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Income tax return filing: Key things to know about using ITR Form 1

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ITR 1, also known as Sahaj, is available for individuals who are residents having total income up to Rs 50 lakh, having income from salaries, one house property, other sources (interest etc.), and agricultural income up to Rs 5,000.

Income tax return filing: Key things to know about using ITR Form 1
Income Tax Department has notified 7 forms for filing an income tax return (ITR) this year. These forms include Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6 and Form ITR-7.
Among these, ITR 1, also known as Sahaj, is available for individuals who are residents having total income up to Rs 50 lakh, having income from salaries, one house property, other sources (interest etc.), and agricultural income up to Rs 5,000.
Here are key things to know about ITR-1:
Who is not allowed to file ITR 1?
Individuals who qualify to be residents but are not ordinarily resident or non-resident or have income from capital gains or have more than one house property are not permitted to use Form 1.
Further, it may be noted that an individual who is either director in a company or has invested in unlisted equity shares would not be eligible to use this tax return form. Individuals who hold unlisted equity shares at any time during the previous year are also not allowed to file ITR.
Individuals with any of these income are also excluded to file Form 1:
a) Income taxable under the head ‘Other sources’ which is taxable at special rate.
b) Dividend income exceeding Rs 10 lakh taxable under Section 115BBDA.
c) Unexplained income (i.e., cash credit, unexplained investment, etc.) taxable at 60 percent under Section 115BBE.
d) Agricultural Income exceeding Rs 5,000.
e) Person claiming deduction under Section 57 from income taxable under the head ‘Other Sources’(other than deduction allowed from family pension).
h) Income from any source outside.
What are the changes in ITR-1 as compared to previous years?
In ITR-1 for AY 2021-22, there is an addition of section 115BAC. If taxpayers wish to opt for the new tax regime under section 115BAC, they are required to select 'Yes' in the new ITR form, else select they have to select 'No'.
The option for new tax regime u/s 115BAC will be available only till the due date of filing of return u/s 139(1).
What documents are required to file ITR-1?
Taxpayers would need Form 16, house rent receipt (if applicable), investment payment premium receipts (if applicable). ITRs are annexure-less forms, so taxpayers are not required to attach any document (like proof of investment, TDS certificates) along with their return (whether filed manually or electronically).
However, they need to keep these documents for situations where they need to be produced before tax authorities such as assessment, inquiry, etc.
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