ITR-1 (Sahaj) is an income tax return form used by individual taxpayers in India. It is one of the simplest forms and is meant for people with straightforward income sources. Here's a detailed overview:

Who Should File ITR-1?

ITR-1 is suitable for resident individuals whose total income is up to ₹50 lakh and who have income from the following sources:

1. Salary or Pension: Income received as a salary or pension.

2. Income from One House Property: Income from a single house property (excluding cases where there is a loss carried forward from previous years).

3. Other Sources: Income from other sources such as interest from savings accounts, fixed deposits, and other sources, but excluding lottery winnings or income from racehorses.

4. Agricultural Income: Agricultural income up to ₹5,000.

ho Cannot File ITR-1?

You cannot file ITR-1 if:

• Your total income exceeds ₹50 lakh.
• You have more than one house property.
• You have income from capital gains.
• You have income from business or profession.
• You are a director in a company.
• You have invested in unlisted equity shares.
• You have income from foreign sources or foreign assets.
• You have income from lottery, racehorses, legal gambling, etc.
• You have a loss that needs to be carried forward under any head of income.

Structure of ITR-1 Form

The ITR-1 form is divided into several sections:

1. Part A: General Information

   • Personal details like name, PAN, address, Aadhaar number, etc.
   • Details about the filing status (original or revised return).

2. Part B: Gross Total Income

   • Income from salary/pension.
   • Income from house property.
   • Income from other sources.

3. Part C: Deductions and Taxable Total Income

   • Deductions under Chapter VI-A (Sections 80C, 80D, 80G, etc.).
   • Computation of taxable total income.

4. Part D: Tax Computation and Tax Status

   • Computation of tax payable.
   • Details of advance tax, self-assessment tax, and TDS.

5. Part E: Other Information

   • Bank account details.
   • Details for refund, if applicable.

6. Verification

   • Declaration and signature by the taxpayer.

Benefits of Filing ITR-1

• Filing ITR-1 is a straightforward process, making it easy for eligible taxpayers.
• It helps in establishing a record of income, which is useful for loan applications, visa processing, etc.
• Timely filing and payment of taxes help avoid penalties and legal issues.

ITR-1 is an essential form for salaried individuals and pensioners with simple income structures, ensuring compliance with tax regulations.

How To Process ITR 1 in Software:

Step 1:

Go to Quick Access >> ITR 1:

Step 2:

To enter the details and income in the related heads while preparing your income tax return, follow these steps:

1. Personal Information

• PAN: Enter your Permanent Account Number.
• Name: Ensure your name matches the PAN records.
• Aadhaar Number: Link your Aadhaar with PAN.
• Address: Provide your current residential address.
  

2. Filing Status

1. Filing Status: Specify whether the return is original or revised, and also fill in the other details related to the return.
   

3. Bank A/c and TRP Details

• Bank Account Number: Provide your bank account number.
• IFSC Code: Enter the IFSC code of your bank branch.
• Account Type: Specify whether it is a savings or current account.
  
• TRP Detail: Enter the TRP Details.
  

4. Details of Taxes Paid

• Advance Tax: Enter details of advance tax paid, if any.
• Self-Assessment Tax: Include details of any self-assessment tax paid.
• TDS (Tax Deducted at Source): Verify and enter TDS details from Form 16 and Form 26AS.

5. Income from Salary/Pension

• Employer Details: Enter the name and PAN of your employer.
• Gross Salary: Mention the total salary as per your Form 16.
• Exempt Allowances: Enter details of exempt allowances such as HRA, LTA, etc.
• Deductions under Section 16: Standard deduction, professional tax, etc.

6. Income from House Property

• Address of Property: Provide the address of the house property.
• Annual Value: Mention the annual value of the property (self-occupied properties have an annual value of zero).
• Interest on Home Loan: Enter the interest paid on the home loan under Section 24(b).
• Net Income/Loss: Calculate the net income or loss from house property.

7. Income from Other Sources & Exempt Income

• Interest Income: Include interest from savings accounts, fixed deposits, and recurring deposits.
• Dividend Income: Mention the amount received as dividends.
• Other Income: Include any other income like family pension, gifts, etc.

8. Deductions Under Chapter VI-A

• Section 80C: Enter eligible investments like PPF, NSC, life insurance premiums, etc.
• Section 80D: Provide details of health insurance premiums.
• Section 80G: Enter donations made to charitable organizations.
• Other Deductions: Include deductions under sections like 80E (education loan interest), 80TTA (interest on savings account), etc.
  

9. Relief Under section 89

1. Form 10E: Enter the Related details and the Generate From 10E and then Click on Upload (More Detail)

10. Relief under section 90/91

1. Rebate and Relief u/s 90/91: Enter The income and details and then showing the data in the computation and also showing in the Return Form Under Schedule FSI.

11. Generate and Submit

• Once all details are entered, generate the computation.
• Submit the form and verify it electronically or through a physical ITR-V.

Hope This Helps.