Is income tax return form ITR-1 for you?
If you landed here by looking for an answer to “whether income tax return form ITR-1 is applicable to you”, then this article is for you to find your answer.
The first and foremost thing before filing an income tax return is to select the right income tax return (ITR) form applicable to you.
Many taxpayers think that salaried individuals should file income tax return form “ITR-1”. However, income tax return forms are applicable based on various factors such as residential status and source of income for the financial year. You may be required to file form ITR-2 in certain cases even though you are a salaried individual and you have only salary income for the financial year.
ITR-1, which is also known as “SAHAJ”, can be filed by an individual whose total income does not exceed Rs 50 lakhs during the financial year.
Only following incomes can be filed in income tax return form ITR-1;
- Salary,
- House property,
- Family pension,
- Agricultural (up to Rs 5000),
- Any other sources, which include:Interest from Savings Accounts.Interest from Deposits (Bank / Post Office / Cooperative Society) Interest from Income Tax Refund. Interest received on Enhanced Compensation.Any other Interest Income.
- Income of Spouse (other than those covered under Portuguese Civil Code) or Minor is clubbed (only if the source of income is within the specified limits as mentioned above).
Now let us see who can’t file income tax return form “ ITR-1 “ for the financial year 202-24 (AY 2024-25).
ITR-1 can not be filed by following individuals;
- Who is a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI)
- Whose total income is exceeding Rs 50 lakh
- Who has income from more than 1 house property
- Whose agricultural income is exceeding Rs 5.000
- Whose income taxable under the head ‘Other sources’ which is taxable at special rate
- Who has capital gains (short term and long term)
- Has invested in unlisted equity shares
- Who has income from business or profession
- Who is a Director in a company
- Who is a person in whose case tax has been deducted under section 194N.
- Whose dividend income is exceeding Rs 10 lakhs taxable under section 115BBDA
- Who has unexplained income (i.e., cash credit, unexplained investment, etc.) taxable at 60% under section 115BBE
- Who has income from any source outside India
- Who has signing authority in any account outside India
- Who has any assets (including Financial Interest in an entity) located outside India.
- Who wants to claim credit of tax deducted at source in the hands of any other person.
- Who wants to claim relief under section 90 or section 91
- Person claiming deduction under section 57 from income taxable under the head ‘Other Sources'(other than deduction allowed from family pension)
- Who has brought forward loss or losses to be carried forward under any head
- Who claims deduction under section 10AA or Part-C of Chapter VI-A
- Who has any income to be apportioned in accordance with provisions of section 5A
- Who claims deduction under section 80QQB or section 80RRB in respect of royalty from patents or books
- Who is a person in whose case payment or deduction of tax has been deferred under section 191(2) or section 192(1C)
If you satisfy conditions as mentioned above, then you are required to file income tax return form ITR-1. If you are included in one of these exceptions, then ITR-1 is not applicable.
Selection for New Tax regime U/s 115BAC
As you know, the government has introduced two tax structures for individuals, Old regime as applicable earlier and the new tax regime under section 115BAC.
In ITR-1, if you wish to opt for a new tax regime under section 115BAC, then select Yes, else select No.
Option to avail tax benefits under the new tax regime is available till the due date of filing of income tax return under section 139(1).
Documents required to file income tax return form ITR-1
It’s always a good idea to keep the documents ready before you start filing ITR-1.
In case you are taking help of a professional in filing your Income tax return (ITR), then email these documents so that he or she can help you out regarding the applicability of various tax laws.
Here are the documents you should keep with;
- Form 16
- Salary slips for the whole year
- house rent receipt (if applicable),
- investment payment receipts (if applicable).
- Interest certificate from banks
Remember, these documents will not be attached to income tax return form ITR-1 as it’s an annexure-less form.
You need these documents to correctly calculate your tax liability and to fill up various figures while filing.
You need to keep these documents with you as it may be asked by the tax department anytime to produce before them during any inquiry.
In addition to above things, we suggest you to do the followings in order to file your income tax return smoothly;
- Link Aadhaar and PAN
- Pre-validate your bank account where you want to receive your refund
- File the return within the specified timelines.
- Verify your return and you can opt for e-Verification (recommended option – e-Verify Now) is the easiest way to verify your income tax return (ITR).
E-verification is the easiest and the best option to verify your Income tax return (ITR) online. You have many options to e-verify your IT return.
ITR-1 for the previous year 2024-25 (assessment year 2025-26) is not yet notified by the government. You can have a look at the form notified for the previous year 2023-24 (AY 2024-25).
Frequently Asked Questions (FAQs)
In India, salaried individuals typically use the following income tax return forms:
- ITR-1 (Sahaj): For individuals with income up to 50 lakh rupees, primarily from salary, one house property, and other sources (like interest).
- ITR-2: For individuals and Hindu Undivided Families (HUFs) not carrying out business or profession, with income from salary, multiple house properties, and capital gains.
- ITR-3: For individuals and HUFs who have income from a business or profession, in addition to salary.
- ITR-4 (Sugam): For individuals, HUFs, and firms (other than LLP) who have presumptive income from business and profession, with total income up to ₹50 lakh.
Choose the appropriate form based on your income sources and amount
I am getting a salary as a partner of a partnership firm. Which income tax return form should I file?
If you are receiving a salary as a partner of a partnership firm, you should file ITR-3.
Income tax return form ITR-3 is applicable for individuals who have income from salary, business or profession, and other sources.
ITR-3 allows you to report your income from the partnership along with your salary.
Which income tax return form a company’s director should file?
A company director in India should file ITR-2 or ITR-3 depending on their sources of income:
ITR-2: If the director has income from salary (as a director), house property, and other sources, but does not have income from a business or profession.
ITR-3: If the director has income from salary and also has income from a business or profession.
I have a salary as well as professional income from freelance services, which income tax return form is applicable to me?
If you have both salary income and professional income from freelance services, you should file ITR-3.
ITR-3 form is suitable for individuals who have income from salary as well as income from a business or profession.
What income tax return forms should a partnership firm in India use?
Partnership firms in India typically use ITR-5 income tax return forms.
This form is applicable for partnership firms (including LLPs) that are not carrying out any business under the presumptive taxation scheme. It includes income from business or profession, capital gains, and other sources.
Partnership firms must ensure they are compliant with relevant tax laws when selecting the appropriate form.
