Who can file ITR-1 for AY 2022-23?
The ITR-1 form is applicable for filing income tax returns by Resident Individuals who meet the following criteria:
- Total Income: The total income of the individual should not exceed ₹50 lakh during the financial year.
- Income Sources: The income should be derived from the following sources:
- Salary: Income from salary received from an employer.
- House Property: Income from one house property owned by the individual.
- Family Pension: Income received as a family pension.
- Agricultural Income: Income from agriculture, provided it does not exceed ₹5000.
- Other Sources: This includes various types of interest income, such as:
- Interest from Savings Accounts
- Interest from Deposits (Bank/Post Office/Cooperative Society)
- Interest from Income Tax Refund
- Interest received on Enhanced Compensation
- Any other Interest Income
- Family Pension
- Clubbing of Income: If the individual’s spouse or minor child has income, it can be clubbed with the individual’s income if it falls within the specified limits mentioned above. However, this is applicable only for income sources mentioned in the eligibility conditions.
Who cannot file ITR-1 for AY 2022-23?
The following individuals are not eligible to file ITR-1:
- Resident Not Ordinarily Resident (RNOR) and Non-Resident Indian (NRI): Individuals falling under these categories cannot file ITR-1.
- Total Income Exceeds ₹50 Lakh: If the total income of an individual exceeds ₹50 lakh during the financial year, they cannot use ITR-1.
- Agricultural Income Exceeds ₹5000: If the individual’s agricultural income exceeds ₹5000, they are not eligible for filing ITR-1.
- Income from Specified Sources: Individuals having income from activities such as lottery, racehorses, legal gambling, etc., cannot use ITR-1.
- Taxable Capital Gains: If an individual has taxable capital gains, both short-term and long-term, they cannot file ITR-1.
- Investment in Unlisted Equity Shares: Individuals who have invested in unlisted equity shares are not eligible for ITR-1.
- Income from Business or Profession: If an individual has income from a business or profession, they cannot use ITR-1.
- Director in a Company: Individuals who are directors in a company cannot file ITR-1.
- Tax Deduction under Section 194N: If an individual has tax deduction under section 194N of the Income Tax Act, they are not eligible for ITR-1.
- Deferred Income Tax on ESOP: Individuals who have received eligible start-up ESOPs from their employer and have deferred income tax are not eligible for ITR-1.
- Income from Multiple House Properties: If an individual owns and has income from more than one house property, they cannot use ITR-1.
- Not Covered by Eligibility Conditions: Individuals who do not meet the eligibility conditions specified for ITR-1 cannot file their returns using this form.
Types of Income not included in ITR-1:
The following types of income are not considered while filing ITR-1: (a) Profits and gains from business and professions. (b) Capital gains. (c) Income from more than one house property. (d) Income under the head “Other Sources” that falls into the following categories: (i) Winnings from lottery. (ii) Activity of owning and maintaining race horses. (iii) Income taxable at special rates under section 115BBDA or section 115BBE. (e) Income to be apportioned in accordance with the provisions of section 5A.
Is it necessary to specify the nature of employment while filing the return?
Yes, it is mandatory to define the nature of employment while filing the return. The options to be chosen are as follows: (a) Central Government Employee. (b) State Government Employee. (c) Employee of a Public Sector Enterprise (whether Central or State Government). (d) Pensioners (CG/SG/PSU/OTHER). (e) Employee of a Private Sector concern. (f) Not applicable (in case of family pension income).
Changes in new ITR forms after the introduction of sec. 89A:
The new ITR forms have incorporated changes in Schedule S (Details of Income from Salary) to include the following: (a) Income from retirement benefits account maintained in a notified country under Section 89A. (b) Income from retirement benefit account maintained in a country other than the notified country under Section 89A.
This information must be disclosed while filling out the new ITR forms.