One of the most important steps in preserving financial openness and guaranteeing adherence to tax regulations is filing your Income Tax Return (ITR). ITR 1 Filing is frequently the best and most convenient choice if your revenue is simple and doesn’t require any intricate financial arrangements. This kind, commonly referred to as Sahaj, is intended exclusively for people with simple sources of income.
What is filing an ITR 1?
Sahaj, also known as ITR 1, is a streamlined income tax return form for people who have:
Salary or pension income
Revenue from a single residence
Other sources of income (not include lottery prizes, racehorses, etc.)
Income totalling up to ₹50 lakh
Those who hold unlisted equity shares, are directors of a corporation, or have overseas assets or income are not eligible to use this form.
Benefits of Selecting ITR 1 Filing for Basic Income
1. Simple to Use and Understand
The purpose of ITR 1 is simplicity. Even if you are not a tax expert, this form is simple and quick to complete if you have a salaried income, basic deductions, and no other difficulties.
2. A quicker filing procedure
The ITR 1 filing process is significantly quicker than other intricate ITR forms due to its simple nature. The majority of paid people can finish their tax returns in a matter of minutes, particularly when they use online tools like Karsaathi.
3. Perfect for Salaried People
ITR 1 is a fantastic fit for your tax profile if your primary source of income is a salary or pension. It instantly matches the pre-filled information in the income tax portal and the data found in Form 16.
4. Allows for E-Filing
The income tax department’s e-filing system or approved third-party platforms make it simple to file ITR 1 online. E-verification is equally quick and easy using nett banking or Aadhaar OTP.
5. Lowers the Chance of Mistakes
There is little chance of omitting or submitting income facts incorrectly because ITR 1 only addresses a small number of income kinds. Accuracy is further guaranteed by the tax department’s pre-filled data.
6. Facilitates Prompt Refunds
Selecting ITR 1 Filing can frequently result in quicker assessments and refunds because to the form’s simplicity and ease of processing, particularly for salaried individuals who normally have tax deducted at source (TDS).
ITR 1: Who Shouldn’t Use It?
ITR 1 is not the best choice if:
You make more than ₹50 lakh in total.
You have revenue from your business or profession or financial gains.
You are the owner of multiple homes.
You have assets or income from overseas.
You own unlisted equity interests or serve as a director of a business.
Depending on your income sources, you could have to file ITR 2 or ITR 3 in certain situations.
In conclusion
ITR 1 Filing is the most effective and dependable way to file your tax return if your financial condition is straightforward and mostly consists of income from a wage, pension, or basic home property. It helps you maintain compliance without needless stress or problems and is quick and simple to use. Use reliable systems like Karsaathi, which walk you through every step and guarantee correctness, to make the process even more easy.