In this article, I have tried to explain the applicability, eligibility, manner of filing and about obligation to file ITR-1 (Sahaj) for AY 2020-21/FY 2019-20.

Earlier Central Board of Direct Taxes (CBDT) has notified the Income Tax Return (ITR) forms and manner of furnishing Return of Income for Assessment Year (AY) 2020-21 / Financial year (FY) 2019-20 vide Notification No. 31/2020 dated 29.05.2020.

1. Who is eligible to use Form ITR-1 (Sahaj) for A.Y. 2020-21?

This form is for Individuals being a Resident (other than not ordinarily resident) having total income upto Rs. 50 lakhs, having Income from Salaries, one house property, other sources (Interest, etc.), and agricultural income up to Rs. 5,000.

Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this ITR Form can be used only if the income being clubbed falls into the above income categories.

2. Who is not eligible to use Form ITR-1 (Sahaj) for A.Y. 2020-21?

This ITR Form should not be used by an individual who –

(a) is a Director in a company; or

(b) has held any unlisted equity shares at any time during the previous year; or

(c) has any asset (including financial interest in any entity) located outside India; or

(d) has signing authority in any account located outside India; or

(e) has income from any source outside India.

This ITR form also cannot be used by an individual who has any income of the following nature during the previous year:-

(a) Profits and gains from business and professions; or

(b) Capital gains; or

(c) Income from more than one house property; or

(d) Income under the head other sources which is of following nature:-

(i) winnings from lottery; or

(ii) activity of owning and maintaining race horses; or

(iii) income taxable at special rates under section 115BBDA or section 115BBE; or

(e) income to be apportioned in accordance with provisions of section 5A; or

(f) agricultural income in excess of ₹5,000.

Further, this ITR form also cannot be used by an individual who has any claims of loss/deductions/relief/tax credit etc. of the following nature:-

(a) any brought forward loss or loss to be carried forward under the head “Income from house property”; or

(b) loss under the head Income from other sources”; or

(c) any claim of relief under section 90 and/or section 91; or

(d) any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or

(e) any claim of credit of tax deducted at source in the hands of any other person.

3. Annexure-less ITR Form

No document (including TDS certificate) should be attached to this ITR Form.

4. Manner of filing Form ITR-1 (Sahaj) for A.Y. 2020-21

This ITR Form can be filed with the Income-tax Department in any of the following ways:-

(A) electronically on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in) and verified in any one of the following manner –

(i) digitally signing the verification part, or

(ii) authenticating by way of electronic verification code (EVC), or

(iii) by sending duly signed paper Form ITR-V (Acknowledgment) by post to CPC at the following address –

Post Bag No. 1, Electronic City Office, Bengaluru- 560500, Karnataka”.

The Form ITR-V should reach within 120 days from the date of e-filing the return of income.

(B) in paper form, at the designated offices of Income-tax Department, along with duly signed Form ITR-V. This mode of furnishing return of income is permissible only in case of super senior citizens (i.e. an individual of the age of 80 years or more at any time during the previous year).

5. Filling out the acknowledgment

Where the ITR Form is furnished in paper form, the Acknowledgment/ ITR-V should be duly filled by the assessee. In case of e-filing, the Acknowledgement/ITR-V is auto generated by the portal and can be downloaded by the assessee.

6. Obligation to file return of income for A.Y. 2020-21

Every individual whose total income before allowing deductions under Chapter VI-A of the Income-tax Act, exceeds the maximum amount which is not chargeable to tax is obligated to furnish his return of income. The claim of deduction(s) under Chapter VI-A is to be mentioned in Part C of this ITR Form. In case of any doubt, please refer to relevant provisions of the Income-tax Act. The maximum amount which is not chargeable to income tax for Assessment Year 2020- 21, in case of different categories of individuals, is as under:-

Sl. No. Category Amount (in ₹)
(i) In case of an individual who is below the age of 60 years 2,50,000
(ii) In case of an individual, being resident in India, who is of the age of 60 years or more at any time during the previous year 2019-20 3,00,000
(iii) in case of an individual, being resident in India, who is of the age of 80 years or more at any time during the previous year 2019-20 5,00,000

Also Read:-

S. No. Particulars
1 A.Y. 2020-21 ITR Forms: Eligibility Criteria & Changes
2 All about filing of ITR-1 (Sahaj) for AY 2020-21
3 All about filing of ITR-2 for AY 2020-21
4 All about filing of ITR-3 for A.Y. 2020-21
5 All about filing of ITR-4 (Sugam) for A.Y. 2020-21
6 All about filing of ITR-5 for A.Y. 2020-21
7 All about filing of ITR-6 for A.Y. 2020-21
8 All about filing of ITR-7 for A.Y. 2020-21

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16 Comments

  1. DIPANKAR ROYCHOWDHURY says:

    Sir,
    Kindly enlighten as to what an assessee (eligible to use ITR-1 ) is required to do if his 26AS form displays his FD investment under SFT in Part E. as ITR-1 is found to have no provision to declare/reflect on any such SFT investment

  2. Mohamedali says:

    I am a senior citizen & pensioner, and after retirement worked abroad. Now I am resident here for about 2 years. I had signed an agreement with a builder for a flat in 2015 when I was working abroad, and the key was handed over to me in 2019. The source of payment was from my NRE account. The flat is not yet registered to my name since the whole building is not yet totally completed.Now I, being a senior citizen of 71 years, thought that it is wise to get the cash by sale of the flat within my life time. Accordingly I have agreed with a buyer who is willing to purchase it at the same price I bought. So, I am going to transfer my agreement with the builder to the buyer, and later to register on his name on completion of the building.
    Last year I submitted my return was submitted in Form ITR-1.
    Now which form I have to use?
    When the sale proceed get credited to my bank account, how can I include it in the return so as to avoid a notice later from IT clarifying the source of this credited amount?
    Please note that there is no capital gain or loss.

    Regards,
    Mohamedali.

  3. Vimal jain says:

    I am pensioner and also have income from book royalty, which I understand is exempted under section 80QQB. Which ITR form should be used. TheITR I does not show this section.

    1. cabubna@gmail.com says:

      Royalty Income is treated as “Income under the head Business and Profession”. Hence, you need to file your Return of Income using ITR-3.

  4. Apurva Choudhry says:

    Sir if I have dividend for FY 2019-20 for which dividend distribution tax has already been deducted then which ITR form to be filed for AY 2020-21?

  5. kamudh says:

    My daughter doesnt have any income and she studying abroad> She is having interest income of Rs.12500/only. Upto last f.y. she filed IT return. Is it necessary to file IT return this year also? If yes wat ITR form should be filed?

    1. cabubna@gmail.com says:

      If the total income is below taxable limit, you need not compulsorily file the Income Tax Return.
      However if you wish to file the IT Return for her, you can use ITR-1 in this case.

    1. cabubna@gmail.com says:

      Assuming that she has been staying in Singapore for the past 3-4 years, she would not qualify to be a Resident and Ordinary Resident as per Income Tax Act. Accordingly, she may have to file her Return of Income in India using ITR-2 or ITR-3.

    1. cabubna@gmail.com says:

      In case the source of income does not include profits and gains from business or profession, the assessee can file Return of Income through Form ITR-2.

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