ITR – 1 – The income tax department has grouped taxpayers into several categories depending on income and its source, to make tax enforcement simpler. So, you need your taxes to be filed appropriately. ITR-1, sometimes recognized as Sahaj Form, is for an individual with incomes of up to Rs. 50 lakhs. We will address who really should file ITR-1 as well as other requirements relevant to it in this post.

The Income Tax Department has rendered it compulsory for all taxpayers to connect the Aadhaar card to the PAN.

itr-1

Who is qualified for Filing ITR 1 for AY 2020-21

ITR-1 Form is a condensed one-page form for persons with revenue up to Rs 50 lakh from the below sources:

  1. Salary/Pension
  2. One House Property (Except situations where loss is forward from past years)
  3. Income earned from Other Sources (Except winnings from Racing Horses Lottery and Profits)  

In the situation of Clubbed Income Tax Returns, in which a partner or a minor is involved, this can only be achieved if their income is restricted to the above-mentioned requirements.

Who should not file ITR 1 for AY 2020-21

  • Individuals with income over Rs 50 lakh should not use this type.
  • A person who is a director of a corporation and has owned any unlisted stock at any point during the FY cannot use this type.
  • Citizens who are not ordinarily resident (RNOR) and non-residents cannot file returns via ITR-1.
  • In addition, people who have earned profits by the following ways are not entitled to file ITR 1:
  • More than one property in the building
  • Lottery, Racehorse, Legitimate Gaming, etc.
  • Taxable capital gains (Short term and Long term) (Short term and Long term)
  • Agricultural income is above Rs. 5,000
  • Business and Profession 
  • A person who is a citizen and has properties (such as financial interest in any organization) beyond India or signing authority in either account outside India.
  • Individuals seeking exemption from overseas tax paid or relief from double taxes under section 90/90A/91.

Read Mistakes to avoid filing ITR

Structure of ITR 1 Form

Part A – General Information

Part B – Gross total Income

Part C – Deductions and taxable total income

Part D – Computation of Tax Payable

Part E  – TDS and TCS detils

Part F- Self Assessment Tax payments, Advance tax and Verification

Part G- Schedule DI – Detail of investment made between 1 April 2020 and 31st July 2020

Major Changes made in ITR 1 for the AY 2020-21

  • Individual taxpayers who follow the criterion of (a) attempting to make cash deposits in excess of Rs 1 crore with a bank, (b) incurring expenditures in excess of Rs 2 lakh for international travel, (c) expenditure in excess of Rs 1 lakh for energy, should also file ITR-1. The size of the deposit or expense must be indicated by the taxpayer. 
  • The requirement that the person has income from wages, one house land, other income and a gross income of up to Rs 50 lakhs persists. 
  • Resident individuals who possess a single asset in joint ownership can also submit an ITR-1 with a gross income of up to Rs 50 lakh.
  • Taxpayers should report independently the volume of savings or deposit or tax-saving transfers made from 1 April 2020 to 30 June 2020.