Filing your Income Tax Return (ITR) is an essential annual task for every taxpayer. For individuals with specific types of income and within certain limits, the Income Tax Department of India offers the ITR-1 (Sahaj) form. This simplified form is designed to streamline the filing process. Here’s a comprehensive guide to understanding and filing ITR-1 for the Assessment Year (AY) 2024-25.
Eligibility for Filing ITR-1
ITR-1 can be filed by a Resident Individual whose total income does not exceed ₹50 lakh during the Financial Year (FY). This form is applicable if your income is derived from:
- Salary or pension
- One house property
- Family pension income
- Agricultural income (up to ₹5000)
- Other sources such as:
- Interest from savings accounts
- Interest from deposits (bank, post office, cooperative society)
- Interest from income tax refund
- Interest received on enhanced compensation
- Family pension
Additionally, if you are clubbing income from your spouse (excluding those under the Portuguese Civil Code) or minor child, you can still use ITR-1 provided the total income remains within the specified limits.
Ineligibility for Filing ITR-1
Certain conditions disqualify individuals from using the ITR-1 form. You cannot file ITR-1 if you:
- Are a Resident Not Ordinarily Resident (RNOR) or Non-Resident Indian (NRI)
- Have a total income exceeding ₹50 lakh
- Have agricultural income exceeding ₹5000
- Have income from lottery, racehorses, legal gambling, etc.
- Have taxable capital gains
- Have invested in unlisted equity shares
- Have income from business or profession
- Are a director in a company
- Have tax deduction under section 194N
- Have deferred income tax on ESOP from an eligible start-upx
- Own more than one house property
Necessary Documents for Filing
While ITRs are annexure-less forms, meaning no documents need to be attached, it’s crucial to have the following documents ready:
- Annual Information Statement (AIS)
- Form 16
- House rent receipts (if applicable)
- Investment payment or premium receipts (if applicable)
These documents help ensure accuracy in your filing and should be kept for reference in case of any future inquiries from tax authorities.
Filing Precautions
When filing your ITR-1, take the following precautions to avoid errors and complications:
- Choose the Correct Tax Regime: Select between the old and new tax regimes, as the new regime is the default from AY 2024-25.
- Verify Documents: Download and verify AIS and Form 26AS to ensure TDS, TCS, and tax payments are accurately reflected.
- Correct Personal Details: Ensure your PAN, permanent address, contact details, and bank account information are accurate.
- File Timely: Submit your ITR before the due date to avoid penalties and loss of benefits.
- E-Verify: After e-filing, e-verify your return promptly. Manual verification involves sending a signed physical copy of ITR-V Acknowledgement to the Centralized Processing Center, Bengaluru.
Advance Tax and Self-Assessment Tax
If your total tax liability exceeds ₹10,000 in a year, you need to pay advance tax in quarterly installments:
- 15% by 15th June
- 45% by 15th September
- 75% by 15th December
- 100% by 15th March
For self-assessment tax, compute your income, account for TDS and advance tax, and pay any remaining tax before submitting your return.
Revisions and Late Filing
If you discover an error after submitting your return, you can file a Revised Return up to three months before the end of the relevant Assessment Year, with the deadline for AY 2024-25 being 31st December 2024.
Missing the due date under section 139(1) results in a late filing fee of up to ₹5000 and interest on the tax liability. Even if TDS covers your tax liability, you must file your return to claim the tax credit and avoid penalties.
Refunds and Deductions
Any excess tax paid can be claimed as a refund by filing your ITR. The Income Tax Department processes the return and credits the refund to your pre-validated bank account. Remember to link your Aadhaar and PAN and pre-validate your bank account for a smooth refund process.
For deductions under sections 80DD and 80U, file Form 10IA before filing the return and include the form details in your ITR.
Conclusion
Filing ITR-1 (Sahaj) for AY 2024-25 is simplified with clear guidelines and requirements. By ensuring accurate information, timely filing, and proper verification, you can efficiently manage your tax obligations and benefit from eligible deductions and refunds.
