Form ITR-1 (also referred to as SAHAJ popularly) has to be filed by individuals who have an income of not more than INR 50 lakhs from the following sources in a financial year:

  • Salary/Pension: Salary refers to the remuneration/consideration that a person receives for the services that he/she renders under a contract of employment. For an amount to be considered salary, the existence of employer-employee relationship is must. As per the Income Tax Act, 1961, the following are included in salary income:

    • Wages

    • Pension

    • Annuity

    • Advance Salary Paid

    • Leave Encashment

    • Fee, Perquisites, Commission, Profits in addition to or in lieu of Salary or wages

    • Transferred balance in recognized Provident Fund

    • Annual accretion to the recognized Provident Fund

    • Central Government Contribution or Employer Contribution to Pension account as mentioned in Section 80CCD of the Income Tax Act, 1961.

  • One House Property (does not include those cases in which income has been brough forward from previous years): If the taxpayer I the owner of a property from which he/she is earning rent, the rent proceeds become taxable. However, if the taxpayer is using the property for running some business or profession, the same would be taxable under the heading “Income from Business or Profession.”

  • Other sources (does not include income earned from winning lottery or race horses)

  • Agricultural Income (Up to INR 5,000)