The due date to file Income Tax Returns is fast approaching for FY 2021-22. The government has notified ITR forms for individuals and others to file income tax returns for FY 2021-22. The individuals, mainly with salary, rental, and other income sources like interest, dividends, etc., can file returns in ITR-1 (SAHAJ).
However, specific cases exist where an individual or HUFs cannot file ITR-1. Let’s delve into the instructions given by the government for those who cannot file ITR-1.
It is important to check your residential status before you start filing your return. It is because residents are only allowed to file ITR-1. A resident not ordinarily resident (RNOR) and a non-resident person cannot file ITR-1.
Further, the individuals/HUFs having below incomes cannot file ITR-1:
- Agricultural income exceeding Rs 5000
- Income from capital gains
- Income from business or profession
- Income from more than one house property
- Foreign Income
For example, if you are a salaried individual and also earn income from freelancing, you cannot file ITR-1.
Further, ITR-1 cannot be used by a person, who
- Is a Director in a company
- Has investments in unlisted equity shares at any time during the financial year
- Is a person in whose case TDS is deducted under Section 194N
- Owns assets outside India,
- Has a financial interest in any entity outside India
- Has the authority to sign in any account located outside India
- Is a person whose payment or TDS has been deferred on ESOP
- Has any brought forward loss or loss needs to be carried forward under any income head
Moreover, your total income is also one of the check-point when choosing ITR-1 for filing returns. If the total income from all the income sources exceeds Rs 50 lakh, you cannot file ITR-1.
For any clarifications/feedback on the topic, please contact the writer at namita.shah@clear.in
I’m a chartered accountant and a functional CA writer by profession. Reading and travelling in free time enhances my creativity in work. I enjoy exploring my creative side, and so I keep myself engaged in learning new skills.
