Eligibility criteria to file ITR 1 sahaj form:

The ITR 1 Sahaj Form is specifically designed for individuals with an income of up to Rs.50 lakh. If your income sources fall within the following categories, you are eligible to submit the ITR 1 Sahaj Form:

- Salary refers to the remuneration for services under a contract of employment. Income Tax Act, 1961 includes various types of income under salary

- Types of income included under salary:

  - Wages

  - Pension

  - Annuity

  - Advance salary paid

  - Leave Encashment

  - Fee, prerequisites, commission, profits besides or in lieu of salary or wages

  -Transferred balance in recognized provident fund

  -Annual accretion to recognized provident fund

  -Central Government or employer contribution to Pension account (Section 80 CCD)

  -Income from renting out a property is taxable

  -Income from renting out a property for running a business/profession is taxable under "Income                          from business or profession"

  -Other sources of income (excluding lottery or racehorses)

   -Agricultural income (up to Rs. 5000)

Important Limitations to Note When Filing ITR 1 Sahaj Form:

 - Individuals who earn more than Rs. 50 lakh in income are ineligible to file this form.

- Directors of companies who held unlisted equity shares during the financial year cannot use ITR 1 Sahaj Form.

- Non-residents and individuals who are not ordinary residents are also not eligible to file this form.

- Income from certain sources such as multiple properties, lottery, racehorses, gambling, taxable capital gains, agricultural income exceeding Rs. 5,000, and foreign assets/accounts cannot be reported using ITR 1.

- Individuals claiming relief for foreign tax paid or double taxation relief under Section 90/90A/91 cannot use ITR 1.

It is crucial to be aware of these limitations to avoid any complications while filing your income tax return.

Income tax rate under old tax and new tax regime for TDS return filing

- Taxpayers are given the choice between the old and new tax regimes.

- It’s important to decide at the start of the financial year.

Rate subject to old tax regime:

- Individuals up to the age of 60 can opt for the old tax regime, which offers the following rates:

- Income up to INR 2,50,000 is tax-free.

- Those earning between INR 2,50,000 and INR 5,00,000 are subject to a 5% tax.

- Those earning between INR 5,00,000 and INR 10,00,000 face a 20% tax.

- Any income above INR 10,00,000 is taxed at a rate of 30%.

 Tax rates for senior citizens aged 60-80 years in India:

- No tax for income up to INR 3,00,000

- 5% tax for income between INR 3,00,000 - INR 5,00,000

- 20% tax for income between INR 5,00,000 - INR 10,00,000

- 30% tax for income exceeding INR 10,00,000

- Tax rates for super senior citizens (above 80 years old)

- No tax on income up to INR 5,00,000

- 20% tax on income between INR 5,00,000 and INR 10,00,000

- 30% tax on income above INR 10,00,000

Rate subject to new tax regime:

- The new tax system provides taxpayers with a reduced interest rate.

- However, to qualify for this benefit, they will need to forego specific exemptions and deductions.

- The current tax rates remain available for use.

- By utilizing the current rates, taxpayers can enjoy refunds and deductions, but taxes will be higher under the existing regime

The latest tax regime that will apply to individuals and HUFs has been announced, and the rules are as follows:

- Nil tax on income up to INR 2,50,000

- Tax rebate of 5% on income between INR 2,50,000 to 3,00,000

- 10% tax on income between INR 3,00,000 to 5,00,000

- 15% tax on income between INR 5,00,000 to 7,50,000

- 20% tax on income between INR 7,50,000 to 10,00,000

- 25% tax on income between INR 10,00,000 to 12,50,000

- 30% tax on income above INR 15,00,000

New Update:

• New Tax Regime has same tax rates for all categories of individuals

• No increased basic exemption limit benefit for senior and super senior citizens in New Tax Regime

• Tax rebate under section 87A available for individuals with net taxable income up to Rs. 5 lakh in both Old and New Tax Regimes

• Exemption limit for NRIs is Rs. 2.5 lakh irrespective of age

• Additional health and education cess at 4% added to Income-tax liability (increased from 3% since FY 2018-19)

• Applicable surcharge:

    - 10% if total income > Rs. 50 lakh

    - 15% if total income > Rs. 1 crore

    - 25% if total income > Rs. 2 crore

    - 37% if total income > Rs. 5 crore.

Essential points regarding opting for a new tax regime

Check out the following details:

- Specific conditions must be fulfilled to choose a new tax regime.

- The new tax regime offers concessional rates.

- To avail of the concessional rates in the new tax regime, you need to forgo the exemptions and deductions available in the old tax regime.

- The old tax regime allows 70 deductions.

- However, in the new tax regime, some common exemptions and deductions are not allowed. These include leave travel, house rent, conveyance, daily expenses, relocation, helper allowance, children education, special allowances, standard deduction on salary, professional tax, and certain types of interest and deductions under Chapter VI A (80C, 80D, 80E and so on) (Except Section 80CCD (2)).

Deductions allowed under the New Tax Regime:

  Some of the deductions permitted by the New Tax Regime are:

- Transportation allowance designated for individuals with specially-abled people

- Conveyance allowance for commuting to work

- Participation in the Notified Pension Scheme according to Section 80 CCD(2)

- Deduction for employment of new employees under Section 80JJAA

- Depreciation under Section 32 of the Income Tax Act (except for additional depreciation)

- Allowance for employment-related or relocation-related travel.

Major amendments to consider for income tax return filing

 Important updates to ITR 1 Form for AY 2021-2022 include:

- Significant revisions have been made to the form

- The filing of ITR 1 is not possible if 194N TDS deduction applies

- TDS credit under 194N cannot be carried forward

- Individuals/HUFs have the option to choose between the old or new tax regimes

- A new form (101E) must be filed before submitting ITR under the new tax regime

- ITR Forms for AY 2020-2021 now include a new schedule DI.