New SAHAJ ITR-1- More standards though complicated

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It was a very popular news for while when Government proposed in the budget 2011-12 to exempt salaried class with the annual income of up to Rs. 5 lakhs from filing any income tax returns. Recently, the Chairman of CBDT also announced that exemption relating to filing of income tax retruns would be issued in the month of June-2011.

In this background, CBDT (Central Board of Direct Taxes) has come up with two new Income tax returns known as Sahaj (previously called as ITR-1) and Sugam (for business income previously called as ITR-4S).  We the salaried class are more concerned with SAHAJ.

Who has to file SAHAJ?

This return form is to be used by the Individual whose total income for the assessment year 2011-12 includes

  1. income from salary/pension:or
  2. Income from one house property(excluding where loss brought forward from previous year):or
  3. Income from other sources( excluding winnings from lottery and income from races horses)

Who should not use SAHAJ to file income tax return?

This return form should not be used by an individual whose total income for the assessment year 2011-12 includes;

  1. Income from more than one House property: or
  2. Income from winnings fom lottery or income fom races horses:or
  3. income under the head "Capital Gain ",which are not exempted from tax,Eg short term capital gain from sale of house ,plot etc:or
  4. Income from agriculture in excess of Rs 5000:,or
  5. Income from Business or profession.

Can I annex Form 16/FORM 16A to SAHAJ?

No documents (including TDS certificates) should be attached to this return form.All such documents with this return form will be detached and returned to the person filing the return.

Note that you can attach only the supplementary Sch TDS1, TDS2, IT only after exhausting the items given in the Form

Who are obligated to File SAHAJ?

All those individuals who have income from sources as given in Question 2 and if their Taxable Total Income exceeds the upper limit as given below would be obligated to file SAHAJ

Sl.No Category Income slab above which SAHAJ filed
i. In case of individuals below the age of 65 years (other than women) Rs. 1,60,000
ii. In case of women below the age of 65 years Rs. 1,90,000
iii. In case of individuals who are of the age of 65 years or more at any time during the financial year 2010-11 Rs. 34,000/- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.

How should Sahaj should be filed?

This return can be filed with the income tax department in any of the following ways:

  1. by furnishing the return in a paper form:
  2. by furnishing the return electrically under digital signature
  3. by transmitting the data in the return electrically and thereafter submitting the verification of the return in return form ITR-V
  4. by furnishing a bar coded return.

Note: where the return form is furnished in the manner mentioned at 6(iii),the assessee should print out two copies of Form copy of ITR_V ,duly signed by the assessee ,has to be sent by ordinary post to Post Bag no -1,electricity city office, Bangaluru-560100, Karnataka. The other copy may be retained by the assessee for his record.

What we could see from the SAHAJ form is that it is not a simplified one as claimed by the Government.  But, we have to appreciate the efforts taken by the Income Tax Department as far as standardization of the document is concerned, since it lacked standards in the previous years.

The other itches as far as individual tax payers are concerned are the conditions of Income tax department that the SAHAJ form should not be printed in black and white ink; that the various colors contained in the empty form published by the department are all parts and parcels of standards and that only colored SAHAJ will be accepted.   

Download new SAHAJ ITR-1 blank form from the following link

Download SAHAJ ITR-1  

Download printing specifications for SAHAJ ITR-1 form

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