ITR 1 Filing Form

The Income Tax Department has categorized the taxpayers into the group to ease the tax compliances this categorization is done based on the income and the sources of the income. ITR 1 Return filing in India is for people with an income of up to Rs.50 lakh.

This article is a comprehensive guide to understand the ITR 1 Sahaj Form. Each category of the taxpayer has to compute the taxable income as it is laid down in the Income Tax Act,1961. Post computation it is necessary for the taxpayer to file the Income Tax Returns.

The income Tax rate under the Existing Tax Regime and the New Tax Regime ( For TDS return Filing)

The taxpayers now have an option to choose between the old and the new tax regimes. The decision of opting for a tax regime has to be taken at the beginning of the financial year.

The income tax rates according to the old tax regime are:

For individuals up to the age of 60 years

For individuals aged between 60-80 years (Senior Citizen)

For individuals above the age of 80 years ( Super senior citizens)

The new tax regime is where the taxpayer has an option to choose either to pay taxes at a lower interest rate as per the new tax regime on the condition that they forgo certain permissible exemptions and deductions that are available the income tax.

or

The taxpayer can continue paying taxes under the existing tax rates. The assessee can avail of the rebates and the exemption by staying in the old regime and pay taxes at the existing high rates.

The income tax rates under the new tax regimes that is applicable for individuals and the HUFs is as follows:

Note:

The tax rates in the New Tax regime are the same for all categories of individuals. Hence, there is no increased basic exemption limit benefit that will be available to the senior and the super senior citizens in the New Tax Regime.

Individuals with Net Taxable Income less than or equal to Rs 5 lakh will be eligible for the tax rebate u/s 87 A the tax liability will be Nil for such individuals in both New and Old existing tax regimes.

The exemption limit for NRIs is Rs. 2.5 lakh irrespective of age.

Additional health and education cess at the rate of 4% will be added to the Income-tax liability in all cases ( Increased from 3% since FY 2018-19)

An applicable surcharge as per tax rates below in all categories mentioned above:

• • 10% of the income tax if total income > Rs. 50 lakh.
  • 15% of the income tax if the total income > Rs.1 crore
  • 25% of the income tax if the total income > Rs.2 crore.
  • 37% of the income tax is the total income > Rs.5 crore.

What are the conditions to opt for a new tax regime?

The taxpayer opting for concessional rates in the new tax regimes has to forgo the exemptions and the deduction that is available under the old tax regime. In total 70 deductions are allowed out of which the most commonly used are listed below:

The list of common exemptions and deductions that are not allowed in the new Income tax regime are:

• • Leave travel Allowance
  • House Rent Allowance
  • Conveyance Allowance
  • Daily expenses in the course of employment
  • Relocation Allowance
  • Helper Allowance
  • Children Education Allowance
  • Other Special Allowances [Section 10(4)]
  • Standard deduction on salary
  • Professional tax
  • Interest on housing loan (Section 24)
  • Deductions under Chapter VI A deduction (80C, 80D, 80E and so on) (Except Section 80CCD (2))