ITR Form 1 is simplest Income-tax form; hence it had been termed as “ITR 1 SAHAJ” by Income-tax department. This Form is applicable mainly to salaried taxpayers, however taxpayers having other incomes like Bank Interest, etc. are also covered here.
ITR 1 SAHAJ Form is applicable to Taxpayers having-
- Income from salary,
- Income from one house property,
- Income from other sources like FDR Interest, savings bank interest etc.
- Exempt Incomes like dividend from listed shares, agricultural income, PPF interest etc.
It is not applicable if :
- Taxpayer winning prize money from Lottery or Race horses; or
- Taxpayer having Income from more than one house property; or
- Taxpayer having loss from other sources; or
- Taxpayer having Agricultural income more than Rs. 5,000/-; or
- Taxpayer having Capital gain or Capital loss on sale of shares or any other capital assets; or
- Taxpayer having Income from Business or Profession; or
- Taxpayer who is claiming relief of foreign income on his return; or
- Resident Taxpayer having Assets or Signing Authority outside India; or
- Resident Taxpayer having earned Income outside India.
Major changes in ITR 1-SAHAJ for F.Y. 2015-16:-
A. Asset-liability declaration- In F.Y. 2015-16, ITR 1-SAHAJ has come up with a major change of declaration of Assets and Liabilities by taxpayers. Schedule AL is applicable to all taxpayers having total income exceeding Rs. 50 lakhs during financial year. Schedule is bifurcated in 3 categories viz.
- Immovable assets like Land, building.
- Movable assets like cash in hand, jewellery, bullion, vehicles, yachts, boats, and aircrafts.
- Liabilities relating to the above-mentioned assets like loans etc.
Hence, taxpayers having total Income more than Rs. 50 lakhs are required to value their assets and show it in the return.
B. Tax collected at source- Earlier only taxes deducted at source have been covered in ITR Form 1. However, from A.Y. 2016-17, taxes collected at source are also included. Taxpayer can take credit of his TDS or TCS in his return.