Salaried Taxpayers Who Cannot File ITR 1 For FY 18-19

Filing the tax return in the correct ITR form notified by the department is the first step and this year there have been improved some new provisions to eliminate tax evasion as well as other malpractices in the system which you need to keep note of in order that your filed return for the FY 2018-19 (AY 2019-20) is not considered defective.

Primarily ITR 1 is for salaried individuals with salary not exceeding Rs. 50 lakh and income sources include salary, from one house property and other sources including interest income etc.

There are however situations when salaried taxpayer cannot file his or her income tax return in ITR 1:

Know the cases:

1. If your total income is over Rs. 50 lakh in a year2
2. In case the income source is more than one house property
3. If you hold directorship in a company
4. If your income from agriculture is over Rs. 5000 in a year
5. If you own equity in any unlisted shares
6. If you wish to claim deduction against income from other sources such as from activity of owning and maintaining race horses, or winning a lottery
7. If any taxpayer has income from source i.e. outside India i.e. has assets with interest in any entity outside of India or signing authority in any account that is located outside of India.
8. If you have short or long term capital gains made during the financial year
9. If you are in receipt of dividend income which is taxed at special rates.
10. If you have claimed tax relief under DTAA
11. If you have earnings from business or profession
12. Residents not ordinarily resident and non-residents cannot file returns using ITR -1.

So, by and large, individuals who are not eligible to file return in their ITR 1, can do so in either ITR 2 or ITR 3, provided they fulfill the eligible criterion for it.

After arriving at the form which is correct for you to file your ITR, ensure that you file the return by July 31, 2019. As else, you will be required to pay the late filing fee.

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