ITR Filing 2024: When it comes to filing income tax returns, selecting the right form is crucial. If you choose the wrong form, the IT department may reject your return and even impose a penalty for missing the deadline. Many individual taxpayers are often confused about whether to choose ITR-1 or another form.
Who Can Choose the ITR-1 Form?
For salaried individuals with a total income below Rs 50 lakh, the simpler ITR-1 form, also known as Sahaj, is typically the best choice.
What Are Benefits Of ITR-1 Form?
This form requires less detailed information compared to other forms like ITR-2 or ITR-3. If you have a basic understanding of your income sources, filing ITR-1 can be quite straightforward.
Read More: Income Tax: 28 banks where taxpayers can make tax payment before July 31. Full list here
What Are Eligibility Criteria For ITR-1 Form?
However, not all salaried individuals are eligible to use the ITR-1 form. Certain transactions conducted in FY 2023-24 (AY 2024-25) may disqualify you from using it.
- To be eligible for ITR-1, your income should come from salary or pension, and you should have income from only one property.
- You can also have income from other sources, but not from activities like horse racing, gambling, or lotteries.
- Additionally, you should not own any property outside India or receive income from foreign sources. Interest income from savings accounts, deposits, and family pension is acceptable.
Read More: ITR (Income Tax Return) filing 2024 online: Top websites to file ITR on your own
Who Cannot Use ITR-1 Form?
- On the other hand, you cannot use ITR-1 if you are a non-resident or a resident but not ordinarily resident.
- If your total income exceeds Rs 50 lakh, or if you have income from more than one property.
- It is also not applicable if you earn income through a profession or business, or if you receive income from gambling, lotteries, horse racing, or similar activities.
- If you have incurred losses from these sources, have capital gains, or have agricultural income exceeding Rs 5,000, you must use a different form.
- Additionally, if you have invested in unlisted equity shares, are a director in a company, or have deferred income tax on ESOPs from an eligible start-up, you cannot file using ITR-1.
