Who has to file income tax return in Form ITR-1 : Author CA Prabhakar Gupta

In India, the Income Tax Act mandates that individuals earning a certain amount of income must file their income tax returns (ITR) every year. The Central Board of Direct Taxes (CBDT) has prescribed different ITR forms for different categories of taxpayers based on their income sources, nature of income, and other criteria. In this blog, we will focus on who needs to file their income tax return in Form ITR-1.

ITR-1 is also known as Sahaj, which is a simplified ITR form for individuals who have income from salary or pension, one house property, and other sources like interest income or agricultural income up to Rs. 5,000. This form can be filed online or offline, depending on the preference of the taxpayer.

Here are the eligibility criteria for filing ITR-1:

1.     Individuals with a total income of up to Rs. 50 lakh per annum can file ITR-1.

2.     Income sources should be limited to salary or pension, one house property, and other sources like interest income or agricultural income up to Rs. 5,000.

3.     The income should be earned within India.

4.     The individual must be a resident of India.

However, if any of the following conditions apply to the individual, they cannot file their ITR in Form ITR-1:

1.     If the total income exceeds Rs. 50 lakh per annum.

2.     If the income sources include capital gains, business income, or more than one house property.

3.     If the income includes income from outside India.

4.     If the individual is a resident but not ordinarily resident (RNOR) or a non-resident.

It is important to note that individuals who have exempted income, such as tax-free bonds or long-term capital gains, are also eligible to file their ITR in Form ITR-1. However, they must disclose such income in their ITR.

Filing ITR-1 is mandatory for individuals who meet the above eligibility criteria. Failure to file the income tax return can result in penalties and legal action. It is advisable to file the income tax return well before the due date to avoid last-minute rush and errors.

In conclusion, ITR-1 is a simplified ITR form designed for individuals with a limited income from specific sources. Individuals who meet the eligibility criteria for filing ITR-1 must file their income tax return every year to avoid penalties and legal issues. It is advisable to consult a tax expert or chartered accountant for any clarifications or assistance in filing the ITR.