Form ITR-1 is an income-tax return form applicable to the salaried individual (being a resident and ordinarily resident individual). Individuals having a total income of up to Rs. 50 lakhs from salary, one house property, other sources, and agriculture income (up to Rs. 5k) can file this form.
Also Learn: What is ITR-1? A Comprehensive Guide for Salaried Individuals
How FileAbhi can help?
We are a team of professionals with experience in return filing for many individuals. We ensure that returns are filed appropriately with the maximum possible deductions and no errors.
Accordingly, we ensure that tax refunds are credited to taxpayers' accounts in time. Our team has in-depth knowledge and is updated with all the latest changes in the Income-tax Act, 1961.
Additionally, we are prepared to file appropriate responses in case any notices or intimations are received from the income-tax department. Get in touch with us to know if Form ITR-1 is for you and get the returns filed on time.
Some ways to maximize refunds for individuals filing Form ITR-1
A salaried individual is an employee of an organization who receives a pre-determined amount. This amount is usually credited every month in India. Salaried individuals filing Form ITR-1 might have income from one house property or other sources as well. Below is the list of ways one can use to maximize refunds:
1. Evaluation of tax regime
An individual can file a return either under the old tax regime or the new tax regime. A salaried employee is required to declare the tax regime with his employer before the end of the financial year. This helps the employer to deduct tax on the salary income.
Hence, one must calculate his estimated income and tax liability under both the tax regimes and decide the beneficial tax regime. Once you decide on the tax regime, be careful to select the correct tax regime while filing a return of income. Section 115BAC is the section for the new tax regime.
Also Learn: Who Should File ITR 2: A Comprehensive Guide
2. Take benefit of all eligible deductions and exemptions
Section | Maximum limit | Remarks |
80C | Rs. 1,50,000 | Eligible investments include Equity Linked Saving Scheme funds, public provident fund/superannuation fund, life insurance premiums, principal amount of a home loan, etc. Detailed list can be accessed here. |
80CCC | Deposit in annuity plan of LIC or another specified insurer | |
80CCD (1) | Employee’s contribution to National Pension Scheme (NPS) | |
80D | Rs. 25,000 or Rs. 50,000 | Medical insurance for self, spouse, children, parents |
80E | Interest paid for 8 years | Interest on education loan |
80G | 100% or 50% of donation with/without qualifying limit | Donation to specified institutions |
80TTA | Rs. 10,000 | Interest from a savings account |
80TTB | Rs. 50,000 | Applicable only to senior citizens. Interest from deposits |
16 | Old Regime: Rs. 50,000 New Regime: Rs. 75,000 | Flat deductions from salary income |
10(13A) | Lower of –
| House rent allowance (HRA) |
24 |
| Deductions from house property income |
3. Reconciliation of data
The return of income should always be filed in sync with Form 16, Form 26AS, and Annual Information Statement (AIS).
Form 16 is a certificate given by the employer to an employee with details of salary and tax deducted. Form 26AS contains details of tax claims available from taxes deducted and collected in a financial year.
Any error in Form 26AS can be corrected by asking the deductor party to rectify it. AIS provides more detail on Form 26AS.
In addition, it shows other transactions like purchase/sale of mutual funds, stocks, immovables, etc. AIS can be modified using feedback functionality on the income tax website.
Make sure that income and TDS details claimed in return are matching with these documents for quick processing of returns.
4. In case of more than one employer in a financial year
There may be cases where an individual has switched jobs in the same financial year. The employee is responsible for informing about his previous employment to his current employer.
He has to give details of income earned and tax deducted till the time he was with previous employer. The employee will get Form 16 from all employers. While filing a return of income, such individuals should reconcile salary amount, HRA exemption amount, and other deductions in return with all Form 16.
Also, it is necessary to give details such as PAN, TAN, name, and address of each employer in the return.
Other than the above, there are some mandatory requirements to receive the refund in time. They are as under:
- Linking of PAN and Aadhaar;
- Pre-validating bank account where a refund is to be received;
- Choosing the correct ITR and filing it within the due date;
- Verifying return online or offline;
- Filing timely responses for the notices received from the income-tax department.
FAQ Section: ITR 1 for Salaried Employees
1. Why is getting professional help important in the case of tax refunds?
Professionals are aware of the finer points of return filing. Using their help will result in timely filing of returns, reduced chance of errors, and timely refunds.
2. What is another name for ITR 1?
Form ITR-1 is also called as ‘SAHAJ’s
3. How many sections are there in ITR 1?
4. Who should not File ITR 1?
- a resident and not ordinarily resident or a Non-Resident Indian
- total income of more than Rs. 50 lakhs
- agricultural income of more than Rs. 5000
- income from lottery or winnings from race horses, legal gambling, etc
- taxable capital gains income
- investments in unlisted equity shares
- income from business or profession
- a director in a company
- tax deduction under section 194N of Income-tax Act, 1961
- deferred income tax on Employee Stock Option Plan received from an eligible start-up
- income from more than one house property
ITR 1 cannot be filed by persons other than an individual. Further, ITR 1 should not be filed by any individual who is/has:
5. How many days does it take to process the refund?
Generally, an income-tax refund is processed and credited within 4 to 5 weeks once the return is verified.