Itr-1 Return

The Income Tax Department has classified taxpayers into groups to ease tax compliance, this classification is done on the basis of income and sources of income. ITR 1 return filing in India is for people with income up to Rs 50 lakh.

Who can file ITR 1 Return?

ITR 1 Return is for individuals whose income is up to Rs 50 lakhs. Individuals earning income from the following sources can file ITR 1 Return:

• Salaried Person- Salary refers to the remuneration or consideration that a person receives for the service which he is to render under the contract of employment. The Income Tax Act, 1961 includes the following under salary income:
• Wages
• Pension
• Annuity
• Advance salary paid
• Leave Encashment
• Fee, prerequisites, commission, profits besides or in lieu id the salary or wages
• Transferred balance in recognized provident fund
• Annual accretion to the recognized provident fund
• Central Government contribution or employer's contribution to the pension account is referred to in section 80CCD of the Income Tax Act.
• One house property: If the taxpayer is the owner of a property from which he or she is earning rent, the rent proceeds become taxable.
• However, if the taxpayer is using the property owner from which he is earning rent, then the rental income becomes taxable. However, if the taxpayer is using the property for carrying on any business or profession, it will be taxable under the head "Income from business or profession".
• Other sources (not including income earned from winning the lottery or racehorses)
• Agricultural income (Upto to Rs. 5000)