The Individuals having an income of up to Rs. 50 lacs are generally required to file their Income Tax Return for income from Salary, through ITR-1 also known as the Sahaj form.
Who can file income tax return for income from salary for individuals?
ITR-1 can be filed only by resident Indian Individuals, having an income of up to Rs. 50 lacs from the following sources:
Who is not eligible to file this ITR?
Income Tax Return for income from Salary through form ITR-1 cannot be filed by the following:
- Income of the Individual is above Rs. 50 lacs
- Individual is a director in a company and has held any unlisted equity shares at any time during the relevant financial year.
- Individual is either a Resident Not Ordinarily Resident (RNOR) or Non Resident
- If the individual has income any of the following sources, then he cannot file Income Tax Return for Individuals:
– More than One House Property
– Lottery, Racehorses, Legal Gambling, etc
– Taxable capital gains (Short term and Long term)
– Agricultural income exceeding Rs. 5,000
– Business and Profession
– Individual who is a Resident and has assets (including financial interest in any entity) outside India or signing authority in any account located outside India.
– Lastly, individuals claiming relief of foreign tax paid or double taxation relief under section 90/90A/91.
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Tax Slabs applicable on Income of Individuals
1. There is no change in Income Tax Slabs for the FY 2021-22 | AY 2022-23
2. The rates of Surcharge, Marginal Relief and SHE Cess are the same under both the tax regimes and shall be levied/provided, where applicable.
3. Rebate under Section 87-A to Resident Individual whose total income is not more than ₹ 5,00,000 is also eligible for a rebate of 100% of income tax or ₹12,500, whichever is less. Further, this rebate is available in both tax regimes.
Incomes on which Individuals can get benefit
The individual can claim Income Tax benefit on Income from House Property on interest paid on housing loan & housing improvement loan. In addition to this, case of self-occupied property, the upper limit for deduction of interest paid on a housing loan is ₹2 lakh. However, this deduction is not available for the persons opting for New Tax Regime.
List of deductions that can be claimed by Individuals
Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, etc
Annuity plan of LIC or another insurer towards Pension Scheme
Pension Scheme of Central Government
Investment in National Pension Scheme
Deduction towards payments made to Health Insurance Premium & Preventive Health check up
₹25,000 / ₹50,000
Deduction wrt medical treatment, etc.
₹40,000 / ₹1,00,000
Deduction in respect of maintenance including medical treatment of a dependent who is a person with disability
₹75,000 / ₹1,25,000
Deduction towards interest payments made on loan for higher education of self or relative
Total amount paid towards interest on loan taken
Deduction towards interest payments made on loan taken for acquisition of residential house property
₹50,000 / ₹1,50,000
Deduction towards interest payments made on loan for purchase of Electric Vehicle
Deduction towards Donations made to certain Funds, Charitable Institutions, etc.
Deduction towards rent paid for house & applicable only where HRA is not part of Salary
Least of the following:
Deduction towards Donations made for Scientific Research or Rural Development
Deduction towards Donations made to Political Party
Any amount other than cash
Deduction on interest received on saving bank accounts by Non-Senior Citizens
Deduction on interest received on deposits by Resident Senior Citizens
Deductions for an individual with Disability
₹75,000 / ₹1,25,000
Under new tax regime, deductions only under Section 80CCD(2) and Section 80JJA are available.
Procedure of filing of ITR-1
Documents needed for ITR-1 filing
Due dates for filing returns of income/loss
Individuals whose accounts are not to be audited
31st July of the assessment year
Individuals whose accounts are to be audited
31st October of the assessment year
*The due dates are subject to change
In ITR-1 from AY 2021-22, there is an addition of section 115BAC. If you wish to opt for the new tax regime under section 115BAC, select Yes in the new ITR form, else select No. Please note that option for new tax regime u/s 115BAC will be available only till due date of filing of return u/s 139(1).
Yes, you can re-submit return in case you have already filed your Income Tax Return and later discover that you have made a mistake. This is called a Revised Return. Your return has to be revised three months before the end of the relevant AY. For AY 2022-23.
In case you miss filing the ITR within the due date u/s 139(1), you can still file your Income Tax Return but you maybe required to pay a late filing fee of up to ₹5000/-. Additionally, you will also be required to pay interest on the tax liability (if any).
Yes, employers and banks deduct tax at source on salary and interest income respectively. You still need to disclose the income on which tax has been deducted and claim credit for TDS in the Income Tax Return.