This user manual covers the process for filing Income Tax Returns through the online mode, providing essential information about ITR-1 (Sahaj), ITR-2, ITR-3, and ITR-4 (Sugam).
ITR-1 (Sahaj)
The pre-filling and filing of ITR-1 service is available to registered users on the e-Filing portal. This service enables individual taxpayers to file ITR-1 either online through the e-Filing portal or by accessing the offline excel and HTML utility. This user manual covers the process for filing ITR-1 through the **online mode**.
**Registered user** on the e-Filing portal with valid user ID and password.
Status of **PAN is active**.
Residential Status of person is **Resident**.
**PAN and Aadhaar are linked** (recommended).
Please Note: If your PAN is not linked with your Aadhaar, your PAN is made **inoperative**. In that case, you will get a ticker message "Your PAN is made inoperative as it is not linked with Aadhaar. Some of the access may be limited. You can link and make your PAN operative after payment u/s 234H."
Pre-validate at least one **bank account for issue of refund**.
Valid **mobile number** linked with Aadhaar / e-Filing portal / your bank (for e-Verification).
Download the offline utility or avail a third-party software (If using offline mode).
3.1 Purpose
Income Tax Return is the form in which a taxpayer files information about income and tax thereon to the Income Tax Department on an annual basis. Form ITR-1 can be used by **Resident Individuals** fulfilling criteria as per 3.2 below for filing their Income Tax Return in old or new tax regime.
3.2 Who can use ITR-1?
ITR-1 can be filed by a **Resident Individual** whose:
Total income does not exceed **₹ 50 lakh** during the FY.
Income is from **salary, one house property, family pension income, agricultural income (up to ₹5000/-)**.
**Long-term capital gain u/s 112A up to Rs.1.25 lakhs** and other sources, which include:
Interest from Savings Accounts
Interest from Deposits (Bank / Post Office / Cooperative Society)
Interest from Income Tax Refund
Interest received on Enhanced Compensation
Any other Interest Income
Family Pension
Income of Spouse (other than those covered under Portuguese Civil Code) or Minor is clubbed (only if the source of income is within the specified limits as mentioned above).
ITR-1 cannot be filed by an individual who:
is a **Resident Not Ordinarily Resident (RNOR)**, and **Non-Resident Indian (NRI)**.
has total income exceeding **₹ 50 lakh**.
has agricultural income exceeding **₹ 5000/-**.
has income from **lottery, racehorses, legal gambling** etc.
has **taxable capital gains** (short term and long term).
has **Long-term capital gain u/s 112A exceeding Rs.1.25 lakhs**.
has invested in **unlisted equity shares**.
has income from **business or profession**.
is a **Director in a company**.
has tax deduction under **section 194N** of Income Tax Act.
has deferred income tax on ESOP received from employer being an eligible start-up.
owns and has income from **more than one house property**.
is not covered under the eligibility conditions for ITR-1.
ITR-1 has five pre-filled sections that need to be validated/edited before submitting it, and one summary section which is required to be reviewed for tax computation. The sections are as follows:
Personal Information
Gross Total Income
Total Deductions
Tax Paid
Total Tax Liability
Note: ITR-1 cannot be used by a person who:
is a **Director in a company**.
has held any **unlisted equity shares** at any time during the previous year.
has any asset (including financial interest in any entity) **located outside India**.
has **signing authority in any account located outside India**.
has income from any **source outside India**.
is a person in whose case tax has been deducted **u/s 194N**.
is a person in whose case payment or deduction of tax has been **deferred on ESOP**.
has any **brought forward loss or loss to be carried forward** under any head of income.
has total income exceeding **Rs. 50 lakhs**.
Other Income Tax Return (ITR) Forms
This return is applicable for **Individual** and **Hindu Undivided Family (HUF)** **not having Income under the head Profits and Gains of Business or Profession**.
This return is applicable for **Individual** and **Hindu Undivided Family (HUF) having Income under the head Profits and Gains of Business or Profession**.
This return is applicable for an **Individual** or **Hindu Undivided Family (HUF)**, who is Resident other than Not Ordinarily Resident or a **Firm (other than LLP)** which is a Resident having Total Income under Business or Profession which is computed on a **presumptive basis (u/s 44AD / 44ADA / 44AE)** and income from any of the following sources:
Salary / Pension
One House Property
Other sources (Interest, Family Pension, Dividend etc.)
Agricultural Income up to **₹ 5,000**
Long Term Capital u/s 112A upto **₹ 1,25,000**
Note 1: ITR-4 cannot be used by a person who:
is a **Director in a Company**, or
has held any **unlisted equity shares** at any time during the previous year, or
has any asset (including financial interest in any entity) **located outside India**, or
has **signing authority in any account located outside India**, or
has income from any **source outside India**,
is a person in whose case payment or deduction of tax has been **deferred on ESOP**.
has any **brought forward loss or loss to be carried forward** under any head of income.
has total income exceeding **Rs. 50 lakhs**.
has income from **short term capital gains**.
has income from **long-term capital gain other than u/s 112A upto Rs.1.25 lakhs**.
Note 2: ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business or Profession on presumptive basis u/s 44AD, 44ADA or 44AE.