ITR 1 Sahaj – FY 2020-21 / AY 2021-22

ITR 1 Sahaj – FY 2020-21 / AY 2021-22

The Income Tax Department has designed various ITR forms depending on multiple criteria. Taxpayers have to choose the proper ITR forms to file their returns. Comprehensive details have been elaborated for taxpayers who can file ITR-1, also known as ‘SAHAJ’, meaning easy in the Hindi language.  ITR 1 Sahaj – FY 2020-21 / AY 2021-22

Assessment Year for ITR 1 Sahaj Form FY 2020-21

These details of ITR 1 is related to Income earned for the Financial Year (FY) 2020-21 and Assessment Year (AY) 2021‐22.

Who is Eligible to File ITR-1 for FY 2020-21/ AY 2021-22?

ITR-1 or Sahaj ITR for FY 2020-21/ AY 2021-22 is applicable with the following criteria:

• Applicable for resident and ordinarily resident
• Income below Rs 50 Lakhs
• Income from Salary & Pension
• Income from one House Property (excluding brought forward or loss to be carried forward)
• Income from other sources (excluding winning from lottery/income from racehorses)
• An individual has not claimed any deductions u/s 57
• The individual does not have foreign Income or foreign assets.

Further, in a case where the Income of another person, like a 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.

Checklist of information/documents for filing ITR-1

The following documents or information should be kept handy for filing ITR-1:

• General Information
• Income from Salary / Pension
• Income from House Property
  • Housing Loan Statement for the period 01.04.202X to 31.03.202X for claiming deduction of interest under Income from House Property and Details of principal payments for claiming deduction u/s 80C
  • Rent Receipts / Income Earned from House property. Relevant expenses incurred
• Income from Other Sources
  • Interest earned on SB, FD and other investments
  • Interest Certificate from Bank
• Deductions under Chapter VIA
  • Deduction u/s 80C: Investment in tax saving instruments like EPF (EPFO), PPF, VPS, NPS, Life Insurance Premium, repayment of the principal portion of housing loan, ELSS, tax saving mutuals funds, National Savings Certificates (NSC), Senior Citizen Saving Schemes (SCSS), Sukanya Samriddhi Yojana (SSY) Statement
  • Mediclaim premium u/s 80D
  • Donations u/s 80G
• Tax Payment if any
• TDS Statement if any
• Annual Information Return / Form 26AS / SFT – Specified Financial Transactions
• Detail of Exempt Income (only for disclosure and no impact on tax payable)
• Details of all bank accounts
• Form 10E in case relief claimed under section 89

What is the period covered during FY 2020-21 / AY 20201-22?

FY 2020-21 is the financial year 2020-21 starting from 1st April 2020 ending on 31st March 2021. AY 2021-22 is the assessment year 2021-22, which is relevant to the financial year 2020-21 (also called the previous year 2020-21).

Who should not file ITR-1-SAHAJ?

ITR-1 is for individual categories only.

The following individuals should not use ITR-1:

Individual – Non-Resident/Foreign connection/Director/Unlisted shareholdings

• Non-resident individual
• Income outside India
• Claiming tax relief from foreign Income
• Holding foreign assets
• Income from a source outside India
• Holding unlisted shares
• Director in a company

Individual – Source of Income

• Profits/Loss from business/professions
• Income from Capital Gains
• Income from more than one house property
• Agricultural Income more than Rs 5,000/-
• Income from other sources of the following nature
  • speculation income of racehorses and winning from lottery
  • income taxable at special rate u/s 115BBDA or u/s 115BBE
  • Income to be apportioned u/s 5A

Individuals with loss/carry-forward/deductions

• Income to set off with a loss of the current year or brought forward
• Loss carried forward to future years
• A person claiming tax relief under DTAA u/s 90/91

Who should mandatorily file Income Tax returns?

Any Individual whose total Income before allowing deductions under chapter VI-A of the Income Tax exceeds the basic exemption limit should mandatorily file the income tax return.

The basic exemption limit for FY 2020-21 / AY 2021-22 is as follows:

• The individual below 60 years of age is Rs 2.50 Lakhs
• Resident senior citizens who are 60 years and above but below the age of 80 years is Rs 3.00 Lakhs
• Resident super senior citizens who are above 80 years of age is Rs 5.00 Lakhs

The Finance Act (No 2) of 2019 has inserted Seventh Proviso to Section 139(1) of the Income Tax Act to make it mandatory to file an income tax return once the expenditure/transaction amount exceeds the prescribed threshold.

• The total Deposit in the current account is Rs. 1 crore or more
• Foreign Travel expenditure of Rs 2 Lakh or more
• Amount spent for more than Rs 1 Lakh on the consumption of Electricity
• Any other conditions prescribed

FAQs

What is Annexure‐less Return Form?

No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return.

I don’t have an Aadhaar number or Aadhar enrolment number. Can I still e-file my tax return?

No, an Indian resident has to quote the Aadhar number in an income tax return. So ITR can be filed without an Aadhar number (12 digits) or Aadhar enrolment number (28 digits)

It is recommended to apply for Aadhaar and quote the Aadhar enrolment in the ITR.

What are the critical changes in AY 2021-22 compared to ITR for AY 2020‐21?

• Option to avail benefit of new tax regime u/s 115BAC is provided in ITR‐1.
• The option should be availed within the due date mentioned as per section 139(1).
• ITR 1 cannot be filed by the assessed who is having TDS u/s 194N.
• (c) Resident Individual having Income‐Tax deferred on ESOP is restricted to file ITR‐1.
• The quarterly breakup of dividend income is to be provided.
• Schedule DI is removed.
• Date of Donation made in cash has inserted to calculate eligible amount of donation u/s 80GGA

How to file and verify ITR-1 Form FY 2020-21 / AY2021-22?

ITR can be filed with the Income‐tax Department in any of the following ways:

ELECTRONICALLY FILING:

1. electronically on the e‐filing web portal of Income‐tax Department and verified in any one of the following manners –

• digitally signing the verification part, or
• authenticating by way of electronic verification code (EVC), or
• Aadhaar OTP, or
• by sending duly signed paper Form ITR‐V ‐ Income Tax Return Verification Form by post to CPC at the following address –

“Centralized Processing Centre,

Income Tax Department,

Bengaluru— 560500,

Karnataka”.

The Form ITR‐V ‐ Income Tax Return Verification Form should reach within 120 days from the date of e‐filing the return.

The confirmation of the receipt of ITR‐V at the Centralized Processing Centre will be sent to the assessee on e‐mail ID registered in the e‐filing account.

PAPER FORM:

ITR in paper form, at the designated offices of Income‐tax Department, along with duly signed Form ITR‐V. This mode of furnishing return is permissible only in the case of super senior citizens (i.e. an individual of the age of 80 years or more at any time during the previous year).

Process of filling and sending ITR-V :

If an assessee opts for manually sign & sending by post,  the assessee should print out Form ITR V‐ Income Tax Return Verification Form. ITV‐ Income Tax Return Verification Form, duly signed by the assessee, has to be sent by ordinary post or speed post only to Central, Processing Centre, Income Tax Department, Bengaluru‐ 560500 (Karnataka).