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ITR-1 (Sahaj) Filing

Explore all the details you need about ITR-1 (Sahaj) Filing, tailored for your needs.

ITR, or Income Tax Return, is a crucial document in which taxpayers report their income and applicable taxes to the income tax department. The Income Tax Act of 1961 outlines all the ITR forms and their procedures. Among these forms, ITR-1, often referred to as Sahaj, holds particular significance. ITR1 (Sahaj) is designed for individuals with an income of up to Rs.50 lakhs, making it applicable to most salaried individuals.

Solocorp offers a seamless and efficient solution for filing Income Tax Returns using the ITR1 form in India. Our team of experts guides you through the entire process, ensuring that you meet your tax compliance obligations effortlessly. With Solocorp' ITR 1 filing Services, you can navigate the complexities of tax submission with ease, allowing you to focus on what matters most while we handle your tax return needs. Get started today!

What is ITR?

An Income Tax Return (ITR) is a formal document filed by taxpayers to report their income, taxes paid, and any tax liabilities to the Income Tax Department. It ensures transparency and compliance with tax regulations.

There are seven different ITR forms, including ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. The appropriate form is chosen based on income sources, income amounts, and taxpayer categories such as individuals, HUFs, or businesses.

Filing the correct ITR on or before the due date is a critical requirement for all taxpayers to avoid penalties and maintain compliance with tax laws.

ITR 1 (Sahaj) Form

  • The ITR-1 Sahaj Form is designed for individual taxpayers in India whose total income is below Rs. 50 Lakhs. This simplified form is specifically for residents whose income comes from the following sources:
  • 1. Income from Salary or Pension
  • 2. Income from a Single House Property
  • 3. Income from Other Sources
  • The ITR-1 Sahaj form makes the tax filing process more accessible for eligible individuals by providing a straightforward and efficient way to fulfill their tax obligations.

Who Can File ITR1?

ITR1 is applicable to Resident Individuals who meet the following criteria:

Income Threshold

  • The individual's total income for the financial year must not exceed Rs. 50 lakh.

Permissible Income Sources

  • Salary
  • Income from a single-house property
  • Family pension income
  • Agricultural income (up to Rs. 5,000)
  • Other sources, including:
  • Interest from Savings Accounts
  • Interest from Deposits (Bank / Post Office / Cooperative Society)
  • Interest from Income Tax Refund
  • Interest received on Enhanced Compensation
  • Any other Interest Income
  • Family Pension

Clubbing of Income

  • Clubbing of income with a spouse's or minor's income is allowed only if the source of income falls within the specified limits mentioned above.

Structure of ITR Form 1: A Comprehensive Overview

While ITR Form 1 may seem straightforward, it requires careful attention during the filling process. ITR Sahaj is organized into five distinct parts and two schedules to ensure clarity.

  • Part A: General Information
  • Part B: Gross Total Income
  • Part C: Deductions and Total Taxable Income
  • Part D: Computation of Tax Payable
  • Part E: Other Information

Part A: General Information

Personal details such as name, PAN number, age, gender, and date of birth. Ward and assessing officer details (if known). Communication address, contact number, city, and state. Filing date and Aadhaar details.

Part B: Gross Total Income

Information on gross total income, including earnings from salary, property, and other sources.

Part C: Deductions and Total Taxable Income

Details related to deductions under sections 80C, 80D, 80U, and 80G.

Part D: Computation of Tax Payable

Rows covering tax computation, status, rebates, post-rebate taxes, TDS claims, etc. D20 for bank account details, including account number, bank name, IFSC code, and account type, with an option to specify the account for refund, if applicable.

Part E: Other Information

Various additional details as required by the tax authorities.

Documents Required for Filing ITR 1

ITR Sahaj Forms are attachment-less forms. This means that taxpayers are not required to attach any documents. However, taxpayers should retain the following documents for their records and be prepared to produce them before tax authorities if requested, particularly in situations like assessments or inquiries.

Form 16

Form 26AS

Receipts

PAN Card

Bank Investment Certificates

Required Details in ITR1 Form

The ITR1 form comprises several sections, each requiring specific information for accurate completion.

Part A: Personal Information

Part B: Gross Total Income

Part C: Deductions

Part D: Tax Computation

Types of Income Excluded from ITR-1 Form

The ITR-1 form excludes certain categories of income, including:

Profits and Gains from Business or Profession

Income derived from business or professional activities is excluded from ITR-1.

Income from More than One House Property

If you have income from more than one house property, you cannot file ITR-1.

Capital Gains (Short-term or Long-term)

Income from capital gains, whether short-term or long-term, is excluded from ITR-1.

Income from Owning and Maintaining Racehorses

Income derived from owning and maintaining racehorses is excluded from ITR-1.

Winnings from Lotteries

Any winnings from lotteries or similar games are excluded from ITR-1.

Income Subject to Special Rates under Sections 115BBDA or 115BBE

Income subject to special tax rates, such as those under Sections 115BBDA or 115BBE, is not eligible for ITR-1.

Income Meant to be Distributed as Per Section 5A Regulations

Income that is meant to be distributed under Section 5A is excluded from ITR-1.

Penalty for Late ITR 1 Filing

Late filing of income tax returns can result in various penalties, depending on your total income.

  • Penalty for Income Above Rs 5 Lakh

    Individuals with a total income exceeding Rs 5 lakh may face a penalty of Rs 5,000 for late filing.

  • Penalty for Income Below Rs 5 Lakh

    Individuals with income below Rs 5 lakh may incur a reduced penalty of Rs 1,000 for late filing.

  • Interest on Unpaid Taxes

    If you owe taxes and fail to file the return by the due date, additional interest at a rate of 1% per month will be charged until the return is submitted.

  • Penalty for Underreporting Income

    Underreporting of income may result in penalties of up to 50% of the tax underreported.

  • Penalty for Misreporting Income

    Misreporting of income can lead to penalties of up to 200% of the misreported tax amount.

  • Prosecution for Repeated Failure

    Repeated failure to file tax returns despite reminders from tax authorities can lead to prosecution, with imprisonment ranging from three months to seven years, depending on the outstanding tax liabilities.

It is crucial to file your ITR1 promptly and accurately to avoid these legal and financial consequences.

How Solocorp Can Help with ITR-1 (Sahaj) Filing

Solocorp provides comprehensive support in filing your ITR-1 (Sahaj) income tax return, ensuring accuracy and timely submission.

We help you choose the right form based on your income sources, ensuring all necessary details are accurately captured.

Our team calculates your tax liability, performs error checks, and prioritizes filing before deadlines to reduce the risk of penalties or tax notices.

If you are eligible for a refund, we assist in processing it efficiently, ensuring you receive the refund quickly.

Solocorp' team of tax experts is available to address your questions, providing clear guidance throughout the process.

We also keep you updated on changes in tax laws and deadlines to ensure your compliance with the latest regulations.

Our secure platform ensures that your financial data is kept safe while simplifying your ITR-1 filing experience.

  • 1

    Form Selection

    We guide you in selecting the appropriate ITR-1 (Sahaj) form based on your income sources and financial situation.

  • 2

    Tax Calculation

    Our experts calculate your tax liability to ensure your return is filed accurately and you pay the correct tax.

  • 3

    Error Check

    We perform thorough error checks to ensure your return is free of mistakes before submission.

  • 4

    Timely Filing

    We ensure your ITR-1 is filed before the due date to avoid penalties and interest charges.

  • 5

    Refund Processing

    If eligible, we assist in processing your tax refund efficiently, ensuring you receive it promptly.

  • 6

    Expert Assistance

    Our team of tax experts is always available to address your queries and provide guidance throughout the filing process.

  • 7

    Compliance Updates

    We keep you informed about any changes in tax laws and deadlines, ensuring you're always compliant with the latest regulations.

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Startup
Registrations
MCA Services
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