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Instructions for Filling ITR‐1 SAHAJ A.Y. (2021‐22)

These instructions are guidelines to help the taxpayers for filling the particulars in Income‐tax Return Form‐1 for the Assessment Year 2021‐22 relating to the Financial Year 2020‐21.

Instructions to Form ITR-1 (A.Y. 2021-22)

In case of any doubt, please refer to relevant provisions of the Income‐tax Act, 1961 and the Income‐tax Rules, 1962.

Assessment Year for which this Return Form is applicable

This Return Form is applicable for assessment year 2021‐22 only, i.e., it relates to income earned during the Financial Year 2020‐21.

Who is eligible to use this Return Form

This Return Form is to be used by an individual who is a resident other than not ordinarily resident, whose total income for the Assessment Year 2021‐22 does not exceed Rs. 50 lakh and who has income under the following heads:

Note- 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 Return Form can be used only if the income being clubbed falls into the above income categories.

Who is not eligible to use this Return Form?

A. This Return Form should not be used by an individual who –
(a) is a Director in a company;
(b) has held any unlisted equity shares at any time during the previous year;
(c) has any asset (including financial interest in any entity) located outside India;
(d) has signing authority in any account located outside India; or
(e) has income from any source outside India.
(f) has deferred tax on ESOP received from employer being an eligible start‐up.
(g) has withdrawn cash and TDS has been deducted u/s 194N on such
withdrawal.
B. This return 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;
(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; or
(f) Agricultural income in excess of ₹5,000.
C. Further, this return 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’;
(b) loss under the head ‘Income from other sources’;
(c) any claim of relief under section 90 and/or section 91;
(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.

Annexure‐less Return Form

No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return.

Key changes (as compared to ITR for AY 2020‐21)

(a) Option to avail benefit of new tax regime u/s 115BAC is provided in ITR‐1.Option should be availed within due date mentioned as per section 139(1).
(b) ITR 1 cannot be filed by the assessee who is having TDS u/s 194N.
(c) Resident Individual having Income‐Tax deferred on ESOP is restricted to file ITR‐1
(d) Quarterly breakup of dividend income to be provided.
(e) Schedule DI is removed.
(f) Date of Donation made in cash has inserted to calculate eligible amount of donation u/s 80GGA.

Manner of filing and Verification of this Return Form

This Return 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) [www.incometax.gov.in from 7‐June‐2021] 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) Aadhaar OTP, or
(iv) By sending duly signed paper Form ITR‐V ‐ Income Tax Return Verification Form by post to CPC at the following address –
“Centralized Processing Centre, Income Tax Department, Bengaluru— 560500, Karnataka”.
The Form ITR‐V ‐ Income Tax Return Verification Form should reach within120 days from the date of e‐filing the return. The confirmation of the receipt of ITR‐V at Centralized Processing Centre will be sent to the assessee on e‐mail ID registered in the e‐filing account.
B. in paper form, at the designated offices of Income‐tax Department, along with duly signed Form ITR‐V. This mode of furnishing return 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).

Filling out the ITR V‐ Income Tax Return Verification Form

Where the Return Form is furnished in the manner mentioned at 5A(iv) above, the assessee should print out Form ITRV‐ Income Tax Return Verification Form. ITRV‐ Income Tax Return Verification Form, duly signed by the assessee then has to be sent by ordinary post or speed post only to Central, Processing Centre, Income Tax Department, Bengaluru‐ 560500 (Karnataka).

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Every individual whose total income before allowing deductions under Chapter VI‐A of the Income‐tax Act or deduction for capital gains (section 54 to 54GB), exceeds the maximum amount which is not chargeable to income‐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 Return 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 2021‐22, in case of different categories of individuals, is as under:

If a person whose total income before allowing deductions under Chapter VI‐A of the Income‐tax Act or deduction for capital gains (section 54 to 54GB), does not exceeds the maximum amount which is not chargeable to income‐tax but fulfils one or more conditions mentioned below is obligated to furnish his return of income.

In case of any doubt, please refer to relevant provisions of the Income‐tax Act.

a) Deposit of amount or aggregates of amount exceeding Rs 1 crore in one or more current accounts;
b) Incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or any other person;
c) Incurred expenditure of amount or aggregate of amount exceeding Rs. 1 lakh on consumption of electricity.