Filing Income Tax Returns (ITR) is a crucial responsibility for every eligible taxpayer in India. To simplify this process, the Income Tax Department offers various forms based on the nature of income and taxpayer category. One such form is ITR-1 (Sahaj), specifically designed for individuals with simpler income sources. But not everyone qualifies to use it.
Let’s break down who is eligible and who is not for filing ITR-1 (Sahaj) under the simplified system.
Who is Eligible to File ITR-1 (Sahaj)?
You can file ITR-1 if you are a resident individual with:
Total income up to ₹50 lakh
Sources of income limited to:
Salary or pension
Income from one house property (excluding cases where losses are carried forward)
Other income sources such as interest from savings accounts, fixed deposits, etc.
Agricultural income (only if it is up to ₹5,000)
This form is perfect for salaried individuals or pensioners with straightforward income profiles.
Who is NOT Eligible to File ITR-1 (Sahaj)?
You are ineligible to file ITR-1 if:
You are a director in any company
You’ve invested in unlisted equity shares
Your income includes earnings from a business or profession
You are a resident with foreign assets or foreign income
You have capital gains exceeding the permitted threshold:
For instance, LTCG (Long-Term Capital Gains) under Section 112A more than ₹1.25 lakh or you have carry-forward/backward losses
Final Thoughts
Understanding which ITR form suits your income type is essential for smooth and error-free filing. Filing under the wrong category can lead to notices or penalties. ITR-1 (Sahaj) is indeed a simplified option, but it’s only suitable for those with specific income characteristics.
For personalized tax filing assistance and expert consultancy, reach out to KVSTAX Consultancy. We’re here to make your tax journey stress-free and accurate.
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📌 Disclaimer
The information provided in this blog is for general guidance and educational purposes only. It should not be considered as professional tax advice or legal opinion. For personalized assistance based on your individual or business tax situation, please consult with a qualified tax consultant or reach out to KVSTAX CONSULTANCY directly.