ITR FOR SALARIED PERSON
BASIC PLAN
Who is eligible to File ITR-1 Sahaj Form ?
ITR-1 can be filed by a Resident Individual whose:
• Total income does not exceed Rs 50 lakh during the Financial Year.
• Income is from salary, one house property, family pension income, agricultural income (up to Rs. 5000/-), and other sources, which include:
o Interest from Savings Accounts
o Interest from Deposits (Bank / Post Office / Cooperative Society)
o Interest from Income Tax Refund
o Interest received on Enhanced Compensation
o Any other Interest Income
o Family Pension
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ITR FOR SALARIED PERSON
STANDARD PLAN
ITR-1 Sahaj Form for:
- Rental Income from One House property.
- Other sources of Income (Interest).
Rs 599/-
ITR FOR SALARIED PERSON
PREMIUM PLAN
ITR-1 Sahaj Form for:
- Rental Income from One House property.
- Other sources of Income (Interest).
Rs 1,499/-
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ITR-1 Sahaj Form – INCOME TAX FOR SALARIED PERSON
ELIGIBLITY FOR ITR-1 FILING
ITR-1 Form is a simplified one-page form for individuals having income up to Rs 50 lakh from the following sources :
- Income from Salary/Pension
- Income from One House Property (excluding cases where loss is brought forward from previous years)
- Income from Other Sources (excluding winning from Lottery and Income from Race Horses).
- Agricultural income (Up-to to Rs. 5000)
In the case of clubbed Income Tax Returns, where a spouse or a minor is included, this can be done only if their income is limited to the above specifications.
WHO CANNOT FILE ITR-1 SAHAJ FORM.
- An individual having an income above Rs 50 lakh cannot use this form.
- An individual who is either a director in a company and has held any unlisted equity shares at any time during the financial year cannot use this form.
- Residents not ordinarily resident (RNOR) and non-residents cannot file returns using ITR-1
- Also, individuals who have earned income through the following means are not eligible to file form ITR-1 :
- More than one House Property
- Lottery, Racehorses, Legal Gambling, etc.
- Taxable capital gains (Short term and Long term)
- Agricultural income exceeding Rs. 5,000
- Business and Profession
- Individual who is a Resident and has assets (including financial interest in any entity) outside India or signing authority in any account located outside India.
- Individual claiming relief of foreign tax paid or double taxation relief under section 90/90A/91.
DOCUMENTS REQUIRED FOR ITR-1 FILING
- Form 16: Issued by all your employers for the given Financial Year.
- Salary slips
- Interest Certificates from the Post offices and Banks
- Form 16A/16B/16C
- Form 26AS: Remember to verify that the TDS mentioned in Form 16 matches the TDS in Part A of your Form 26AS
- Bank investment certificates: Interest from bank account details – bank passbook or FD certificate
- Deduction under the Section 80 D to 80 U
- Home Loan statement from the NBFC or the Bank
- Capital Gains.
- PAN card.
INCOME TAX RATES FOR SALARIED PERSON
INCOME TAX RATES UNDER EXISTING TAX REGIME AND THE NEW TAX REGIME (FOR TDS RETURN FILING)
- The taxpayers now have an option to choose between the old and the new tax regimes.
- The decision of opting for a tax regime has to be taken at the beginning of the financial year.
| Taxable Income | Income Tax Rate |
|---|---|
| Upto INR 2,50,000 | Nil |
| INR 2,50,000 - INR 5,00,000 | 5% |
| INR 5,00,000 - INR 10,00,000 | 20% |
| Above INR 10,00,000 | 30% |
| Taxable Income | Income Tax Rate |
|---|---|
| Upto INR 3,00,000 | Nil |
| INR 3,00,000 - INR 5,00,000 | 5% |
| INR 5,00,000 - INR 10,00,000 | 20% |
| Above INR 10,00,000 | 30% |
| Taxable Income | Income Tax Rate |
|---|---|
| Upto INR 5,00,000 | Nil |
| INR 5,00,000 - INR 10,00,000 | 20% |
| Above INR 10,00,000 | 30% |
The new tax regime is where the taxpayer has an option to choose either to pay taxes at a lower interest rate as per the new tax regime on the condition that they forgo certain permissible exemptions and deductions that are available the income tax.
or
The taxpayer can continue paying taxes under the existing tax rates. The assesses can avail of the rebates and the exemption by staying in the old regime and pay taxes at the existing high rates.
| Taxable Income | Income Tax Rate (Applicable for all individuals and HUF) |
|---|---|
| Upto INR 2,50,000 | Nil |
| INR 2,50,000 - INR 3,00,000 | 5% (Tax rebate u/s 87 is available) |
| INR 3,00,000 - INR 5,00,000 | 5% (Tax rebate u/s 87 is available) |
| INR 5,00,000 - INR 7,50,000 | 10% |
| INR 7,50,000 - INR 10,00,000 | 15% |
| INR 10,00,000 - INR 12,50,000 | 20% |
| INR 12,50,000 - INR 15,00,000 | 25% |
| More than INR 15,00,000 | 30% |
- NOTE:
- The tax rates in the New Tax regime are the same for all categories of individuals.
- Hence, there is no increased basic exemption limit benefit that will be available to the senior and the super senior citizens in the New Tax Regime.
- Individuals with Net Taxable Income less than or equal to Rs 5 lakh will be eligible for the tax rebate u/s 87 A the tax liability will be Nil for such individuals in both New and Old existing tax regimes.
- The exemption limit for NRIs is Rs. 2.5 lakh irrespective of age.
- Additional health and education cess at the rate of 4% will be added to the Income-tax liability in all cases (Increased from 3% since FY 2018-19)
- An applicable surcharge as per tax rates below in all categories mentioned above:
- 10% of the income tax if total income > Rs. 50 lakh.
- 15% of the income tax if the total income > Rs.1 crore
- 25% of the income tax if the total income > Rs.2 crore.
- 37% of the income tax is the total income > Rs.5 crore.
The taxpayer opting for concessional rates in the new tax regimes has to forgo the exemptions and the deduction that is available under the old tax regime.
The list of common exemptions and deductions that are not allowed in the new Income tax regime are:
The taxpayer opting for concessional rates in the new tax regimes has to forgo the exemptions and the deduction that is available under the old tax regime.
The list of common exemptions and deductions that are not allowed in the new Income tax regime are:
FREQUENTLY ASKED QUESTION - FAQ.
Who can File ITR-1 Sahaj Form ?
ITR 1 can be used by individuals who is a resident of India for tax purposes only. All the taxpayers with income only under any or all three heads of income that includes: Salaries, Income from House Property, and Income from other sources are eligible to file ITR 1.
While filing ITR-1, Is it necessary to show the interest income from other sources, if the TDS is already deducted ?
Yes, it is necessary to include interest income from other sources even if the tax is deducted by the bank.
Can I file ITR-1 with exempt agricultural income ?
Yes, you can exempt agricultural income if it does not exceed Rs 5000. If the agricultural income is more than Rs 5000, then you should file ITR 2.
How to report bank accounts in ITR-1 ?
The details of all the savings and current accounts held at any time during the previous year must be provided. However, it is not mandatory to provide details of dormant accounts which are not operational for more than 3 years. The account number should be as per Core Banking Solution (CBS) system of the bank. It is to be provided in the Part E – other information of the ITR form.
Do I need to include dividend income from mutual Funds ?
Yes. Dividend income from mutual funds is exempt under sec 10(35). It is to shown in Part D under the head Exempt Income(others). However, from financial year 2020-21 onwards, dividend income from mutual funds is taxable in the hands of shareholders.
While filing ITR-1, should interest income be shown in income from other sources, if TDS has already been deducted ?
Yes, you should always include Interest Income under Income from Other Sources, even if tax has been deducted by the bank.
Is there any restrictions on the number of returns, I can file using one e-mail id and mobile number ?
Yes, you can only file 10 returns using the same email id and mobile number.
If there is no refund due to me. Do I still have to fill in my bank account details in income tax return ?
Yes, it is mandatory to fill in your bank account details, whether you have refund due or not. This is because it has been noticed that many taxpayers end up paying more than their required tax liability. In such cases, it is important for the Income Tax Department to send refunds within a certain amount of time. If you do not fill in your bank account details, the process would be considerably delayed.
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