ITR-1 (Sahaj) — who can use it, and what throws you off it
ITR-1 is the shortest return form and the one most salaried people should be filing. It covers salary or pension, one house property, and other income such as bank interest, where total income stays within ₹50 lakh. The useful question is not who it is for — most people can guess that — but what quietly disqualifies you from it, because the answer is a longer list than anyone expects.
At a glance
- Who it is for
- Resident individuals only
- Income ceiling
- ₹50,00,000 total income
- House property
- One only
- Capital gains
- Not permitted
- Business income
- Not permitted
- Our fee
- ₹499 including GST
What ITR-1 covers
Salary or pension from any number of employers. Income from one house property, whether you live in it or let it out. Other income such as savings and fixed deposit interest, family pension, or interest on a tax refund. Agricultural income up to ₹5,000.
That is the whole of it. The form is short because its scope is narrow, and the narrowness is the point — a return that fits ITR-1 is a return that can be checked quickly and filed the same day.
What throws you off ITR-1
Any capital gain at all, however small. Sell ₹5,000 of a mutual fund and you move to ITR-2. A second house property, even an inherited share of one. Total income above ₹50 lakh. Being a director in a company, or holding unlisted equity shares at any point in the year.
Also: any foreign income, any foreign asset, or signing authority over a foreign bank account. Income from more than one employer is fine; income from a business or profession is not. And if you are not resident in India for the year, ITR-1 is closed to you outright.
Being pushed off ITR-1 is not a problem in itself — ITR-2 exists precisely for this. What causes trouble is filing ITR-1 when you were not entitled to, because the return is then defective under section 139(9) and you get a notice asking you to file it again properly.
One small mutual fund redemption moves you to ITR-2, and the portal will not stop you
The e-filing portal does not check whether you were eligible for the form you chose. If you redeemed even a small amount of an equity mutual fund during the year — a SIP you stopped, a rebalancing, a redemption to fund something — you have a capital gain or loss, and ITR-1 is no longer available to you. The transaction will appear in your AIS whether you report it or not. People file ITR-1 out of habit, the AIS shows a securities transaction the return does not mention, and a mismatch notice follows. Checking AIS before choosing the form takes two minutes and prevents the whole sequence.
Questions we get asked
I have two Form 16s. Can I still file ITR-1?
Yes. Multiple employers are fine on ITR-1. What you must do is add both together — each employer gave you the full exemption limit separately when calculating TDS, so your total TDS is usually short.
I earn ₹52 lakh. Which form?
ITR-2, because ITR-1 is capped at ₹50 lakh of total income. Note that total income is after deductions, so a gross salary slightly above ₹50 lakh may still qualify.
Can an NRI file ITR-1?
No. ITR-1 is for residents only. A non-resident with Indian income files ITR-2, or ITR-3 where there is business income.
Want us to handle it?
Flat ₹499 including GST for ITR-1 and ITR-4. Everything else quoted before any work starts, with no charge for the quote.