Filing income tax returns is an essential obligation for individuals, ensuring compliance with the tax laws of a country. In India, the Income Tax Department has designed various forms to cater to the diverse income profiles of taxpayers. One such form is ITR-1, which is specifically tailored for resident individuals with relatively straightforward income sources and limited total income. Understanding the eligibility criteria for filing ITR-1 is crucial to ensure accurate and efficient tax compliance. In this article, we will delve into the details of who is eligible to file ITR-1 for the Assessment Year 2023-24, exploring the income thresholds, permissible sources, and relevant considerations when it comes to clubbing income. By gaining clarity on these eligibility criteria, individuals can navigate the tax filing process effectively and fulfill their tax responsibilities in a timely and accurate manner.
Individuals who meet the following criteria are eligible to file ITR-1 for the Assessment Year (AY) 2023-24:
- Residential Status: The individual should be a resident of India for the relevant financial year.
- Total Income: The total income of the individual should not exceed ₹50 lakh during the financial year.
- Income Sources: The income of the individual should be derived from the following sources:
- a. Salary: Income earned through employment, which includes regular salary, allowances, perquisites, and profits in lieu of salary.
- b. One House Property: Income generated from a single house property owned by the individual, excluding cases where the property is used for business or professional purposes, or where the individual has claimed any deductions under Section 57.
- c. Family Pension Income: Income received as a family pension from a deceased government employee or any other individual.
- d. Agricultural Income: Income earned from agricultural activities up to a maximum of ₹5,000. If the agricultural income exceeds this threshold, the individual will not be eligible to file ITR-1.
- e. Other Sources: This category includes the following types of income:
- i. Interest from Savings Accounts: Interest earned from savings accounts held in banks or post offices.
- ii. Interest from Deposits: Interest earned from various deposits, such as those in banks, post offices, or cooperative societies.
- iii. Interest from Income Tax Refund: Interest received on income tax refunds issued by the tax authorities.
- iv. Interest received on Enhanced Compensation: Interest earned on the enhanced compensation received for the compulsory acquisition of assets.
- v. Any other Interest Income: Interest income generated from other sources, such as bonds, fixed deposits, or loans.
- vi. Family Pension: If the individual receives any family pension apart from the one mentioned above, it should be included as other income.
- Clubbing of Income: The income of the spouse (excluding those covered under the Portuguese Civil Code) or minor child can be clubbed with the individual’s income if the following conditions are met:
- a. The source of income of the spouse or minor child falls within the specified limits mentioned above.
- b. The income being clubbed does not include income from business or profession.
It is important to note that if any of the above conditions are not met, the individual may not be eligible to file ITR-1 and may need to choose a different income tax return form suitable to their specific circumstances.