For many Indian salaried people, filing income tax returns is a legal requirement, but it’s also a chance to maximize your tax savings. For people with income up to ₹50 lakhs from salaries, one home property, and other sources (not including lottery or capital gains), ITR 1 filing, also referred to as Sahaj, is the preferred form. If you fit this description, submitting an ITR 1 allows you to take advantage of a number of deductions under the Income Tax Act in addition to maintaining compliance.
Let’s examine how filing an ITR 1 can help you maximize your savings and claim tax deductions:
Recognizing the Function of ITR 1 Submission in Deduction Claims
1. Reporting on Structured Deduction:
Taxpayers can easily enter their qualifying deductions in the designated sections of the ITR 1 form. The Income Tax Act’s Chapter VI-A, which contains well-known provisions 80C, 80D, 80G, and others, is where these deductions can be claimed.
2. Section 80C Benefits:
You can claim deductions of up to ₹1.5 lakhs under Section 80C by declaring investments like LIC premiums, ELSS mutual funds, PPF, NSC, and more utilizing ITR 1 filing. For salaried people, it is among the most often utilized deductions.
3. Medical Insurance under Section 80D:
You can utilize an ITR 1 filing to claim health insurance premiums you have paid for yourself, your spouse, your parents, or your children. This lowers your overall tax burden by providing a deduction of up to ₹25,000 (or ₹50,000 for elderly persons).
4. Education Loan Interest under Section 80E:
Interest paid on an education loan can be deducted if you or your dependent are repaying it. This deduction is valid if you match the minimum qualifying requirements, even though ITR 1 only permits salaried income types.
5. Section 80G Donations:
You can record qualified contributions to registered charities using ITR 1. These can help reduce your taxable income and offer 50% or 100% deductions, depending on the institution.
6. Home Loan Interest (Section 24b):
You can claim up to ₹2 lakhs under Section 24(b) if you own a single-family home and pay interest on a home loan. To do this, you must file an ITR 1.
The Significance of Prompt ITR 1 Submission
You won’t lose out on any possible deductions if you file your ITR 1 on time. Penalties and the denial of some deductions may follow late submission. You can check your Form 16 to make sure all deductions are recorded and receive a refund if too much TDS has been withheld if you file appropriately and on time.
Benefits of Using KarSaathi and Similar Platforms
The ITR 1 filing procedure is made easier and more user-friendly by employing platforms such as KarSaathi. Their detailed instructions guarantee that all pertinent deductions are correctly and accurately claimed. It lessens the possibility of losing out on any tax-saving opportunities.
In conclusion
Filing an ITR 1 is not only required by law, but it is also a useful tool for efficient tax preparation. Salaried people can lower their taxable income, claim a variety of deductions, and even receive refunds by correctly completing the ITR 1 form. There’s no reason not to take advantage of your legitimate tax benefits, especially with digital platforms like KarSaathi making the procedure easy.
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