Income Tax Filing Rules: Who cannot file ITR Form-1 and what are the problems if wrong Form filled, know everything

Income Tax Filing Rules: The last date for filing income tax is drawing near and if you have not started preparing for it then you should do so as soon as possible. The traffic on the portal increases as the last date approaches.

Income Tax Filing: The month of July has started and 31 July 2023 is the last date for filing income tax return. That is, you have less than a month left for ITR filing. One of the most popular forms for income tax filing is ITR Form-1 which is filled by ordinary salaried people. According to the Income Tax Department, ITR Form-1 is also known as Sahaj Form.

ITR Form-1 is for these people including employed

ITR Form-1 can be filed on behalf of an ordinary taxpayer in India. This form is for those whose source of income is salary, dividend, bank interest or only one house property and annual income from agriculture does not exceed Rs.5000. Taxpayers with annual income up to Rs 50 lakh can fill this form.

Who cannot fill ITR Form- 1

• If the taxable income of the taxpayer is more than Rs 50 lakh, then ITR Form-1 cannot be filled by him. Hence NRI cannot file ITR-1.
• If a person earns income from mutual funds, gold, equity shares, house property and other sources then he cannot fill ITR-1.
• Further, if a person has gained from speculative property or services such as horse races, lotteries, legalized gambling or others, they are also not eligible to file ITR-1.
• If a person has income from more than one house property, he cannot file ITR-1. Apart from this, NRI or Non-Resident of this country is also ineligible to file ITR-1.
• Also, if you have been charged TDS u/s 194N while withdrawing cash from the bank, you will also be ineligible to use ITR-1 form. Moreover, Hindu Undivided Families (HUFs) also cannot file ITR-1.

Disadvantages of filing ITR-1 despite not being eligible

If someone files ITR Form-1 by mistake, then a notice can also come from the Income Tax Department. Revised ITR has to be filed within 15 days from the date of notice. If this is not done, this ITR filled by you will be considered invalid.