Who Cannot File ITR-1?

The following categories of individuals are not eligible to file ITR-1:

• Resident Not Ordinarily Resident (RNOR) and Non-Resident Indian (NRI) individuals
• Those with a total income exceeding ₹ 50 lakh
• Individuals with agricultural income surpassing ₹ 5,000
• Individuals with income derived from activities like lottery, racehorses, legal gambling, etc.
• Those with taxable capital gains, both short-term and long-term
• Individuals who have invested in unlisted equity shares
• Individuals with income sourced from business or profession
• Individuals serving as Directors in a company
• Individuals availing tax deduction under section 194N of the Income Tax Act
• Individuals with deferred income tax on Employee Stock Ownership Plan (ESOP) received from an eligible start-up employer
• Individuals who own and generate income from more than one house property
• Individuals who do not meet the eligibility criteria outlined for ITR-1 filing.

ITR-1 Due Date

The due date for ITR-1 filing typically falls on July 31st of each assessment year. It’s crucial to meet this deadline to ensure that your income tax return is filed on time and in compliance with tax regulations.

Structure of ITR Form 1: A Comprehensive Overview

While ITR Form 1 may seem straightforward, it requires careful attention during the filling process. ITR Sahaj is organized into five distinct parts and two schedules to ensure clarity. These segments include:

• Part A: General Information: Personal details such as name, PAN number, age, gender, date of birth, ward and assessing officer details, communication address, contact number, city, state, filing date, and Aadhaar details.
• Part B: Gross Total Income: Information on gross total income, including earnings from salary, property, and other sources.
• Part C: Deductions and Total Taxable Income: Details related to deductions under sections 80C, 80D, 80U, and 80G.
• Part D: Computation of Tax Payable: Rows covering tax computation, status, rebates, post-rebate taxes, TDS claims, and bank account details, including account number, bank name, IFSC code, and account type, with an option to specify the account for refund, if applicable.
• Part E: Other Information: Various additional details as required by the tax authorities.

Additionally, the form comprises two schedules:

• Schedule IT
• Schedule TDS & TCS

The final step in the process involves the verification of the information provided.

Documents Required for Filing ITR-1

ITR Sahaj Forms are attachment-less forms, meaning that taxpayers are not required to attach any documents. However, taxpayers should retain the following documents for their records and be prepared to produce them before tax authorities if requested, particularly in situations like assessments or inquiries:

• Form 16: Provided by all your employers for the relevant financial year.
• Form 26AS: Ensure that the TDS details in Form 16 match those in Part A of Form 26AS.
• Receipts: Retain receipts for exemptions or deductions (e.g., HRA allowance or Section 80C/80D deductions) not submitted to your employer on time to claim them directly on your income tax return.
• PAN Card: Your Permanent Account Number (PAN) card is essential for identification.
• Bank Investment Certificates: Details of interest earned from bank accounts, such as bank passbooks or fixed deposit certificates.

Required Details in ITR-1 Form

The ITR-1 form comprises several sections, each requiring specific information for accurate completion:

• Part A: This section captures personal information, including PAN number, age, gender, address, and communication details.
• Part B: Information on gross total income, including earnings from salary, property, and other sources.
• Part C: Details related to deductions under sections 80C, 80D, 80U, and 80G.
• Part D: Tax computation, status, rebates, post-rebate taxes, TDS claims, and bank account details.

Types of Income Excluded from ITR-1 Form

The ITR-1 form excludes certain categories of income, including:

• Profits and Gains from Business or Profession
• Income from More than One House Property
• Capital Gains (Short-term or Long-term)
• Specific Other Sources of Income:
  • Income from owning and maintaining racehorses
  • Winnings from lotteries
  • Income subject to special rates under Section 115BBDA or Section 115BBE
  • Income meant to be distributed as per the regulations of section 5A

Penalty for Late ITR-1 Filing

Late filing of income tax returns can result in various penalties, depending on your total income. Individuals with a total income exceeding Rs 5 lakh may face a penalty of Rs 5,000, while those with income below this threshold may incur a reduced penalty of Rs 1,000. Additionally, if you owe taxes and fail to file the return by the due date, you will be liable for additional interest at a rate of 1% per month until you submit the return. In more severe cases, penalties can be imposed for underreporting or misreporting of income. Underreporting may lead to penalties of up to 50% of the tax underreported, while misreporting can result in penalties of up to 200% of the misreported tax amount. Furthermore, repeated failure to file tax returns despite reminders from tax authorities may lead to prosecution procedures, potentially resulting in imprisonment ranging from three months to seven years, depending on the outstanding tax liabilities.

It is crucial to file your ITR-1 promptly and accurately to avoid these legal and financial consequences.

How Can ASK Associates Help in ITR-1 (Sahaj)?

ASK Associates provides valuable assistance in filing your ITR-1 (Sahaj) income tax return. We start by helping you select the appropriate form based on your income sources, ensuring accuracy in filing. We meticulously calculate your tax liability, perform error checks, and prioritize timely filing to reduce the risk of penalties or tax notices. If eligible, we assist in processing your income tax refund efficiently. Our team of tax experts is available to address your queries and provide guidance throughout the process. ASK Associates also keeps you updated on tax law changes and deadlines, ensuring your compliance with the latest regulations. With our secure platform, you can trust us to safeguard your financial data while simplifying your ITR-1 filing experience.

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