ITR-1 or ITR sahaj is the first form visible on the Income Tax E-filing Site, but what is that and how to file it. But before that more important are you eligible to file that form. It’s a basic form which can be filed online also directly without the help of an downloaded utility.
Firstly, what is this form. As we get its meaning from its name ITR-Sahaj, it’s literal meaning is simple or easy. And as per the name it is easy and simple to fill and file.
In general this from is for the people belonging to low income or salaried people group who has limited number of sources to earn their income. But if we talk in numbers, this group has the highest taxpayers in quantity. So, creating a separate and easy form for these individuals is also making income tax officers work easy, as they can also assess their income easily. And also as this group has low income so they were generally not able to hire someone to fill and file their return and for this income tax department make their work easy to self fill and file their return online.
But not every individual can file this form, there are numbers of boundation to file this form as per income tax department and there are some hidden conditions also which we found while analyzing the return form and will be decode in this article later.
So, eligibility criteria and conditions to file the form, firstly this form is only for individual. Not for other than individuals like firms, companies, trust, etc.
Who Can File This Form?
Any individual who has income from the following sources can file the ITR-1,
- Income earned through ‘Salary or pension’
- Income from one house property (rental income from one house property)
- Income from ‘Other sources’ ( except windfall gains like lottery income or income earned through winning of horse race)
- Agricultural income less than Rs. 5,000/-
The person who has income from one or two or all are eligible to file ITR-1.
(Income under the same head mentioned above of Spouse, Minor Child, etc. can also be clubbed with the income earned by the individual under the concerned head.)
Who are not eligible to file this form?
The person who will not be eligible to file this form if he has:-
- If he has rental income from more than one house property
- Income from windfall gains like lottery, horse race, etc.
- Income form ‘Capital gain’
- Income Earned from ‘business or profession’
- Has Foreign Assets or signing authority in an entity outside India
- Seek to have relief under Section 90/90A/91 (double taxation avoidable agreement)
- Have income from outside India
- Has brought forward loss one house property
- Agriculture income exceeding Rs. 5,000/-
- Loss under the head ‘Other sources’
For the purpose of calculation, taxable salary can be computed as follows:-
Basic Salary xxx
Add: Taxable Allowances +xx
Add: Taxable Perquisites +xx
Gross Salary xxx
Less: Entertainment Allowance -xx
Less: Professional Tax -xx
Net Taxable Salary xxx
Due date To file ITR-1
Due date to file ITR-1 is 31st July of the next financial year. i.e. for FY 2014-15 due date will be 31st July 2015.
Although the date can be change by Income tax Department through notification.
For other ITR forms or to know which ITR should i file please read our article ‘Which ITR should I file‘.