10 Key Information on ITR-1 Filing by Salaried Individuals for FY 2023-24

Filing your Income Tax Return (ITR) correctly is crucial for salaried individuals. Here’s a detailed guide to help you navigate the ITR-1 filing process for FY 2023-24.

1. Eligibility to File ITR-1 for AY 2024-25:

Who Can File: Resident individuals with a total income not exceeding ₹ 50 lakh.

Sources of Income: Salary, one house property, family pension, agricultural income (up to ₹ 5000), and other sources like interest from savings accounts, deposits, income tax refunds, enhanced compensation, and family pension.

Clubbed Income: Includes income of spouse (not covered under Portuguese Civil Code) or minor if within specified limits.

2. Ineligibility to File ITR-1 for AY 2024-25:

Who Cannot File: RNORs, NRIs, individuals with income over ₹ 50 lakh, agricultural income over ₹ 5000, income from lottery/racehorses, taxable capital gains, investments in unlisted equity shares, business/profession income, company directors, tax deduction under section 194N, deferred income tax on ESOPs from eligible start-ups, and those with income from more than one house property.

3. Excluded Income Types for ITR-1:

Not Included: Business profits, capital gains, income from more than one house property, and certain types of income under “Other Sources” like lottery winnings, racehorses, and income taxed under sections 115BBDA or 115BBE.

4. Required Documents for filing ITR-1:

Documents Needed: AIS, Form 16, house rent receipts, investment proofs, and premium receipts. ITR forms are annexure-less, meaning no documents need to be attached during submission. However, keep these documents for potential verification.

5. Filing Precautions:

Steps to Take:

  • Select the appropriate tax regime.
  • Verify TDS/TCS/tax paid with AIS and Form 26AS.
  • Ensure accurate details in pre-filled data.
  • Choose the correct ITR form.
  • File and E-Verify your return on time.
  • For manual verification, send ITR-V Acknowledgement to the Centralized Processing Center, Bengaluru

6. New Tax Regime as Default:

From AY 2024-25, the new tax regime is the default option. Annually, you must select between the old and new regimes at the time of filing the return.

7. Deductions in ITR-1:

Claiming Deductions: All deductions are available under the old tax regime. By default, the form selects the new regime, disabling deductions. Switching to the old regime enables deductions.

8. Rebate Under Section 87A:

Rebate Amounts: ₹12,500 under the old tax regime and ₹25,000 under the new tax regime.

Taxable Income: For FY 2023-24, the new regime offers a rebate for taxable income up to ₹7 lakh, making it more attractive than the old regime, which offers a rebate for income up to ₹5 lakh.

9. ITR-1 for Joint House Owners:

Eligibility: Joint owners of a single property can file ITR-1 if they do not own any additional properties.

10. Precautions to Avoid Filing Issues:

  • Link Aadhaar with PAN.
  • Pre-validate your bank account for refunds.
  • Choose the correct ITR form.
  • File within specified timelines.
  • Verify your return, preferably through e-Verification.
  • Respond promptly to any ITD notices.

By following these guidelines, salaried individuals can ensure a smooth ITR filing process for FY 2023-24.

Also Read: Profits from F&O Trading May Be Categorized as Speculative Income in Union Budget 2024

To Access the User Manual on online filing of ITR-1 CLICK HERE

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