ITR 1 Filing Form
The Income Tax Department has categorized the taxpayers into the group to ease the tax compliances this categorization is done based on the income and the sources of the income. ITR 1 Return filing in India is for people with an income of up to Rs.50 lakh.
This article is a comprehensive guide to understand the ITR 1 Sahaj Form. Each category of the taxpayer has to compute the taxable income as it is laid down in the Income Tax Act,1961. Post computation it is necessary for the taxpayer to file the Income Tax Returns.
Who can file ITR 1 Sahaj Form?
ITR 1 Sahaj Form is for individuals that have income up to Rs.50 lakh lakhs. The individuals earning income from the following sources can file ITR 1 Sahaj Form:
- Salaried person- Salary refers to the remuneration or consideration that a person receives for the services he or she has to render under the contract of employment. The Income Tax Act,1961 includes the following under the salary income
- Wages
- Pension
- Annuity
- Advance salary paid
- Leave Encashment
- Fee, prerequisites, commission, profits besides or in lieu id the salary or wages
- Transferred balance in recognized provident fund
- Annual accretion to the recognized provident fund
- Central Government contribution or an employer contribution to Pension account as mentioned in Section 80 CCD of the Income Tax Act.
- One house property: If the taxpayer is the owner of a property from which he or she is earning rent, the rent proceeds become taxable.
- However, if the taxpayer is using the owner of a property from which he or she is earning rent, the rent proceeds become taxable. However, if the taxpayer is using the property for running some business or profession the same would be taxable under the heading “Income from business or profession”.
- Other sources (does not include income earned from winning lottery or racehorses)
- Agricultural income (Upto to Rs. 5000)
