Income Tax Return filing: Who cannot file ITR 1 form?

Income Tax Return filing: Who cannot file ITR 1 form?

New Delhi: Income tax return filing has started and Form 16 has been issued by most employers, prompting salaried individuals to gear up to file their ITRs. Form 16 simplifies the filing process by providing details of total income earned and eligible deductions. One should be careful while filing ITRs and choosing the appropriate form based on their income sources. Selecting the wrong form can invalidate your ITR. Here we take a brief look at ITR 1 form and reveal who can and who cannot use it.

Income tax return filing using ITR 1 form

ITR-1 form is suitable for individuals whose total income from salary, one house property, and other sources like interest income does not exceed Rs 50 lakh. If you have additional income from sources such as the stock market, you will need to use a different ITR form. Thus, if you’re a salaried employee uncertain whether to use ITR-1, consider the following scenarios where ITR 1 form cannot be used:

Individuals having total income above Rs 50 lakh.
Individuals earning income from more than one house property.
Individuals having agricultural income of more than Rs 5,000 per year.
Individuals who is the director of a company.
Individuals holding unlisted equity shares during the financial year.
Individuals wanting to claim deductions against income from other sources like winnings from horse racing, gambling, or lotteries excluding family pensions.
Individuals possessing assets or have signing authority in any account outside India or earn income from a foreign source.
You receive dividend income taxed at special rates (e.g., over Rs 10 lakh from Indian companies).
You have taxable capital gains (short-term or long-term).
You claimed relief for foreign tax paid or double taxation under section 90, 90A, or 91.
You earn income under the head of business or profession.
Non-residents and residents not ordinarily resident are not eligible to use ITR-1.

Ensure you accurately assess your income sources and choose the correct ITR form to avoid complications in filing your taxes.

 Income Tax Return FIling: Taxpayers must choose the correct tax filing form based on their income sources. Selecting the wrong form can invalidate your ITR.  Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today