Important Keyword: Form 16, Form 26AS, Income Tax, ITR Forms & Documents, ITR-1, Salary Income.

AY 2021-22 ITR-1 SAHAJ Form – Salaried Individuals

ITR-1, also known as Sahaj, is the simplest one-page Income Tax Return Form tailored for individuals with income from Salary/Pension, One House Property, and income from other sources. However, there are certain criteria to consider before determining eligibility for filing ITR 1.

Who Can File ITR-1 Form?

Any individual whose total income does not exceed INR 50 lakh and includes:

• Salary/Pension Income.
• Income from one House Property (excluding brought forward losses from previous years).
• Income from Other Sources (excluding winnings from Lottery and Income from racehorses).
• If the income of a spouse or minor child is clubbed with the taxpayer’s income, they can file ITR 1 only if their clubbed incomes fall within the above categories.

Who Cannot File ITR-1 Form?

• Non-Resident Indians (NRIs)
• Individuals with total income including:
  • Income from multiple House Properties
  • Income from winnings from lottery or income from racehorses
  • Capital Gains Income (short-term and long-term Capital Gains from the sale of house, plot, shares, etc.)
  • Agricultural income exceeding INR 5000/-
  • Income from Business and Profession
  • Resident individuals having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India
  • Individuals claiming relief of Foreign Tax paid or Double Taxation Relief under section 90/90A/91.

List of Documents Required to File ITR 1:

Essential Documents:

• PAN (Permanent Account Number)
• Aadhaar Number
• Bank Account Details
• Form 26AS
• Form 16
• AIS – Annual Information Statement
• Details of original return if filing revised return
• Details of notice if filing in response to a notice

Additional Documents:

For Salary Income:

• Form-16 or Salary slips received from your employer
• Pension statement/passbook.

For House/Property Income:

• Address of the property
• Co-owner details (if applicable)
• Interest certificates/Repayment certificate from a bank (for property loan)
• Rent Agreement (for let-out property)

For Other Sources:

• Savings/Current Account Statements/Passbook
• Interest Certificates for deposits/bonds/NSC
• PPF Account Statement/Passbook
• Dividend warrants/counterfoils
• Rent Agreement (for let-out machinery)
• Details about receipts of any other income

Income Tax Return Form – ITR 1

Here are the major changes in ITR 1 for Assessment Years 2021-22, 2020-21, and 2019-20:

For AY 2021-22:

1. Option to Choose Tax Regime: Taxpayers can opt between the old and new tax regimes.
2. Quarterly Breakdown for Dividend Income: Dividend income must be reported with quarterly breakdowns for accurate calculation of interest under Section 234C.

For AY 2020-21:

1. Expanded Eligibility Criteria: Individuals meeting specific criteria like cash deposits above INR 1 crore, foreign travel expenses above INR 2 lakh, or electricity expenses above INR 1 lakh must file ITR 1.
2. Continued Basic Criteria: Individuals with income from salaries, one house property, other income, and total income up to INR 50 lakh remain eligible.
3. Single Property Ownership: Resident individuals owning a single property in joint ownership can also file ITR 1 if their total income is up to INR 50 lakh.
4. Disclosure of Tax-Saving Investments: Taxpayers must disclose investments, deposits, or payments towards tax-saving made from April 1, 2020, to June 30, 2020.

For AY 2019-20:

1. Exclusion of Certain Individuals: ITR 1 is not applicable to individuals who are directors of a company or have invested in unlisted equity shares.
2. Introduction of Pensioners Checkbox: Under Part A, a ‘Pensioners’ checkbox is introduced under the ‘Nature of employment’ section.
3. Segregation of Returns: Returns filed under section segregated between normal filing and filing in response to notices.
4. Deduction Segregation: Deductions under salary segregated into standard deduction, entertainment allowance, and professional tax.
5. Detailed Income Information: Taxpayers required to provide income-wise detailed information under ‘Income from other sources’.
6. Family Pension Deduction: Introduction of a separate column for deduction under Section 57(iia) for family pension income.
7. Deemed Let Out Property Option: Inclusion of ‘Deemed to be let out property’ option under ‘Income from house property’.
8. Section 80TTB for Senior Citizens: Inclusion of Section 80TTB column for senior citizens.

Read More: Income Tax Return (ITR) Form for AY 2016-17 (FY 2015-16)

Web Stories: Income Tax Return (ITR) Form for AY 2016-17 (FY 2015-16)

Official Income Tax Return filing website: https://incometaxindia.gov.in/