There are different categories of taxpayers whose filing process depends upon the income and its sources. People who fall under the income slab of up to Rs. 50 lakh need to file ITR-1, which is also known as Sahaj Form.
If you fall under this category, here’s a guide to lead you through the application process, eligibility criteria, documents required and other must-know details.
The steps for filing ITR-1 online on the portal are as follows:
Step 1: Visit the official e-filing website of the Income Tax Department and log in to the portal.
Step 2: Enter your username and password.
Step 3: After logging in, click on ‘e-file’ and then select the option ‘File Income Tax Return.’
Step 4: Find the assessment year for which you wish to file the return and click on ‘Continue.’
Step 5: In the next step, the portal will ask you whether you want to file a return offline or online. Choose the latter, which is also mentioned as the recommended mode of filing.
Step 6: Now, you will have to choose your applicable status, i.e., whether you are an individual, HUF or other. Select the ‘individual’ option.
Step 7: Select the ITR that you want to file, i.e., ITR-1.
Step 8: The site will ask you why you are filing ITR above the exempted limit. For example, if this is because of the seventh provision under Section 139(1). This section states that if the aggregate amount of an individual deposit exceeds Rs. 1 crore in a single or multiple current accounts during the year, he/she can file the ITR.
Also, it is applicable if a payment exceeding Rs. 1 lakh is made on an electricity bill or the individual has taken a foreign trip of Rs. 2 lakh. So, choose accordingly.
Step 9: Next, provide your bank details, and if already given, then pre-validate it.
Step 10: You will be redirected to a page for filing your ITR-1 form. You will find that the page already contains a pre-filled section. Do not forget to recheck it to avoid errors. After checking, confirm your return summary and validate it.
Step 11: Lastly, you will have to verify your returns and present a hard copy to the Income Tax Department. This verification process must be carried out at all costs.
If you file ITR-1 online, you will have to transfer data online and then provide return verification details in form ITR-V to CPC Bengaluru. Note that you will have to e-verify the ITR-V through Aadhaar OTP, EVC, or net banking.
Once you complete the submission process, the officials will send you an acknowledgement in your registered mail ID. You must sign it and send it to the Income Tax CPC office Bengaluru before 120 days of filing. In contrast, you can also e-verify your return.
Individuals can file ITR-1 if they earn an aggregate income of Rs. 50 lakh from any of the following sources:
In the case of clubbed income tax returns that include a minor and a spouse, then the process can be carried out only if the income falls under the above specifications.
If you find yourself falling under any of the categories mentioned below, you are not eligible to file ITR-1:
Additionally, you cannot file ITR-1, if you have claimed relief of double taxation or foreign tax under Sections 90, 90A, or 91.
Also Read: How To Use A TDS Calculator?
When filing ITR for a salaried person with income below Rs.50 lakh, the individual must have documents related to the following:
If you are filing an income tax return form, you must know the different sections of the ITR-1 document. It includes —
There are two ways of filing income tax return-1 form. One is offline, and the other is online. However, you can file it offline only if you qualify the below criteria:
The following are the significant changes that have been incorporated over the years. Refer to the below section to know about specific changes made in a particular year:
(a) The amount deposited in the bank must exceed Rs. 1 crore
(b) The amount spent on electricity exceeds Rs. 1 lakh
(c) Total expense on foreign travel exceeds Rs. 2 lakh
Also Read: Section 195 Of The Income Tax Act
After revising the rules on April 1 2017, section 234F states that an individual must pay a penalty charge of Rs. 10,000 if they miss the deadline of July 31 for filing their return. However, if the total individual income is less than Rs. 50 lakh then one must pay only Rs. 1,000 as penalty.
You can find every detail one must know in the above sections before filing ITR-1. For example, you can find steps to file, eligibility criteria, documents required, changes made over the years, etc. So, go through the sections carefully to file your return with ease.
1. Is it a criminal offence to not file your tax return for taxable income?
It is a criminal offence if you do not file your ITR for taxable income. The Income Tax Department will penalise you, charge additional interest, and you may also face prosecution. The prosecution will depend on the amount of tax.
2. If your annual income is less than Rs. 2,50,000, then is it necessary to file an ITR?
You are not liable to file an ITR if your income does not exceed Rs. 2,50,000. But it is advisable to file ‘Nil Return’ so it is easy to maintain a record. This serves as employment proof deemed necessary when applying for a loan.
3. Is it necessary to include dividend income from Mutual Funds in the ITR?
Yes, the taxpayers must include dividend income from mutual funds under the heading ‘Exempt Income (other)’. As per section 10(35), it is an exempt income. However, from FY2020-2021, dividend income is taxable in shareholders’ hands.
4. What are the essential terms in ITR that one should know?
Make sure you know the meaning of the following terms:
5. What is the process of downloading the income tax return form?
The process includes the following steps:
Step 1: Visit the Income Tax Department website.
Step 2: Select the option that mentions ‘Forms/Download.’
Step 3: Scroll through the drop-down list and select the income tax return option.
Step 4: It will take you to the ‘income tax return’ web page to download the form.
Before you go…