ITR-1 Form: Eligibility and Excluded Income Types in ITR-1

ITR-1, also known as Sahaj Form, is one of the income tax return forms applicable for salaried individuals having a total income up to Rs. 50 lakh.

Who Can File ITR-1?

Individuals receiving income up to Rs. 50 lakh during the FY from the following sources of income are required to file the ITR-1

1. Income from salary

2. Income from one house property

3. Income from family pension

4. Income from agriculture (up to Rs. 5000)

5. Income from other sources such as:

• Interest from Savings Accounts
• Interest from Deposits in Bank, Post Office or Cooperative Society)
• Interest from Income Tax Refund
• Interest received on Enhanced Compensation
• Family pension
• Any other Interest Income

Who Cannot File ITR-1?

The following individuals are not eligible to file ITR-1:

• Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI)
• An individual with a total income of more than Rs. 50 lakh
• Individuals having an agricultural income of more than Rs. 5,000
• Individuals having income from the lottery, racehorses, legal gambling, etc.
• Individuals with taxable capital gains (including both the long-term and the short-term capital gains)
• Invested in unlisted equity shares
• An individual who earns Income from a business or profession
• A director in a company
• Individuals having tax deduction under Section 194N of the Income Tax Act
• He/she has the ownership of more than one house property
• Individuals having unearned income or deferred income tax on ESOP (Employee Stock Option Plans) received from an employer who is an eligible start-up.

Types of Income Excluded in ITR-1

1. The following types of income are not included in ITR-1

2. Profits and gains from business and professions

3. Capital gains

4. Income from more than one house property

5. Income under the head other sources, which is of the following nature:

• winnings from the lottery;
• Activity of owning and maintaining race horses;
• Income taxable at special rates under section 115BBDA or section 115BBE

6. Income that falls under Section 5A cannot be included in ITR-1.