Who Should File ITR 1?

I have shared a concise explanation of ITR 1 for whom, based on the official eligibility criteria. The ITR‑1 (SAHAJ) form is designed for resident individuals (not RNORs or NRIs) whose total income for the financial year does not exceed Rs. 50 lakh, and who earn income only from specific sources.

These sources include:

• Salary or pension;

• Income from a single house property (excluding cases where you carry forward a loss from previous years);

• Other sources such as bank/post office interest, family pension, excluding lottery, gambling, racehorses;

• Agricultural income up to Rs. 5,000;

• Long-term capital gains under Section 112A up to Rs. 1.25 lakh (e.g., from listed shares and equity funds).

You’re eligible if your aggregate income comprises these and remains within the Rs50 lakh cap.

However, you cannot file ITR‑1 if any of the following apply:

1. Total income exceeds Rs. 50 lakh.

2. You receive income from more than one house property.

3. You have agricultural income over Rs. 5,000.

4. You have capital gains beyond the Rs. 1.25 lakh threshold, or any short‑term capital gains.

5. You earn income from business or profession, including presumptive income.

6. You hold unlisted equity shares, are a company director, have foreign income/assets, or signing authority in foreign accounts.

7. You receive lottery or gaming income, or have deferred ESOP income under Section 194N.

I hope this helps you understand ITR 1 is for whom.

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Income Tax Return (ITR) 1, also known as Sahaj, is a simplified form for individual taxpayers in India. It is designed for residents with straightforward income sources. 

ITR 1 Applicable to Whom?

Here’s a detailed explanation of who should file ITR 1:

Only resident individuals are eligible to file ITR 1. Non-residents and not-ordinarily residents cannot use this form.

ITR 1 can be filed by individuals whose total income includes:

• Salary/Pension: Income from salary or pension.

• One House Property: Income from one house property (excluding cases where there is a brought forward loss or loss to be carried forward under this head).

• Other Sources: Income from other sources such as interest from savings accounts, fixed deposits, and other interest incomes (excluding winnings from lottery and income from racehorses).

• Agricultural Income: Agricultural income up to Rs. 5,000.

Individuals whose total income for the financial year does not exceed Rs. 50 lakh can file ITR 1.

Now that you know ITR 1 to be filed by whom, let us move on to,

Who Should Not File ITR 1?

• If the individual has income from more than one house property, ITR 1 cannot be used.

• Individuals with income from business or profession cannot use ITR 1. They need to file ITR 3 or ITR 4, as applicable. If the individual has earned any capital gains (short-term or long-term) during the financial year, ITR 1 is not applicable.

• Individuals with agricultural income exceeding Rs. 5,000 should use other forms like ITR 2. Individuals who have any foreign income or hold foreign assets must file ITR 2 or ITR 3, depending on other income sources.

• Individuals who are directors in a company or have investments in unlisted equity shares must file ITR 2 or ITR 3. 

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Wondering

ITR 1 for whom

? Here's who should file ITR 1:

• Employees earning income from salaries or pensions can file ITR 1 if they have income from one employer.

• Individuals who own one house property and earn rental income from it can use ITR 1 to report this income.

• Individuals earning income from other sources such as interest income from savings accounts, fixed deposits, or other investments (excluding income from winnings from lottery and racehorses) can file ITR 1.

• Taxpayers whose total income for the financial year does not exceed ₹50 lakh are eligible to file ITR 1.

• ITR 1 is applicable for resident individuals, which means individuals who qualify as residents as per the provisions of the Income Tax Act.

However, there are certain conditions and exceptions. Individuals with income from business or profession, capital gains, agricultural income exceeding ₹5,000, or who are directors in a company cannot use ITR 1.

Additionally, individuals who are residents not ordinarily resident (RNOR) or non-residents (NRI) cannot file ITR 1.

I hope this clarifies

ITR 1 is for whom. Let me know if you have any other questions

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