Documents needed for ITR 1, eligibility, changes

Filing income tax returns is an essential aspect of every citizen’s financial responsibility. It helps individuals report their income and calculate the tax liability they owe to the government. ITR-1, also known as Sahaj, is one of the simplified forms prescribed by the Income Tax Department of India for individuals with income from salary, one house property, and other sources. In this blog post, we will explore the documents required for filing ITR-1, discuss the eligibility criteria, and highlight any recent changes.

1. Understanding ITR-1

Before diving into the specific details, it’s crucial to grasp the concept of ITR-1 or Sahaj. The form is designed for individuals who have relatively straightforward sources of income, making it easier for them to file their returns. It applies to resident individuals with the following income sources:

1. Income from salary or pension
2. Income from one house property (excluding cases where losses are carried forward)
3. Income from other sources (excluding winnings from lottery or racehorses)

The primary goal of ITR-1 is to simplify the tax filing process for salaried individuals and ensure compliance with the Income Tax Act. Now, let’s move on to the documents required for filing ITR-1.

2. Documents Needed for Filing ITR-1

To accurately report your income and claim deductions, it is essential to gather the necessary documents before filling out the ITR-1 form. Here’s a comprehensive list of documents you should have at hand:

1. PAN (Permanent Account Number): Your PAN card is a mandatory requirement for filing ITR-1.
2. Aadhaar Card: Linking your Aadhaar card with your PAN is necessary for filing your income tax return.
3. Form 16: This document is issued by your employer and contains details of your salary, allowances, and deductions under Section 80C, 80D, etc.
4. Form 26AS: It is a consolidated statement that reflects the tax credits available against your PAN. It includes TDS (Tax Deducted at Source), self-assessment tax, etc.
5. Bank Statements: Gather your bank statements for the financial year to track interest income, dividends, and any other relevant transactions.
6. Rent Receipts: If you receive HRA (House Rent Allowance), ensure you have rent receipts from your landlord.
7. Home Loan Statement: If you have a home loan, keep the loan statement handy for claiming deductions on principal and interest payments.
8. Investment Proofs: Collect proofs of investments made under various sections such as 80C (PPF, NSC, ELSS, etc.), 80D (health insurance premiums), and others.
9. Details of Other Income: If you have income from other sources like interest on savings accounts, fixed deposits, or capital gains, compile the necessary documents.
10. Tax-Saving Receipts: If you have made any donations or contributions to eligible institutions, retain the receipts for deductions under Section 80G.
11. Form 12BB: This document contains details of tax-saving investments made by employees, such as house rent, leave travel allowance, and more.
12. Aadhaar-linked Bank Account Details: Ensure your bank account is linked to your Aadhaar number for seamless processing of tax refunds.

By gathering these documents, you will be better equipped to accurately report your income and claim deductions while filing ITR-1.

Read Also – Filing an ITR Without Taxable Income: 5 Reasons Why You Should

3. Recent Changes and Eligibility Criteria

To stay up-to-date with the latest developments, it is important to be aware of any recent changes in ITR-1 and understand the eligibility criteria for filing it. Here are some key points to consider:

1. Eligibility Criteria: ITR-1 applies to individuals with a total income of up to Rs. 50 lakh, derived from specified sources as mentioned earlier.
2. Exclusions: You cannot file ITR-1 if you have income from more than one house property, agricultural income exceeding Rs. 5,000, or income from a business or profession.
3. Introduction of Schedule DI: The Income Tax Department has introduced a new schedule in ITR-1 called “Schedule DI” to capture detailed information about investments eligible for deductions under various sections.
4. Changes in Section 234F: The late filing fees under Section 234F have been revised. If you file your return after the due date but before December 31 of the assessment year, the fees range from Rs. 1,000 to Rs. 10,000.

4. Step-by-Step Guide to Filing ITR-1

Now that we have covered the documents required and the eligibility criteria, let’s dive into a step-by-step guide to filing ITR-1:

1. Visit the Income Tax Department’s official website or any trusted online tax filing portal.
2. Register or log in to your account using your PAN and password.
3. Select the appropriate assessment year for which you are filing the return.
4. Choose ITR-1 (Sahaj) as the form type.
5. Download the offline utility of ITR-1 or fill it out online.
6. Fill in personal details, including your name, PAN, address, and contact information.
7. Enter your income details, such as salary, pension, and income from house property and other sources.
8. Provide details of tax deducted at source (TDS) from Form 16 and other income sources.
9. Fill in the deductions you are eligible for under various sections like 80C, 80D, and others.
10. Compute your tax liability and pay any additional tax if required.
11. Review all the details entered and ensure accuracy.
12. Generate an XML file of your completed ITR-1 form.
13. Upload the XML file to the income tax e-filing portal or submit it through the offline utility.
14. Once successfully submitted, you will receive an acknowledgment receipt (ITR-V) via email.
15. If you have not e-verified your return, print the ITR-V and sign it. Send the signed copy to the Centralized Processing Center (CPC) within 120 days.

Two ways to file ITR 1: online and offline.

To file ITR 1 online, you can follow these steps:

1. Go to the Income Tax Department website.
2. Click on the “e-File” tab.
3. Select the “ITR 1” form.
4. Enter your details and your income details.
5. Upload the required documents.
6. Pay the tax due, if any.
7. Click on the “Submit” button.

To file ITR 1 offline, you can follow these steps:

1. Download the ITR 1 form from the Income Tax Department website.
2. Fill in the form and attach the required documents.
3. Send the form to the Income Tax Department by post or by hand.

Changes to ITR 1 in AY 2023-24

The Income Tax Department has made some changes to ITR 1 for the assessment year 2023-24. These changes include:

• The introduction of a new section to report income from virtual digital assets (VDAs).
• The mandatory quoting of an Aadhaar number or enrolment ID.
• The disclosure of cash deposits made during the demonetization period.

These changes are in line with the government’s efforts to simplify the tax filing process and to make it more transparent.

Read Also – Who should submit Form 10-IE before filing ITR for AY 2023-2024?

Conclusion

ITR 1 is a simple income tax return form that can be filed by individuals who have a simple tax return filing process. The eligibility criteria for filing ITR 1 are relatively straightforward, and the documents required to file the form are easily obtainable. The Income Tax Department has made some changes to ITR 1 for the assessment year 2023-24, but these changes are relatively minor and should not affect most taxpayers.

If you are eligible to file ITR 1, you should take the time to file your return on time. Filing your return on time will help you to avoid penalties and interest charges. It will also help you to keep track of your income and expenses, which can be useful for financial planning purposes.

I hope this blog post has been helpful. If you have any questions, please feel free to leave a comment below.

Additional Resources

• Income Tax Department website
• ClearTax
• Tax2win
• UTIITSL

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