Call 24 X 7 : +91 8341000081,,


We Help people To File Income Tax return, GST Registration, GST Return Filing, Company Registration, PAN CARD Services, MSME / AADHAR UDYOG REGISTRATION, AUDIT SERVICES, Call 24 X 7 : +91 8341000081,,

As a responsible and law-abiding citizen, it is the duty of all Indians to file their Income Tax. Not just to receive the Income Tax Returns but also to inform the Income Tax Department about their earnings and the taxability. As per the Income Tax Act, 1961, every citizen of the country should file the IT return at the end of the financial year. Filing the ITR might not be mandatory for every individual who earns but it surely has its own advantages.

The ITR-1 form is also called Sahaj form, ‘Sahaj’ meaning ‘Simple’. The form is filed exclusively by a single taxpayer. An individual becomes eligible for filing ITR-1 in the following conditions:

  1. If the individual is a salaried employee and not a businessman or an entrepreneur
  2. If the individual receives a pension
  3. If the individual earns from 1 house property
  4. If the individual earns a tax-free income that is below INR 5,000 such as agriculture income
  5. If the individual is not earning an income from other countries
  6. If the individual has no property in any other country
  7. If the individual is earning an income from investments in FD or shares.
  8. If the individual is not earning an income through activities like the lottery, gambling etc.
  9. If the individual is earning an income from taxable capital gains
  10. If the individual’s Total income does not exceed Rs.50 lakhs.

First let us discuss as to who can use this ITR form and then elaborate on who cannot use ITR-1 even if he is otherwise eligible to use it. ITR 1 can only be used by an individual taxpayer who is a resident of India for tax purpose. So all the non-resident and not ordinary resident Individuals under tax laws cannot use this form. Likewise, any person whose taxable income does not exceed fifty lakhs can use ITR 1 provided he does not have any income under the head “Capital gains" and “Profits and gains of business or profession". So as long as you have income from any of these three sources i.e. “Salaries", “Income From House Property" and “Income From other sources" you can use ITR 1. However, you cannot use ITR 1 in the following circumstances even if your income comprises of these three sources:

Firstly all those of you who have salary income cannot use ITR 1 if your tax deduction on perquisite value of Employee Stock Option Plan (ESOP) has been deferred due to your employer being a start up as per the income tax law. Secondly for those who have income under the head “Income from House Property" can use ITR 1 only and only if they own only one house property. The single property need not necessarily be self-occupied and it may even be let out in case you are staying in a rented house or in employer provided house. And thirdly for person having income under the head “Income from other Sources" can not use ITR 1 if your source of income under this head includes income of maintaining race horse or prize money or income which is taxed at flat rate like unexplained investments or unexplained expenditure which is taxed at 60%.

You cannot use ITR 1 even if your income does not include income of the above nature buy you are claiming any expenditure against such income. So if you are earning some income by moonlighting, you can use this income only if you do not intend to claim any expenditure against your moonlighting income. An exception is made in respect of those who receive family pensions where a standard deduction is available against family pension upto 1/3 of pension received maximum of upto Rs. 15,000/- and such persons can use ITR 1.

In case income of some other person is required to be clubbed in your income, you can use this form only if the nature of the income to be clubbed falls under any of the three heads of income enumerated above and does not have fall under any of the exceptions discussed above.

  1. The taxpayer whose income is more than Rs 50 lakhs is not eligible to furnish this form.
  2. Non-residents and RNOR (Residents not ordinarily resident) cannot file ITR 1.
  3. Taxpayers who have two or more house properties are not eligible.
  4. Assessees having income under business or profession head are not eligible.
  5. Taxpayers who have long or short-term capital gains
  6. Taxpayers whose income from agriculture means is greater than Rs. 5,000
  7. The taxpayer who claims relief for foreign taxes paid or claim double taxation relief as mentioned in section 90/90A/91.
  8. ITR 1 cannot be used by residents having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.
  9. Where TDS has been deducted u/s 194N
  10. If income-tax is deferred on ESOP
  11. Foreign source income.
  12. Resident taxpayer having any bank A/c. or any foreign asset like shares, property, etc. outside India.
Since only individuals can use ITR 1 by implications it is clear that an HUFs cannot use ITR 1 even if it otherwise satisfies all other conditions. All the individuals who hold directorship in any company or have investments in shares of any unlisted company are not eligible to use ITR 1 irrespective of composition of their income. Likewise, all those who either have any asset outside India or have any signing authority in respect of any account outside India cannot use this form. Value of the asset or balance in the bank account is of no relevant for this purpose. So all those who have invested in foreign companies or foreign mutual funds under Liberalised Remittance Scheme (LRS) are not eligible to use ITR 1. Please note this restriction does not apply to all those who have invested in Indian mutual fund schemes who invest in foreign companies and scheme of foreign mutual funds. You can not use ITR 1 if you have any income from outside India. In case you have an agricultural income over Rs. 5,000/- you are ineligible to use this form.

In case you have brought forward losses or losses during the current year under House property head of other sources head and which you wish to carry forward also cannot also use ITR 1. All those individuals where tax has been deducted by banks or post office for cash withdrawals beyond certain specified limit are also barred from using ITR 1.

I have come across cases where retired people who are retained as consultant have used ITR 1 which in my opinion is wrong because the consultancy charges received cannot be taxed under the head “Income From Other Sources". This is because the activity of rendering consultancy is not one of a transaction and rendering of consultancy is an activity carried out in systematic manner and is in the nature of professional income and therefore has to be offered for tax under the head “Profits and Gains of Business or Profession" and for which you can either use ITR 3 or ITR 4 if you are eligible to avail the benefit of presumptive taxation. This will be the situation even if you do not claim any expenditure against your consultancy income.

  1. Salary slip
  2. If you have salary income, you will need Form 16 issued by your employer to enter salary details.
  3. If you have earned interest on Fixed deposits or saving bank A/c. and TDS has been deducted on the same, you will need TDS certificates i.e. Form 16A issued by deductor to enter interest details.
  4. You will need Form 26AS to verify TDS on salary as well as TDS other than salary.
  5. If you are living in rented premises, then you will need rent paid receipts for calculation of HRA (in case you forgot to submit the same to your employer within time).
  6. You will need your bank passbook, fixed deposit receipts (FDRs) to calculate amount of interest income.
  7. If you have received rent from your rented house property, then you will need rental receipts to calculate rental income.
  8. You will also need documents or proof for claiming tax saving deductions U/s. 80C, 80D, 80G, 80GG such as life & health insurance receipts, donation receipts, rent receipts, receipts for tuition fees etc, if the same were not considered in your Form 16.
  1. Transport allowance for specially-abled people
  2. Conveyance allowance for expenditure incurred for traveling to work.
  3. Investment in Notified Pension Scheme under Section 80 CCD(2)
  4. Deduction for the employment of new employees under Section 80JJAA
  5. Depreciation u/s 32 of the Income Tax Act except for additional depreciation.
  6. Any allowance for traveling for employment or on transfer.

You may come across some tax terms while filing your tax return that you should about-
  1. Income tax ward/ circle: Income tax ward/ circle is determined on the basis of PAN and jurisdiction.
  2. Revised return: After filing your return if you notice any mistake or addition to the return, then your may file a revised return by making necessary corrections. Original return will be replaced by Revised return.
  3. Defective return: If you file a return containing any defect, then return will be treated as defective. IT department will issue a notice to correct the defect within time specified in notice.
  4. Notice number: If you are filing a return in response to any notice, you need to mention the notice number mentioned in the notice.
  5. Advance tax: Tax paid in advance i.e. before the end of financial year are referred as Advance tax. Advance tax is required to be paid in quarterly instalments if total tax liability exceeds Rs. 10,000/-.
  6. Self-assessment tax: After filling all the income & deduction details in your return and considering all TDS and advance tax payments, if tax is payable, then the same shall be paid before filing of return. This tax is computed by taxpayer himself hence it is referred as Self-assessment tax.
  7. TCS (Tax collected at source): At the time of sale of some specific goods, tax is collected by purchase of goods. This tax is known as TCS (Tax collected at source). You can claim this TCS in your return on the basis of Form 27D issued by purchase i.e. tax collector.
Why Confused about your ITR-1 tax returns? Let the CVBAY Account experts do it for you. Maximize your tax savings with our premium Expert assisted income tax filing service for individuals.

CVBAY ACCOUNT SERVICES works round the clock, 24 hours x 7 days x 365 days. When you collaborate with us, we will deliver the desired output in real time as well as within a specified turnaround time.

If you need the Online Income Tax return filing services, GST registration and Business Income Tax Return filing, Company registration services with us then we will take care for all of your tax needs 24*7*365 Days. You can contact us at

Call us at 24 X 7 : Tel (India): +91 83410-00081
or Email us :,