ITR 1 Filing or Salary ITR Filing for AY 2024-25: Which One Should You Choose?

 

Filing an Income Tax Return (ITR) in India can be straightforward if you understand the requirements and follow the necessary steps. For the Assessment Year (AY) 2024-25, here's a guide on filing ITR-1, also known as Sahaj, which is typically used by salaried individuals.

Who is Eligible to File ITR-1?

ITR-1 is meant for individuals who:

Have income up to ₹50 lakh from:

  • Salary/pension
  • One house property (excluding cases where loss is brought forward from previous years)
  • Other sources (interest from savings accounts, deposits, etc., but not including lottery income and income from racehorses)
  • Agricultural income up to ₹5,000

Who is Not Eligible to File ITR-1?

You cannot use ITR-1 if:

  • You have more than ₹50 lakh total income
  • You have income from more than one house property
  • You have income under the head "Profits and gains from business or profession"
  • You are a director in a company
  • You have investments in unlisted equity shares
  • You have income from sources outside India
  • You have income from capital gains
  • You have agricultural income exceeding ₹5,000

Steps to File ITR-1 for AY 2024-25

1.     Collect Necessary Documents: Form 16 from your employer, Salary slips, Bank statements and interest certificates, Form 26AS (tax credit statement), Details of any other income, Deductions under Section 80C, 80D, etc.

2.     Log in to the Income Tax e-Filing Portal: Visit incometaxindiaefiling.gov.in, Use your PAN as your user ID to log in

3.     Select the Appropriate ITR Form: Go to "e-File" > "Income Tax Return" > "File Income Tax Return", Select the Assessment Year 2024-25, Choose "Individual" and select "ITR-1 (Sahaj)" from the dropdown

4.     Fill in the Details:Ensure your name, address, and PAN details are correct, Income Details: Enter your income from salary, one house property, and other sources, Deductions: Input your deductions under relevant sections such as 80C, 80D, etc. Tax Details: Verify the TDS details with Form 26AS

5.     Compute the Tax Payable: The portal will automatically calculate your tax liability based on the details provided

6.     Preview and Validate the Return: Review the information carefully. Use the "Preview and Submit" option to see a summary of your ITR

7.     Submit the Return: Once satisfied, submit the return, Choose the verification method: e-Verification using Aadhaar OTP, Net Banking, or sending a physical ITR-V form to CPC, Bengaluru

8.     E-Verification: It is recommended to e-verify your return immediately to complete the process, If opting for physical verification, ensure the ITR-V reaches CPC, Bengaluru within 120 days of filing

Important Points to Remember

  • Accuracy: Ensure all details are accurate to avoid notices from the IT Department.
  • Deadlines: File your return before the due date to avoid penalties. The typical deadline is July 31 of the assessment year.
  • Acknowledgment: After filing and verification, download the acknowledgment for your records.

Choosing Between ITR 1 Filing and Salary ITR Filing

If you are a salaried individual with a total income of up to ₹50 lakh and have income from one house property and other sources, ITR 1 filing may be the most suitable option for you. It is a simpler form that is easy to fill out and requires less documentation, making the tax filing process quick and straightforward.

By following these steps, you can efficiently file your ITR-1 for AY 2024-25. If you have any complexities or doubts, it might be beneficial to consult a tax professional.

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