Who is Eligible to File ITR 1 for AY 2021-22?

ITR -1 Form may be a simplified one-page form for people having income up to Rs 50 lakh from the subsequent 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)

Overview

In the case of clubbed tax Returns, where a spouse or a minor is included, this will be done as long as their income is restricted to the above specifications.

Who cannot file ITR 1 for AY 2020-21

• An individual having income above Rs 50 lakh cannot use this type .
• An individual who is either a director during a company and has held any unlisted equity shares at any time during the fiscal year cannot use this type .
• Residents not ordinarily resident (RNOR) and non-residents cannot file returns using ITR -1
• Also, individuals who have earned income through the subsequent means aren’t 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 may be 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.

 

Who cannot file ITR 1 for AY 2020-21

Part A – General Information

Part B – Gross total Income

Part C – Deductions and taxable total income

Part D – Computation of Tax Payable
Part E – Other Information (Bank account details)

Schedule IT (Details of advance tax and self assessment tax payments)
Schedule-TDS (TDS/TCS details)

Verification

Not sure which ITR form to use? Click here
How do I file my ITR-1 Form?
You can submit your ITR-1 Form either online or offline.
Offline
Only the subsequent persons have the choice to file the return in paper form
  • An individual at the age of 80 years or more at any time during the previous year
  • An individual or HUF whose income doesn’t exceed Rs 5 lakhs and who has not claimed any refund within the return of income
For offline, the return is furnished during a physical paper form. The tax Department will issue you an acknowledgement at the time of submission of your physical paper return.
Online/Electronically
  • By transmitting the info electronically then submitting the verification of the return within the sort of ITR-V to CPC, Bengaluru.
  • By filing the return online and e-verifying the ITR-V through net banking/aadhaar OTP/EVC.
If you submit your ITR-1 Form electronically, the acknowledgement are going to be sent to your registered email id. you’ll also prefer to download it manually from the tax website. you’re then required to sign it and send it to the tax Department’s CPC office in Bangalore within 120 days of e-filing. Alternatively, you’ll e-verify your return.

The Major Changes which are made within the ITR 1 for the AY 2021-22

The following changes are incorporated within the ITR form:
  • The taxpayer cannot file ITR-1 if TDS is deducted under section 194N. As per section 194N, tax shall be deducted at source if the non-filers of the tax return withdraw cash exceeding the quantity of Rs.20 lakh. In other cases, tax shall be deducted when the cash withdrawals exceed Rs.1 crore during a fiscal year .
  • No option is given to hold forward TDS under section 194N. The credit of TDS under section 194N shall be allowed only during the year during which TDS was deducted.
  • The individuals or HUFs are given the choice to pick old or new tax regime. If the taxpayer selects a replacement tax regime under section 115BAC, he must file Form 10IE before filing ITR under section 139(1).
  • The ITR forms for the assessment year 2020-21 were modified by including new schedule DI. It allowed taxpayers to avail the deduction made during the extended period for the AY 2020-21. The schedule DI is faraway from AY 2021-22.

The Major Changes which are made within the ITR 1 for the AY 2019-20 are:

  1. ITR 1 form for FY 2018-19 isn’t applicable to a private who is either a director of a corporation or has invested in unlisted equity shares.
  2. Under Part A, ‘Pensioners’ checkbox has been introduced under the ‘Nature of employment’ section.
  3. Return filed under section has been segregated between normal filing and filed in response to notices.
  4. Deductions under salary are going to be bifurcated into standard deduction, entertainment allowance and professional tax.
  5. The taxpayers are going to be required to supply income wise detailed information under the ‘Income from other sources’.
  6. A separate column is introduced under ‘Income from other sources’ for deduction u/s 57(iia) – just in case of family pension income.
  7. ‘Deemed to be let loose property’ option now available under ‘Income from house property’.
  8. Section 80TTB column has been included for senior citizens.

The Major Changes which were made within the ITR 1 for the AY 2018-19 are:

  1. Earlier ITR-1 was applicable for both Residents, Residents Not ordinarily resident (RNOR) and also Non-residents. Now, this type has been made applicable just for resident individuals.
  2. The condition of the individual having income from salaries, one house property, other income and having total income up to Rs 50 lakhs continues
  3. Under the Schedule on TDS, there’s also a further field for furnishing details of TDS as per Form 26QC for TDS made on rent. Also, provision for quoting of PAN of Tenant for such rent cases has also been made.
  4. there’s a requirement to furnish a break-up of salary. Until now, these details would seem only in Form 16 and therefore the requirement to disclose them within the return had never arisen.
  5. there’s also a requirement to furnish an opportunity from Income under House Property which was earlier mandatory just for ITR -2 and other forms

Salary and House property changes are often noted from the below screenshot

What is Limited Liability partnership (LLP) Registration ?
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. • The LLP can continue its existence irrespective of changes in partners.

The Major Changes which were made within the ITR 1 for the AY 2017-18 are:

  1. Quoting of Aadhar Number is mandator- Every person is mandatorily required to quote Aadhaar number within the return of income. If a person doesn’t possess the Aadhaar Number but he had applied for the Aadhaar card then he can quote Enrolment ID of Aadhaar form within the ITR.
  2. Disclosure of money deposits during demonetization- A new column has been introduced altogether ITR Forms to report on cash deposited by taxpayers in their bank accounts during the demonetization period, i.e., from November 9, 2016 to December 30, 2016. However, taxpayer are required to refill this column as long as they need deposited Rs 2 lakh or more during the demonetization period.
  3. Disclosure of all Bank Accounts- The details of all the savings and current accounts held at any time during the previous year must be provided. However, it’s not mandatory to supply details of dormant accounts which aren’t operational for quite 3 years. The account number should be as per Core Banking Solution (CBS) system of the bank.
  4. Simplified one page ITR Form for Salaried class taxpayers (ITR 1 Sahaj)- Now the govt. . has notified simplified one page form ‘ITR-1 Sahaj’ for people having income up to Rs 50 lakhs from salary, pension, one house property and income from other sources. it’s removed columns which aren’t frequently employed by the taxpayers such as:
  • New ‘ITR-1 Sahaj’ has retained those deductions which are most often employed by the taxpayers like under Section 80C, 80D, 80G and 80TTA.If any taxpayer wants to say deduction under the other provision of chapter VI-A he can specify the relevant Section in column titled as ‘Any other’.
  • Schedules of TDS and TCS are merged into one so as to form ITR 1 shorter and simpler.
  • New columns are inserted to report dividend income and long-term capital gains exempt under Section 10(34) and Section 10(38) respectively. it’s mandatory to e file tax returns for those with future capital of Rs 2.5 lakhs or more ,even though their taxable income could also be below 2.5 lakhs.

How do I fill out the ITR-1 Form?

Documents which you ought to confine hand before filling out your ITR-1 form are:
  • Form 16: Issued by all of your employers for the given fiscal year 
  • Form 26AS: Remember to verify that the TDS mentioned in Form 16 matches the TDS partially A of your Form 26AS
  • Receipts: If you’ve got not been ready to submit proof of certain exemptions or deductions (such as HRA allowance or Section 80C or 80D deductions) to your employer on time, keep these receipts handy to say them on your tax return directly.
  • PAN card
  • Bank investment certificates: Interest from checking account details – bank passbook or FD certificate.

FAQ's

1. I earn income over Rs 50 lakhs. Which ITR form should I file this year ?

Answer: • If you’ve got income above Rs 50 lakhs , you’ll file ITR 2 ,ITR 3 or ITR 4 (Sugam) depending upon your source of income.
• If you’re salaried individual having income above Rs 50 lakhs, you ought to file ITR 2.
• And if you’re having income from business or profession, then you ought to file ITR 3.
• In case you’re following presumptive income u/s 44AD /44AE, then you ought to file ITR 4 (sugam).

2. Can I file ITR-1 with exempt agricultural income?

Answer: Yes .you can if the agricultural income doesn’t exceed Rs 5000.And If the agricultural income is quite Rs 5000, then you ought to file ITR 2.

3. the way to report bank accounts in ITR-1?

Answer: The details of all the savings and current accounts held at any time during the previous year must be provided. However, it’s not mandatory to supply details of dormant accounts which aren’t operational for quite 3 years. The account number should be as per Core Banking Solution (CBS) system of the bank. it’s to be provided within the Part E – other information of the ITR form.

4. Do i want to incorporate dividend income from Mutual Funds?

Answer: Yes. Dividend income from mutual funds is exempt under sec 10(35).It is to shown partially D under the top Exempt Income(others). However, from fiscal year 2020-21 onwards, dividend income from mutual funds is taxable within the hands of shareholders.

5. What do the subsequent terms mean?

Answer: Revised Return: If you’ve got already filed your tax return but you later discover that you simply have made an error in it, you’ll refile. this is often called a Revised Return. For the fiscal year 2018-2019 you’ll file your Revised Return till March 31, 2020.
Notice Number: you ought to fill this in just if you’re filing your return in response to a notice from the tax Department.

Advance Tax: For salaried individuals, TDS mostly takes care of advance tax payments. However you would possibly produce other sorts of income – like interest on savings bank accounts, fixed deposits, income , bonds or capital gains. If tax on income is quite Rs. 10,000 per annum , you’re required to estimate your income and pay Advance Tax. This has got to be paid in quarterly installments in June, September, December and March.
Self Assessment Tax Payments: this is often the difference between tax payable and tax paid and it must be paid before you file your return. once you fill out the shape for the primary time, you won’t know whether Self Assessment Tax has got to be paid or not. So, fill out the shape first along side the Advance Tax details, if paid. Compute your income and if after computing, you discover that tax remains payable, pay it then fill within the details within the self-assessment tax paid section within the return.

Annexure-less Return: ITR-1 Form is an Annexure-less return. this suggests that you simply don’t need to attach any documents (such as Form 16/Form 26AS) with the ITR-1 Form.

6. How does one file ITR-1 once you earn Rental Income?

Answer: Aditya rents out his apartment. Since he owns only one property, he files ITR-1. what proportion should he pay in taxes?

7. How do I file my ITR-1 Form?

Answer: You can submit your ITR-1 Form either online or offline. From the fiscal year 2013-14, all taxpayers earning quite Rs. 5 lakhs must furnish their tax Returns electronically.
Offline:
• By furnishing a return during a physical paper form
• The tax Department will issue you an acknowledgment at the time of submission of your physical paper return.
Electronic or online transmission
• By transmitting the info electronically then submitting the verification of the return within the sort of ITR-V to CPC, Bengaluru.
• By filing the return online and e-verifying the ITR-V through net banking/adhaar OTP/EVC. If you submit your ITR-1 Form electronically, the acknowledgment are going to be sent to your registered email id.
• You also can prefer to download it manually from the tax website. you’re then required to sign it and send it to the tax Department’s CPC office in Bangalore within 120 days of e-filing.

8. How does one send your ITR-V to the CPC Office?

Answer: We have a guide to assist you print and send your ITR-V to the CPC office . Read our Guide.
I am alleged to file ITR-2 and not ITR-1, if my maximum exempt income exceeds Rs. 5,000. What qualifies as exempted income?
You should file ITR-2 if your total exempted income exceeds Rs. 5,000. Certain incomes are exempt under Section 10 of the tax Act. Following are the samples of exempt income:
• Agricultural income
• LIC Maturity amount as per section 10 (10D)
• Long term financial gain on listed shares and securities as per section 10(38)
• Gratuity, leave encashment and pension could also be exempt under Section 10 of the Act.

9. I have a House Property loan. am i able to file ITR-1?

Answer: Yes you’ll . Scroll through our guide to ascertain the method .

10. I even have income . am i able to file ITR-1?

Answer: Yes. Our guide takes you thru the method step-by-step.

11. While filing ITR-1 should Interest Income be shown in Income from Other Sources if TDS has already been deducted?

Answer: Yes, you ought to always include Interest Income under Income from Other Sources, albeit tax has been deducted by the bank.

12. I have only claimed medical expenses worth Rs. 6,000 during the year out of the Rs. 15,000 medical reimbursement allowed by my company. what proportion tax are going to be deducted if I don’t submit medical proofs for the remaining amount?
Answer: The concept of medical reimbursement has been done away with in Budget 2018 and has been replaced by a typical deduction of Rs 40,000 effective 1 April 2018. 
13. There is no refund thanks to me. Do I still need to fill in my checking account details within the tax Return?

Answer: Yes, it’s mandatory to fill in your checking account details, whether you’ve got refund due or not. this is often because it’s been noticed that a lot of taxpayers find yourself paying quite their required liabilities . In such cases, it’s important for the tax Department to send refunds within a particular amount of your time . If you are doing not fill in your checking account details, the method would be considerably delayed.

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