ITR-1, also known as the Sahaj form, for people with incomes of up to Rs. 50 lakhs from the following sources: -
(a) Income from Salary / Pension. A person earning more than Rs 50 lakhs must apply for ITR 2.
(b) Proceeds from one House Property.
(c) Revenue from Other Sources (other than winnings from Lottery and Earnings from Racing Horse)
2. Final date for completing ITR 1: ITR 1 payment date is 31 July 2021. The ITR must be filed for revenue received from 1 April 2020 to 31 March 2021 and later 31 July 2021 unless otherwise extended by the Government.
2.1 Each person will submit an ITR at the beginning of the first week of June 2021 as at that time, form 26AS will contain all the tax details of employers and other taxpayers.
3. New features of ITR form 1: The government has introduced the tax return forms for the 2020-21 financial year with a notice of 31 March 2021. According to the notice, the following are new items on the form: -
3.1 Tax prescribed to ESOPs: ITR-1 cannot be used by a person with a tax deducted from ESOPs.
3.1.1. According to the amendment to Budget 2020, from FY 2020-2021, an employee who receives ESOPs from eligible start-ups does not need to pay tax in the year of use of the option.
3.1.2 The ‘perquisite’ TDS is suspended at the start of events ending five years from the year of the ESOP allocation year or the date of the sale of ESOP by the employee or the date of termination of employment
3.1.3 Those employees will not be able to enter the ITR 1. They will have to enter the ITR 2.
3.2 TDS determined under sec 194 N: For FY 2020-21, a return to ITR 1 cannot be lodged by a taxpayer deducted under Section 194N.
3.2.1 TDS is required to be deducted under Section 194N by banks, co-operative banks, or post office at a rate of 2% or 5% depending on the cash amount issued to one or more accounts held by the recipient.
3.2.2 Such taxpayers may use ITR 2 or 3.
3.3 Division benefit description: ITR-1 requests a quarterly dividend of dividend income which was initially charged on FY 2020-21.
3.3.1 This information is required in the application for the payment of prepayment under section 234C on dividends.
3.3.2 Previously, dividends of up to Rs10 lakh were taxable under Section 10 (34) and such amounts were reflected under the income category.
3.3.3 Currently, allocation revenue should be disclosed under “revenue from other sources
4. Necessary documents for ITR 1
4.1 FORM 16: Issued by all your employers in the financial year provided
4.2 FORM 26AS: Remember to confirm that the TDS mentioned on Form 16 is similar to TDS in part A of your Form 26AS
4.3 Bank investment funds: Interest from bank account details - bank entry or FD certificate
4.4 Receipt fees: If you have not been able to submit proof of exemptions or deductions to your employer on time, keep these relevant receipts to claim directly from your tax return.
5. Aadhaar card mandatory for tax filing: The Tax Department has made it mandatory for all taxpayers to link the Aadhaar card and PAN on the Department of Taxation website.
6. Bank details: From 2015, the Tax Department has mandated that all taxpayers must report all bank accounts they have in return for tax returns. This also includes merged accounts.
6.1 During e-filing IT Return, the department will not require you to enable all bank accounts. But one should be aware that in the event of a new KYC bank account opening and the PAN number delivery is mandatory. As the number of the pan is linked to the income tax return, the department is aware of all the bank accounts you have.
6.2 You do not have to provide details of the most dormant accounts. Therefore, one can leave the details of providing those accounts that were inactive 36 months ago, because those are considered dormant.
7. Pre-verification of account: From the 2019-20 review year, it is imperative that pre-bank accounts be certified to receive Electronic Service Credit (ECS) tax refunds.
7.1 Pre-verification of a bank account is also required, in the case of ITR verification by Electronic Verification Code (EVC). This is because a pre-verified bank account can only be activated by EVC to obtain a one-time verification/password (OTP) code.
8. Use of installation ITR 1: The Revenue Department has introduced a new offline system based on JSON for the 2021-22 testing year. It has completed the outstanding and Java-based work to improve the tax-paying process.
8.1 The new application is an easy-to-use form for filling out forms and will easily pay taxpayers. The application itself assists in the form of FAQs, administrative notes, circulars, and legal provisions to enable the seamless filing
Taxpayers will be able to pay taxes, verify and upload the ITR using itself
8.3 The Department of Revenue has issued a step-by-step guide to implementing this plan. The taxpayer can download the materials and manual from the e-input site:
9. Pre-completed information: The new government will assist taxpayers to import and complete the pre-tax returns (ITR). As the tax department will be providing pre-completed data, JSON technology makes the process of extracting data from other sources much faster It can handle heavy data better, thus helping to avoid any disruption for taxpayers.
9.1 Taxpayers can download pre-completed information from the tax filing portal and complete all other details. The imported data can be configured to change basic information such as address and all.
10. Taxpayers are advised to wait to apply ITR 1 as employers and others may not yet submit their tax returns for the last 2020-21 quarter. Before installing your ITR 1, please refer to the TDS details mentioned in form 16, form 16A, and Form 26 AS and make sure they are the same. If there are any differences, they will need to be sorted by contacting the TDS provider.