ITR-1, Sahaj: A simple guide to filing tax form for a financial year

What is ITR-1

Filing your Income Tax Return (ITR) is an annual financial obligation. ITR-1, or Sahaj, is the most commonly used form for the process. It is supposed to be filed by a resident individual whose total income does not exceed Rs 50 lakh during the financial year.

Who files ITR-1

Eligible taxpayers filing using this form typically derive income from various sources, including salary, family pension, one house property, agricultural income (up to Rs 5,000), and other sources like interest from savings accounts/deposits (bank/post office/cooperative society), income tax refund, interest received on enhanced compensation, or any other interest income/family pension. It's important to note that the income of the spouse or minor can be clubbed if their source of annual income is within Rs 50 lakh.

Who cannot file ITR-1

The form is not applicable for certain categories of individuals, including resident not ordinarily resident (RNOR) and non-resident Indians (NRIs). Additionally, individuals with a total income exceeding Rs 50 lakh, income from agriculture surpassing Rs 5,000, earnings from lottery, legal gambling, horse races, or taxable capital gains (both short term and long term) are ineligible to file using this form.

Hindu undivided family (HUF) taxpayers cannot file their ITR using ITR-1 Moreover, “if an individual claims exemption on long-term capital gains from the sale of a house property under Section 54, they must use ITR-2 form instead of ITR-1. Hindu undivided family (HUF) taxpayers cannot file their ITR using ITR-1.

To file ITR-1, you need to download AIS and keep copies of Form 16, house rent receipt (if applicable), investment payment premium receipts (if applicable). However, ITRs are annexure-less forms, so you are not required to attach any document (like proof of investment, TDS certificates) along with your return (whether filed manually or electronically).

For filing ITR-1, a taxpayer will need these documents: Form 16(s) from all employers (if employed with multiple employers in the previous year), Form 16A for interest income or pension, Form 26AS for comprehensive tax deduction details, and bank statements/passbooks to report interest income accurately. Retain supporting documents for investments or exemptions, especially for post-submission investments or unsubmitted proof of deductions. PAN card is essential for identification. Having these documents handy streamlines the process and ensures a swift filing experience.