Personal / Salaried Return Filing-ITR1
Personal / Salaried Income Tax Return Filing - ITR-1: Services by Deepak Prakash & Associates
Filing an accurate Income Tax Return (ITR) is an essential part of maintaining tax compliance for salaried individuals. In India, ITR-1 is the most commonly used form for individuals earning a salary or pension income, along with income from other specified sources. Properly filing your ITR-1 can ensure you comply with the Income Tax Act, avoid penalties, and even claim refunds on excess tax paid.
At Deepak Prakash & Associates, we specialize in providing comprehensive assistance for Personal / Salaried Income Tax Return Filing using ITR-1. Our expert team of Chartered Accountants (CAs) ensures your tax filing is done accurately, efficiently, and in full compliance with Indian tax laws, helping you claim eligible deductions and minimizing your tax liability.
In this detailed guide, we’ll explain ITR-1 filing, the eligibility criteria, required documents, and how we can help you navigate the process.
What is ITR-1 (Salaried Income Tax Return)?
ITR-1 is a simple form designed for individuals who earn income from salaries, pensions, and other sources such as interest, income from house property, or agricultural income (up to ₹5,000). It is also known as the Sahaj form and is primarily meant for individual taxpayers who have a simple income structure.
Filing ITR-1 is a straightforward way for salaried individuals to fulfill their tax obligations, claim exemptions, and deductions, and ensure they are not paying more taxes than necessary.
Who is Eligible to File ITR-1 (Salaried)?
ITR-1 is available for individuals who meet the following criteria:
Income from Salary or Pension: The individual must earn income solely from salary or pension.
Income from Other Sources: The individual must have income from other sources, such as:
- Interest from savings accounts
- Fixed deposits (FDs)
- Income from a house property (if the individual owns any property)
Agricultural Income: The individual can have agricultural income up to ₹5,000 during the financial year.
No Business or Profession Income: If you are earning income from business, freelance work, or professional services, you will not be eligible to file ITR-1. You would need to file ITR-3 or ITR-4, depending on your specific circumstances.
No Capital Gains: If you have capital gains (from the sale of shares, property, or other investments), you cannot use ITR-1. You will need to use ITR-2.
What Does ITR-1 Include?
ITR-1 covers the following sources of income:
Income from Salary or Pension:
- Salary received from an employer or pension received after retirement.
- This income is subject to tax under the head “Income from Salary”.
Income from House Property:
- If you own property and earn rental income, it should be declared under the head “Income from House Property”.
- You can also claim deductions for home loan interest payments under Section 24(b).
Income from Other Sources:
- This includes interest income from savings accounts, fixed deposits, etc.
- Dividends from listed companies (up to ₹10,000).
- Any other income such as winnings from lotteries, etc.
Agricultural Income:
- Income from agriculture is allowed up to ₹5,000, and if your agricultural income exceeds this limit, you will need to file a different ITR.
Key Features of ITR-1 (Sahaj)
- Simplicity: ITR-1 is a simple form, designed for individuals with a single source of income. It requires minimal information and can be filed quickly and efficiently.
- Eligibility: It’s mainly used by salaried employees, pensioners, and people with income from other sources like interest and house property.
- Exemptions and Deductions: ITR-1 allows you to claim various exemptions and deductions under the Income Tax Act to reduce your taxable income. These may include:
- Section 80C: Deduction for investments in LIC, PPF, EPF, tax-saving FDs, etc.
- Section 80D: Deduction for premiums paid for health insurance.
- Section 24(b): Deduction for home loan interest.
Benefits of Filing ITR-1 for Salaried Individuals
Tax Refund: If you have paid excess tax during the year through TDS or advance tax, filing ITR-1 ensures you can claim your refund.
Avoid Penalties: Filing your return on time ensures you stay compliant with tax laws and avoid penalties for late filing.
Credit Score Improvement: Filing returns and paying taxes on time improves your financial credibility, which can help you when applying for loans, mortgages, and other credit facilities.
Carry Forward Losses: If you incur a loss from house property (e.g., home loan interest), you can carry forward the loss to set it off against future rental income.
Easy Loan Approval: Lenders often require copies of your tax returns when you apply for loans or credit. Filing your ITR demonstrates your financial responsibility.
Why Choose Deepak Prakash & Associates for ITR-1 Filing?
At Deepak Prakash & Associates, we are committed to ensuring that your Salaried ITR-1 filing is smooth, accurate, and compliant with all tax regulations. Here’s why you should trust us with your ITR filing:
Expert Assistance: Our team of qualified Chartered Accountants (CAs) ensures that your ITR is filed correctly, and all eligible deductions are claimed.
Personalized Service: We provide customized assistance to understand your financial situation, ensuring you claim every deduction and benefit available to you.
Timely Filing: We make sure that your ITR-1 is filed within the due deadline, avoiding penalties and interest for late submission.
Easy Process: From document collection to filing your return, we handle the entire process for you, making the tax filing process hassle-free.
Refund Management: If you are eligible for a refund, we ensure that it is processed promptly.
