Points to be noted while filing the form ITR-1

Last Updated On: June 6, 2020, 5:26 p.m.
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ITR-1

 

Who can File ITR-1:

  1. This is a form that is filed online by an individual who is a resident (Ordinary) of India.
  2. This form is for individuals having total income up to Rs. 50 lakhs from,
  3. Income from salaries, or
  4. Family Pension, or
  5. Income from other sources (i.e. interest, etc. but it will exclude income chargeable to tax at special rates including winnings from lottery and racehorses or losses under this head), or
  6. Agriculture income of up to Rs. 5000, and
  7. Income from one house property (excluding brought forward losses and losses to be carried forward)

Key Changes in Form ITR-1

  1. In case the house property is rented out, the taxpayer will have to provide the name and PAN or Aadhaar of the tenant in Form ITR-1.
  2. A new disclosure has been added to Part A- General Information of ITR-1. If a taxpayer is filing his return of income under the seventh provision to section 139(1), then for the following amount needs to be disclosed separately:
  • Deposited amount exceeding Rs.1 Crore in one or more current accounts (to be seen aggregate of all accounts).
  • Incurred expenditure of an amount exceeding Rs.2 lakhs for travel to a foreign country for yourself or for any other person.
  • Incurred expenditure of an amount exceeding Rs.1 lakh on the consumption of electricity (aggregate of amount spend during the year to be checked).

  1. The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, circulated by the President of India on 31-03-2020, has extended the time-limit till 30-06-2020 to make investments, deposits, payments, etc. for the financial year 2019-20 for claiming deduction under Chapter VI-A. As per COVID-19 relief Government of India has given relaxation to make investments w.r.to the financial year 2019-20 till 30th June 2020. Hence, the ITR-1 form issued on the 2nd of June as a separate section to report investment made after 1st April till 30th June 2020. Thus, a new Schedule DI has been introduced in the ITR forms to allow taxpayers to avail of the deduction for the investments/deposits made during the extended period.

‘Schedule DI’ is divided into the following three parts:

  1. Column 1 where it requires section number in which deduction is being claimed during the F.Y. 2019-20.
  2. Column 2 where it requires amount or aggregate of the amount invested during the F.Y. 2019-20.
  3. Column 3 where it requires the amount out from column 2 which has been invested during the period 01/04/2020 to 30/06/2020.

Documents required while filing ITR-1

  1. Permanent Account Number (PAN) of the individual.
  2. Aadhaar Number of the individual.
  3. Form 16 of the individual received from an employer. An individual can have more than 1 Form 16 if he has changed his job during the Financial Year.
  4. Form 26AS shows TDS deducted on the individual during the Financial Year.
  5. Interest Certification received from Banks showing interest earned by the individual during the Financial Year.
  6. Investment Instrument, if any done during the Financial Year.
  7. Separate bifurcation of Investment made during the period 01/04/2020 to 30/06/2020.
  8. Any other investment made during the Financial Year, such as education loan, tuition fees, house loan, etc.

Who cannot File ITR-1:

  1. Other than Ordinary residents (i.e. Not-Ordinary Residents or Non Residents). Then in that case ITR-2 will be applicable to the individual.
  2. An individual with a brought forward or carry forward of loss under the head ‘Income from house property can no longer use ITR-1 to file his/her income tax returns. Then in that case ITR-2 will be applicable to the individual.
  3. Having a Total Income of more than Rs. 50 lakhs from income from salaries or family pension or other sources (including winning from lotteries and income from Horse race). Then in that case ITR-2 will be applicable to the individual.
  4. Having Agriculture Income of more than Rs. 5000 during any financial year. Then in that case ITR-2 will be applicable to the individual.
  5. Any Individual if he is a Director in any Company or a Designated Partner of LLP. Then in that case ITR-3 will be applicable to the individual.
  6. Any Individual if he has invested in unlisted equity shares during the financial year. Then in that case ITR-2 will be applicable to the individual.
  7. If an individual has income under the head Capital Gain. Then in that case ITR-2 will be applicable to the individual.
  8. If an individual is assessable in respect of income of another individual (legal heir) in respect of which tax is deducted in the hands of the other person. Then in that case ITR-2 will be applicable to the individual, depending upon some conditions.
  9. Individuals having Foreign Assets or Foreign Income. Then in that case ITR-2 will be applicable to the individual.
  10. Individuals having Income from Business or Profession. Then in that case ITR-3 or ITR-4 will be applicable to the individual, depending upon some conditions.

In any of the above cases, if an individual is having income from Profits and Gains from Business or Profession, then he needs to file ITR-3 instead of ITR-2.

 

DUE DATE FOR FILING THE FORM ITR-1:

Due to the COVID-19 pandemic condition, The Government has given 4 months additional time for the taxpayers to file their returns.

The Finance Minister Nirmala Sitharaman while announcing the first portion of Rs.20 lakh crore Aatmanirbhar Bharat Abhiyaan stimulus package, has extended the due date for all Income Tax Returns (ITR) from July 31st to November 30th.

 

To know more about the changes in the Form ITR-1 click on this to watch the video Form ITR-1

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