ITR Filing 2024: Who cannot use ITR-1 to file income tax return?

The deadline for submitting income tax returns is approaching. There is a excessive chance of creating errors in submitting returns on the final second. Therefore, it’s helpful to file the return earlier than the deadline.

For this, you should have to acquire some paperwork. These embrace Form-16, Annual Information Statement (AIS) and Form 26AS. After this, the proper ITR kind has to be chosen. Many taxpayers get confused between Form-1 and Form-2. Let us know who cannot use ITR-1. ITR-1 can be referred to as Sahaj.

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If your income is greater than 50 lakhs then ITR-1 cannot be used

If the whole income of a taxpayer is greater than Rs 50 lakh in a monetary yr, then he cannot use ITR-1. Similarly, Resident Non-Ordinarily Resident ( RNOR ) and NRI cannot use this manner to file returns. If an individual’s income from agriculture is greater than Rs 500, then he cannot use ITR-1 to file returns. If there may be income from lottery, horse racing and so forth., then ITR-1 cannot be used to file returns.

Also Read: Gift Tax in India: Do you will have to pay tax on items acquired on birthday or marriage? Know these necessary guidelines

ITR-1 isn’t utilized in case of capital positive aspects

If an individual has made capital positive aspects by promoting any belongings in the course of the related monetary yr, then he cannot use ITR-1. If an individual has invested in shares of corporations which aren’t listed within the inventory market, then he cannot use ITR-1. If an individual has income from enterprise or career, then he cannot use ITR-1. Even if an individual is a director in an organization, he cannot use ITR 1. Employees of corporations who’ve acquired ESOPs additionally cannot use ITR-1 to file returns. If an individual has a couple of home, then additionally he cannot use ITR-1.

Choose the shape properly

It is necessary to use the proper kind to file income tax return. Filing the return utilizing the flawed kind will make your return faulty. Therefore, it is necessary to select the proper kind rigorously earlier than submitting the return. If you’re going through any downside in selecting the proper kind, you possibly can take the assistance of a tax knowledgeable. This will stop you from utilizing the flawed kind. That is why specialists advise to keep away from submitting the return on the final second.

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