BackIncome Tax Return for AY 2020-21: Who can file ITR-1 (Sahaj)?
ITR-1 form should only be filed by individuals having an income of upto Rs. 50 lakhs
PremiumThe deadline for filing income tax returns or ITRs has been extended to 30th November 2020 as compared to normal deadline of July 31. The new ITR forms require a separate table to disclose tax saving investment made in Q1 2020 for availing them in FY 2019-20. ITR-1 form, also known as Sahaj, is mainly for salaried individuals earning up to ₹50 lakh annually. Only resident individuals can file ITR-1.
It is to be noted that if dividend income exceeds ₹10 lakh, the tax payer cannot file ITR 1 form. Dividend up to ₹ 10 lakh from stocks listed in India is exempt in the hands of shareholders.
Return in Form ITR-1 can be filed by an ordinary resident individual (not HUF) if his total income includes:
1) Salary or pension
2) ITR-1 form should only be filed by individuals having an income of up to Rs. 50 lakh
3) Income or loss from one house property (excluding brought forward losses and losses to be carried forward)
4) Income other Sources such as interest from Bank Account (excluding winning from lottery and income from Race Horses, Income taxable under section 115BBDA or Income of the nature referred to in section 115BBE)
5) It it to be noted that in cases where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this return Form can be used only if the income being clubbed falls into the above income categories.
Here are some cases in which return in ITR 1 cannot be filed by an individual, according to Taxmann:
1) Who is a Non-resident or Not Ordinarily Resident
2) Who is a Director of a company
3) Whose total income exceeds Rs. 50 lakh
4) Who has income from more than one house properties
5) Who has held unlisted equity shares at any time during the previous year
6) Who claims a deduction under Section 80QQB or Section 80RRB in respect of royalty from patents or books
7) Who has brought forward loss or losses to be carried forward under any head
8) Who has any assets (including Financial Interest in an entity) located outside India.
9) Who has signing authority in any account outside India
10) Who has any of the following income:
a) Income from Business or Profession
b) Capital Gains
c) Income taxable under the head ‘Other sources’ which is taxable at special rate
d) Dividend income exceeding Rs. 10 lakh taxable under Section 115BBDA
e) Unexplained income (i.e., cash credit, unexplained investment, etc.) taxable at 60% under Section 115BBE
f) Income from any source outside India
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