1.Total income less than 50lakh rupees during the financial year.
2. Income from salary.
3.Income from one house property.
4.Family pension scheme.
5.Agriculture income upto 5000 rupees.
6.Income from other sources that is:-
- Interest from Saving Accounts
- Interest from deposit (Bank/Cooperative Society/ Post Office)
- Interest from income tax refund
- Interest received enhanced compensation.
- Any other interest income
- Family Pension
7.Income of Spouse (other than those covered under Portuguese Civil Code) or Minor is clubbed (only if the source of income is within the specified limits as mentioned above).
ITR-1 cannot be filed by any individual who:-
1.Is a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI).
2.has total income exceeding 50 lakh rupees.
3.has agricultural income exceeding 5000/- rupees.
4.has income from lottery, racehorses, legal gambling etc.
5.has taxable capital gains (short term and long term).
6.has invested in unlisted equity shares.
7.has income from business or profession.
8.is a Director in a company.
9.has tax deduction under section 194N of Income Tax Act.Section 194N is applicable in case of cash withdrawals of more than Rs. 1 crore during a financial year. This
section will apply to all the sums of money or an aggregate of sums withdrawn from a particular customer in a
financial year. Further, while calculating the limit of Rs 1 crore, cash withdrawals from all accounts maintained
by a person with one bank are to be considered.
8.has deferred income tax on ESOP received from employer being an eligible start-ups.
9.owns and has income from more than one house property.
10.is not covered under the eligibility conditions for ITR-1.
The precautions to be taken while filing return of income are:-
1.Download Form 26AS (Annual Information Statement) and check the actual TDS / TCS / tax paid. If you see any discrepancy, you should reconcile it with the Employer / Tax Deductor / Bank.
2.Compile and carefully study the documents to be referred to when filing your ITR, like bank statement / passbook, interest certificates, receipts to claim exemptions or deductions, Form 16, Form 26AS (Annual Information Statement), investment proofs, etc.
3.Ensure details like PAN, permanent address, contact details, bank account details, etc. are correct in the pre-filled data.
4.Identify the correct return for you (from ITR-1 to ITR-7). Provide all the details in the return such as total income, deductions (if any), interest (if any), taxes paid / collected (if any), etc. No documents are to be attached along with ITR-1. However, you need to keep these documents for situations where they need to be produced before tax authorities such as assessment, inquiry, etc.
5.e-File the return of income on or before the due date. The consequences of delay in filing returns include late filing fees, losses not getting carried forward, deductions and exemptions not being available.
6.After e-Filing the return, e-Verify it. If you want to manually verify your return, send the signed physical copy of ITR-V Acknowledgement (by ordinary post or speed post) within 120 days of filing the return to Centralized Processing Center, Income Tax Department, Bengaluru 560500 (Karnataka).
Changes in itr 1:-
In ITR-1 for AY 2021-22, there is an addition of section 115BAC. If you wish to opt for the new tax regime under section 115BAC, select Yes in the new ITR form, else select No. Please note that option for new tax regime u/s 115BAC will be available only till due date of filing of return u/s 139(1).
Documents needed to file ITR-1 are:-
1.Form 16
2.House Rent Receipt (if applicable)
3.Investment payment premium receipt (if applicable).
- In case you miss filing the ITR within the due date u/s 139(1), you can still file your Income Tax Return but you maybe required to pay a late filing fee of up to 5000/- rupees. Additionally, you will also be required to pay interest on the tax liability (if any).
- Different tax returns are prescribed for filing by individual taxpayers depending on their source of income and residential status. To determine the correct ITR to file, you can use the Help me decide which ITR Form to file option. You can then proceed based on questions displayed to determine the correct ITR to file.
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