When to File ITR-1: Echter and Non-Salaried Individuals

Filing the Income Tax Return (ITR) is a key responsibility for all individuals and entities in India. For salaried and non-salaried individuals, the filing deadline for ITR-1 is a critical aspect to ensure compliance with tax regulations. In this article, we will explore the specific timelines and requirements for filing ITR-1, providing you with actionable insights to stay compliant and manage your tax liabilities effectively.

Filing ITR-1 for Salaried Individuals

ITR-1 Filing Deadline:

The last due date for filing ITR-1 for salaried individuals is 31st July of the next financial year. If you are a salaried individual who wishes to file ITR-1, the deadline is particularly important. For instance, for the financial year 2018-2019, the deadline to file ITR-1 was 21st July 2019. This is a critical window during which you need to submit your tax return forms to avoid any penalties or delays.

What is ITR-1?

ITR-1 is the most commonly used form in India for salaried individuals as well as entities that meet certain criteria. It is designed for individuals earning income through salary, rental income, interest, and other specified sources. This form simplifies the tax filing process for many Indians by allowing them to claim deductions under the 80C section and other reliefs.

Understanding ITR-1 for Non-Salaried Individuals

Eligibility for ITR-1:

Non-salaried individuals who wish to file ITR-1 must meet specific criteria. This primarily includes individuals who:

Earn less than Rs. 500,000 from bank interest, securities, and other sources Do not have any other source of income Have no properties or investments that require payment of tax

ITR-1 Filing Deadline for Non-Salaried Individuals:

For non-salaried individuals, the ITR-1 filing is similar to that of salaried individuals but with some differences. The deadline for their submission is also 31st July of the next financial year. It is important to note that this is a strict deadline. Missing it can result in late fines and other penalties.

Example: For the financial year 2020-2021, the deadline to file ITR-1 as a non-salaried individual would be 31st July 2021.

Key Benefits and Considerations

Benefits of Filing ITR-1:

Access to deductions under Section 80C which includes investments in savings accounts, life insurance, and mutual funds Claiming medical and other expenditures as per the Individual Income Tax Act Maintaining compliance with tax regulations and avoiding penalties

Considerations:

Early submission to avoid last-minute rush and possible technical issues Reviewing your financial records carefully to ensure accuracy of information provided Ensuring all relevant documents and details are submitted to avoid any challenges during tax audits

How to File ITR-1

Filing ITR-1 is a straightforward process that can be done online. Below are the steps to follow:

Create a Digital Signature: Ensure that you have a valid digital signature certificate for filing your tax returns. Visit the official Income Tax website () and select the ITR-1 form. Fill in your basic details and income details as provided in your TDS statements, bank statements, and other relevant documents. Save and preview your form to ensure all necessary information is complete and accurate. Submit the form and complete the payment of any tax due. Print the acknowledgment slip that will serve as proof that you have filed your tax return.

Penalties for Not Filing ITR-1 Timely

Missed deadlines for filing ITR-1 can lead to significant penalties and interest charges. Here are some common penalties:

Late Filing Penalty: If a tax return is not filed within the deadline, a late filing penalty of 0.5% of the tax due is charged for every day that the return is delayed, up to a maximum of 25% of the tax payable. Late Payment Penalty: If the tax due is not paid by the stipulated date, a penalty of 1% of the tax amount is charged for every day the payment is delayed, up to a maximum of 10% of the tax due.

These penalties can significantly increase the overall cost of compliance, so it is crucial to file on time.

Conclusion

For both salaried and non-salaried individuals in India, understanding the ITR-1 filing deadline is essential. The last due date for filing ITR-1 for the financial year 2018-2019 was 21st July 2019, while the current deadline is 31st July of the next financial year. By staying compliant and filing your returns on time, you can avoid penalties and maintain good standing with the tax department. Always ensure that your financial records are up-to-date and maintain a copy of all necessary documents for future reference.