Who can use SAHAJ (ITR-1) and who cannot use SAHAJ? A.Y. 13-14

 Scope of ITR-1 (Sahaj) form has been reduced in AY 2013-14 significantly. In comparison to last year,two main points has been added under restriction ,first persons is that assessees who have negative income under head “Income from other sources” can not use this form and second main point is that if assessee’s exempted income is more than 5000/ then that assessee can not use Sahaj (ITR-1) .Most of the person using Sahaj form last year may have more than 5000/- exempted income ,so now they can not use this form?

For example :

  • Salaried person getting transport allowance which is exempted 800 per month (more than 5000) can not use ITR-1
  • Salaried person getting HRA exemption (>5000) are also not eligible.
  • Other allowances which are exempted also not eligible.
  • If you have agriculture income >5000 Not eligible.
  • if you have received maturity amount of insurance ,exempted at the time of receipt > 5000 also not eligible. 

and so many other instances where exempted income is more than 5000/- then ITR-1 can not be used.so basically 70-80 % persons who have used ITR-1 earlier technically out from its preview.Details is given below.

Who can use this Return Form

This Return Form is to be used by an individual whose total income for the assessment year 2013-14 includes:-

(a) Income from Salary/ Pension; or

(b) Income from One House Property (excluding cases where loss is brought forward from previous years); or

(c) Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

NOTE Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.

Who cannot use this Return Form

This Return Form should not be used by an individual whose total income for the assessment year 2013-14 includes:-

(a) Income from more than one house property; or

(b) Income from Winnings from lottery or income from Race horses; or

(c) Income under the head “Capital Gains” E.g., short-term capital gains or long-term capital gains from sale of house, plot, shares etc.; or

(d) Income from agriculture/exempt income in excess of Rs. 5,000; or

(e) Income from Business or Profession; or

(f) Loss under the head ‘Income from other sources’; or

(g) Person claiming relief of foreign tax paid under section 90, 90A or 91; or

(h) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.


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