While filing Income Tax Return, an individual must keep several points in mind. This is regarding which form you should choose while filing your income tax return. In case you choose the wrong form, your filing might get rejected. So, it is very importance to choose the right form while filing your income tax.
Today, we shall discuss about who should use ITR-1 form for filing their income tax.
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The ITR-1 form, also known as Sahaj, allows salaried individuals to file their ITR conveniently. This is because you don’t have to provide much information in ITR 1, as compared to the other forms.
However, not all salaried individuals can file ITR-1 form. If certain transactions have been conducted in FY 2022-23, then such individuals might be ineligible to use ITR-1.
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Who is eligible? Only a resident individual can file ITR-1. To file ITR-1, he needs to have an income below Rs 50 lakh and has income from salary, pension or family pension, has income from one house property, has agricultural income up to Rs 5,000 and has income from other sources like interest income from the bank, post office, dividends and others.
According to industry experts, an individual having a single self-occupied house property which has been bought on loan, may file ITR-1, but the maximum amount of set-off would be Rs 2 lakh from other incomes, and the loss cannot be carried forward.
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If a person has income from capital gains and speculative gains, income from more than one house property, individuals whose residency status is Resident Not Ordinarily Resident (RNOR) or Non-Resident Indian (NRI) or if the taxpayer has invested in unlisted equity shares or is holding a position of director in a company or has a deffered income tax liability on a employer being an eligible start-up under the income tax laws.
Apart from this, if an individual is charged TDS under section 194N while withdrawing cash from bank, then he/she becomes ineligible to use ITR-1 form.
