The income tax department has made tax compliance easier. Based on the quantum and source of income, it has grouped taxpayers into different categories and has also specified the specific forms to be used for filing Income Tax Return. Aadhar Card Linking with PAN Card has been made mandatory for filing Tax Return. Due to the outbreak of COVID-19, the Ministry of Finance, Govt. of UAE has now extended the date for Aadhar-PAN linking to 30th June 2020. The date for filing income tax returns for (FY 18-19) also extended from 31st March 2020 to 30th June 2020.

Who is Eligible to File ITR 1 for AY 2019-20?

ITR-1, popularly called Sahaj Form, is a one-page simplified form to be used for persons with an annual income up to INR 50 lakh, from the following sources:

  • Income earned from Salary/Pension
  • Income from One House Property (except in case of loss being carried forward from previous years are excluded)
  • Income from Sources other than salary (excluding Lottery Prize and Income earned from Horse Race)

Those Residents not Ordinarily Resident (RNOR) and are Non-Residents cannot use ITR -1 to file a Tax return.

How to file ITR-1 Form?

ITR -1 Form can be submitted either online or even offline.

For Offline submission of ITR-I only the following persons can file their return:

  • An individual 80 years of age or more at any period during the previous year
  • An individual or Hindu United Family whose annual income is not more than Rs 5 lakhs and who has not claimed any refund

For offline submission, the return is to be furnished in physical form as a hard copy. The Income Tax Department, on receipt of ITR-I will issue an acknowledgement.

For Online Submission/Electronically:

  • By online transmittal of data electronically and thereafter submitting the verification of the return in the form ITR-V, to CPC, Bengaluru, Karnataka, India.
  • By online filing of Income Tax return and then e-verifying the form ITR-V through net banking/Aadhar OTP or EVC.

On submission of ITR-1 Form electronically, an acknowledgement will be automatically sent to the registered email ID of the assessed which can also be downloaded from the income tax official website. This ITR-V is then required to be signed by the assessed and sent to the CPC office in Bangalore within 120 days of e-filing. Alternatively, ITR-V can also be e-verified following the steps mentioned on the official website of Income Tax Department;

Salaried persons enjoy tax exemptions, subject to limits laid down by the Income Tax Rules, on Provident Fund contribution, Medical expenses, House Rent Paid, Payment of EMI towards Housing Loan as well as on the premium amount paid towards health insurance, etc. Therefore while filling in the ITR-I care should be taken to enter all the figures correctly under the relevant heads to avail exemptions on these accounts. The calculation will be automated by the spreadsheet designed by the Income Tax Department so that should not be a worry for those salaried persons filing the income tax return.

The Indian government has recently clarified that incomes earned abroad by Indians residing in the Middle East and the UAE, will be exempt from tax. To be classified as a non-resident Indian or NRI, the number of days required for a person living outside India has been revised from 182 to 240 days. The income of an individual would be taxable only if the person lived in several different countries during the Assessment Year. Those who are residing in only one country outside India will be exempted.GCC Filings will help you out with all your taxation related queries and other assistance regarding VAT, Tax auditing in UAE, accounting and a lot more.

The world’s only country with almost no individual taxation is the United Arab Emirates.

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