How To File ITR-1 Online?

Income Tax

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. 

How to file an ITR-1 Online?

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. 

Also Read: How To File Income Tax Return For Mutual Funds On New Tax Portal?

Who Can File ITR-1?

Individuals can file ITR-1 if they earn an aggregate income of Rs. 50 lakh from any of the following sources:

• Revenue from ‘one-house property’ (this includes loss brought forward from preceding years
• Income from pension or salary
• Income from ‘other sources’ like winning at a horse race and earnings from a lottery 

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. 

Who Cannot File ITR-1 in 2021-2022?

If you find yourself falling under any of the categories mentioned below, you are not eligible to file ITR-1:

1. Residents who may not be a resident compulsorily or are non-residents cannot file the form
2. Individuals having an income of more than Rs. 50 lakh 
3. The individual is a director of a company and owns unlisted equity shares at any time during the financial year 
4. If you have earned your income from any of the below-mentioned sources, you cannot file ITR-1:

• Lottery, legal gambling, etc.
• Two or more house properties.
• Agriculture income of more than Rs. 5,000 
• Taxable capital gains, including both short term and long term capital gains
• An individual that has assets and is also a resident (The asset can be any financial interest, like an entity outside India or signing authority in any account outside India) 

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?

What Documents Are Necessary While Filing ITR-1 Form?

When filing ITR for a salaried person with income below Rs.50 lakh, the individual must have documents related to the following:

• Income
• Investment proofs
• Expenditure and prepaid taxes
• Form 16 or 16A
• Property’s rent receipt
• Details of interest from the bank
• Housing loan interest documents
• Other interests mentioned in Form 26AS

Learn about the Structure of the Form

If you are filing an income tax return form, you must know the different sections of the ITR-1 document. It includes —

• Part A- General Information
• Part B- Gross Total Income
• Part C- Deduction & Taxable Total Income
• Part D- Computation of Tax Payable
• Part E- Other Information (like bank details) 
• Schedule IT- Advance tax details and information on self-assessment tax payments
• Schedule TDS- Details of TDS and TCS
• Verification Section

Who Can File ITR-1 Offline?

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:

• You are an individual above the age of 80 years at any time in the previous year. 
• Individuals or HUFs having an income of less than Rs. 50 lakh. Also, they must not have claimed any refund in their return of income. 

What Major Changes Were Made in the ITR-1 Form over Time?

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:

2021-2022

• Taxpayers cannot file their return using ITR-1 form if their TDS is deducted under Section 194N. The section states that the individual’s tax is deductible at the source if they have withdrawn cash above Rs. 20 lakh. Also, if the withdrawal amount is above Rs. 1 crore in a financial year, tax will be deducted. 
• There are two options available for individuals or HUF, i.e., they can select new or old regimes. However, for the former that falls under Section 115 BAC, the taxpayer must file ITR form 10IE under section 139(1). 
• Under Section 194N, there is no option for taxpayers to carry forward their TDS. Also, the credit of TDS will be allowed only in the year in which it was deducted. 
• The system also brought modifications in the ITR form of AY2020-21 by introducing a new schedule DI. As a result, taxpayers could avail deductions made in the assessment year. However, again in AY 2021-22, the Income Tax Department removed it. 

2020-2021

• The system allows resident individuals who own a single property under joint ownership to file ITR-1 given their total income does not exceed Rs. 50 lakh. 
• Individuals who meet any of the following criteria should file an individual ITR-1 form: 

(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 

• The guidelines relating to individual income from sources like salary, other income, house property, and total revenue of not more than Rs. 50 lakh remain unchanged.
• Separate disclosure of deposit, investment, and payment amount towards tax-saving is mandatory from April 1 2020, until June 30 2020. 

2019-2020

• If the taxpayer is either a company’s director or has invested an amount in unlisted equity shares, then ITR- 1 form will not be applicable for them for the FY 2018-19.
• There are two categories in which filing return was segregated. One is normal filing, and the other is filed in response to notices. 
• Under the heading ‘income from other sources’, individuals will have to provide the details of their income. 
• The segregation of deductions will be made under salary, like entertainment allowance, standard deduction, and professional tax. 
• Inside part A the system has included the ‘Pensioners’ checkbox under the ‘Nature of employment’ section. 
• ‘Income from house property’ now offers an option like ‘Deemed to be let out property.’
• A separate column has been added to the head ‘Income from other sources’ for deduction u/s 57(iia) in the case of income from family pension. 
• Another section naming 80TTB has been added for senior citizens. 

2018-2019

• Previously, ITR form 1 was applicable for resident, non-resident, resident, not ordinarily resident (RNOR). However, later officials changed it strictly to residents.
• There’s a requirement that taxpayers must provide their salary break-up. This appears only in form 16 and is not required to be present in return until now. 
• There was no change in the conditions with regard to individuals having income from sources like one house property, salary, and other income. Moreover, there were no changes in the guidelines concerning income of not more than Rs. 50 lakh. 
• The system also requires individuals to furnish a break up of their Income under House Property, which was compulsory for ITR-2 and other forms. 
• An additional requirement was added under Schedule on TDS to provide TDS details under Form 26QC if TDS was offered on rent. Also, there was a set provision for ‘PAN of Tenant.’

2017-2018

• Every person mandatorily had to quote their Aadhaar number. If they don’t have one, they have to apply and provide an enrolment ID.
• Providing details of all bank accounts (both savings and current) that assessees hold at any time in the previous year is compulsory.
• A column was added where taxpayers need to provide details of cash deposits made during the period starting from November 9 2016 to December 30 2016. 
• There was a simplified one-page form of ITR-1 for individuals having an income of not more than Rs. 50 lakh. 

Also Read: Section 195 Of The Income Tax Act

What Is the Penalty Charge Levied upon Missing the ITR Filing Deadline?

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. 

Final Word

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. 

Frequently Asked Questions

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:

• Notice number: The taxpayer must mention the notice number in their return to answer the Income Tax Department notice. 
• Advance tax: If the income tax amount exceeds Rs. 10,000 in a year, the assessee must calculate advance tax for payment. 
• Revised return: The department gives an option of re-filing returns in case of errors made. However, one must furnish it before March 31 2021.
• Annexure-less return: This type of return does not require assessees to affix any document.

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. 

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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.