Korpfintax

ITR-1

To simplify tax compliance, the Income Tax Department categorizes taxpayers based on their income sources and income levels. In India, individuals with income up to ₹50 lakh from salary, one house property, and other sources are required to file ITR1

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:

The ITR-1 Sahaj Form cannot be used by the following individuals:

  • Those whose total income exceeds ₹50 lakh

  • Individuals who have held unlisted equity shares at any time during the financial year

  • Individuals who have served as a director in a company

  • Non-residents and residents who are not ordinarily resident (RNOR)
Individuals who earned income through the following sources cannot file ITR 1 :

  • Individuals with taxable capital gains (short-term or long-term)

  • Income from lotteries, racehorses, or other forms of legal gambling

  • Agricultural income exceeding ₹5,000

  • Residents of India who own assets outside India or have signing authority on foreign bank accounts

  • Individuals claiming relief under double taxation agreements or requesting refunds for foreign taxes paid under Sections 90, 90A, or 91

  • Income earned from more than one house property

Scroll to Top