Some changes made in ITR-1 and ITR-2 Forms may make it complex to find out, which individual taxpayer will used ITR-1 popularly known as Income Tax Sahaj
The Income Tax Department has notified various Income Tax Return (ITR) forms to be used by different categories of taxpayers. The Central Board of Direct Taxes (CBDT) notified all 7 ITR Forms without much change in it. However, some changes made in ITR-1 and ITR-2 Forms may make it complex to find out, which individual taxpayer will used ITR-1 popularly known as Income Tax Sahaj. For them, tax experts are of the opinion that those earning individuals having income from salary, pension and house property and other income (not from lottery, race, business, etc.) up to ₹50 lakh is eligible for ITR-1 or ITR Sahaj Form.
Speaking on eligibility for ITR Sahaj Form Mumbai-based Tax expert Balwant Jain said, "An earning individual whose income falls under the three heads — salary, income from house property and income from other sources — and the income doesn’t exceed ₹50 lakh, is eligible for ITR Sahaj. The taxpayer is eligible for ITR-1 Form filing provided the income from other sources doesn't include capital gain and profit and gains of business." He said that income from lottery, race and business makes an earning individual non-eligible for the ITR Sahaj Form and having income from such sources means one should file ITR-2 Form even though its income is less than ₹50 lakh.
Jain went on to add that an earning individual having carry forward loss is also not eligible for ITR Sahaj Form.
On pensioners not eligible for ITR Sahaj Form SEBI registered tax and investment expert Jitendra Solanki said, "If a pensioner is working as a consultant, then he or she should be filing ITR-3 or ITR-4 form as their income from consultancy falls under 'Profits and Gains of Business or Profession' though it's income from other sources." Solanki went on to add that if the taxpayer has agricultural income up to ₹5000 can file ITR- Sahaj Form. But, in case, the agricultural income is above ₹5,000 then the taxpayer is not eligible for ITR Sahaj Form.