What is ITR 1 - Income Tax Return filing

ITR 1 which is also popularly known as Sahaj is to be used by an individual whose total income does not exceed Rs. 50 lakh from the following sources:

• Income from Salary/Pension
• Income from One House Property
• Income from Other Sources (excluding income through horse racing or lotteries)
• Agricultural Income upto Rs. 5,000

Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this ITR can be used only if the income being clubbed falls into the aforementioned categories.

Who cannot use ITR 1 Form?

• An individual who total income exceeds Rs 50 lakh;
• An individual who is a Director in a company;
• An individual who has held any unlisted equity shares at any time during the previous year;
• An individual who has income from any source outside India;
• An individual who has any asset (including financial interest in any entity) and/or signing authority in any account located outside India;
• An individual who has has any income of the following nature :

a) Business and Profession

b) Capital Gains (Long Term/Short Term)

c) Income from more than One house property

d) Income from Horse Racing, Lottery, etc.

• An individual who has agricultural income in excess of Rs. 5,000;

Further, ITR1 can not be used for by an individual who has any claims of loss/deductions/relief/tax credit etc. of the following nature:-

(a) any brought forward loss or loss to be carried forward under the head ‘Income from house property’;

(b) loss under the head ‘Income from other sources’;

(c) any claim of relief under section 90 and/or section 91;

(d) any claim of deduction under section 57, other than deduction under clause (iia) thereof (relating to family pension); or

(e) any claim of credit of tax deducted at source in the hands of any other person.