Income Tax Return e-Filing for AY 2019-20: ITR-1 has six pages, out of which only three pages are relevant for majority of salaried people and hence are commonly filled.
ITR-1 is a single page offline Income Tax Return filing form, which is also called ‘Sahaj’ as it is very easy to fill compared to other ITR forms. However, at the time of e-filing of Income Tax Return 2019-20, you will find that there are 6 pages in Excel utility – viz, Income Details, TDS, TCS, Taxes Paid and Verification, 80G and 80GGA. Even on the e-filing site, there are the same number of tabs under the “Prepare and Submit Online” option.
Despite this, it is much easier than forms like ITR-2 and ITR-3 and Resident salaried individuals (other than Not Ordinarily Resident), having total income up to Rs 50 lakh from sources like – Income from Salaries, One House Property, Other Sources (Interest etc.), and Agricultural Income up to Rs 5 thousand, may consider themselves fortunate to file ITR-1, provided such an individual is not a Director in a company or hasn’t invested in Unlisted Equity Shares.
From this year, salaried individuals, who have redeemed their investments in equity and/or equity-oriented funds (like ELSS, equity MFs etc) in the last financial year (FY 2018-19), are not allowed to file ITR-1.
“ITR-1 is a very simple and easy to fill return form and a taxpayer can fill the same himself without anyone’s help. Moreover, from this year onwards – most of the data is also pre-filled which makes it even more easier,” said CA Karan Batra, Founder & CEO of CharteredClub.com.
Now, let’s compare ITR-1 with ITR-2 and ITR-3 to see how easy the ITR-1 to fill even by a taxpayer himself/herself and how difficult the other forms are that it may not be possible for all salaried assessees to file the returns themselves.
Number of pages in Excel Utility: ITR-1 has six pages as given above, out of which only three pages – Income Details, TDS and Taxes Paid and Verification – are relevant for majority of salaried people and hence are commonly filled. In comparison, ITR-2 has 26 pages and ITR-3 has 41 pages. So, determining which pages are relevant for you and which are not itself is a herculean task.
Benefit of pre-filled fields: While salaried taxpayers may take the benefit of pre-filled fields in ITR-1, till now there is no such option in ITR-2 and ITR-3 and the assessees need to fill each and every relevant fields in these forms.
Salary page: While in ITR-1, all the sources of income are to be mentioned in one page, in the other two forms, separate pages to report the income from salary are there. Not only separate pages, but each and every components of salary – like basic, HRA, DA and other allowance – are to be revealed separately in ITR-1 and ITR-2, unlike ITR-1, where Salary as per section 17(i), Perquisites and Profit in lieu of Salary are to be mentioned only. So, only Form 16 would not be sufficient to fill ITR-2 and ITR-3, while it is sufficient to file ITR-1.
Income from House Property: While salaried people having income from one house property may reveal the values of rent received, receivable or letable value in ITR-1, assessees in ITR-2 and ITR-3 need to reveal nature of ownership, name(s) of co-owner(s), percentage of ownership, names of tenants, their PAN/TAN, if available are needed along with other information.
Similarly, there are many differences in other parts also, but those differences mainly determine the eligibility for using different ITR forms.