Who is not eligible to file ITR-1 for AY 2024-25?

For the Assessment Year (AY) 2024-25, certain individuals are not eligible to file Income Tax Return (ITR) form ITR-1, also known as Sahaj. Here is a list of categories and conditions under which individuals cannot use this form:

Ineligibility Criteria for Filing ITR-1

1. Resident Not Ordinarily Resident (RNOR) and Non-Resident Indians (NRIs): Individuals with RNOR or NRI status are not eligible to file ITR-1.
2. Income Threshold: Individuals with a total income exceeding ₹50 lakh in the Financial Year (FY) cannot use ITR-1.
3. Agricultural Income: If the agricultural income exceeds ₹5,000, the individual cannot file ITR-1.
4. Specific Income Types:
   • Income from lotteries, racehorses, legal gambling, etc.
   • Taxable capital gains, whether short-term or long-term.
   • Income from unlisted equity shares.
   • Income from a business or profession.
5. Company Directors: Individuals who hold the position of Director in a company cannot file ITR-1.
6. Special Tax Provisions:
   • Tax deductions under section 194N of the Income Tax Act.
   • Deferred income tax on Employee Stock Option Plans (ESOPs) from eligible start-ups.
7. Multiple House Properties: Individuals who own more than one house property and have income from them are not eligible to file ITR-1.

Also Read: What documents do I need to file ITR-1?

Conclusion

ITR-1 is designed for simple tax situations and is not suitable for individuals with more complex financial profiles or specific tax conditions. If any of the above criteria apply, alternative ITR forms must be used to ensure accurate tax reporting and compliance.