ITR-1 Sahaj Form: Find Out If You Can File Income Tax Return For AY 2023-24 With This Form

In a move to make tax compliance easier, the income tax department has categorised taxpayers into many groups depending on income and the source of income.  

Thus, one needs to file his/her tax accordingly.  

“In this context, ITR-1, also known as Sahaj Form, is meant for a person with an income of up to Rs 50 lakh,” says Archit Gupta, founder and CEO, Clear, a tax portal.  

Who Is Eligible To File ITR-1 For AY 2023-24

ITR-1 can be filed by a resident individual whose:

• § Total income does not exceed Rs 50 lakh during the financial year

• § Income is from salary, one house property, family pension income, agricultural income (up to Rs 5,000/-), and other sources, which include:  

• 1) Interest from savings accounts

• 2) Interest from deposits (bank/post office/co-operative society)

• 3) Interest from income tax refund

• 4) Interest received on enhanced compensation

• 5) Any other interest income

• 6) Family pension

• § The income of a spouse (other than those covered under the Portuguese Civil Code) or minor is clubbed (only if the source of income is within the specified limits as mentioned above).

Who Is Not Eligible To File ITR-1 For AY 2023-24  

ITR-1 cannot be filed by any individual who:

• § Is a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI) under the provisions of the Income-tax Act, 1961

• § Has total income exceeding Rs 50 lakh

• § Has agricultural income exceeding Rs 5,000/-

• § Has income from lottery, racehorses, legal gambling, etc.

• § Has taxable capital gains (short-term and long-term)

• § Has invested in unlisted equity shares

• § Has income from business or profession

• § Is a director in a company

• § Has tax deduction under Section 194N of the Income-tax Act, 1961

• § Has deferred income tax on ESOP received from employer being an eligible start-up

• § Owns and has income from more than one house property

• § Is not covered under the eligibility conditions for ITR-1

Types Of Income That Shall Not Form Part Of ITR-1 Form

Following are the types of income that shall not form part of Form ITR-1:

• § Profits and gains from business and professions;  

• § Capital gains;  

• § Income from more than one house property;

• § Income under the head of sources which is of the following nature:-

• 1. Winnings from lottery;

• 2. Activity of owning and maintaining race horses;  

• 3. Income taxable at special rates under Section 115BBDA or Section 115BBE;

• 4. Income to be apportioned in accordance with provisions of Section 5A