ITR-1 for AY 2020-21: ITR filing for salaried employees- Detailed Guide

As you know that ITR-1 for AY 2020-21 (Financial year 2019-20) has arrived on the income tax efiling portal. ITR-1 is used for Salaried persons return and it mainly covers income source from salary. ITR-1 return which is called SAHAJ is also available online.
You can file ITR-1 by 3 ways-

  • By downloading and filing through excel utility
  • By downloading and filing through java utility
  • It can also be filled directly on efiling portal online

If you are going to file an income tax return for salaried employee, this article is very important for you. In this article, we have covered-

  • What are the eligibility criteria for ITR-1 for AY 2020-21?
  • Cases, When ITR-1 is not allowed to be filled
  • What documents are required to file the ITR-1?

What are the eligibility criteria for ITR-1 for AY 2020-21?

Let’s discuss the eligibility, The eligibility to file ITR 1 are-

1. Sources of your income

The first condition to file ITR-1 is the sources of your income. Sources of income should be income from the salary and income from one house property and Bank interest.

If you have income from salary and one house property, It can be shown in ITR 1 and If there is income from more than one house property, then you have to file ITR-2.

2. Income should be upto Rs 50 lakh

Your Income must be up to Rs. 50 Lakh, but if your income in the entire financial year 2019-20 is more than 50 Lakh, You can’t file ITR-1 for AY 2020-21

Cases, When ITR-1 For salaried employees is not allowed to be filed

1. Brought forward house property loss

While filing ITR-1, One more thing to keep in mind is that if under the source house property, there is a house property loss in the last year, the loss cannot b/f in ITR-1.

2. Casual income not allowed to be included in ITR-1

You need to keep in mind that if you have any casual income in the financial year like you have taken a lottery ticket and the income is generated out of it, In that case, you cannot file in ITR-1.

3. Agriculture income is more than Rs 5,000

While filing ITR-1 (SAHAJ) you have to be cautious to check agriculture income of the assessee. If your agricultural income in the preceding financial year is more than Rs. 5000, In that case you cannot file ITR-1 for AY 2020-21

4. Your residential status in Non Resident or Resident but not ordinary resident

If your residential status in the relevant financial year is NR and RNOR, you cannot file ITR-1.

5. You hold any assets in foreign country

If there is an foreign asset in your name or you are a beneficial owner or beneficiary then you can not file ITR-1

6. You have income from Business or Profession

If you have any income from Business or Profession, you are not eligible to file ITR-1.

7. You have income from Capital Gain

ITR-1 can not be filed If there is any income form capital gain whether it is long term or short term. You cannot file ITR-1.

However, if you have Interest income (including interest on FD) All this is covered in income from other sources and you can show this in ITR-1

What are the documents required to file ITR-1 for AY 2020-21

There are few documents which is required at the time of filing ITR-1. It helps to determine the correct salary income, house property income, deductions under chapter-VIA and TDS to be claimed. You need to arrange these documents before proceeding to file ITR-1

1. Form-16 (To be obtained from employer)

A very important document is form-16. This is what your employer provides you as a proof of TDS deduction during the year. In form 16, there is a statement of salary in and how much tax was deducted in it. So the first important document you must have to collect is form-16 to file ITR-1

2. Form 26AS to be downloaded from Traces Portal

The second important document is Form-26AS and it can be downloaded from your traces portal (or through income tax efiling portal). It can be downloaded by going online to the e-filling portal where you can generate form-26AS. Form-26AS is basically your TDS detail. So you have to cross-check the TDS deduction from Form-26AS with form-16 to determine whether it is reflecting in your Form-26AS in actual or not.

You must match Form 26AS with Form 16. TDS deducted during the year should be reflected in the Form-26AS as mentioned in Form-16

3. Housing Loan Certificate (Loan Statement)

The third document is your housing loan statement for the relevant financial year. If you fulfill the condition for deduction under chapter VIA, the deduction for principal repayment of housing loan is allowed under section 80C of income tax Act. Additionally deduction of interest is allowed as a deduction from income under the head house property under section 24 of income tax Act.

So you have to segregate total EMI repayment into principal and interest for claiming these deductions. For which you have to write an application And the bank provides you the loan statement for that financial year.

4. Life Insurance Policy, Mediclaim policy Documents and Children’s Tuition Fees receipts

These are the very important document which helps to determine the amount to be claimed under section 80C and 80D of the income tax Act. Under section 80C deduction for Life insurance policy and childrens tuition fees is allowed. And under section 80D, deduction for medical insurance is allowed.

5. Bank statements and Interest Certificate for all Bank Accounts

It is required to calculate the interest amount earned during the year. It is required to show under the head income from other sources. Interest from saving bank account is allowed to be claimed under section 80TTA and 80TTB of income tax Act.

If you want to claim these deductions in your Income-tax return to lower your tax liability, You have to keep ready the above-mentioned documents. So that you can ascertain the deduction amount easily for filing your income tax return.

So in short, followings are the documents required to file ITR 1 for AY 2020-21

  • 1. Form-16, to be obtain from the employer
  • 2. Form-26AS, to be downloaded from income tax efiling website
  • 3. Housing Loan certificate and Loan statement
  • 4. Life Insurance Policy, Mediclaim policy Documents and Children’s Tuition Fees receipts
  • 5. Bank statements and Interest Certificate for all Bank Accounts

Also Read:

NPS Vs PPF: Which one is better Retirement Plan with Tax Saving Benefits

Public Provident Fund (PPF Account)- Eligibility, Documents, How to open, Tax benefits: Guide

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IndiaTaxLaws Team is an online knowledge bank for professionals like CA, CS, CMA, Advocates, MBAs, and Finance Professionals. We provide the latest updates, articles, notifications, circulars, court judgments etc. relating to taxation and corporate laws in India.


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