To facilitate tax compliance, the Income Tax Department has categorized taxpayers into a wide variety of subsets according to their income and the nature of their income. For this reason, you need to make sure your tax returns are filed correctly. The Sahaj Form (ITR-1) is used by individuals with revenues of up to INR 50 million. The article will explore the questions “What is Form ITR 1?” and “How to File ITR 1 Sahaj Form Online?” as well as the answers “Eligibility Criteria for Filing Form ITR 1” and “Documents required for Income Tax Filing Form ITR 1”.
The ITR-1 form is used to file your individual tax return.
Income from salaries, one house property, other sources (interest, etc.), and agricultural income up to INR 5,000 is included in the total income that must be reported on ITR 1 Form by taxpayers and residents (other than non-ordinary residents) with total income up to INR 50 lakhs. (Excluding directors and shareholders whose shares are not publicly traded.) Note that the Income Tax Department has made it mandatory for all taxpayers to register their PAN and Aadhaar information on its website.
The income tax administration has notified taxpayers of the appropriate ITR (Income Tax Return) forms to fill out based on their income level. You must file your return in accordance with the nature of your revenue.
Are you a Business Owner or an Entrepreneur, looking to file income tax? Taxzona has helped 1000+ business persons to file Income Tax Return Filing in Mumbai. Check out today!
The Filling of Form ITR 1 after Making Changes
Changes made to the ITR-1 form are as follows:
- Section 89A of the “Salary” schedule allows you to declare and claim relief for income from retirement benefit funds held in the notified country.
- Pensioners must now select “Nature of employment” (Central government, state government, public sector unit, and others).
- If you have a retirement benefits account in a country on the list, you can get a refund of taxes you already paid when you cash it out or redeem it, as per Section 89A.
Proof of Income Needed to File Income Tax Return (ITR 1)
- To ensure the smoothest possible filing of your income tax return, have all relevant documentation handy (for example, an HRA or Section 80C or 80D deductions).
- PAN (Permanent Account Number) Information
- In the case of bank CDs, the phrase “investment” is apt. Bank interest records (either a passbook or a certificate of deposit)
Qualifications to File an ITR-1 Income Tax Return
- When a regular paycheck or pension is the main source of support.
- If the only source of income is a single property (a home) (the case where losses of previous years are carried forward are not included in this ITR).
- Assuming there is money coming in from somewhere else.
- Only the taxpayer, regardless of age, who discloses all of his or her income on Form ITR 1 is required to pay the filing fee.
Limitations on when a taxpayer is ineligible to submit an ITR 1 Sahaj
- A person with an annual income of more than Rs 50 lakh.
- A natural or legal person who is a director of a company or who has owned any unlisted equity shares at any time during the fiscal year.
- Those who are not regular residents and those who do not (RNOR).
- Those who have found financial success through the following means.
What is the Online Process for Submitting ITR-1 Sahaj Form?
- Utilize your User ID and Password to enter the Income Tax Electronic Filing Portal.
- Anywhere you see the E-file button, click it. Navigate to File Income Tax Return after clicking Income Tax Return.
- Click Continue once you’ve decided which Assessment Year to use when submitting your ITR.
- After you have finished the preceding step, go to the “Select mode of filing” section and from there, select “Online” to continue with your filing.
Know more about Who can use Sahaj?
Important Note: To help you submit your ITR correctly and without error, you will be asked to answer a series of questions that will reveal information about your income and deductions. If you are familiar with the ITR, the applicable schedules, or your individual income and deductions, you can skip these questions.
The Income Tax Division has developed seven forms to accommodate different types of taxpayers. ITR 1 is commonly regarded as the simplest of these four formats. The ITR form is the most popular choice because it was made with small taxpayers in mind who get salaries and other forms of income.
Dont miss to read this- Document Checks System – How Can Businesses Use It For Quick Digital IDV?