ITR-1 Return Filing

Eligibility: Resident individuals who have:

1. Income from salary/pension.
2. Income from one house property (excluding cases where loss is brought forward from previous years).
3. Income from other sources (excluding winnings from lottery and income from racehorses).
4. Agricultural income up to ₹5,000.

Not Eligible:

• Individuals with income exceeding ₹50 lakh.
• Individuals who are directors in a company.
• Individuals who have invested in unlisted equity shares.
• Individuals with income from business or profession (use ITR-3 or ITR-4).
• Non-residents and not ordinarily residents.
• Individuals with more than one house property.

Required Documents:

1. Personal Information:
   • PAN Card
   • Aadhaar Card
   • Bank Account Details
2. Income Details:
   • Salary slips/Form 16
   • Rental income from house property
   • Income from other sources (interest, dividends, etc.)
3. Deductions:
   • Investment proofs for claiming deductions under Section 80C, 80D, etc.
   • Interest on home loan (if applicable)
   • Medical expenses and insurance premiums
4. Other Details:
   • TDS certificates
   • Advance tax payment receipts

Process:

1. Collect Documents: Gather all necessary documents related to income, deductions, and other financial transactions.
2. Calculate Total Income: Compute total income by adding income from all sources.
3. Claim Deductions: Apply eligible deductions under various sections of the Income Tax Act.
4. Compute Tax Liability: Calculate tax liability based on income and deductions.
5. File ITR-1: Submit the ITR-1 form online through the Income Tax Department’s e-filing portal.

Benefits of Filing ITR-1:

1. Legal Compliance: Ensures adherence to tax laws and avoids penalties for non-compliance.
2. Claim Deductions: Allows taxpayers to claim deductions and reduce taxable income.
3. Avoid Interest and Penalties: Timely filing helps avoid interest and penalties on tax dues.
4. Financial Proof: Serves as proof of income for loan applications, visa processing, and other financial transactions.
5. Quick Processing: Simplified form ensures quicker processing of returns.

Deadlines:

• The due date for filing ITR-1 is typically July 31st of the assessment year.

Penalties:

• Late filing of ITR-1 attracts a penalty of up to ₹10,000 under Section 234F, depending on the delay and the total income of the taxpayer.

Conclusion: Filing ITR-1 is essential for salaried individuals with simple income sources to ensure compliance with tax laws, accurately report their income, and take advantage of eligible deductions. Timely and correct filing helps maintain financial discipline and avoid legal complications, making the tax filing process straightforward and efficient.