The Income Tax Return (ITR) filing deadline for financial year 2019-20 (assessment 2020-21) ends on November 30, 2020. Income Tax Department has notified 7 forms for filing ITR this year. These forms include Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6 and Form ITR-7.
Among these, ITR 1, also known as Sahaj, is available for individuals who are residents having total income up to Rs 50 lakh, having income from salaries, one house property, other sources (interest etc.), and agricultural income up to Rs 5,000.
According to Taxmann, if the income of another person (spouse, minor child, etc.) has to be clubbed with the income of the assessee, return in ITR 1 can be filed only when such income falls in any of the mentioned categories. However, if tax has been deducted in the name of such other person and assessee wishes to claim its credit, then he/she cannot file return in ITR 1.
There is more exclusion to filing ITR 1.
Like, individuals who qualify to be resident but are not ordinarily resident or non-resident or have income from capital gains or have more than one house property are also not permitted to use Form 1, as per Aarti Raote, Partner, Deloitte India.
Further, it may be noted that individual who is either director in a company or has invested in unlisted equity shares would not be eligible to use this tax return form. Individuals who hold unlisted equity shares at any time during the previous year are also not allowed to file ITR.
"Individuals who claims a deduction under Section 80QQB or Section 80RRB in respect of royalty from patents or books, who claims a deduction under Section 10AA or Part-C of Chapter VI-A, who has brought forward loss or losses to be carried forward under any head, who wants to claim relief under Section 90 or 91, who has any assets (including financial interest in an entity) located outside India, who has signing authority in any account outside India, who has any income to be apportioned in accordance with provisions of Section 5A are even not permitted to file ITR form 1," according to Taxmann.
Individuals with any of these income are also excluded to file Form 1:
a) Income taxable under the head ‘Other sources’ which is taxable at special rate.
b) Dividend income exceeding Rs 10 lakh taxable under Section 115BBDA.
c) Unexplained income (i.e., cash credit, unexplained investment, etc.) taxable at 60 percent under Section 115BBE.
d) Agricultural Income exceeding Rs 5,000.
e) Person claiming deduction under Section 57 from income taxable under the head ‘Other Sources’(other than deduction allowed from family pension).
h) Income from any source outside.