In this article, we will address frequently asked questions about ITR-1 (Income Tax Return-1) for the Assessment Year 2023-24. ITR-1 is a form used by individuals to file their income tax returns when their total income does not exceed ₹50 lakh and their income is from salary, one house property, family pension income, agricultural income (up to ₹5000), and other sources. Let’s explore the key aspects of ITR-1 and clarify any doubts you may have.
1. Who is eligible to file ITR-1 for AY 2023-24?
ITR-1 can be filed by a Resident Individual whose total income does not exceed ₹50 lakh during the financial year. The income should be from salary, one house property, family pension income, agricultural income (up to ₹5000), and other sources. Other sources include interest from savings accounts, interest from deposits (bank/post office/cooperative society), interest from income tax refund, interest received on enhanced compensation, any other interest income, and family pension. It’s important to note that the income of the spouse or minor can only be clubbed if it falls within the specified limits mentioned above.
2. Who is not eligible to file ITR-1 for AY 2023-24?
ITR-1 cannot be filed by individuals who fall under the following categories:
- Resident Not Ordinarily Resident (RNOR) and Non-Resident Indian (NRI)
- Individuals with a total income exceeding ₹50 lakh
- Individuals with agricultural income exceeding ₹5000
- Individuals with income from lottery, racehorses, legal gambling, etc.
- Individuals with taxable capital gains (short term and long term)
- Individuals who have invested in unlisted equity shares
- Individuals with income from business or profession
- Directors in a company
- Individuals with tax deduction under section 194N of the Income Tax Act
- Individuals with deferred income tax on ESOP received from an employer being an eligible start-up
- Individuals who own and have income from more than one house property
- Individuals who do not meet the eligibility conditions for ITR-1
3. What types of income are excluded from ITR-1?
ITR-1 does not include the following types of income:
- Profits and gains from business and professions
- Capital gains
- Income from more than one house property
- Income under the head “other sources” of the following nature:
- Winnings from lottery
- Activity of owning and maintaining racehorses
- Income taxable at special rates under section 115BBDA or section 115BBE
- Income to be apportioned in accordance with the provisions of section 5A
4. Is it mandatory to define the nature of employment while filing the return?
Yes, it is mandatory to define the nature of employment while filing the return. The options for defining the nature of employment include:
- Central Government Employee
- State Government Employee
- Employee of Public Sector Enterprise (whether Central or State Government)
- Pensioners (CG/SG/PSU/OTHER)
- Employee of Private Sector concern
- Not applicable (in case of family pension income)
5. What changes have been made to ITR forms after the introduction of Section 89A?
The new ITR forms have amended Schedule S (Details of Income from Salary) to disclose income from a retirement benefits account maintained in a notified country under Section 89A. Additionally, they also require the disclosure of income from a retirement benefit account maintained in a country other than the notified country under Section 89A.
6. What documents are required to file ITR-1?
To file ITR-1, you will need the following documents:
- Form 16
- House rent receipt (if applicable)
- Investment payment premium receipts (if applicable)
It’s important to note that ITRs are annexure-less forms, so you are not required to attach any documents like proof of investment or TDS certificates along with your return. However, you should keep these documents for situations where they need to be produced before tax authorities such as assessment or inquiry.
7. What precautions should I take while filing the return of income?
When filing your return of income, it’s important to take the following precautions:
- Download Annual Information Statement (AIS) and Form 26AS to check the actual TDS/TCS/tax paid. If you notice any discrepancy, reconcile it with the employer, tax deductor, or bank.
- Compile and study the relevant documents such as bank statements, interest certificates, receipts for exemptions or deductions, Form 16, Form 26AS, and investment proofs.
- Ensure that details like PAN, permanent address, contact details, and bank account details are correct in the pre-filled data.
- Identify the correct return form for you (from ITR-1 to ITR-7) and provide all the necessary details such as total income, deductions, interest, and taxes paid.
- No documents need to be attached with ITR-1.
- File the return of income on or before the due date to avoid late filing fees and other consequences of delayed filing.
- After e-filing the return, e-verify it. If you prefer manual verification, send the signed physical copy of ITR-V Acknowledgement (by speed post) within the appropriate timelines to the Centralized Processing Center, Income Tax Department, Bengaluru.
8. How do I determine which ITR form I need to file?
The correct ITR form to file depends on the source of income and residential status. To determine the correct form, you can use the “Help me decide which ITR Form to file” option provided. Answer the displayed questions to determine the appropriate ITR form for your filing.
9. What is Form 26AS?
Form 26AS is a statement that shows various details related to Tax Deducted/Collected at Source, Advance Tax/Self-Assessment Tax, Specified Financial Transactions, Demand/Refund Pending/Completed Proceedings for a taxpayer’s PAN as per the Income Tax Department’s database. It provides an overview of the total tax paid by the taxpayer, allowing them to claim the credit of taxes as reflected in their Form 26AS.
10. What should I do if there are errors and omissions in my Form 26AS?
If you notice errors or omissions in your Form 26AS, you can take the following actions to correct the details:
- Provide a correction statement via the NSDL website for records that require correction.
- If the mistake was made by the deductor (e.g., your employer), contact them and request them to file the TDS return if it is pending or furnish a revised TDS return if they filed it with incorrect details or the wrong or no PAN.
- If the mistake was made by the bank (e.g., in tax amount or PAN), request the bank to rectify it in the challan details uploaded by them.
It’s important to correct any discrepancies, especially in the tax amount, to ensure that you receive proper tax credits for deductions mentioned in Form 26AS.
These are some of the FAQs related to ITR-1 for AY 2023-24. Understanding the eligibility criteria, documentation requirements, and precautions while filing your return will help ensure a smooth and accurate filing process. Always consult with a Income tax professional or Tax Consultant or refer to the official guidelines provided by the Income Tax Department for specific queries or concerns.
