Introduction to ITR 1 (Sahaj)
One of the key simplified forms for filing income tax returns in India is ITR 1, also known as Sahaj. This form is designed for individual taxpayers with straightforward income sources and minimal tax complexities. This guide will help you understand who can use ITR 1.

Eligibility Criteria for ITR 1 (Sahaj)

Resident Individual

To be eligible for ITR 1 (Sahaj), the taxpayer must be a resident of India. A resident individual is defined under the Income Tax Act as someone who has stayed in India for a duration of at least 182 days in the previous financial year.

Income Sources

The individual should have income from various sources, most importantly: Salary or pension - This includes all types of salaries, allowances, and other benefits received from employment. House property income - Includes one property income from house property. Note that you are also allowed to report up to Rs. 5,000 from agricultural sources. Other sources - These include interest income and any other income up to Rs. 50,000. For example, dividends, rent, and capital gains from securities.

Total Income Limit

The total income should not exceed Rs. 50 lakh (5 million) in a financial year. This is a crucial eligibility criterion for utilizing ITR 1.

No Business Income and No Capital Gains

The taxpayer should not have any income from business or profession. Additionally, they should not have any capital gains during the financial year. These categories are strictly excluded from the eligibility for ITR 1.

Eligible Individuals

ITR 1 (Sahaj) is ideal for salaried individuals and pensioners with straightforward income sources and minimal tax complexities. Moreover, individuals who are:

Residents of India Not holding directorship or equity shares in an unlisted company during the financial year

Exclusions

Here are the cases where an individual cannot file ITR 1 (Sahaj):

If the total income exceeds Rs. 50 lakh. If the individual has income from capital gains or business or profession. If the individual is holding directorship in a company. If the individual is holding unlisted equity shares in a company for the entire financial year. If the individual has more than one property. If the agricultural income exceeds Rs. 5,000. If the individual's residential status is Resident but Not Ordinarily Resident (RNOR) or Non-Resident (NR). If the individual has foreign assets or foreign income. If the individual owns assets out of India or has the signing authority of any account maintained outside India.

How to File ITR 1 (Sahaj)

Filing ITR 1 (Sahaj) can be a hassle-free process with the help of online tools and services. You can use:

ClearTax- simplifying finance Learn to download Black for an easy filing experience.

Effizent Seele Pvt Ltd ensures that you file your ITR 1 accurately and on time. If you have any further questions, feel free to reach out to us for assistance.