ITR-1 stands for Income Tax Return form 1 which is also known as Sahaj or in simple words “Easy”.
More than 80% of the assessee files ITR-1 with Income Tax department
No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return.
Income Tax Slab – Assessment Year 2016-17
Every individual whose total income before allowing deductions under Chapter VI-A of the Income-tax Act, exceeds the maximum amount which is not chargeable to income-tax is obligated to furnish his return of income. The deductions under Chapter VI-A are mentioned in Part C of this Return Form. In case of any doubt, please refer to relevant provisions of the Act. The maximum amount not chargeable to income tax in case of different categories of individuals is as follows:-
In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person
|Income Tax Slab||Income Tax Rate|
|Income upto Rs. 2,50,000||Nil|
|Rs. 2,50,000 to Rs. 5,00,000||10%|
|Rs. 5,00,000 to Rs. 10,00,000||20%|
|Above Rs. 10,00,000||30%|
a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).
b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.
c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.
d) Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 2,000, whichever is less.
Filing of Income Tax Returns ITR-1 Sahaj Form
Individuals who fulfill any one of the following conditions should by law file their Income Tax Returns during a financial year:
- • Possesses a valid Credit Card
- • Pays for foreign travel, either for himself or another individual
- • Is the member of a Club where entrance fees charged is twenty five thousand or more
- • Occupies a particular floor area of an immovable piece of property
- • Is the owner of a vehicle
Why to efile ITR-1 Sahaj Form
Benefits on non-filing of returns are more than the penal provisions imposed for non-filing. Following are the benefits of filing of the income tax returns:
Work as Evidence in court trial while making claims: This is one of the rare benefits of filing the ITR every year. It can help you in the future for an example, in case of accidental death of any one member(s) during a road accident or any other claims. In a court trial, insurance companies need the proof of income to arrive at the amount of accidental claim, and if any return is missing for the previous three years, this could lower the claim amount or even can become no claim because the court takes ITR as evidence.
Eligibility in Home / Personal loan applications from Banks: Income tax returns of last three years are the basic need for all loan cases like housing, business or personal loan, and are a declaration of your income. Before granting the loan, banks want to know your financial capacity and your income details as shown by you in income tax returns.
If you are planning immigration outside India: The High Commissions of various countries or VFS centres across India have records of fabricated documents, including income tax returns of visa applicants. They want to know if you are financially sound before they issue you a visa and for this purpose they will rely on your ITR. Every assessee should file genuine returns, especially if one intends to go abroad in the future.
For obtaining government tenders, registration on panels: The value of business profiles of various corporate agencies, contractors, professional service providers or individuals is dependent on the yearly income tax returns. Sometime contractors have very good history of procuring heavy projects in their line, be it a service or works contract, but they lack the knowledge of the benefits of filing returns on time or the importance of filing on factual provisions.
For appointment in Judicial & Class one Jobs: In judicial jobs or where a candidate is a chartered accountant or lawyer even in Territorial Army needs to demonstrate annual professional income for the judicial/judge’s, senior auditors post income tax return is presented.
For obtaining LIC/GIC agency: Insurance corporations, before allotting an agency, check the financial health and habits of the agents. Previous three years’ returns are called for before allotting any agency.
For Start-up Funding: Many a time, seed, angel or VC investors include income tax returns filed till date in their statistical analysis. From returns they not only want to know your profitability but also your scalability, various cost parameters, and validity of the data produced from the auditor’s report.
Last Date for ITR-1 Sahaj tax returns
Last date for filing Income Tax return for year FY 2015-16 is up to 31st July
Who can use ITR-1 Sahaj Form?
This Return Form is to be used by an individual whose total income for the assessment year 2016-17 includes:-
- (a) Income from Salary/ Pension; or
- (b) Income from One House Property (excluding cases where loss is brought forward from previous years); or
- (c) Income from Other Sources (excluding winning from lottery and income from Race Horses)
NOTE: Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.
Who cannot use ITR-1 Sahaj Form?
This Return Form should not be used by an individual whose total income for the assessment year 2016-17 includes –
- (a) Income from more than one house property; or
- (b) Income from winnings from lottery or income from Race horses; or
- (c) Income under the head “Capital Gains” e.g., short-term capital gains or long-term capital gains from sale of house, plot, shares etc.; or
- (d) Agricultural income in excess of ₹5,000; or
- (e) Income from Business or Profession; or
- (f) Loss under the head ‘Income from other sources’; or
- (g) Person claiming relief under section 90 and/or 91; or
- (h) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India; or
- (i) Any resident having income from any source outside India.
What is the structure of the ITR-1 Sahaj Form?
ITR-1 is divided into:
- • Part A: Personal Details
- • Part B: Gross Total Income
- • Part C: Deductions and Taxable Total Income
- • Part D: Tax Computation and Tax Status
- • Schedule IT: Details of Advance Tax and Self Assessment Tax Payments
- • Schedule TDS1: Details of Tax Deducted at Source from Salary (As per Form 16 issued by employer)
- • Schedule TDS2: Details of Tax Deducted at Source from Income other than Salary (As per Form 16A, issued by Deductor(s))
- • Supplementary Schedules TDS1, TDS2 and IT
The ITR-1 Form can also not be used if you are claiming double taxation relief under Section 90/90A/91.
How do I fill out the ITR-1 Sahaj Form?
Documents which you should keep in hand before filling out your ITR-1 form are:
- • Form 16s, issued by all your employers for the given Financial Year
- • Form 26AS – remember to verify that the TDS mentioned in Form 16 matches the TDS in Part A of your Form 26AS
- • If you have not been able to submit proof of certain exemptions or deductions (such as HRA allowance or Section 80C or 80D deductions) to your employer on time, keep these receipts handy to claim them on your income tax return directly.
- • PAN card
- • Interest from bank account details – bank passbook or FD certificate
What do the following terms mean?
What is Revised Return: If you have already filed your income tax return but you later discover that you have made a mistake in it, you can re-file. This is called a Revised Return. For the Financial Year 2015-16, you can file your Revised Return till March 31, 2017.
What is Notice Number: You should fill this in only if you are filing your return in response to a notice from the Income Tax Department.
What is Advance Tax: For salaried individuals, TDS mostly takes care of advance tax payments. However you might have other forms of income – like interest on savings bank accounts, fixed deposits, rental income, bonds or capital gains. If tax on income is more than Rs. 10,000 per year, you are required to estimate your income and pay Advance Tax. This has to be paid in quarterly instalments in September, December and March.
What is Self Assessment Tax Payments: This is the difference between tax payable and tax paid and it needs to be paid before you file your return. When you fill out the form for the first time, you won’t know whether Self Assessment Tax has to be paid or not. So fill out the form first along with the Advance Tax details, if paid. Compute your income and if after computing, you find that tax is still payable pay it and then fill in the details in this section.
What is Annexure-less Return: ITR-1 Form is an Annexure-less return. This means that you do not have to attach any documents (such as Form 16/Form 26AS) with the ITR-1 Form
How do I file my ITR-1 Sahaj Form?
You can submit your ITR-1 Form either online or offline. From the Financial Year 2013-14, all taxpayers earning more than Rs. 5 lakhs must furnish their Income Tax Returns electronically, through either Mode 3 or Mode 4 mentioned here.
- • By furnishing a return in a physical paper form
- • By furnishing a bar-coded return
- • The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.
- • By furnishing the return electronically under digital signature
- • By transmitting the data electronically and then submitting the verification of the return in Return Form ITR-V
If you submit your ITR-1 Form electronically under digital signature, the acknowledgment will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing.
Manner of filing this Return Form
This Return Form can be filed with the Income Tax Department in any of the following ways, –
- (i) by furnishing the return in a paper form;
- (ii) by furnishing the return electronically under digital signature;
- (iii) by transmitting the data in the return electronically under electronic verification code;
- (iv) by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V;
Where the Return Form is furnished in the manner mentioned at 5(iv), the assessee should print out two copies of Form ITR-V.
NOTE: One copy of ITR-V, duly signed by the assessee, has to be sent by post to – Post Bag No. 1, Electronic City Office, Bengaluru— 560100, Karnataka. The other copy may be retained by the assessee for his record.
Filling out the acknowledgment
Only one copy of this Return Form is required to be filed. Where the Return Form is furnished in the manner mentioned at 5(i), the acknowledgment/ ITR-V should be duly filled.
Submission of ITR-1 Sahaj Form
The form can be submitted physically at any Income Tax Returns Office. An Acknowledgment Receipt can be obtained upon submission.
In case of Electronic Filing of the form there are two alternatives. Firstly, if a Digital Signature is obtained, the Form is uploaded online. Secondly, the Form is downloaded, printed, signed, and a copy of the acknowledgement is sent by post to the Income Tax Department’s office in Bengaluru.
ITRV can now be verified online Using Aadhaar Card or Electronic Verification Code (EVC). The EVC can be generated either via One Time Password sent to email and registered mobile number (if income is less than INR 5 Lakhs) or via Net Banking. After online verification Income Tax Assesses is not required to send ITRV to Bangalore CPC.
Please complete the Verification Section and Sign in the box given. Without a valid signature, your return will not be accepted by the Income- tax Department
This return can be prepared by a Tax Return Preparer (TRP) also in accordance with the Tax Return Preparer Scheme, 2006 dated 28th November, 2006. If the return has been prepared by him, the relevant details have to be filled by him and the return has to be countersigned by him in the space provided in the said item.
E-filing compulsory for a certain section of Income Earners
The Central Board of Direct Taxes (CBDT) has made it compulsory for Individual and Hindu Undivided Families earning an income in excess of Rupees Five Lakh to file their Tax Returns only through the E-Filing Process. The manual filing of returns is no more an option for Assessees who come under this category. Electronic Filing of their Tax Returns is the only way this category can file their Income Tax Returns.