Income tax return: who can use RTI 1, who can’t?
ITR Form 1, commonly known as Sahaj, should be used by most taxpayers. so I decided to write this post to help people understand who can and who can’t use ITR 1
Ai can submit ITR 1
First, let’s discuss who can use this RTI form, then clarify who cannot use RTI 1 even though they are eligible to use this form. RTI 1 can only be used by an individual taxpayer who is a resident of India for tax purposes. Thus, not all non-residents and non-residents under tax law can use this form. Likewise, any person whose taxable income does not exceed 50,000 can use the RTI 1 provided that they have no income under the headings “Capital gain” and “Profit and income from a business or business. a profession “. So, as long as you have income from one of these three sources ie “wages”, “interior property income” and “other sources”, you can use ITR 1. However, you cannot use ITR 1 in the following cases, even if your income includes the following three sources:
First of all, all of you who have salary income cannot use ITR 1 if your deduction is The prior value tax of the Employee Stock Option Program (ESOP) has been deferred because your employer is a newcomer to income tax. Law. Second, for those earning under the name “Home Ownership Income,” only ITR 1 can be used and only if they only own one home property. Personal ownership doesn’t have to be self-contained and can even be rented if you’re in a rental or employer-provided home. And thirdly, for those with income under “Earnings from other sources”, you cannot use ITR 1 if your source of income under this title includes income from horse maintenance, bonuses or income taxed at a fixed rate such as unexplained investments or unexplained expenses is taxed at 60%.
You cannot use RTI 1 even if your income does not include income of the above attribute, you claim any expenses on this income. So, if you earn income from moon-watching, you can only use that income if you don’t intend to deduct expenses from your moon-gazing income. An exception is made for family pension recipients when a standard deduction is available from the family pension up to 1/3 of the maximum received pension up to Rs 15,000/ and those can use ITR 1.
In the event that someone else’s income is included in your income, you can only use this form if the nature of the distributed income falls into one of the three income groups listed above and is not fall under any of the exceptions discussed above.
Who cannot use ITR 1
All natural persons who serve as directors in a company or who have an investment in the shares of an unlisted company are not eligible to use RTI 1, regardless of their income composition. Likewise, anyone who has assets outside of India or has the power to sign an account outside of India cannot use this form. The value of the property or the bank account balance is not relevant for this purpose. Therefore, not everyone who has invested in foreign companies or foreign mutual funds under the Liberalized Transfer System (LRS) is not eligible to use RTI 1. Please note that this restriction does not apply to all those who have invested in Indian mutual funds that invest in foreign companies and foreign mutual funds. You cannot use ITR 1 if you have income outside of India. If you have farm income over Rs 5,000/ you are not eligible to use this form.
In the event that you have carried forward your current year losses or losses under investor ownership from other sources and you also want to carry forward, you also cannot use ITR 1 All Individuals Deducted Taxes banks or post offices for cash withdrawals beyond a certain regulatory limit are also prohibited from using ITR 1.
I have had cases where retirees retained as consultants used RTI 1, which in my opinion is incorrect as the consulting fees received cannot be taxed under the title “ Income from other sources”. This is because the activity of providing advice is not a transaction and the provision of advice is an activity carried out systematically and of the nature of professional income and therefore subject to tax under section ” Profits and gains of a business or an occupation” and you can use RTI 3 or RTI 4 if you qualify to benefit from flat rate taxation. This will happen even if you don’t claim any expenses from your consulting earnings.
I’m sure the discussion above will help you decide if you can use RTI 1 and help you avoid the mistake of using the wrong pattern.
