The Central Board of Direct Taxes (CBDT) notified the instructions are guidelines to help the taxpayers for filling the particulars in IncomeTax Return Form‐1 for the Assessment Year 2021‐22 relating to the Financial Year 2020‐21.
What is ITR‐1 SAHAJ?
In order to make tax compliance easier, the income tax department has categorized taxpayers into many groups based on income and its source. So, you need to file your returns accordingly. ITR-1, also known as Sahaj Form, is for a person with an income up to Rs. 50 lakhs.
This Return Form is to be used by an individual who is a resident other than not ordinarily resident, whose total income for the Assessment Year 2021‐22 does not exceed Rs. 50 lakh and who has income under the following heads namely Income from Salary/ Pension; or Income from One House Property; or Interest income and/ or family pension taxable under Other Sources.
It is noteworthy that in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.
Who is not eligible to use this Return Form?
This Return Form should not be used by an individual who is a Director in a company; has held any unlisted equity shares at any time during the previous year; has any asset (including financial interest in any entity) located outside India; has signing authority in any account located outside India; or has income from any source outside India; has deferred tax on ESOP received from employer being an eligible start‐up; has withdrawn cash and TDS has been deducted u/s 194N on such withdrawal.
This return form also cannot be used by an individual who has any income of the following nature during the previous year Profits and gains from business and professions; Capital gains; Income from more than one house property; Income under the head other sources Income to be apportioned in accordance with provisions of section 5A; or Agricultural income in excess of Rs.5,000.
Further, this return form also cannot be used by an individual who has any claims of loss/deductions/relief/tax credit etc. of the nature namely any brought forward loss or loss to be carried forward under the head ‘Income from house property’; loss under the head ‘Income from other sources’; any claim of relief under section 90 and/or section 91; any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or any claim of credit of tax deducted at source in the hands of any other
Person.
Key changes as compared to ITR for AY 2020‐21
Firstly, the option to avail benefit of the new tax regime u/s 115 BAC is provided in ITR‐1. Option should be availed within the due date mentioned as per section 139(1).
Secondly, ITR 1 cannot be filed by the assessee who is having TDS u/s 194N.
Thirdly, Resident Individual having Income‐Tax deferred on ESOP is restricted to file
ITR‐1
Fourthly, Quarterly breakup of dividend income to be provided.
Fifthly, Schedule DI is removed.
Lastly, Date of Donation made in cash has inserted to calculate eligible amount of
donation u/s 80GGA.
Manner of filing and Verification
This Return Form can be filed with the Income‐tax Department either in Electronically or in paper form.
In case of filing the return electronically on the e‐filing web portal of Income‐tax Department (www.incometaxindiaefiling.gov.in) [www.incometax.gov.in from 7‐June‐ 2021] and verified digitally signing the verification part, or authenticating by way of electronic verification code (EVC), or Aadhaar OTP, or by sending duly signed paper Form ITR‐V ‐ Income Tax Return Verification Form by post to CPC at the “Centralized Processing Centre, Income Tax Department, Bengaluru— 560500, Karnataka”.
The Form ITR‐V ‐ Income Tax Return Verification Form should reach within 120 days from the date of e‐filing the return. The confirmation of the receipt of ITR‐V at Centralized Processing Centre will be sent to the assessee on e‐mail ID registered in the e‐filing account.
This Return Form can be filed in paper form, at the designated offices of Income‐tax Department, along with duly signed Form ITR‐V. This mode of furnishing return is permissible only in case of super senior citizens (i.e. an individual of the age of 80 years or more at any time during the previous year).
Obligation to file return
Every individual whose total income before allowing deductions under Chapter VI‐A of the Income Tax Act or deduction for capital gains (section 54 to 54GB), exceeds the maximum amount which is not chargeable to income‐tax is obligated to furnish his return of income. The claim of deduction(s) under Chapter VI‐A is to be mentioned in Part C of this Return Form. In case of any doubt, please refer to relevant provisions of the Income‐tax Act.
In case if New Tax Regime u/s 115 BAC is not opted, the maximum of Rs. 2,50,000 which is not chargeable to income tax for Assessment Year 2021‐22, in case of an individual who is below the age of 60 years.
In case if New Tax Regime u/s 115 BAC is not opted, the maximum of Rs.3,00,000 which is not chargeable to income tax for Assessment Year 2021‐22, in case of an individual, being resident in India, who is of the age of 60 years or more at any time during the previous year 2020‐21.
In case if New Tax Regime u/s 115 BAC is not opted, the maximum of Rs. 5,00,000 which is not chargeable to income tax for Assessment Year 2021‐22, in case of an individual, being resident in India, who is of the age of 80 years or more at any time during the previous year 2020‐21.
If New Tax Regime is opted u/s 115 BAC, the maximum of Rs. 2,50,000 which is not chargeable to income tax for Assessment Year 2021‐22, in case of an individual who is below the age of 60 years; in case of an individual, being resident in India, who is of the age of 60 years or more at any time during the previous year 2020‐21; and in case of an individual, being resident in India, who is of the age of 80 years or more at any time during the previous year 2020‐21.
If a person whose total income before allowing deductions under Chapter VI‐A of the Income‐tax Act or deduction for capital gains (section 54 to 54GB), does not exceeds the maximum amount which is not chargeable to income‐tax but fulfils one or more conditions is obligated to furnish his return of income namely Deposit of amount or aggregates of amount exceeding Rs 1 crore in one or more current accounts; Incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or any other person;and Incurred expenditure of amount or aggregate of amount exceeding Rs. 1 lakh on consumption of electricity.
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