How to file ITR-1 (SAHAJ) Online? | ITR Filing FY 2023-24 (AY 2024-25)

ITR-1, also known as the Sahaj Form, is a simplified tax return form for individuals with relatively straightforward income sources. Eligibility crite

The Central Board of Direct Taxes (CBDT) has released the ITR-1 and ITR-4 forms for the Financial Year 2023-24, applicable for filing income tax returns for the assessment year 2024-25. The ITR filing deadline is July 31, 2024, unless an extension is granted. To streamline the process and discourage delays, the Income Tax department introduced these forms early.

Key changes in ITR-1 and ITR-4 for FY 2023-24 are as follows:

• Applicability: The applicability of ITR forms remains unchanged.
• Tax Regime: The new tax regime is now the default; taxpayers must opt-out to choose the old regime.
• New Columns: ITR-1 includes a new column to claim deductions under section 80CCH.
• Enhanced Turnover Limit: ITR-4 has a new "Receipts in Cash" column for claiming an enhanced turnover limit.

ITR-1, also known as the Sahaj Form, is for individuals with an income of up to ₹50 lakh.

Who is eligible to file ITR-1 for FY 2023-24 (AY 2024-25)?

ITR-1, also known as the Sahaj Form, is a simplified tax return form for individuals with relatively straightforward income sources. Eligibility criteria for filing ITR-1 are as follows:

Eligible Individuals

• Resident Individuals: The form is applicable to resident individuals only. Non-residents and residents not ordinarily resident (RNOR) cannot use ITR-1.
• Income up to ₹50 Lakh: Individuals with a total income up to ₹50 lakh.

Sources of Income

• Salary/Pension: Income from salary or pension from one or multiple employers.
• One House Property: Income from one house property (excluding cases where there is a carried forward loss from previous years).
• Other Sources: Income from other sources, such as interest income (excluding winnings from lotteries and income from race horses).
• Agricultural Income: Agricultural income up to ₹5,000.

Who cannot file ITR-1 for AY 2023-24?

Individuals who cannot file ITR-1 for the Assessment Year 2023-24 include:

Income Criteria

• Total Income Exceeding ₹50 Lakh: Individuals with a total income above ₹50 lakh.
• Multiple House Properties: Those earning income from more than one house property.
• Taxable Capital Gains: Individuals with any taxable capital gains.
• Business or Profession: Those with income from a business or profession.
• Foreign Assets/Income: Individuals with foreign assets or income, including any signing authority in foreign accounts.

Specific Situations

• Company Directors: Individuals who are directors in any company.
• Unlisted Equity Shares: Those who have invested in unlisted equity shares at any point during the financial year.
• Section 194N Deductions: If tax has been deducted under Section 194N (related to cash withdrawals).
• Deferred Tax on ESOPs: If there is deferred tax on Employee Stock Option Plans (ESOPs).
• Agricultural Income Exceeding ₹5,000: Individuals with agricultural income exceeding ₹5,000.
• Brought Forward Loss: Those with any brought forward losses or losses to be carried forward under any income head.
• Resident Status: Non-residents and residents not ordinarily resident (RNOR) are ineligible.

These exclusions ensure that only individuals with straightforward financial situations and simpler income sources use ITR-1. Those with more complex financial scenarios must use other ITR forms suited to their specific circumstances.

Changes made in the ITR-1 Form for AY 2024-25

Individuals filing ITR-1 must indicate their preferred tax regime in their return. The New Tax Regime is the default from this year, as per amendments introduced by the Finance Act 2023 in Section 115BAC. For individuals, HUFs, AOPs, BOIs, and AJPs, the new tax regime applies by default. However, those who prefer the old tax regime must explicitly opt-out of Section 115BAC(6).

Key Points:

Non-Business Income: Individuals with income excluding business or profession must specify their preferred tax regime in their income tax return filed under Section 139(1).

Business Income: Individuals with income from a business or profession can opt out of the new tax regime and revert to the old one by submitting Form No. 10-IEA on or before the due date for filing the return under Section 139(1).

Section 80CCH:

Agnipath Scheme: Introduced by the Finance Act 2023, Section 80CCH allows individuals enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund after November 1, 2022, to claim a tax deduction for the entire amount deposited in the Agniveer Corpus Fund.

ITR-1 Update: The ITR-1 form has been updated to include a new column for taxpayers to provide details regarding the amount eligible for deduction under Section 80CCH.

What are the documents needed to file ITR?

When filing your Income Tax Return (ITR) in India, having the necessary documents ready can simplify the process and ensure accuracy. Here is a list of essential documents you may need:

Personal Information

1. PAN Card: Permanent Account Number.
2. Aadhaar Card: Mandatory for linking with PAN.
3. Bank Account Details: Including IFSC code and account number.

Income Proof

1. Form 16: Issued by your employer, detailing your salary and tax deductions.
2. Salary Slips: Monthly salary slips for the financial year.
3. Form 16A/16B/16C: For TDS on income other than salary (e.g., interest income, rent).

Investment Proofs

1. Section 80C Investment Proofs: Receipts or statements for investments like PPF, NSC, ELSS, LIC, etc.
2. Other Section Investment Proofs: Proofs for deductions under Sections 80D, 80G, 80E, etc.

Other Income Proofs

1. Interest Income Statements: From banks and post offices.
2. Rent Receipts: If you have rental income.
3. Capital Gains Statements: If you have sold property or investments.

Tax Payment Proofs

1. Form 26AS: Annual tax statement available on the Income Tax website.
2. Advance Tax Receipts: If you have paid advance tax.
3. Self-Assessment Tax Receipts: If you have paid self-assessment tax.

Home Loan Proofs

1. Home Loan Interest Certificate: Issued by your lender.
2. Principal Repayment Certificate: Issued by your lender.

Business Income Proof

1. Profit and Loss Statement: For those with business income.
2. Balance Sheet: For those with business income.

Other Documents

1. Medical Receipts: For deductions under Section 80D.
2. Donation Receipts: For deductions under Section 80G.
3. Education Loan Interest Certificate: For deductions under Section 80E.

Specific Cases

1. Foreign Income Proof: If applicable, details of foreign income and taxes paid.
2. Details of Foreign Assets: If you own any foreign assets.

These documents help in accurately reporting your income, claiming deductions, and ensuring that the correct amount of tax is paid. It’s advisable to keep these documents organized and handy to streamline the filing process.

How to file ITR-1 (SAHAJ) Online on Income Tax Portal?

Step-by-Step Guide to Filing ITR-1 Online

Step 1: Gather Necessary Documents

• PAN Card
• Aadhaar Card
• Bank account details (account number, IFSC code)
• Form 16 from your employer
• Details of other incomes (interest income, rent, etc.)
• Investment proof for claiming deductions (under Section 80C, 80D, etc.)

Step 2: Access the Income Tax e-Filing Portal

1. Visit the Income Tax e-Filing Portal: incometaxindiaefiling.gov.in

Step 3: Login to Your Account

1. Login: Enter your User ID (PAN), password, and captcha code. Click on ‘Login’.
2. Register: If you are a new user, click on ‘Register’ and follow the instructions to create an account.

Step 4: Navigate to the e-File Section

1. Once logged in, click on the ‘e-File’ menu and select ‘Income Tax Return’.

Step 5: Select the Appropriate Assessment Year

1. Choose ‘Assessment Year 2024-25’.
2. Select ‘ITR-1 (SAHAJ)’ from the drop-down menu.
3. Choose ‘Original/Revised Return’.
4. Select ‘Prepare and Submit Online’.

Step 6: Fill in the ITR Form

1. Personal Information: Verify your personal details pre-filled in the form.
2. Income Details: Enter your income details from Form 16 (salary, pension, etc.) and other sources of income (interest, rent).
3. Tax Details: Check your tax details pre-filled from Form 26AS. Ensure TDS details are accurate.
4. Deductions and Taxable Total Income: Enter details of deductions under Section 80C, 80D, etc. Verify the calculated total taxable income.
5. Tax Paid and Verification: Review the tax paid details. Provide the details of the bank account where you want to receive the refund, if any.
6. 80CCH Deduction: If applicable, provide details under Section 80CCH for contributions to the Agniveer Corpus Fund.

Step 7: Validate the Information

1. Click on the ‘Validate’ button to ensure all mandatory fields are filled and the form is accurate.

Step 8: Preview and Submit

1. Preview: Review the entire form to ensure all information is correct.
2. Submit: Click on ‘Submit’.

Step 9: Verification of ITR

1. Choose the verification option. You can verify your return electronically using Aadhaar OTP, EVC generated through your bank account, or Net Banking. Alternatively, you can send a signed physical copy of the ITR-V to the CPC, Bengaluru, within 120 days of filing your return.

Step 10: Acknowledgement

• Once verified, you will receive an acknowledgment receipt on your registered email ID. You can also download the acknowledgment from the e-Filing portal.

Tips for Filing ITR-1

• Double-check all pre-filled information and make necessary corrections.
• Ensure all sources of income are included to avoid discrepancies.
• Keep your login credentials and bank details secure.

Following these steps will help you file your ITR-1 (SAHAJ) form accurately and efficiently on the Income Tax e-Filing portal.