, which shows the principal and interest components of your EMI.

Modifications in ITR-1 Form for AY 2022-23

Before you download the ITR 1 Sahaj form, familiarise yourself with the government's recent changes concerning this form.

In the 'Salary' schedule, you have the option to report earnings from retirement benefit accounts held in the specified country under Section 89A and seek tax benefits for it.

Pensioners are now required to choose the 'Nature of employment,' indicating whether the central government, public sector unit, state government, or another category employed them.

You have the opportunity to claim tax relief on the income from your retirement benefit account held in a specified country during withdrawal or redemption, as outlined in Section 89A.

Consequences of Late Filing of ITR-1 Form

The late filing penalty for ITR-1 is determined by both your total income and the filing date.

As per Section 234F of the Income Tax Act, if you submit your ITR after the deadline of 31st July 2023 but before 31st December 2023, you will be subject to a penalty of ₹5,000 if your total income exceeds ₹5 lakhs, or ₹1,000 if it is below ₹5 lakhs.

However, the Income Tax Officer may consider waiving or reducing this penalty in certain cases of genuine hardship.

Additionally, you are required to pay interest on the outstanding tax at a rate of 1% per month or part of a month under Section 234A.

Other ITR Forms Except ITR-1

If you are not eligible to file ITR-1 for AY 2023-24, you must choose the appropriate ITR form based on your sources and amount of income, residential status, and other factors.

Here are some of the alternative forms that you can use instead of ITR-1:

ITR-2: This applies to HUFs and individuals with earnings from salary, pension, house property, capital gains, other sources, foreign assets, or foreign income. This form also applies to RNORs, NRIs, and those with agricultural income over Rs 5,000.

ITR-3: If you are an individual or belong to HUFs and have income from business or profession, whether regularly or presumptively, you can use this form. ITR-3 also applies to those with income from other sources, such as salary, pension, house property, capital gains, foreign assets, or foreign income. This form is also applicable for RNORs and NRIs.

ITR-4 (SUGAM): This form is a simplified version of ITR-3, which is applicable for resident individuals, HUFs, and firms (other than LLPs) who have income from business or profession on a presumptive basis under section 44AD, 44ADA, or 44AE of the Income Tax Act. This form is also applicable for those with income from salary, pension, one-house property, other sources, or agricultural income up to ₹5,000, as long as their total income does not exceed ₹50 lakh. However, this form does not apply to those with earnings from capital gains, foreign assets, foreign income, or other sources not covered under the presumptive taxation scheme.

Conclusion

Filing your ITR is an important and mandatory duty as a responsible citizen and taxpayer. You need to choose the correct ITR form based on your sources and amount of income, residential status, and other factors.

Also, ensure timely ITR filing to avoid errors or omissions that may attract penalties or notices from the Income Tax Department. While the government offers both offline and online ways to file a return, you may use the online mode of filing your ITR, which is convenient, fast, and secure.

Health Insurance by Tata AIG

When filing an ITR, most taxpayers nowadays opt for the new regime to save on taxes. At the same time, they avoid investing in tax-deductible tools, such as a health insurance plan.

It is important to understand that apart from tax benefits, insurance shields you from a monetary crisis.

There are several benefits of health insurance. A medical policy from Tata AIG provides comprehensive coverage against most major and minor illnesses. You can also opt for critical illness insurance for coverage of certain critical health conditions.

It helps you cover various healthcare costs, such as consultation fees, medicine bills, ambulance charges, OPD costs, and many more. It also provides you with peace of mind.

So why wait any longer? Get health insurance, enjoy financial security against health costs, and save tax.

FAQS

How to file ITR 1?

You can file ITR-1 by logging into the Income Tax e-filing portal. There, you have to tap on the dashboard, click on e-file, choose Income Tax Returns, and click on File Income Tax Return. Before you start the steps, it is crucial to link your PAN.

What is the applicability of ITR-1 Sahaj?

ITR-1 Sahaj is a form for filing income tax returns by resident individuals with income up to ₹50 lakhs from salary, one house property, family pension, agricultural income (up to ₹5000), and other sources (such as interest income).

Who cannot file ITR 1?

You cannot use ITR-1 if you have any income from capital gains, unlisted equity shares, foreign assets, or more than one house property.

What is the minimum income to file ITR 1?

ITR-1 can be filed by a resident individual whose total income does not exceed Rs. 50 lakh during the financial year.

**Can I claim Section 80C ad 80D when filing ITR 1?

If you have made the necessary investments required for claiming deductions under Section 80C and bought a health cover for Section 80D, you can definitely claim the tax benefits when filing the ITR 1 form. Just make sure to select the Old Tax Regime before beginning your tax filing, as Section 80C and 80D deductions are not available under the New Tax Regime.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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