ITR Filing 2024: Who Is Not Eligible To File ITR-1 For AY 2024-25? Check Details

ITR-1 (Sahaj) is the most commonly used form for filing Income Tax Returns by taxpayers whose annual total income does not exceed Rs 50 lakh during the Financial Year.

However, certain individuals are not eligible to file ITR-1 for the Assessment Year 2024-25. Here are the details:

Individuals Not Eligible to File ITR-1

1. Resident Not Ordinarily Resident (RNOR) and Non-Resident Indian (NRI): Individuals who fall under the RNOR or NRI categories cannot file ITR-1.
2. Income Exceeding Rs 50 Lakh: Those with a total income exceeding Rs 50 lakh are not eligible.
3. Agricultural Income Exceeding Rs 5000: If your agricultural income is more than Rs 5000, you cannot use ITR-1.
4. Income from Lottery, Racehorses, Legal Gambling: Individuals earning income from these sources are excluded.
5. Taxable Capital Gains: Those with short-term or long-term capital gains cannot file ITR-1.
6. Investment in Unlisted Equity Shares: If you have invested in unlisted equity shares, you are ineligible.
7. Income from Business or Profession: Income from any business or profession disqualifies you from using ITR-1.
8. Director in a Company: Directors of companies are not permitted to file ITR-1.
9. Tax Deduction under Section 194N: Individuals with tax deductions under section 194N are excluded.
10. Deferred Income Tax on ESOPs from Eligible Start-ups: If you have deferred income tax on ESOPs from an eligible start-up, you cannot file ITR-1.
11. Income from More Than One House Property: Those owning and earning income from multiple house properties are ineligible.
12. Other Ineligibility Conditions: Any other conditions not covered under the eligibility criteria for ITR-1.

Types of Income Excluded from ITR-1

Certain types of income cannot be included in ITR-1:

1. Profits and Gains from Business and Professions: Income from business or professional activities is excluded.
2. Capital Gains: All types of capital gains are not part of ITR-1.
3. Income from More Than One House Property: Earnings from multiple house properties cannot be included.
4. Income from Other Sources (Specific Types):

Winnings from lottery

Activities related to owning and maintaining racehorses

Income taxable at special rates under sections 115BBDA or 115BBE

5. Income Apportioned under Section 5A: Income to be divided according to provisions of section 5A is not eligible.

Filing Period and Availability

The Central Board of Direct Taxes (CBDT) has made ITR-1, ITR-2, and ITR-4 available on the e-filing portal from April 1, 2024, onwards, for taxpayers to file their returns for the Assessment Year 2024-25 (Financial Year 2023-24). Companies can file their returns through ITR-6 from the same date.