ITR Form Many, if not most, salaried individuals use ITR-1. This ITR form is also known as Sahaj.
ITR-1 This is probably the easiest form to fill up as it requires information about income from a limited number of sources like salary, house property, etc. If ITR-1 is filed online on a completely new income tax portal, most of the information is pre-filled. However, the pre-filled information needs to be cross-checked and corrected as and when required.
as per notification income tax return Form, ITR-1 can be used by an individual taxpayer who is ordinarily resident and whose total income does not exceed Rs 50 lakh in a financial year.
The ITR-1 form seeks information on income from only these sources:
One) salary income,
b) Income from a house property
c) Income from other sources like interest income, dividend etc.
Therefore, salaried taxpayers having income from sources other than those mentioned above cannot use Form ITR-1 to file their tax return for FY 2021-22.
Who cannot use Form ITR-1?
There are certain situations where an individual taxpayer cannot use ITR-1 to file his income tax return.
Abhishek Soni, CEO of ITR filing website tax2win.in says, “As per the notified income tax return form, a person cannot use ITR-1 in the following situations:
a) who have invested in unlisted equity shares,
b) If you are a director in a company
c) If TDS has been deducted under section 194N for withdrawal of money in bank/post office account in excess of the specified limit.
d) If your total income is more than Rs 50 lakh
e) If the taxpayer is a Hindu Undivided Family (HUF)
f) holding foreign assets of a foreign company
g) is a signatory to the foreign bank account
h) if you have capital gains By sale of shares, mutual funds, land or building etc. (short term and long term)
i) If income tax is deferred on Employee Stock Ownership Plans (ESOPs)
j) If you have more than one house property
k) If you are a Non-Resident Indian (NRI) or not a Resident Ordinary Resident (RNOR)
l) If one of your sources of income is lottery, racehorse, gambling etc.
m) If your agricultural income is more than Rs.5,000
n) If you have income from business and profession
o) Losses to be carried forward or carried forward under the head ‘Income from house property’.”
Who is not eligible to file ITR-1 for FY 2021-22?
choose the correct form
The first step is to select the appropriate tax return form to complete the Income Tax Return (ITR). The applicable tax return form is determined by the state of residence of an individual and the total income collected from various sources during the financial year.
The taxpayer has the option to fill Form ITR-1 online or offline. To complete the filing process in offline mode, use the JSON utility to fill in the details before submitting it to the Income Tax website.
Here are the important FAQs for individuals planning to file ITR-1 According to the Income Tax website, you can check whether you fall under this category of filing or not.
Who is eligible to file ITR-1 for AY 2021-22?
ITR-1 can be filed by a resident individual whose:
The total income during the financial year does not exceed Rs 50 lakh.
Income is from salary, a house property, family pension income, agricultural income (up to Rs.5000) and other sources, which include:
Interest from savings accounts.
Interest from Deposits (Bank/Post Office/Co-operative Society)
Interest from income tax refund.
Interest received on enhanced compensation.
Any other interest income.
family pension.
The income of the spouse (other than those covered under the Portuguese Civil Code) or the minor is added (only if the source of income is within the limits specified above).
Who is not eligible to file ITR-1?
ITR-1 cannot be filed by any person who:
is a resident who is not ordinarily resident (RNOR), and non-resident Indian (NRI).
Whose total income is more than Rs 50 lakhs.
Agricultural income is more than Rs.5,000.
There is income from lotteries, horse racing, legal gambling etc.
Taxable capital gain (short term and long term) is,
Invested in unlisted equity shares.
Income from business or profession.
There are directors in a company.
Tax is deductible under section 194N of the Income Tax Act.
Being an eligible start-up has deferred income tax on ESOP received from the employer.
Owns more than one house property and has income.
Not covered under the eligibility conditions for ITR-1.
What are the changes in ITR-1 as compared to previous years?
ITR-1 will contain section 115BAC. If you want to opt for the new tax regime under section 115BAC, select Yes in the new ITR form, otherwise select No. Please note that the option for new tax regime under section 115BAC will be available only till the due date of filing of return. /s 139(1).
What documents do I need to file ITR-1?
You will need Form 16, House Rent Receipt (if applicable), Investment Payment Premium Receipt (if applicable). However, ITRs are annexure-less forms, so you do not need to attach any documents (such as proof of investment, TDS certificate) with your return (whether filed manually or electronically). However, you need to keep these documents for situations where they need to be presented before the tax authorities such as assessment, enquiry, etc.
What if you file ITR using wrong form?
Soni says, “If a person files income tax return using wrong form, then such tax return will be termed as defective return. Income tax department will send a notice to the person asking him to file ITR using correct ITR form. / for that. Once the ITR is filed using the correct ITR form, only the tax department will take it for processing.”
