Rule 12 - Return of income

Income-tax Rules, 1962

Following categories of persons are not eligible to file Form SAHAJ (ITR-1)

A person who:

(I) has assets (including financial interest in any entity) located outside India;

(IA) has signing authority in any account located outside India;

(IB) has income from any source outside India;

(IC) has income to be apportioned in accordance with provisions of section 5A;

(ID) has claimed deduction under section 57, other than deduction claimed under clause (iia) thereof;

(IE) is a director in any company;

(IF) has held any unlisted equity share at any time during the previous year;

(IG) is assessable for the whole or any part of the income on which tax has been deducted at source in the hands of a person other than the assesse;

(II) has claimed any relief of tax under sections 90 or 90A or deduction of tax under section 91;

(III) has agricultural income, exceeding five thousand rupees;

(IV) has total income, exceeding fifty lakh rupees;

(V) has income taxable under section 115BBDA; or

(VI) has income of the nature referred to in section 115BBE;

See: Rule 12 - Return of income as amended

Therefore, the following persons, excluding the persons listed above, shall be eligible to file Sahaj Form

In the case of a person being an individual who is a resident other than not ordinarily resident and where the total income includes income chargeable to income tax, under the head,-

(i) "Salaries" or income in the nature of family pension as defined in the Explanation to clause (iia) of section 57; or

(ii) "Income from house property", where assessee does not own more than one house property and does not have any brought forward loss or loss to be carried forward under the head; or

(iii) "Income from other sources", except winnings from lottery or income from race horses and does not have any loss under the head

ITR form eligibility limited to resident individuals with salary, single house and non lottery other income; foreign interests excluded. Form SAHAJ (ITR 1) is available only to resident individuals whose taxable income arises solely from salaries or family pension, income from a single house property without brought forward or current losses under that head, and other sources excluding lottery winnings and race horse income, provided they do not fall into disqualifying categories such as foreign assets, foreign income or signing authority, income requiring apportionment, directorships, unlisted equity shareholdings, tax assessed on income with TDS in another person's hands, claims for double taxation relief, specified deductive claims, agricultural income above a small threshold, or total income above the prescribed upper limit.