The Income Tax Return Form ITR-1, also known as Sahaj, is designed for resident individuals with straightforward income sources. This form simplifies the filing process for taxpayers with income from salaries, one house property, family pension income, agricultural income (up to ₹5000), and other sources like interest from savings accounts and deposits. This guide provides detailed answers to frequently asked questions about ITR-1 for AY 2024-25 to help you navigate the filing process smoothly.
Q.1 Who is eligible to file ITR-1 for AY 2024-25?
Ans. ITR-1 can be filed by a Resident Individual whose:
- Total income does not exceed ₹ 50 lakh during the FY
- Income is from salary, one house property, family pension income, agricultural income (up to ₹5000/-), and other sources, which 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
- Family Pension
- Income of Spouse (other than those covered under Portuguese Civil Code) or Minor is clubbed (only if the source of income is within the specified limits as mentioned above).
Q.2 Who is not eligible to file ITR-1 for AY 2024-25?
Ans. ITR-1 cannot be filed by any individual who:
- is a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI)
- has total income exceeding ₹ 50 lakh
- has agricultural income exceeding ₹ 5000/-
- has income from lottery, racehorses, legal gambling etc.
- has taxable capital gains (short term and long term)
- has invested in unlisted equity shares
- has income from business or profession
- is a Director in a company
- has tax deduction under section 194N of Income Tax Act
- has deferred income tax on ESOP received from employer being an eligible start-up
- owns and has income from more than one house property
- is not covered under the eligibility conditions for ITR-1
Q.3 What are the types of income that shall not form part of ITR 1 form?
Ans. Following are the types of income that shall not form part of ITR 1 form:-
(a) Profits and gains from business and professions;
(b) Capital gains;
(c) Income from more than one house property;
(d) Income under the head other sources which is of following nature:-
(i) winnings from lottery;
(ii) Activity of owning and maintaining race horses;
(iii) Income taxable at special rates under section 115BBDA or section 115BBE;
(e) Income to be apportioned in accordance with provisions of section 5A
Q.4 Is it mandatory to define the nature of employment while filing of return??
Ans. Yes, it is mandatory to define the nature of employment while filing of return from the following: –
(a) Central Government Employee
(b) State Government Employee
(c) Employee of Public Sector Enterprise (whether Central or State Government)
(d) Pensioners (CG/SG/PSU/OTHER)
(e) Employee of Private Sector concern
(f) Not applicable (in case of family pension income)
Q.5 What documents do I need to file ITR-1?
Ans. You would need to download AIS and keep copies of Form 16, house rent receipt (if applicable), investment payment, premium receipts (if applicable). However, ITRs are annexure-less forms, so you are not required to attach any document (like proof of investment, TDS certificates) along with your return (whether filed manually or electronically). However, you need to keep these documents for situations where they need to be produced before tax authorities such as assessment, inquiry, etc.
Q.6 What precautions should I take while filing the return of income?
- Carefully select the tax regime.
- Download AIS and Form 26AS and check the actual TDS / TCS / tax paid. If you see any discrepancy, you should reconcile it with the Employer / Tax Deductor / Bank.
- Compile and carefully study the documents to be referred to when filing your ITR, like bank statement / passbook, interest certificates, receipts to claim exemptions or deductions, Form 16, Form 26AS (Annual Information Statement), investment proofs, etc.
- Ensure details like PAN, permanent address, contact details, bank account details, etc. are correct in the pre-filled data.
- Identify the correct return for you (from ITR-1 to ITR-7). Provide all the details in the return such as total income, deductions (if any), interest (if any), taxes paid / collected (if any), etc. No documents are to be attached along with ITR-1.
- e-File the return of income on or before the due date. The consequences of delay in filing returns include late filing fees, losses not getting carried forward, deductions and exemptions not being available.
- After e-Filing the return, e-Verify it. If you want to manually verify your return, send the signed physical copy of ITR-V Acknowledgement (by speed post) within appropriate timelines of filing the return to Centralized Processing Center, Income Tax Department, Bengaluru 560500 (Karnataka).
Q.7 How do I know which ITR I need to file?
Ans. Different tax returns are prescribed for filing by individual taxpayers depending on their source of income and residential status. To determine the correct ITR to file, you can use the Help me decide which ITR Form to file option. You can then proceed based questions displayed to you to determine the correct ITR form to file.
Q.8 Is the new tax regime a default regime?
Ans. Yes. From AY 2024-25, the new tax regime will be the default option. Every year, you must select between the old and new tax regimes for that particular Assessment year.
Q.9 Whether all deductions will be available to claim while filing ITR-1 return?
Ans. Yes, all deductions will be available to claim in the return once taxpayer will change the option of default new tax regime to old tax regime by selecting the below question as ‘Yes’ under Personal Information in return as per below screenshot:
By default, it will be selected as ‘No’ for new tax regime and all deductions will be disabled in return. Once option will be changed to old tax regime after selecting ‘Yes’ then all deductions will get enabled and then taxpayer will be able to claim all deductions.
Q.10 What is Rebate u/s 87 A as per new Tax Regime (Default) and Old tax regime?
Ans. Currently, section 87A allows individuals to claim a rebate of Rs 12,500 under the old tax regime and Rs 25,000 under the new tax regime.
Till March 31, 2023 (FY 2022-23), section 87A tax rebate under old and new tax regime was available for taxable income up to Rs 5 lakh. Hence, opting for old or new tax regime made no difference for an individual having taxable income up to Rs 5 lakh. However, to make the new tax regime more attractive, the tax rebate was increased to Rs 25,000 for New Tax regime only. This made zero tax payable for taxable income up to Rs 7 lakh in the new tax regime for FY 2023-24 (from April 1, 2023).
Q.11 I am a joint owner of a house with my spouse. We do not have any additional property. Can I file ITR-1 in AY 2024-25 for rental income from such house?
Ans. Yes, you can file ITR-1 for the AY 2024-25 in case the following conditions are met:
- If you are a single or joint owner of a single property, you can file ITR-1 for AY 2024-25
- If you have income from more than one property, you can’t file ITR-1 (even as a single owner).
Q.12 What precautions should I take to avoid issues while filing my ITR?
Ans. To avoid issues in filing your return and getting your refund, ensure you do the following:
- Link Aadhaar and PAN.
- Pre-validate your bank account where you want to receive your refund.
- Choose the correct ITR before filing it; else filed return will be treated as defective.
- File the return within the specified timelines.
- Verify your return and you can opt for e-Verification (recommended option – e-Verify Now) is the easiest way to verify your ITR.
- File the responses for the notices received from the ITD within the specified timelines.
Q.13 What is Advance Tax?
Ans. For salaried individuals, advance tax is mostly taken care of through TDS by employers. But other forms of income such as interest on savings bank accounts, fixed deposits, rental income, bonds, or capital gains increase the tax liability. Tax liability needs to be estimated beforehand. If tax amounts to more than ₹10,000/- per year, taxpayers need to pay advance tax in quarterly instalments (June, September, December and March).
Q.14 How is Advance Tax and Self-Assessment Tax calculated and paid?
Ans. Advance Tax: Advance Tax must be calculated as given below:
a) In case of all assessees (other than the eligible assessees as referred to in section 44AD and 44ADA of the Income Tax Act):
| At least to 15% | On or before 15th June |
| At least to 45% | On or before 15th September |
| At least to 75% | On or before 15th December |
| 100% | On or before 15th March |
Self-Assessment Tax: After filling out your ITR form with the TDS and advance tax details (if paid), the system computes your income and checks whether tax is still payable. You need to pay it and then fill in the challan details in the return before submitting it.
Q.15 What is the difference between allowance and perquisite? Are these considered as my income?
Ans. Allowances are fixed periodic amounts, apart from salary, which are paid by an employer, e.g., conveyance allowance, travelling allowance, uniform allowance, etc. Allowances are considered income and will increase your gross total income on which you will be taxed. Allowances can be taxable, partially exempted, and fully exempted.
Perquisites are benefits you receive because of your official position, and are over and above your salary or wage income. These perquisites can be taxable or non-taxable depending upon their nature.
Q.16 Are all donations 100% exempted from tax?
Ans. No, not all donations qualify for 100% exemption from tax. The categories for tax deduction, based on whom you donated to (charitable institution, fund set up by Government, scientific research institution, etc.) are as follows:
1. Donations entitled for 100% deduction without qualifying limit
2. Donations entitled for 50% deduction without qualifying limit
3. Donations entitled for 100% deduction subject to qualifying limit
4. Donations entitled for 50% deduction subject to qualifying limit
You need to check the deduction limit on your donation receipt and claim deduction accordingly while filing your return.
Q.17 Is e-Filing and e-Payment the same thing?
Ans. No. e-Filing is the process of electronically submitting your Income Tax Return on the e-Filing portal and e-payment is the process of electronically paying tax.
Q.18 I made a calculation mistake in my filed ITR. Can I correct it and re-submit my return?
Ans. Yes, you can re-submit your return in case you have already filed your Income Tax Return but you later discover that you have made a mistake. This is called a Revised Return. Your return has to be revised three months before the end of the relevant AY. For AY 2024-25, the due date for filing revised return is 31st December 2024.
Q.19 Can I file ITR for last 3 years now?
Ans. Yes, you can file ITR-U, if you have missed to file your previous two ITRs. For current year you can file your normal ITR.
Q.20 What happens if I file Income Tax Return after the due date u/s 139(1)?
Ans. In case you miss filing the ITR within the due date u/s 139(1), you can still file your Income Tax Return, but you may be required to pay a late filing fee of up to ₹5000/-. Additionally, you will also be required to pay interest on the tax liability (if any).
Q.21 Do I need to file returns if tax has been deducted by my employer / bank?
Ans. Yes, employers and banks deduct tax at source on salary and interest income respectively. You still need to disclose the income on which tax has been deducted and claim credit for TDS in the Income Tax Return.
Q.22 Will I get a refund if I have paid excess tax?
Ans. Yes, any excess tax paid by you can be claimed as refund by filing your Income Tax Return. After your return is processed, ITD checks and accordingly accepts your refund claim, and then the amount is credited to your bank account. You will also get a message on your email ID registered on the e-Filing portal.
Q.23 Do I need to file any form if I am claiming deduction u/s 80 DD and 80 U?
Ans. From AY 2024-25 new schedules have been added regarding deduction u/s 80 DD and 80 U. If you want to claim deduction u/s 80DD and 80U then you have to mandatorily file from 10 IA before filing the return of Income and enter the details (Date of filing form and acknowledgement no.) of Form 10 IA in Schedule 80 DD and 80 U while filing the return of Income.
