Form ITR 1: Who cannot file a tax return using Form ITR-1 for the 2021-22 fiscal year?

The ITR form used by many, if not most, employees is ITR-1. This ITR form is also known as Sahaj. ITR-1 is probably the easiest form to complete as it requires income information from a limited number of sources such as salary, home ownership, etc. If ITR-1 is filed entirely online on the new Income Tax Portal, then most of the information is pre-populated. However, the pre-filled information should be cross-checked and corrected if necessary.

According to the notified tax return forms, the ITR-1 can be used by an individual taxpayer who is a habitual resident and whose total income does not exceed Rs 50 lakh in a financial year.

Form ITR-1 requests income information from only these sources:

a) Salary income,

b) Income from a house

c) Income from other sources such as interest income, dividends, etc.

Therefore, salaried taxpayers with income from sources other than the 3 mentioned above cannot use the ITR-1 form to file their tax return for the 2021-22 fiscal year.

Who cannot use the ITR-1 form?

There are certain situations where an individual cannot use the RTI-1 to file their income tax return.

Abhishek Soni, CEO, Tax2Win.in – an ITR filing website says, “According to the notified tax return forms, an individual cannot use ITR-1 in the following situations:

a) Who have invested in unlisted shares,

b) If you are a director of a company

c) If TDS under Section 194N has been deducted for withdrawing money from an account held at a bank/post office in excess of the specified limit.

d) If your total income exceeds Rs 50 lakh

e) If the taxpayer is a Hindu undivided family (HUF)

f) Holding of foreign assets of a foreign company

g) Is a signatory of a foreign bank account

h) If you have capital gains from the sale of stocks, mutual funds, land or buildings, etc. (short term and long term)

i) Whether income tax has been deferred on the Employee Stock Ownership Plan (ESOP)

j) If you own more than one house

k) If you are a Non-Resident Indian (NRI) or Ordinary Non-Resident Resident (RNOR)

l) If one of your sources of income is lottery, horse racing, gambling, etc.

m) If your agricultural income exceeds Rs 5,000

n) If you have business and professional income

(o) Losses carried forward or to be carried forward under the heading ‘Income from the ownership of the house’.”

Who is not eligible to file ITR-1 for fiscal year 2021-22?

Select the correct form

Selecting the appropriate tax return form is the first step in completing an income tax return (ITR). The applicable tax return form is determined by an individual’s residency status and the total income collected from various sources during the fiscal year.

The taxpayer has the option of completing the ITR-1 form online or offline. To complete the filing process in offline mode, use the JSON utility to fill in the details before submitting them to the income tax website.

Here are important FAQs according to the Income Tax website for people who are considering filing ITR-1, you can check whether or not you fall into this filing category.

What will happen if you file ITR using the wrong form

Soni says, “If a person files a tax return using the incorrect form, that tax return will be referred to as a defective return. The tax department will send a notice to the person asking them to file an ITR using the correct ITR form. applicable Once the ITR is filed using the correct ITR form, only the tax authorities will take it for processing.

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