Taxpayers have to choose among 7 income tax return (ITR) forms to file their income tax returns (ITR) basis the amount and nature of their income. ITR-1 or Sahaj is the least complex of all the forms meant for salaried individuals with simpler finances. You can opt for ITR-1 if you are an Indian resident individual taxpayer with…
-income from salary or pension
-income from one house property or under the ‘income from other sources head’ (IFOS)
ITR-1 is not meant for Hindu Undivided Family (HUF). Over and above this criteria, there are certain conditions which make a taxpayer ineligible for ITR-1 even if their income is below ₹50 lakh and they have income only from the above sources. You cannot use ITR-1 if…
- income tax on the ESOPs (employee stock options) you have exercised has been deferred. This is applicable only to people working in a startup as defined by the income tax department
-you own more than one house even if it is not rented out
-have investments in shares of an unlisted company
-you have freelance income. Freelance income, irrespective of the amount and duration for which you’ve freelanced, can only be reported in ITR-3 or ITR-4. If you’ve worked a job for the majority part of the financial year and freelanced in between, or earned freelance income alongside a job, you still can’t opt for ITR-1.
-hold directorship in any company
-you have earned income from winning a lottery, puzzles, card games, horse races or any other game that involves betting or gambling. These incomes fall under IFOS head but can’t be declared in ITR-1
