Income tax return is filed by a person to declare his total income for the year to the Income tax department.
ITR 1 is the most basic form available under the Indian Income tax law and in this post let’s discuss some basic details about this ITR Form and also what has changed in this ITR Form as compared to ITR Form for AY 2021-22.
Who is eligible to use this Return Form i.e. Who can file ITR 1 Form?
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:‐
(a) Income from Salary/ Pension; or
(b) Income from One House Property; or
(c) Interest income and/ or family pension taxable under Other Sources.
Further, 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 i.e. Who cannot file ITR 1 Form?
A. This Return Form should not be used by an individual who is a non-resident or not ordinary resident of India or –
(a) is a Director in a company;
(b) has held any unlisted equity shares at any time during the previous year;
(c) has any asset (including financial interest in any entity) located outside India;
(d) has signing authority in any account located outside India; or
(e) has income from any source outside India.
(f) has deferred tax on ESOP received from employer being an eligible start‐up.
(g) has withdrawn cash and TDS has been deducted u/s 194N on such withdrawal.
B. This return form also cannot be used by an individual who has any income of the following nature during the previous year:‐
(a) Profits and gains from business and professions;
(b) Capital gains;
(c) Income from more than one house property;
(d) Income under the head other sources which is of following nature:‐
(i) winnings from lottery;
(ii) activity of owning and maintaining race horses;
(iii) income taxable at special rates under section 115BBDA or section 115BBE;
(e) Income to be apportioned in accordance with provisions of section 5A; or
(f) Agricultural income in excess of ₹5,000.
C. Further, this return form also cannot be used by an individual who has any claims of loss/deductions/relief/tax credit etc. of the following nature:‐
(a) any brought forward loss or loss to be carried forward under the head ‘Income from house property’;
(b) loss under the head ‘Income from other sources’;
(c) any claim of relief under section 90 and/or section 91;
(d) any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or
(e) any claim of credit of tax deducted at source in the hands of any other person.
Key changes in ITR 1 Form (as compared to ITR for AY 2020‐21)
(a) Option to avail benefit of new tax regime u/s 115BAC is provided in ITR‐1. Option should be availed within due date mentioned as per section 139(1).
(b) ITR 1 cannot be filed by the assessee who is having TDS u/s 194N.
(c) Resident Individual having Income‐Tax deferred on ESOP is restricted to file ITR‐1
(d) Quarterly breakup of dividend income to be provided.
(e) Schedule DI is removed.
(f) Date of Donation made in cash has inserted to calculate eligible amount of donation u/s 80GGA.
Although the new e-filing website is not functioning properly and people are finding it difficult to file their income tax return but it is always better to get things ready beforehand and not wait for last moment and thus you can book your consultation with tax expert for filing of your Income tax return by click on the links mentioned below.
You can book phone consultation/ assistance online with expert as mentioned below:
To book ITR filing with experts CLICK ME.
To book phone consultation with experts for Income tax CLICK ME.
To book consultation for Faceless Assessment with experts CLICK ME.
To book phone consultation with experts for GST CLICK ME.
To book general phone consultation with expert CLICK ME.