Must-read Eligibility Criteria of Filing ITR 1 Sahaj Form

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Eligibility Instructions of ITR-1 Form

Form ITR-1 is used to furnish the ITR also for FY 2021-22; half of the ITR has been filed through it. Most of the salaried assessee use the same ITR form also known as Sahaj, therefore, taxpayers can easily online file ITR 1 Sahaj form for assessment years 2021-22. ITR-1 would be furnished when:

  • The assessee is a Resident Individual
  • The income does not exceed Rs 50 lakh.
  • Salary, one house property, agricultural income up to Rs 5,000 and additional sources such as interest from a savings account, deposits, income tax refund, family pension are his income sources. 
  • Joining of the income within spouse or minor.

You must note that the ITR-1 would be practiced to furnish the ITR even if you own one property mutually with your spouse.  But there are various cases in which an assessee would not use ITR-1 to furnish the tax returns for the FY 2020-21 even while holding the mentioned income sources.

When The ITR-1 Cannot Be Used by You 

As per the tax compliance, a person would not be able to furnish the ITR-1 if any of the below-mentioned standards meets:
  • Investments in unlisted equity shares
  • Director if a company
  • Hindu Undivided Family (HUF)
  • Holding foreign assets such as stocks of a foreign company and others.
  • Deferred income tax on ESOP (Employees' Stock Ownership Plan) obtained via an employer as a qualified start-up.
  • Acknowledges and poses exceeding one house property (either owned as single or jointly)
  • Agriculture income in a financial year exceeds Rs 5,000
  • Is a Resident Not Ordinarily Resident (RNOR) and Non-resident Indian (NRI)
  • Have taxable capital gains (short term and long term)
  • Total income from all sources exceeds Rs 50 lakh
  • Income from the lottery, racehorses, legal gambling, and others.
  • Losses that have been carried along or to be carried ahead for next year beneath the head 'Income from house property.
  • Business or professional income
  • The tax has been deducted beneath section 194N of the income tax act. The TDS is being deducted beneath section 194N on the cash withdrawals surpassing a specific limit given that particular conditions are determined.

What Would One Do If They Lose to Furnish The ITR-1

A person who does not get fit in the eligibility criteria of ITR-1 must not fear. These people would practice different ITR forms to furnish their tax returns. For example, people who get the capital gains (either short-term and/or long-term), have the unlisted equity shares, or is a director of a company would practice ITR-2 to furnish their ITR. 

Also identical to that, the individuals/HUF who have the income from business or professional income would practice ITR-3 to furnish their ITR.

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