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Everything about ITR-1 (Sahaj) online for AY 2021-22

What is form ITR1 (Sahaj)?

Filing of return in income tax has categorized on the basis of many factors i.e. income, source of income, etc. Like, ITR-1 form is for resident individuals having total income up to Rs 50 lakhs from income from salaries, one house property, other sources (interest, dividend, etc.), and agricultural income (up to Rs 5000).

Eligibility criteria for filing ITR-1 for AY 2021-22

ITR-1 can be filed by a Resident Individual whose:

  • Total income does not exceed Rs 50 lakh during the FY
  • Income is from salary, one house property, family pension income, agricultural income (up to Rs 5000/-), and other sources, which include:
    • Interest from Savings Accounts
    • Interest from Deposits (Bank / Post Office / Cooperative Society)
    • Interest from Income Tax Refund
    • Interest received on Enhanced Compensation
    • Any other Interest Income
    • Family Pension
  • Income of Spouse (other than those covered under Portuguese Civil Code) or Minor is clubbed (only if the source of income is within the specified limits as mentioned above).

ITR-1 cannot be filed by any individual who:

  • is a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI)
  • has total income exceeding Rs 50 lakh
  • has agricultural income exceeding ₹ 5000/-
  • has income from lottery, racehorses, legal gambling etc.
  • has taxable capital gains (short term and long term)
  • has invested in unlisted equity shares
  • has income from business or profession
  • is a Director in a company
  • has tax deduction under section 194N of Income Tax Act
  • has deferred income tax on ESOP received from employer being an eligible start-ups
  • owns and has income from more than one house property
  • is not covered under the eligibility conditions for ITR1

Changes in ITR-1 as compared to previous years

In ITR1 for AY 2021-22, there is an addition of section 115BAC.

Taxpayers who wish to opt for the new tax regime under section 115BAC, have an option to select Yes in the new ITR form. Please note that the option for new tax regime u/s 115BAC will be available only till the due date of filing of return u/s 139(1).

List of documents need to file ITR-1

  • Form 16,
  • House rent receipt (if applicable),
  • Investment payment premium receipts (if applicable).

However, ITRs are annexure-less forms, so attachment of any document (like proof of investment, TDS certificates) is not required along with return (whether filed manually or electronically).

What precautions should be taken while filing the return of income?

  • Download Form 26AS (Annual Information Statement) and check the actual TDS / TCS / tax paid. If any discrepancy found,  reconcile it with the Employer / Tax Deductor / Bank.
  • Compile and carefully study the documents to be referred to when filing ITR, like bank statement/passbook, interest certificates, receipts to claim exemptions or deductions, Form 16, Form 26AS (Annual Information Statement), investment proofs, etc.
  • Ensure details like PAN, permanent address, contact details, bank account details, etc. are correct in the pre-filled data.
  • Provide all the details in the return such as total income, deductions (if any), interest (if any), taxes paid/collected (if any), etc. No documents are to be attached along with ITR-1.
  • E-File the return of income on or before the due date. The consequences of delay in filing returns include late filing fees, losses not getting carried forward, deductions, and exemptions not being available.

How to avoid issues while filing ITR?

To avoid issues while filing the return and getting a refund, the taxpayer should ensure the following:

  • Link Aadhaar and PAN.
  • Pre-validate the bank account.
  • Choose the correct ITR before filing it; else filed return will be treated as defective.
  • File the return within the specified timelines.
  • Filers can opt for e-Verification (recommended option – e-Verify Now) as the easiest way to verify ITR.
  • File the responses for the notices received from the ITD within the specified timelines.

Downloads

ITR-1 notified form for AY 2021-22 Instructions for filing ITR1 SAHAJ for AY 2021-22

Frequently asked questions (FAQs)

Yes, you can file ITR-1 for the AY 2021-22 in case the following conditions are met: I

  • f you are a single or joint owner of a single property, you can file ITR-1 for AY 2021-22
  • If you own more than one property, you can’t file ITR-1 (even as a single owner)

Allowances are fixed periodic amounts, apart from salary, which is paid by an employer, e.g., conveyance allowance, traveling allowance, uniform allowance, etc. Allowances are considered income and will increase your gross total income on which you will be taxed. Allowances can be taxable, partially exempted, and fully exempted. Perquisites are benefits you receive because of your official position and are over and above your salary or wage income. These perquisites can be taxable or non-taxable depending upon their nature.

No, not all donations qualify for 100% exemption from tax. The categories for tax deduction, based on whom you donated to (charitable institution, fund set up by Government, scientific research, etc.) are as follows:

  • Donations entitled to 100% deduction without qualifying limit
  • Donations entitled to 50% deduction without qualifying limit
  • Donations entitled to 100% deduction subject to qualifying limit
  • Donations entitled to 50% deduction subject to qualifying limit

You need to check the exemption limit on your donation receipt and claim deduction accordingly while filing your return.

 

No. e-Filing is the process of electronically submitting your Income Tax Return on the e-Filing portal and e-payment is the process of electronically paying tax.

 

Yes, you can re-submit the return in case you have already filed your Income Tax Return and later discover that you have made a mistake. This is called a Revised Return. Your return has to be revised three months before the end of the relevant AY. For AY 2021-22, the due date for filing a revised return is 31st December 2021.

No, you can only file Income Tax Return for one AY in the current financial year. Tax filing beyond the last one year is only possible when you receive a notice from the Income Tax Department

In case you miss filing the ITR within the due date u/s 139(1), you can still file your Income Tax Return but you may be required to pay a late filing fee of up to ₹5000/-. Additionally, you will also be required to pay interest on the tax liability (if any).

Yes, employers and banks deduct tax at source on salary and interest income respectively. You still need to disclose the income on which tax has been deducted and claim credit for TDS in the Income Tax Return.

Yes, any excess tax paid by you can be claimed as a refund by filing your Income Tax Return. After your return is processed, ITD checks and accordingly accepts your refund claim, and then the amount is credited to your bank account. You will also get a message on your email ID registered on the e-Filing portal.


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TaxGyata Team

TaxGyata Team