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.  

WhoIsEligibleToFileITR-1ForAY2023-24

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).

WhoIsNotEligibleToFileITR-1ForAY2023-24  

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

TypesOfIncomeThatShallNotFormPartOfITR-1Form

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