ITR-1

To make tax compliance easier, the Income Tax Department has divided taxpayers into groups according to their sources of income and level of income. In India, individuals with incomes up to Rs. 50 lakh are required to file ITR 1 Returns.

Who can file ITR 1 Sahaj Form?

For persons with incomes up to Rs. 50 lakh millions, there is the ITR 1 Sahaj Form. Those who get income from the following sources are eligible to file an ITR-1 Sahaj form:

A person who is receiving a salary is compensated financially for the services they provide as required by their job contract. as per Income Tax act 1961 salary definition includes the following:

• Wages
• Pension
• Annuity
• Advance salary paid
• Leave Encashment
• Fee, prerequisites, commission, profits besides or in lieu id the salary or wages
• Transferred balance in recognized provident fund
• Annual accretion to the recognized provident fund
• Central Government contribution or an employer contribution to Pension account as mentioned in Section 80 CCD of the Income Tax Act.
• One house property: If the taxpayer is the owner of a property from which he or she is earning rent, the rent proceeds become taxable.
• However, if the taxpayer is using the owner of a property from which he or she is earning rent, the rent proceeds become taxable. However, if the taxpayer is using the property for running some business or profession the same would be taxable under the heading “Income from business or professionâ€.
• Other sources (does not include income earned from winning lottery or racehorses)
• Agricultural income (Upto to Rs. 5000)

ITR 1 Sahaj Form cannot be filed by the following:

• This ITR 1 Sahaj 1 Form cannot be used by anyone whose income exceeds Rs.
• No person may use this form if they have ever held unlisted equity shares while serving as a director of a company.
• Non-residents and residents who are not ordinary inhabitants are likewise ineligible to file ITR 1 Sahaj Forms.

Individuals who earned income through the following sources cannot file ITR 1 :

• Taxable capital gains
• Lotteries, racehorses, and other forms of legal gambling ( Both short term and long term)
• Agriculture income over Rs. 5,000
• A resident of India with assets outside of India, or the person with signing authority on any accounts with foreign bank accounts.
• Those who are requesting relief from double taxation or reimbursement from foreign tax paid under Section 90/90A/91.
• Earning income from more than one house property