The Income Tax department has uploaded the new ITR Form -1 or Sahaj filing the Income tax return for the Financial Year 2017-18. As you already know ITR-1 or Sahaj is the form that is largely used by the salaried individuals.
The new ITR-1 Form is different from the previous form in several aspects, the major one being the break-up of income from salary and house property, which is supposed to be provided by the taxpayer in this form. Not just this, in this form you will have to mention the details related to the Value of perquisites, non-exempt allowances, interest paid on borrowed capital and so on. And fret not, you will not have to run from pillar to post in order to find these details, especially those relating to salary income.
The Income from salary
Under this head of the new ITR-1 Form, you are supposed to mention the following details related to salary: Salary (excluding all allowances, perquisites and profit in lieu of salary), allowances that are not exempt from tax, value of perquisites, and profit in lieu of salary. You are also required to provide details of the deductions you have claimed under section 16 of the Income-tax Act, 1961.
What are the deductions under section 16 of Income Tax Act, 1961?
This section particularly talks about the deductions that a taxpayer can claim from his/her salary income only. Here is the list of deductions under section 16 that can be claimed while filing Income Tax Returns for the FY 2017-18 using the new ITR-1 Form: –
- Deduction on entertainment allowance received by government employees only which is lower of:
- Actual amount received
- One-fifth of the salary excluding any allowance, benefit or other perquisite
- Rs 5,000
- Any professional or employment tax paid
So, those were some necessary details that you will have to keep in mind while filing your Income Tax Returns using ITR-1 Form.