Guidelines for filling ITR-1 SAHAJ for AY 2020-2021

The Central Board of Direct Taxes (CBDT) issued the Guidelines for filling ITR-1 SAHAJ to help the taxpayers for filing the particulars in Income-tax Return Form-1 for the Assessment Year 2020-2021 relating to the Financial Year 2019-2020. The ITR-1 Return Filing Form, also called SAHAJ is the Income Tax Return Form for salaried individuals with an income up to Rs. 50 lakhs. The current article briefs the Guidelines for filling ITR-1 SAHAJ for AY 2020-2021.

Eligibility Criteria to file SAHAJ

The ITR-1 SAHAJ form is to be used by an individual who is a resident other than not ordinarily resident, whose total income for the assessment year 2019-2020 does not exceed Rs. 50 lakh and who has income under the following heads:

Income from Salary or Income from Pension
Income from One House Property
Income from Other Sources

If the income of another person like spouse, minor child, etc. is to be clubbed with the income of the taxpayer, the SAHAJ can be used only if the income being clubbed falls into the above income categories.

Non-Applicability of ITR-1 SAHAJ Form

This Return Form is applicable for the following taxpayers:

Director of the company
The person who has held any unlisted equity shares at any time during the previous year;
A person who has an asset (including financial interest in any entity) located outside India;
An individual who has signing authority in any account located outside India
If a person has income from any source outside India

The SAHAJ form cannot be used by a person who has any income of the following nature during the previous year:

Profits and gains from business and professions
Income from more than one house property
Capital gains;
Income under the head other sources which are of the following nature
Income from winning a lottery
The activity of owning and maintaining racehorses
Income taxable at special rates under the section 115BBDA or section 115BBE of Income Tax Act
Income to be apportioned following provisions of section 5A of Income Tax Act
Agricultural income above Rs.5000

This return form also not applicable for an individual who has any claims of loss, deductions, relief, and a tax credit of the following nature

Any brought forward loss or loss to be carried forward under the Income from house property
Loss under the Income from other sources
Any claim of relief under section 90 and/or section 91 of the Income Tax Act
Any claim of deduction under section 57, other than a deduction under clause (ii) (relating to family pension)
Any claim of credit of tax deducted at source in the hands of any other person

Assessment Year for which this Return Form is applicable

The ITR-1 SAHAJ is applicable for the assessment year 2020-2021 only, that is, it relates to income earned during the Financial Year 2018-2019.

Annexure-less Return Form

The taxpayer need not upload documents with this return (including the TDS certificate). All documents enclosed with the Return Form will be detached and returned to the taxpayer.

Tax Computation Details

The Computation for filing the ITR-1 SAHAJ is tabulated here: Tax computation for every individual other than the resident individual who is of the age of 60 years or more at any time during the financial year 2019-2020 is as follows:

Sl.No	Income	Tax Liability
1	Upto Rs.2,50,000	Nil
2	Between Rs.2,50,001 – Rs.5,00,000	5% of income in excess of Rs.2,50,000
3	Between Rs.5,00,001 – Rs.10,00,000	Rs.12,500 + 20% of income in excess of Rs.5,00,000
4	Above Rs.10,00,000	Rs.1,12,500 + 30% of income in excess of Rs.10,00,000

Tax liability for a resident individual who is of the age of 60 years or more but less than 80 years at any time during the financial year 2019-2020 is as follows:

Sl.No	Income	Tax Liability
1	Upto 3,00,000	Nil
2	Between 3,00,001 – 5,00,000	5% of income in excess of 3,00,000
3	Between 5,00,001 – 10,00,000	10,000 + 20% of income in excess of 5,00,000
4	Above 10,00,000	1,10,000 + 30% of income in excess of 10,00,000

In case of a resident individual who is of the age of 80 years or more at any time during the financial year 2019-20

Sl.No	Income	Tax Liability
1	Upto 5,00,000	Nil
2	Between 5,00,001 – 10,00,000	20% of income in excess of 5,00,000
3	Above 10,00,000	1,00,000+ 30% of income in excess of 10,00,000

Procedure for filling ITR-1 SAHAJ

The income tax return form-1 (SAHAJ) can be filed with the Income-tax Department in any of the following ways:

e-Filing of ITR-1 SAHAJ

The applicant can file the ITR-1 SAHAJ form electronically on the e-filing web portal of the Income-tax Department and verify in any one of the following manners:

Digitally signing the verification part,
Authenticating by way of electronic verification code (EVC)
By forwarding duly signed paper Form ITR-V (Acknowledgment) by post to CPC at the following address
- Post Bag No. 1,
- Electronic City Office,
- Bengaluru— 560500,
- Karnataka

The applicant is required to furnish the following details in the income tax return form-1 (SAHAJ):

General Information about the taxpayer
Gross Total Income
Income from house property
Income from other Sources
Deductions and Taxable Total Income
Computation of Tax Payable
Details of all bank accounts in India
Details of donations entitled for deduction under section 80G
Details of donations for scientific research or rural development
Deduction in respect of health insurance premia
Details of Advance/Self-assessment tax payments
Details of TDS/TCS
Details of Investment

Note: The Form ITR-V should reach within 120 days from the date of e-filing the return

Offline Method for Super Senior Citizens

The income tax return -1 can be filled in paper form, at the designated offices of the 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).

Filling out the ITR V- Income Tax Return Verification Form

After filing the ITR form – 1, the taxpayer needs to print out the Form ITRV- Income Tax Return Verification Form. ITRV- Income Tax Return Verification Form duly signed by the taxpayer need to be sent by ordinary post or speed post to Central, Processing Centre, Income Tax Department, Bengaluru- 560500 (Karnataka).

Obligation to File Return

Every individual whose total income before allowing deductions under Chapter VI-A of the Income-tax Act or deduction for capital gains (section 54 to section 54GB), exceeds the maximum amount which is not chargeable to income tax is obligated to furnish his return of income in form SAHAJ. The maximum amount which is not chargeable to income tax for Assessment Year 2020-2021 for different categories of individuals, is as under:

Sl.No	Category	Amount
1	An individual who is below the age of 60 years	Rs.2,50,000
2	An individual, being resident in India, who is of the age of 60 years or more at any time during the previous year 2019-2020	Rs3,00,000
3	An individual, being resident in India, who is of the age of 80 years or more at any time during the previous year 2019-2020	Rs.5,00,000

If a person whose total income before allowing deductions under Chapter VI-A of the Income-tax Act or deduction for capital gains (section 54 to 54GB) or exempt long term capital gains (section 10(38)), does not exceed the maximum amount which is not chargeable to income-tax but fulfils one or more conditions mentioned below is obligated to furnish his return of income

Deposit of amount or aggregates of the amount exceeding Rs.1 crore in one or more current accounts
Incurred expenditure of an amount or aggregate of the amount exceeding two lakhs for travel to a foreign country for yourself or any other person
Incurred expenditure of amount or aggregate of the amount exceeding one lakh on the consumption of electricity

Please click on the official link Guidelines for filling ITR-1 SAHAJ for AY 2020-2021 for reference.