Who Cannot Use the ITR-1 (Sahaj) Form?

The ITR-1 (Sahaj) form is one of the simplest income tax return forms in India, designed for salaried individuals with basic income sources. However, not everyone is eligible to file their return using this form. If you fall into any of the categories below, you cannot use the ITR-1 form:

1. High Total Income

Your total income exceeds ₹50 lakh in a financial year.

2. Significant Agricultural Income

You earn agricultural income exceeding ₹5,000 in a year.

3. Capital Gains

You have any taxable capital gains, whether long-term or short-term.

4. Business or Professional Income

You earn income from a business or profession.

5. Multiple House Properties

You earn income from more than one house property.

6. Director in a Company

You hold a position as a Director in a company.

7. Unlisted Equity Investments

You have made investments in unlisted equity shares at any time during the financial year.

8. Foreign Assets or Accounts

You own assets (including financial interests in any entity) outside India or hold a signing authority in any account located abroad.

9. Residential Status

You are a Resident but Not Ordinarily Resident (RNOR) or a Non-Resident.

10. Foreign Income

You earn any foreign income.

11. Tax Deducted Under Section 194N

If tax has been deducted under Section 194N (cash withdrawal in excess of specified limits).

12. Deferred Tax on ESOPs

If the payment or deduction of tax has been deferred on ESOPs received from your employer.

13. Loss Carry-Forward

You have any brought-forward losses or losses to be carried forward under any income head.

The ITR-1 form is meant for individuals with straightforward income sources such as salary, one house property, and income from other sources (like interest). If your financial situation is more complex, you’ll need to opt for another ITR form such as ITR-2 or ITR-3, depending on your income sources and status.