ITR 1 (Sahaj) Form

2. Part B – Contains details of Gross Total Income

Eligibility Criteria for Filing ITR 1 Form in AY 2023-24

Before we get into the details of how to file taxes using ITR 1, first its necessary to understand who is eligible to use this form. In Assessment Year 2022-23, ITR Form 1 can be filed by a resident individual who meets the following criteria specified by the Income Tax Department:

• Total income for FY 2022-23 is not in excess of Rs. 50 lakh

• Income of tax payer for the applicable FY is limited to salary, single house property, family pension, and some specified sources

• If the annual income from agriculture is up to Rs. 5,000

• When income of spouse or minor is clubbed in the annual income declared

Other sources of income for which tax filing using Sahaj Form 1 is allowed include:

• Interest income from saving account and term deposits held with co-operative society, bank or post office

• Other interest income including that from income tax refunds, enhanced compensation, etc

Who is Not Eligible to File ITR 1 Sahaj Form for AY 2023-24?

Not all taxpayers are allowed to use ITR Form 1 for filing their income tax return for FY 2022-23 ( AY 2023-24). The Sahaj form cannot be used in the following cases:

1. If annual income for FY 2022-23 is above Rs. 50 Lakhs and/or agricultural income for the FY exceeds Rs. 5,000

2. A tax payer who has invested in unlisted equity shares or is a director in a company cannot file ITR Form 1.

3. NRI (Non-Resident Indians) and RNOR (Resident Not Ordinarily Resident) cannot file returns using Sahaj form.

4. Individuals who have taxable short or long-term capital gains are not eligible for filling ITR 1 form.

5. People having income from business and professional fees cannot use this form.

6. The tax payer owns and has income from more than one house property

7. If the individual has income from legal gambling, horse racing (including owning and maintaining race horses), lottery, etc. during the applicable FY

8. Tax payers who have deferred income tax from ESOP (employee stock option) received from eligible start-ups

Apart from the above, an individual tax payer is also not allowed to file income tax return using Sahaj form if tax has been deducted u/s 194N of the Income Tax Act. A clear understanding of the various eligibility criteria to file ITR 1 is necessary in order to ensure you do not get an income tax notice due to filing taxes using the wrong form.   

How to Download ITR 1 Form?

Below are the steps you need to follow in order to download the ITR 1 form.

Step 1. Go to the Income Tax e-Filing Portal and click on Downloads 

How to File ITR 1 Form?

There are two ways you can follow for ITR 1 filing process:

Last Date to File ITR 1 Form

As a taxpayer who is eligible for ITR 1 form filing, you need to submit the duly completed form by July 31 of each assessment year. For instance, for the income earned between April 1, 2022, and March 31, 2023, the last date to file ITR 1 form in the assessment year 2023-24 is currently July 31, 2023. However, the Government may extend this ITR filing deadline at its discretion.  

Further, an individual can file ITR post 31^st July but before 21^st December after payment of maximum fine of Rs. 5,000. 

What are the Documents Required to Fill Out ITR 1 Form?

Here are the documents required before you file ITR 1 form:

a) Form 16, as issued by your employer for a specific financial year

b) Form 26AS

c) Proof of tax exemptions or deductions in case you have not submitted them to your employer timely

d) PAN Card

e) Bank investment certificates, like FD certificate or the bank’s passbook

Also Read: Income Tax Documents To Claim Deductions

What are the Major Changes Made in ITR Form 1 for the Last Few Assessment Years?

For AY 2020-21: 

1. Taxpayers need to disclose the amount invested for tax-saving separately from April 1, 2020, till the end of June 2020.

2. Individuals having a single property in joint ownership with income up to Rs. 50 Lakhs can also file ITR 1 online or offline.

3. Individuals who fulfil the following criteria should also file ITR 1 online:

• Cash deposits above Rs. 1 crore
• Incurred foreign travel expense of Rs. 2 Lakh
• Expenditure on electricity above Rs. 1 Lakh
   

Important Terms Related to ITR 1 Form

1. Notice Number

You need to fill this number only if you have received a notice from the Income Tax Department and are filing the return in response to it.

2. Revised Return

It is the return you re-file in case you later realize you have made a mistake while filing the ITR (Income Tax Return).

3. Annexure-less Return

It is the return with which you do not have to attach any documents. ITR 1 form is an example of this type of return.

4. Advance Tax

TDS mostly covers the advance tax payment. However, you might have to consider other sources of income as well. If the tax on income is Rs. 10,000 in a year, you are liable to pay Advance tax.

FAQs About ITR 1 Form 

Q. Should I file ITR 1 form if my total exempt income exceeds Rs. 5,000? 

A. You should file ITR 2 in case the total exempted income goes beyond Rs. 5,000. As per Section 10 of the IT Act, exempt income includes agricultural income, LIC maturity amount, and Long-Term Capital Gains.

Q. Should I show interest income as ‘income from other sources’ if TDS has been deducted?

A. While filing ITR 1 form, you should always consider interest income under ‘Income from other sources’, even if the bank has deducted TDS.

Q. Do I have to fill my bank account details in ITR even when there is no refund due? 

A. As per the guidelines from the Income Tax Department, every taxpayer must fill the bank account details while filing ITR 1 or other forms. It is done to send refunds to them timely in case they end up paying more than their tax liability. Not filling these details may end up delaying the refund transfer process.

Q. Is there any limit to the returns I can file using my email id and phone number? 

A. One email id and mobile number can be used to file ten returns at maximum.

Q. Can I file ITR for AY 2023-24 now?

A. Yes, you can choose to file your ITR for AY 2023-24 now or later as per your convenience and availability of key documents like Form 16 from your employer. But, please keep the current deadline of 31^st July, 2023 in mind as delayed filing can lead to penalties under current Income Tax rules.