Important Keyword: Income from salary, Income Tax, Salaried Individuals.

File ITR-1 Sahaj Form online for Salaried Employee

The income tax department has organized taxpayers into different categories based on their income situations, simplifying the process of determining which ITR form to file. This classification aids in making tax compliance more straightforward.

Filing income tax returns is crucial for salaried individuals. The benefits of filing returns include eligibility for loans, international travel, refund claims, and more. In this article, we explore the process of filing income tax returns online specifically tailored for salaried employees.

Who is eligible to file Form ITR-1?

ITR-1, also known as Sahaj form, is a simplified one-page document designed for resident individuals with taxable income up to INR 50 lakhs in a fiscal year. This form is tailored for individuals deriving income from specific sources, including:

1. Income from Salary/Pension: Salaries or pensions earned by the individual are reported under this category.
2. Income from One House Property: Individuals with income from only one house property, excluding cases where there is a carried forward loss from the previous year, can utilize this form.
3. Income from Other Sources: This section encompasses income from various sources other than salary, pension, or house property. However, it excludes income from horse races, lottery winnings, or agricultural income exceeding INR 5,000.
4. Clubbing Provisions: If provisions related to clubbing of income are applicable, individuals can still use ITR-1, provided their income falls within the specified limits mentioned above.

It’s important to note that individuals who hold certain positions or investments are ineligible to file ITR-1. This includes individuals who are directors of a company, partners in a firm, or hold unlisted shares at any time during the fiscal year.

Budget 2022 Update:

In the Budget 2022, the government introduced the concept of an “Updated Return.” This provision allows taxpayers to file an ITR for the two preceding assessment years to rectify any mistakes or omissions made in the original filing. Taxpayers opting for this option would need to pay additional tax and a late filing penalty. This initiative aims to provide taxpayers with the opportunity to correct errors and ensure compliance with tax regulations.

ITR 1 Form Breakdown

The ITR 1 form comprises five essential sections that individuals need to confirm before submitting it. These sections encompass crucial aspects of an individual’s financial affairs and tax liability. Let’s delve into each section:

1. Personal Information: This section entails providing personal details such as name, address, PAN (Permanent Account Number), contact information, and other relevant identification details. Accuracy in this section is paramount as it ensures proper identification and communication with the tax authorities.
2. Gross Total Income: Here, individuals are required to declare their gross total income, which includes income from all sources before any deductions or exemptions. This encompasses income from salary, pension, house property, capital gains, and other sources. Ensuring comprehensive reporting of income is crucial for accurate tax assessment.
3. Total Deductions: In this section, taxpayers list down all eligible deductions under various sections of the Income Tax Act. These deductions include investments in tax-saving instruments such as Provident Fund (PF), Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), life insurance premiums, and contributions to pension funds. Deductions reduce the taxable income, thereby lowering the overall tax liability.
4. Tax Paid: Taxpayers are required to provide details of tax payments made throughout the financial year. This includes taxes deducted at source (TDS) by employers, banks, or other entities, as well as advance tax payments made by the taxpayer. Accurate reporting of tax payments ensures proper credit and adjustment against the total tax liability.
5. Total Tax Liability: This section entails calculating the total tax liability based on the individual’s income, deductions, and tax rates applicable for the respective financial year. It is essential to accurately compute the tax liability to avoid underpayment or overpayment of taxes.

File ITR 1 Online on the e-Filing Website

• Log in to the e-filing portal using your PAN/TAN/user ID & password.

Click on e-file > Income Tax Returns > File Income Tax Return from the dashboard

Select the appropriate assessment year

Select the online mode of filing the ITR

Select the applicable status and click on proceed

Select the Form ITR 1 option from the list provided

Once you have selected the ITR applicable to you, note the list of documents needed and click Let’s Get Started

Select the checkboxes applicable to you and click Continue

Review your pre-filled data and edit it if necessary. Enter your income and deduction details in the different sections. After completing and confirming all the sections of the form, click Proceed

In case there is a tax liability, you will be provided with the option to pay it at that instant or you can pay it later. If you opt to pay the tax then after payment, enter the challan details in the Schedule Taxes Paid, and click Preview Return.

If there is no tax liability payable or a refund based on tax computation, you will be taken to the Preview and Submit Your Return page.

On the Preview and Submit Your Return page, enter Place, select the declaration checkbox and click Proceed to Validation

Once validated, click Proceed to Verification

Complete your Verification based on your preferred option and click Continue

On the E-Verify page, select the option through which you want to E-Verify the return and click Continue. On successful verification your ITR will be filed.

How to File ITR 1 using offline JSON utility?

To initiate the process, download the offline utility from the e-Filing portal. Once installed, you’ll be directed to the homepage for filing your Income Tax Return (ITR).

1. Click on “Continue”:
   • Locate and click on the “Continue” button to proceed with the filing process.

2. Select the applicable option

Choose the relevant option from the three tabs provided: Returns, Draft Version of Returns, and Pre-filled Data. Click on the tab that best suits your situation, and then proceed to click on ‘File Returns’.

3. Click on ‘Import Pre-filled Data’

Now, you have to select the ‘Import Pre-filled Data’ option. This will import all the data that you have already saved on your system and will pre-fill information in the ITR

4. Enter the PAN and Assessment Year

Now, enter the PAN details of the taxpayer and select the assessment year, and then click on proceed

5. Download the ‘Pre-filled JSON’

Next, download the pre-filled JSON from the e-filing website by logging into your account.

6. Upload the Pre-filled JSON File

Now, upload the pre-filled JSON file downloaded and click on proceed

7. Click on ‘File Return

’Now you will be redirected to the file ITR screen which will contain your pre-filled information from the JSON file

8. Select the Status

Next, select the applicable status and click on continue

9. Select ‘ITR 1’

Now from the options given select ITR 1

10. Click on ‘Let’s get started’

In order to start preparing your ITR, click on ‘Let’s get started’

11. Fill in the applicable and mandatory fields of the Form

Enter all the necessary and applicable details, validate all the tabs of the ITR form and then Tax will be calculated

12. Now Submit your Return

After you have confirmed all schedules, you can submit and preview your return

13. Download or Print the Preview

You can now download or print the preview on your system for your reference

14. Click on ‘Proceed to Validation’

Now return to the screen and click on ‘Proceed to Validation’ to validate the return

15. Validate the Errors

If there are any validation errors, the taxpayer will modify that, post that one can “Download the
JSON” and file it on the income tax website.

How to report Salary Income in the ITR without Form 16?

If you haven’t received Form 16 from your employer, you can still report your salary income in your ITR by following these steps:

1. Calculate Your Gross Salary:
   • Add up all the gross salary received during the financial year from your payslips.
2. Deduct Exempt Allowances:
   • Deduct allowances exempt from tax, such as HRA (House Rent Allowance), LTA (Leave Travel Allowance), Conveyance Allowance, and any other allowances.
3. Deduct Tax on Employment:
   • Deduct any tax on employment deducted by your employer.
4. Claim Deductions:
   • Claim deductions for investments made to EPF (Employee Provident Fund) by you.
5. Consider Multiple Employers:
   • If you changed jobs during the year, consider the total gross salary from all employers while calculating your taxable salary income.

Sample Income Tax Return Form – ITR 1

Major Changes in ITR 1

It’s interesting to see how the requirements for filing income tax returns have evolved over the years. Let’s take a look at some key changes and considerations for assessment years 2020-21, 2021-22, and 2022-23:

Assessment Year 2020-21:

1. Cash Deposits and Expenses: Taxpayers making cash deposits over INR 1 Crore, incurring expenses over INR 2 Lakh on foreign travel, or spending above INR 1 Lakh on electricity were required to file ITR1.
2. Property Ownership: Resident individuals owning a single property in joint ownership could also file ITR1 if their total income was up to INR 50 Lakh.
3. Tax Saving Investments: Taxpayers needed to separately disclose investments, deposits, or payments towards tax-saving instruments made from April 1, 2020, to June 30, 2020.

Assessment Year 2021-22:

1. Tax Regime Option: Taxpayers were given the option to choose between the old tax regime and the new tax regime.
2. Dividend Income Reporting: Dividend income had to be added with a quarterly breakdown for accurate calculation of Interest under Section 234C.

Assessment Year 2022-23:

1. Nature of Employment: Pensioners now need to select their nature of employment, whether central government, state government, PSU, or others.
2. Retirement Benefit Income: Income from retirement benefit accounts maintained in a notified country can be disclosed under Schedule Salary, with relief available for any taxes paid.

These changes reflect the evolving tax landscape and the need for taxpayers to adapt to new reporting requirements and options available to them.

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