Understand ITR - 1

ITR -1 (Income Tax Return)

Income tax return 1(ITR-1), also called sahaj is the prescribed form by Income Tax Department for filing income tax return for individuals and HUF who have income from salary, one house property, and income from other sources in India.

Who should use ITR-1?

Individual or HUF have:

  • Income from salary or pension
  • Income from house property (but not provision to consider brought forward loss from the previous year)
    Income from other source (no provision to consider the income from winning from lottery & race horses)

Who are not eligible for using ITR-1?

Any person or entity has:

  • More than one house property
  • Who have income from lottery, Race horse, legal gambling
  • Business & Profession
  • Individual who is resident has;
  1. Asset (including financial interest in any entity) outside India
  2. Individual claiming relief of foreign tax paid or double taxation relief under section 90, 90A and 91.

Structure of ITR-1

  • Personal details
  • Gross total income
  • Deduction & Taxable income
  • Tax computation & tax status
  • Details of advance tax & self assessment tax payment
  • Details of Tax Deducted at Source from salary (as per 16 issued employer)
  • Details of TDS from income other than salary (as per form 16 A issued by deductor)
  • Supplementary schedule of, TDS 1, TDS 2 and IT.

How can we file ITR-1?

Before starting to fill ITR 1, one should keep ready some of the necessary documents. This will help you to reduce time. If everything is ready one can finish the form in less than fifteen minutes.

PAN card, form 16 given from your employer, form 26AS are the very important documents kept ready for initial steps. A comparison of your 26AS with form 16 and your calculated tax is another procedure to be ensured. The exemptions are to be ensured once again before filling ITR. The deductions should have sufficient documental support since the same may called for assessment in the future years.

From AY 2016-17 the assessee should file the details of his assets in ITR if the taxable income exceeds 50 lakhs rupees. Others don’t have any compulsion in this regard. Under section 87A there is a deduction of Rs.2000 rebate for those assessee have taxable income less than or equal to five lakhs rupees in a financial year.

The Bank account details are other mandatory requirement in filling ITR-1.